ORMAT TECHNOLOGIES, INC.

Previous wording

•Electricity Segment. In the Electricity segment, we develop, build, own and operate geothermal, solar PV and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world and sell the electricity they generate. In the three months ended March 31, 2025, we derived 74.5% of our Electricity segment revenues from our operations in the United States and 25.5% from the rest of the world.

Current wording

•Electricity Segment. In the Electricity segment, we develop, build, own and operate geothermal, solar PV and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world and sell the electricity they generate. In the three and six months ended June 30, 2025, we derived 69.7% and 72.2%, respectively, of our Electricity segment revenues from our operations in the United States, and 30.3% and 27.8%, respectively, from the rest of the world.

Previous wording

•Product Segment. In the Product segment, we design, manufacture and sell equipment for geothermal and recovered energy-based electricity generation and provide services relating to the engineering, procurement and construction of geothermal and recovered energy-based power plants. In the three months ended March 31, 2025, we derived 10.2% of our Product segment revenues from our operations in the United States and 89.8% from the rest of the world.

Current wording

•Product Segment. In the Product segment, we design, manufacture and sell equipment for geothermal and recovered energy-based electricity generation and provide services relating to the engineering, procurement and construction of geothermal and recovered energy-based power plants. In the three and six months ended June 30, 2025, we derived 5.9% and 7.4%, respectively, of our Product segment revenues from our operations in the United States and 94.1% and 92.6%, respectively, from the rest of the world.

Previous wording

•Energy Storage Segment. In the Energy Storage segment, we own and operate grid connected In Front of the Meter BESS, which provide capacity, energy and/or ancillary services directly to the electric grid. In the three months ended March 31, 2025, we derived all of our Energy Storage segment revenues from our operations in the United States.

Current wording

•Energy Storage Segment. In the Energy Storage segment, we own and operate grid connected In Front of the Meter BESS, which provide capacity, energy and/or ancillary services directly to the electric grid. In the three and six months ended June 30, 2025, we derived all of our Energy Storage segment revenues from our operations in the United States.

Previous wording

Our current generating portfolio of approximately 1.4 GW includes geothermal power plants in the United States, Kenya, Guatemala, Honduras, Guadeloupe and Indonesia, as well as energy storage facilities, recovered energy generation and Solar PV power plants in the United States.

Current wording

Our current generating portfolio of approximately 1.6 GW includes geothermal power plants in the United States, Kenya, Guatemala, Honduras, Guadeloupe and Indonesia, as well as energy storage facilities, recovered energy generation and Solar PV power plants in the United States.

Previous wording

•In May 2025, we signed an agreement to acquire the Blue Mountain geothermal power plant from Cyrq Energy. The 20MW facility, located in Humboldt County, NV, will be purchased for $88 million, subject to standard working capital adjustments. The power plant, built using Ormat technology, features an existing 51MW interconnection capacity and a PPA with NV Energy (“NVE”) that expires at the end of 2029. Following the acquisition, Ormat plans to upgrade the power plant and increase its capacity by 3.5MW. Additionally, subject to permit and PPA approval, Ormat intends to add a 13MW solar facility to support the plant's auxiliaries. The acquisition is anticipated to close towards the end of the second quarter of 2025.

Current wording

•In June 2025, we closed the acquisition of the Blue Mountain geothermal power plant from Cyrq Energy. The 20MW facility, located in Humboldt County, NV, was purchased for $88.7 million for 100% of the equity interest in the power plant. The power plant, built using Ormat technology, features an existing 51MW interconnection capacity and a PPA with NV Energy (“NVE”) that expires at the end of 2029. Ormat plans to upgrade the power plant and increase its capacity by 3.5MW. Additionally, subject to permit and PPA approval, Ormat intends to add a 13MW solar facility to support the plant's auxiliaries.

Previous wording

•During and shortly after the first quarter of 2025, the United States introduced actions to increase import tariffs at various rates, including on certain products imported from almost all countries and individualized higher tariffs on certain other countries, such as China. Other countries have announced retaliatory actions or plans for retaliatory actions in response. Some of these tariff announcements have since been followed by announcements of limited exemptions and temporary pauses. Specifically, on April 10, 2025, the United States implemented a 90-day pause on the country-specific tariffs for all countries except China, while maintaining a 10% baseline tariff across all impacted countries. As of the date of this quarterly report, discussions remain ongoing regarding U.S. trade restrictions and tariffs on imports and retaliatory tariffs from numerous countries, including China. Given these events, there continues to be significant uncertainty about the future relationship between the United States and other countries regarding such trade policies, treaties and tariffs, and so we can make no assurance about the eventual impact on our operating results and business. Our Energy Storage segment growth relies on imported batteries from China, and the growth of projects in the United States in the Electricity Segment require raw materials and equipment from various countries. We are working to accelerate imports into the United States as certain tariffs are paused, and expedited Chinese imports prior to when the excess tariff was in place.

Current wording

•During 2025, the United States introduced actions to increase import tariffs at various rates, including on certain products imported from almost all countries and individualized higher tariffs on certain other countries, such as China. Other countries have announced retaliatory actions or plans for retaliatory actions in response. Some of these tariff announcements were followed by limited exemptions and temporary pauses. As of the date of this quarterly report, discussions remain ongoing regarding U.S. trade restrictions and tariffs on imports and retaliatory tariffs from numerous countries, and there continues to be significant uncertainty about the future relationship between the United States and other countries regarding such trade policies, treaties, and tariffs. Accordingly, we can make no assurance about the eventual impact on our operating results and business. Our Energy Storage segment growth relies on imported batteries from China, and the growth of projects in the United States in the Electricity segment requires raw materials and equipment from various countries.

Previous wording

While there is limited impact on short-term growth in both the Energy Storage and Electricity segments, a significant increase in tariffs may lead to a slowdown in the growth of our Energy Storage segment in the U.S. These increases, combined with the uncertainty around the continuation of the Investment Tax Credit (ITC) (as discussed in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Government Grants and Tax Benefits” in our 2024 Annual Report), could affect our long-term growth, specifically in our Energy Storage segment in the U.S. and, to a lesser extent, across our business.

Current wording

While there has so far been only limited impact on short-term growth in both of these segments, a significant increase in tariffs may lead to a slowdown in the growth of our Energy Storage segment in the United States if we are unable to pass the price increases from tariffs through to our customers. This could affect our long-term growth targets, specifically in our Energy Storage segment in the United States, and, to a lesser extent, across our business. Additionally, increases in the cost of raw materials and equipment resulting from tariffs could increase our capital expenditures for projects built in the United States under our Electricity segment. We have worked to accelerate imports into the United States and have expedited Chinese imports prior to the potential reinstatement of higher tariffs. However, we can make no assurance that we will succeed in avoiding any of these negative consequences. In addition, current uncertainties about tariffs and their effects on trading relationships may contribute to inflation in the markets in which we operate. For more information, see Part II, Item 1A “Risk Factors”

Previous wording

For the three months ended March 31, 2025, 92.7% of our Electricity segment revenues were from PPAs with fixed energy rates, which are not affected by fluctuations in energy commodity prices. We have a variable price PPA in Hawaii, which provides for payments based on the local utilities’ avoided cost, which is the incremental cost that the power purchaser avoids by not having to generate such electrical energy itself or purchase it from others. In Hawaii, the prices paid for electricity pursuant to the 25 MW PPA for the Puna Complex in Hawaii change primarily as a result of variations in the price of oil as well as other commodities. In 2024, the HPUC approved a new PPA related to Puna with fixed prices, increased capacity and an extension of the term until 2052.

Current wording

For the six months ended June 30, 2025, 94.0% of our Electricity segment revenues were derived from PPAs with fixed energy rates, which are not affected by fluctuations in energy commodity prices. We have a variable price PPA in Hawaii, which provides for payments based on the local utilities’ avoided cost, which is the incremental cost that the power purchaser avoids by not having to generate such electrical energy itself or purchase it from others. In Hawaii, the prices paid for electricity pursuant to the 25MW PPA for the Puna Complex in Hawaii change primarily as a result of variations in the price of oil, as well as other commodities. In 2024, the HPUC approved a new PPA related to Puna with fixed prices, increased capacity and an extension of the term until 2052.

Previous wording

In the three months ended March 31, 2025 and 2024, 32.4% and 31.8% of our total revenues, respectively, were derived from foreign locations. Our foreign operations had higher Electricity gross margins than our U.S. operations in each of those periods. A substantial portion of Electricity segment foreign revenues came from Kenya and to a lesser extent, from Honduras, Guadeloupe and Guatemala. Our operations in Kenya contributed disproportionately to gross profit and net income. The contribution to combined pre-tax income of our domestic and foreign operations within our Electricity segment and Product segment differ in a number of ways, as summarized below.

Current wording

In the six months ended June 30, 2025 and 2024, 38.6% and 35.3% of our total revenues, respectively, were derived from foreign locations, and 44.7% and 38.9%, for the three months ended June 30, 2025 and 2024, respectively. Our foreign operations had higher Electricity gross margins than our U.S. operations in each of those periods. A substantial portion of Electricity segment foreign revenues came from Kenya and to a lesser extent, from Honduras, Guadeloupe and Guatemala. Our operations in Kenya contributed disproportionately to gross profit and net income. The contribution to combined pre-tax income of our domestic and foreign operations within our Electricity segment and Product segment differ in a number of ways, as summarized below.

Previous wording

Electricity Segment. Our Electricity segment domestic revenues were approximately 74.5% and 75.2% of our total Electricity segment revenues for the three months ended March 31, 2025 and 2024, respectively. Our Electricity segment foreign revenues were approximately 25.5% and 24.8% of our total Electricity segment revenues for the three months ended March 31, 2025 and 2024, respectively. However, domestic operations have higher costs of revenues and expenses than our foreign operations. Our foreign power plants are located in lower-cost regions, like Kenya, Guatemala, Honduras and Guadeloupe, which favorably impact payroll, maintenance expenses and other items. Our power plants in foreign locations are also newer than most of our domestic power plants and therefore tend to have lower maintenance costs and higher availability factors than our domestic power plants. Consequently, in the three months ended March 31, 2025 and 2024, our foreign operations of the segment accounted for 34.8% and 33.5% of our total gross profits, 53.8% and 51.0% of our net income (assuming the majority of corporate operating expenses and financing are recorded under our domestic jurisdiction) and 26.5% and 29.3% of our EBITDA, respectively.

Current wording

Electricity Segment. Our Electricity segment domestic revenues were approximately 72.2% and 73.7% of our total Electricity segment revenues for the six months ended June 30, 2025 and 2024, respectively, and 69.7% and 72.0%, for the three months ended June 30, 2025 and 2024, respectively. Our Electricity segment foreign revenues were approximately 27.8% and 26.3% of our total Electricity segment revenues for the six months ended June 30, 2025 and 2024, respectively and 30.3% and 28.0%, for the three months ended June 30, 2025 and 2024, respectively. However, domestic operations have higher costs of revenues and expenses than our foreign operations. Our foreign power plants are located in lower-cost regions, like Kenya, Guatemala, and Honduras, which favorably impact payroll, maintenance expenses and other items. Our power plants in those foreign locations are also newer than most of our domestic power plants and therefore tend to have lower maintenance costs and higher availability factors than our domestic power plants. Consequently, in the six months ended June 30, 2025 and 2024, our foreign operations of the segment accounted for 40.1% and 36.9%, respectively, of our total gross profits, 70.5% and 74.3%, respectively, of our net income (assuming the majority of corporate operating expenses and financing are recorded under our domestic jurisdiction), and 28.6% and 31.0%, respectively, of our EBITDA.

Previous wording

Product Segment. Our Product segment foreign revenues were approximately 89.8% and 96.5% of our total Product segment revenues for the three months ended March 31, 2025 and 2024, respectively.

Current wording

Product Segment. Our Product segment foreign revenues were approximately 92.6% and 96.0% of our total Product segment revenues for the six months ended June 30, 2025 and 2024, respectively, and 94.1% and 95.7%, for the three months ended June 30, 2025 and 2024, respectively.

Previous wording

Energy Storage Segment. Our Energy Storage segment domestic revenues were 100% of our total Energy storage segment revenues for each of the three months ended March 31, 2025 and 2024.

Current wording

Energy Storage Segment. Our Energy Storage segment domestic revenues were 100% of our total Energy Storage segment revenues for each of the three and six months ended June 30, 2025 and 2024.

Previous wording

Electricity generation from some of our geothermal power plants is subject to seasonal variations. In the winter, our power plants produce more energy primarily attributable to the lower ambient temperature, which has a favorable impact on the energy component of our Electricity segment revenues as the prices under many of our contracts are fixed throughout the year with no time-of-use impact. The prices paid for electricity under the PPAs for the Mammoth Complex and the North Brawley power plant in California, the Raft River power plant in Idaho, the Neal Hot Springs power plant in Oregon and Dixie Valley power plant in Nevada are higher in the months of June through September. The higher payments payable under these PPAs in the summer months partially offset the negative impact on our revenues from lower generation in the summer attributable to a higher ambient temperature. As a result, we expect the revenues and gross profit in the winter months to be higher than the revenues and gross profit in the summer months and in general we expect the first and fourth quarters to generate higher revenues than the second and third quarters. In the Energy Storage segment pursuant to the Bottleneck tolling agreement, approximately 45% of the revenues are generated in the third quarter, and the rest is nearly even between the first, second and fourth quarters.

Current wording

Electricity generation from some of our geothermal power plants is subject to seasonal variations. In the winter, our power plants produce more energy primarily attributable to the lower ambient temperature, which has a favorable impact on the energy component of our Electricity segment revenues as the prices under many of our contracts are fixed throughout the year with no time-of-use impact. The prices paid for electricity under the PPAs for the Mammoth Complex and the North Brawley power plant in California, the Raft River power plant in Idaho, the Neal Hot Springs power plant in Oregon and the Dixie Valley power plant in Nevada are higher in the months of June through September. The higher payments payable under these PPAs in the summer months partially offset the negative impact on our revenues from lower generation in the summer attributable to a higher ambient temperature. As a result, we expect the revenues and gross profit in the winter months to be higher than the revenues and gross profit in the summer months and in general we expect the first and fourth quarters to generate higher revenues than the second and third quarters. In the Energy Storage segment pursuant to the Bottleneck tolling agreement, approximately 45% of the revenues are generated in the third quarter, and the rest is nearly even between the first, second and fourth quarters.

Previous wording

Revenues attributable to our Product segment for the three months ended March 31, 2025 were $31.8 million, compared to $24.8 million for the three months ended March 31, 2024. This increase of $6.9 million, or 27.9%, is primarily related to the progress in our projects and timing of when revenues are recognized during the period. During the three months ended March 31, 2025, Product revenues included projects primarily in Dominica and New Zealand, and during the three months ended March 31, 2024, Product revenues included projects primarily in New Zealand and Indonesia.

Current wording

Revenues attributable to our Product segment for the three months ended June 30, 2025 were $59.6 million, compared to $37.8 million for the three months ended June 30, 2024. This increase of $21.8 million, or 57.6%, is primarily related to the progress in our projects and timing of when revenues are recognized during the period. During the three months ended June 30, 2025 and 2024, Product revenues included projects primarily in New Zealand and Dominica.

Previous wording

Our total Electricity segment cost of revenues for the three months ended March 31, 2025 was 66.5% of Electricity segment revenues, compared to 61.0% for the three months ended March 31, 2024. The cost of revenues attributable to our international power plants for the three months ended March 31, 2025 was 17.2% of our total Electricity segment cost of revenues for this period compared to 18.1% for the same period in the prior year.

Current wording

Our total Electricity segment cost of revenues for the three months ended June 30, 2025 was 75.8% of Electricity segment revenues, compared to 66.5% for the three months ended June 30, 2024. The cost of revenues attributable to our international power plants for the three months ended June 30, 2025 was 18.0% of our total Electricity segment cost of revenues for this period compared to 19.1% for the same period in the prior year.

Previous wording

Total cost of revenues attributable to our Product segment for the three months ended March 31, 2025 was $24.7 million, compared to $21.2 million for the three months ended March 31, 2024, which represented a 16.7% increase. This increase is primarily attributable to the increase in Product segment revenues, as discussed above. As a percentage of total Product segment revenues, total cost of revenues attributable to our Product segment for the three months ended March 31, 2025, and 2024, was 77.7% and 85.2%, respectively, which results from the different profitability of the different projects included in each period.

Current wording

Total cost of revenues attributable to our Product segment for the three months ended June 30, 2025 was $43.1 million, compared to $32.7 million for the three months ended June 30, 2024, which represented a 32.0% increase. This increase is primarily attributable to the increase in Product segment revenues, as discussed above. As a percentage of total Product segment revenues, total cost of revenues attributable to our Product segment for the three months ended June 30, 2025, and 2024, was 72.3% and 86.3%, respectively, which results from the different profitability of the different projects included in each period.

Previous wording

Research and development expenses for the three months ended March 31, 2025 were $2.5 million, compared to $1.6 million for the three months ended March 31, 2024. The increase in research and development expenses, net is primarily related to the timing of when we allocate resources to research and development projects.

Current wording

Research and development expenses for the three months ended June 30, 2025 were $1.4 million, compared to $1.7 million for the three months ended June 30, 2024. The decrease in research and development expenses, net is primarily related to the timing of when we allocate resources to research and development projects.

Previous wording

Selling and marketing expenses for the three months ended March 31, 2025 were $4.2 million compared to $5.1 million for the three months ended March 31, 2024. Selling and marketing expenses for the three months ended March 31, 2025 and 2024 constituted 1.8% and 2.3% of total revenues, respectively.

Current wording

Selling and marketing expenses for the three months ended June 30, 2025 were $4.4 million compared to $4.2 million for the three months ended June 30, 2024. Selling and marketing expenses for the three months ended June 30, 2025 and 2024 constituted 1.9% and 2.0% of total revenues, respectively.

Previous wording

General and administrative expenses for the three months ended March 31, 2025 were $17.9 million compared to $19.5 million for the three months ended March 31, 2024. General and administrative expenses for the three months ended March 31, 2025 and 2024 constituted 7.8% and 8.7% of total revenues, respectively. The decrease in general and administrative expenses of $1.6 million is primarily attributable to the timing of when we incur services from our vendors, as well as to $1.3 million of expenses related to the Enel purchase transaction which were included in the first quarter of 2024, compared to no such related expenses in the comparable period in 2025.

Current wording

General and administrative expenses for the three months ended June 30, 2025 were $19.8 million compared to $18.0 million for the three months ended June 30, 2024. General and administrative expenses for the three months ended June 30, 2025 and 2024 constituted 8.5% and 8.5% of total revenues, respectively. The increase in general and administrative expenses of $1.8 million is primarily attributable to certain merger and acquisition expenses incurred during the three months ended June 30, 2025, including $0.6 million related to the Blue Mountain purchase transaction, as well as timing of when we incur services from our vendors.

Previous wording

Other operating income for the three months ended March 31, 2025 was $3.1 million compared to none for the three months ended March 31, 2024. Other operating income represents the non-refundable portion of the recovery of damages received from a third-party battery systems supplier as part of a settlement agreement entered into in August 2024, for which contingency conditions have been met.

Current wording

Other operating income for the three months ended June 30, 2025 was $4.3 million compared to none for the three months ended June 30, 2024. Other operating income primarily represents the non-refundable portion of the recovery of damages received from a third-party battery systems supplier as part of a settlement agreement entered into in August 2024, for which contingency conditions have been met.

Previous wording

Interest Income for the three months ended March 31, 2025 was $1.3 million, compared to $1.8 million for the three months ended March 31, 2024. Interest income is primarily related to interest earned on cash and cash equivalents held by the Company during the period. The decrease in interest income is primarily related to lower balances of cash and cash equivalents period over period.

Current wording

Interest Income for the three months ended June 30, 2025 was $1.9 million, compared to $2.6 million for the three months ended June 30, 2024. Interest income is primarily related to interest earned on cash and cash equivalents held by the Company during the period. The decrease in interest income is primarily related to lower average balances of cash and cash equivalents period over period.

Previous wording

Interest expense, net for the three months ended March 31, 2025 was $34.5 million, compared to $31.0 million for the three months ended March 31, 2024. This increase of $3.5 million was primarily attributable to interest expense relating to loan agreements entered into during or subsequent to the first quarter of 2024 such as: (i) the Mammoth Senior Secured Notes entered into in March 2024; (ii) the DEG 4 Loan entered into in April 2024; (iii) the Discount 2024 Loan and the Discount 2024 II loans entered into in May 2024 and September 2024, respectively; (iv) the Bottleneck Loan entered into in November 2024; and (v) the Mizrahi 2025 Loan entered into in February 2025. This increase was partially offset by lower interest expenses on other existing loans as a result of scheduled payments.

Current wording

Interest expense, net for the three months ended June 30, 2025 was $36.7 million, compared to $33.7 million for the three months ended June 30, 2024. This increase of $3.0 million was primarily attributable to interest expense relating to loan agreements entered into during, or subsequently to, the second quarter of 2024 such as: (i) the Discount 2024 Loan and the Discount 2024 II loans entered into in May 2024 and September 2024, respectively; (ii) the Bottleneck Loan entered into in November 2024; (iii) the issuance of the Additional 2.50% Senior Convertible Notes in July 2024; (iv) the Mizrahi 2025 Loan entered into in February 2025; (v) the Discount 2025 Loan and Hapoalim 2025 Loan entered into in March 2025; and (vi) the Discount 2025 II Loan entered into in May 2025. This increase was partially offset by lower interest expenses on other existing loans as a result of scheduled payments.

Previous wording

Derivatives and foreign currency transaction gains and losses for the three months ended March 31, 2025 was a gain of $2.1 million, compared to a loss of $1.6 million for the three months ended March 31, 2024. Derivatives and foreign currency transaction gains (losses) primarily includes gain and losses from foreign currency forward contracts which were not accounted for as hedge transactions, and the impact of changes in foreign currency exchange rate against the U.S. Dollar.

Current wording

Derivatives and foreign currency transaction gains and losses for the three months ended June 30, 2025 was a gain of $5.1 million, compared to a loss of $0.3 million for the three months ended June 30, 2024. Derivatives and foreign currency transaction gains and losses primarily include gain and losses from foreign currency forward contracts which were not accounted for as hedge transactions, and the impact of changes in foreign currency exchange rate related to foreign locations where the Company operates in, against the U.S. Dollar.

Previous wording

Income attributable to the sale of tax benefits for the three months ended March 31, 2025 was $17.6 million, compared to $17.5 million for the three months ended March 31, 2024. This income primarily represents the value of production tax credits (“PTCs”) and taxable income or loss generated by certain of our power plants which are allocated to investors under tax equity transactions, as well as to income related to the expected sale of transferable PTCs under the IRA regulations.

Current wording

Income attributable to the sale of tax benefits for the three months ended June 30, 2025 was $16.3 million, compared to $15.8 million for the three months ended June 30, 2024. This income primarily represents the value of production tax credits (“PTCs”) and taxable income or loss generated by certain of our power plants which are allocated to investors under tax equity transactions, as well as to income related to the expected sale of transferable PTCs under the IRA regulations.

Previous wording

Other non-operating income (expense), net for the three months ended March 31, 2025 was an income of $0.2 million, compared to an immaterial amount for the three months ended March 31, 2024.

Current wording

Other non-operating income (expense), net for the three months ended June 30, 2025 was an income of $0.1 million, compared to an income of $0.1 million for the three months ended June 30, 2024.

Previous wording

Income tax benefit for the three months ended March 31, 2025 was $3.8 million compared to income tax benefit of $0.1 million for the three months ended March 31, 2024. Our effective tax rate for the three months ended March 31, 2025 and 2024, was (10.1)% and (0.4)%, respectively. The effective rate differs from the federal statutory rate of 21% primarily due to the generation of investment tax credits of $13.9 million, and $11.5 million for the three months ended March 31, 2025 and 2024, respectively, and the jurisdictional mix of earnings at differing tax rates.

Current wording

Income tax benefit for the three months ended June 30, 2025 was $5.5 million compared to income tax benefit of $3.2 million for the three months ended June 30, 2024. Our effective tax rate for the three months ended June 30, 2025 and 2024, was (24.9)% and (16.3)%, respectively. The effective rate differs from the federal statutory rate of 21% primarily due to the generation of additional investment tax credits and the jurisdictional mix of earnings at differing tax rates.

Previous wording

Equity in earnings of investees, net for the three months ended March 31, 2025 was a loss of $0.4 million, compared to earnings of $0.8 million for the three months ended March 31, 2024. Equity in earnings (losses) of investees, net is derived from our 12.75% share in the earnings or losses in the Sarulla Consortium ("Sarulla") and our 49% share in the earnings or losses in the Ijen geothermal project. In the second quarter of 2022, Sarulla agreed with its banks on a framework that will enable it to perform remediation works that are aimed to restore the power plants' performance. The first phase of the recovery plan included the drilling of an additional production well, which was successful, and certain modifications to surface equipment are still underway. Following the positive indications from the first phase, during the second quarter of 2024, Sarulla commenced discussions with the banks towards implementation of the additional phases.

Current wording

Equity in earnings of investees, net for the three months ended June 30, 2025 was earnings of $0.8 million, compared to earnings of $1.2 million for the three months ended June 30, 2024. Equity in earnings (losses) of investees, net is derived from our 12.75% share in the earnings or losses in the Sarulla Consortium ("Sarulla") and our 49% share in the earnings or losses in the Ijen geothermal project.

Previous wording

Net income attributable to the Company’s stockholders for the three months ended March 31, 2025 was $40.4 million, compared to $38.6 million for the three months ended March 31, 2024, which represents an increase of $1.8 million. This increase is attributable to a increase of $0.7 million in net income which was affected by the explanations described above, and a decrease of $1.1 million in net income attributable to noncontrolling interest in the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

Current wording

Net income attributable to the Company’s stockholders for the three months ended June 30, 2025 was $28.0 million, compared to $22.2 million for the three months ended June 30, 2024, which represents an increase of $5.8 million. This increase is attributable to a increase of $4.2 million in net income which was affected by the explanations described above, and a decrease of $1.6 million in net income attributable to noncontrolling interest, which is primarily related to the noncontrolling share in the net results of the Puna and Guadeloupe power plants.

Previous wording

Power generation in our power plants decreased by 2.6% from 2,029,849 MWh in the three months ended March 31, 2024 to 1,978,078 MWh in the three months ended March 31, 2025. This decrease was primarily due to 62,602 MWh of curtailments in our U.S. projects.

Current wording

Power generation in our power plants decreased by 0.1% from 3,761,131 MWh in the six months ended June 30, 2024 to 3,756,619 MWh in the six months ended June 30, 2025.

Previous wording

Revenues attributable to our Energy Storage segment for the three months ended March 31, 2025 were $17.8 million compared to $8.1 million for the three months ended March 31, 2024. This increase of $9.7 million is primarily related to $6.6 million from new energy storage facilities which commenced commercial operation during or after the first quarter of 2024, such as Bottleneck and Montague in the fourth quarter of 2024, and East Flemington during the first quarter of 2024, as well as higher energy rates at PJM interconnect facilities in the three months ended March 31, 2025, compared to the same period in the previous year.

Current wording

Revenues attributable to our Energy Storage segment for the six months ended June 30, 2025 were $32.2 million compared to $17.0 million for the six months ended June 30, 2024. The increase of$15.3 millionis primarily related tothe new energy storage facilities which commenced commercial operation after the first half of 2024 such as Montague and Bottleneck in the fourth quarter of 2024, and the East Flemington energy storage facility which commenced commercial operations during the first quarter of 2024, as well as higher energy rates at PJM interconnect facilities in the six months ended June 30, 2024, compared to the same period in the previous year.

Previous wording

Write-off of unsuccessful exploration and storage activities for the three months ended March 31, 2025 was $0.5 million compared to none for the three months ended March 31, 2024. This write-off is related to a number of energy storage projects that the Company decided to no longer pursue.

Current wording

Write-off of unsuccessful exploration and storage activities for the six months ended June 30, 2025 was $0.8 million, compared to $1.4 million for the six months ended June 30, 2024. These write-offs are related to accumulated costs of geothermal exploration and storage projects that the Company decided to no longer pursue.

Previous wording

As of March 31, 2025, we had access to (i) $112.7 million in cash and cash equivalents, of which $41.1 million is held by our foreign subsidiaries; and (ii) $364.8 million of unused corporate borrowing capacity under existing committed lines for credit and letters of credit with different commercial banks.

Current wording

As of June 30, 2025, we had access to (i) $88.5 million in cash and cash equivalents, of which $35.4 million is held by our foreign subsidiaries; and (ii) $358.6 million of unused corporate borrowing capacity under existing committed lines for credit and letters of credit with different commercial banks.

Previous wording

Our estimated capital needs for the remainder of 2025 include $419.0 million for capital expenditures on new projects under development or construction including energy storage projects, exploration activity and maintenance capital expenditures for our existing projects. In addition, $189.9 million will be needed for long-term debt repayment.

Current wording

Our estimated capital needs for the remainder of 2025 include $295 million for capital expenditures on new projects under development or construction including energy storage projects, exploration activity and maintenance capital expenditures for our existing projects. In addition, $120.9 million will be needed for long-term debt repayment.

Previous wording

As of March 31, 2025, we continue to maintain our assertion to no longer indefinitely reinvest foreign funds held by our foreign subsidiaries, and have accrued the incremental foreign withholding taxes. Accordingly, during the three months ended March 31, 2025, we included a foreign income tax expense of $0.3 million related to foreign withholding taxes on accumulated earnings of all of our foreign subsidiaries.

Current wording

As of June 30, 2025, we continue to maintain our assertion to no longer indefinitely reinvest foreign funds held by our foreign subsidiaries, and have accrued the incremental foreign withholding taxes. Accordingly, during the six months ended June 30, 2025, we included a foreign income tax expense of $0.6 million related to foreign withholding taxes on accumulated earnings of all of our foreign subsidiaries.

Previous wording

Our obligations under the credit agreements, the loan agreements, and the trust instrument governing the bonds described above, are unsecured, but we are subject to a negative pledge in favor of the banks and the other lenders and certain other restrictive covenants. These include, among other things, restraints on: (i) creating any floating charge or any permanent pledge, charge or lien over our assets without obtaining the prior written approval of the lender; (ii) guaranteeing the liabilities of any third party without obtaining the prior written approval of the lender; and (iii) selling, assigning, transferring, conveying or disposing of all or substantially all of our assets, or a change of control in our ownership structure. Some of the credit agreements, the term loan agreements, and the trust instrument contain cross-default provisions with respect to other material indebtedness owed by us to any third party. In some cases, we have agreed to maintain certain financial ratios, which are measured quarterly, such as: (i) equity of at least $750 million and in no event less than 25% of total assets; and (ii) 12-month debt, net of cash, cash equivalents, and short-term bank deposits to Adjusted EBITDA ratio not to exceed 6. As of March 31, 2025: (i) total equity was $2,585.8 million and the actual equity to total assets ratio was 44.3% and (ii) the 12-month debt, net of cash, cash equivalents, to Adjusted EBITDA ratio was 4.18. During the three months ended March 31, 2025, we distributed interim dividends in an aggregate amount of $7.3 million. The failure to perform or observe any of the covenants set forth in such agreements, subject to various cure periods, would result in the occurrence of an event of default and would enable the lenders to accelerate all amounts due under each such agreement.

Current wording

Our obligations under the credit agreements, the loan agreements, and the trust instrument governing the bonds described above, are unsecured, but we are subject to a negative pledge in favor of the banks and the other lenders and certain other restrictive covenants. These include, among other things, restraints on: (i) creating any floating charge or any permanent pledge, charge or lien over our assets without obtaining the prior written approval of the lender; (ii) guaranteeing the liabilities of any third party without obtaining the prior written approval of the lender; and (iii) selling, assigning, transferring, conveying or disposing of all or substantially all of our assets, or a change of control in our ownership structure. Some of the credit agreements, the term loan agreements, and the trust instrument contain cross-default provisions with respect to other material indebtedness owed by us to any third party. In some cases, we have agreed to maintain certain financial ratios, which are measured quarterly, such as: (i) equity of at least $750 million and in no event less than 25% of total assets; and (ii) 12-month debt, net of cash, cash equivalents, and short-term bank deposits to Adjusted EBITDA ratio not to exceed 6. As of June 30, 2025: (i) total equity was $2,618.8 million and the actual equity to total assets ratio was 43.5% and (ii) the 12-month debt, net of cash, cash equivalents, to Adjusted EBITDA ratio was 4.39. During the six months ended June 30, 2025, we distributed interim dividends in an aggregate amount of $14.6 million. The failure to perform or observe any of the covenants set forth in such agreements, subject to various cure periods, would result in the occurrence of an event of default and would enable the lenders to accelerate all amounts due under each such agreement.

Previous wording

As of March 31, 2025, we did not meet the dividend distribution criteria related to the DAC 1 Senior Secured Notes, which resulted in certain equity distribution restrictions from this related subsidiary. The amount restricted for distribution by this subsidiary was $0.9 million as of March 31, 2025. There were no restrictions on the retained earnings or net income of Ormat Technologies, Inc., as the parent company, in respect of this matter, as of March 31, 2025.

Current wording

As of June 30, 2025, we did not meet the dividend distribution criteria related to the Mammoth Senior Secure Notes, which resulted in certain equity distribution restrictions from this related subsidiary. The amount restricted for distribution by this subsidiary was $4.7 million as of June 30, 2025. Additionally, as of June 30, 2025, we were not in compliance with the Platanares DFC Loan finance agreement due to a breach of payment terms by the offtaker under the PPA. We are currently discussing with the lender on an amendment to the finance agreement in order to rectify the issue. The amount restricted for distribution by this subsidiary was $3.0 million as of June 30, 2025. There were no restrictions on the retained earnings or net income of Ormat Technologies, Inc., as the parent company, in respect of these matters, as of June 30, 2025.

Previous wording

Net cash provided by operating activities for the three months ended March 31, 2025 was $88.0 million, compared to $115.2 million for the three months ended March 31, 2024, representing a decrease of $27.2 million. Net cash provided by operating activities for the three months ended March 31, 2025 was primarily attributable to net income of $41.0 million, adjusted for certain non-cash items such as depreciation and amortization, and deferred income provision, among others, and primarily by a net decrease of $22.2 million in costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts, as a result of the timing of billing to our customers. This was partially offset by: (i) a net increase in trade receivables of $14.6 million, due to the timing of collection from our customers; (ii) a net decrease in accounts payable and accrued expenses of $11.8 million as a result of the timing of payments to our suppliers; and (iii) a net increase in inventories of $4.0 million, primarily related to the timing of allocating costs to projects under construction. Net cash provided by operating activities for the three months ended March 31, 2024 was primarily attributable to net income of $40.4 million for the period, adjusted for certain non-cash items, such as depreciation and amortization, and deferred income provision, among others, and primarily by a cash inflow related to the net decrease in trade receivables of $57.2 million, as a result of the timing of collection from our customers. This was partially offset by (i) a net decrease in accounts payable and accrued expenses of $16.3 million as a result of the timing of payments to our suppliers; (ii) a net increase of $2.5 million in costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts, as a result of the timing of billing to our customers; (iii) an increase in inventories of $8.8 million, primarily related to the timing of allocating costs to projects under construction; and (iv) an increase in prepaid expenses and other of $3.7 million, primarily related to the timing of prepayments to suppliers and governmental authorities.

Current wording

Net cash provided by operating activities for the six months ended June 30, 2025 was $184.9 million, compared to $145.9 million for the six months ended June 30, 2024, representing an increase of $39.0 million. Net cash provided by operating activities for the six months ended June 30, 2025 was primarily attributable to net income of $69.2 million, adjusted for certain non-cash items such as depreciation and amortization, and deferred income tax provision, among others, and primarily by: (i) a net change of $29.4 million in the short-term costs and estimated earnings in excess of billings on uncompleted contracts and short-term billings in excess of costs and estimated earnings on uncompleted contracts, as a result of the timing of billing to our customers; and (ii) a net decrease in trade receivables of $15.9 million, due to the timing of collection from our customers. This was partially offset by: (i) a net increase of $29.4 million in the long-term costs and estimated earnings in excess of billings on uncompleted contracts related to the Dominica project; (ii) a net decrease in accounts payable and accrued expenses of $18.2 million as a result of the timing of payments to our suppliers; and (iii) a net increase in inventories of $6.8 million, primarily related to the timing of allocating costs to projects under construction. Net cash provided by operating activities for the six months ended June 30, 2024 was primarily attributable to net income of $64.3 million for the period, adjusted for certain non-cash items, such as depreciation and amortization, and deferred income tax provision, among others, and primarily to the net decrease in trade receivables of $53.1 million, due to the timing of collection from our customers. This was partially offset by (i) a net decrease in accounts payable and accrued expenses of $42.8 million as a result of timing of payments to our suppliers; (ii) a net increase of $13.7 million in costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts, as a result of timing of billing to our customers; and (iii) an increase in prepaid expenses and other of $14.0 million, primarily related to timing of prepayments to suppliers and governmental authorities.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 was $207.9 million, compared to $377.8 million for the three months ended March 31, 2024. The principal factors that affected our net cash used in investing activities during the three months ended March 31, 2025 and 2024 were: (i) capital expenditures of $192.6 million during the three months ended March 31, 2025, compared to $103.4 million, in the same period of the prior year, primarily for our facilities under construction that support our growth plan; and (ii) cash paid for the business acquisition of certain of Enel’s assets of $274.6 million during the three months ended March 31, 2024, compared to none in the same period of 2025.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025 was $432.4 million, compared to $525.0 million for the six months ended June 30, 2024. The principal factors that affected our net cash used in investing activities during the six months ended June 30, 2025, and 2024 were: (i) capital expenditures of $327.4 million during the six months ended June 30, 2025, compared to $250.2 million, in the same period of the prior year, primarily for our facilities under construction that support our growth plan; and (ii) cash paid for the business acquisition of the Blue Mountain power plant of $88.7 million in the six months ended June 30, 2025, compared to $274.6 million for the purchase of a portfolio of assets from Enel in the six months ended June 30, 2024.

Previous wording

Net cash provided by financing activities for the three months ended March 31, 2025 was $138.9 million, compared to $273.9 million for the three months ended March 31, 2024. The principal factors that affected the net cash provided by financing activities during the three months ended March 31, 2025 were: (i) net proceeds of $199.6 million from long-term loans entered into during the period such as the Hapoalim 2025 Loan, the Discount 2025 Loan and the Mizrahi 2025 Loan; and (ii) cash received from noncontrolling interest in the amount of $10.3 million. These cash inflows were partially offset by: (i) scheduled repayments of long-term debt in the amount of $57.7 million; (ii) cash dividend payment of $7.3 million; and (iii) cash paid to noncontrolling interest of $3.0 million. The principal factors that affected our net cash provided by financing activities during the three months ended March 31, 2024 were: (i) net proceeds of $331.3 million from the Hapoalim 2024 Loan, the HSBC 2024 Loan, and the Mammoth Senior Secured Notes; and (ii) cash received from noncontrolling interest in the amount of $12.3 million. These cash inflows were partially offset by: (i) scheduled repayments of long-term debt in the amount of $37.8 million; (ii) cash paid to noncontrolling interest of $3.2 million; (iii) net proceeds from revolving credit lines with banks of $20.0 million; and (iv) cash dividend payment of $7.2 million.

Current wording

Net cash provided by financing activities for the six months ended June 30, 2025 was $246.9 million, compared to $255.2 million for the six months ended June 30, 2024. The principal factors that affected the net cash provided by financing activities during the six months ended June 30, 2025 were: (i) net proceeds of $299.3 million from long-term loans entered into during the first half of 2025; (ii) net cash received from revolving credit lines with banks of $96.5 million; and (iii) cash received from noncontrolling interest in the amount of $10.3 million. These cash inflows were partially offset by: (i) scheduled repayments of long-term debt in the amount of $136.8 million; (ii) cash paid in relation to debt issuance transactions of $9.0 million, (iii) cash dividend payment of $14.6 million; and (iv) a cash paid to noncontrolling interest of $3.3 million. The principal factors that affected our net cash provided by financing activities during the six months ended June 30, 2024 were: (i) net proceeds of $392.8 million from long-term loans entered into during the first half of 2024; and (ii) cash received from noncontrolling interest in the amount of $12.3 million. These cash inflows were partially offset by: (i) scheduled repayments of long-term debt in the amount of $108.6 million; (ii) cash paid to noncontrolling interest of $4.0 million; (iii) net proceeds from revolving credit lines with banks of $20.0 million; and (iv) a cash dividend payment of $14.6 million.

Previous wording

Net income for the three months ended March 31, 2025 was $41.0 million, compared to $40.4 million, for the three months ended March 31, 2024, respectively.

Current wording

Net income for the three and six months ended June 30, 2025 was $28.2 million and $69.2 million, respectively, compared to $24.0 million and $64.3 million, for the three and six months ended June 30, 2024, respectively.