ORMAT TECHNOLOGIES, INC.

Previous wording

A summary of the risks that may cause actual results to differ from our expectations include, but are not limited to the following:

Current wording

During the period covered by this quarterly report on Form 10-Q, there have been no material changes in our risk factors previously disclosed in our 2024 Annual Report. A summary of the risks that may cause actual results to differ from our expectations include, but are not limited to the following:

Previous wording

•Our investments in BESS technology involves new technologies and expected advanced technologies with relatively limited history with respect to reliability and performance and may not perform as expected. In addition, our investments and profitability may be negatively affected by a number of factors, including increases in storage costs, risk of fire and volatility in merchant prices.

Current wording

•Our investments in BESS technology involves new technologies and expected advanced technologies with relatively limited history with respect to reliability and performance and may not perform as expected. In addition, our investments and profitability may be negatively affected by a number of factors, including increases in storage costs, expanded trade restrictions, risk of fire and volatility in merchant prices.

Previous wording

•Conditions in and around Israel, where the majority of our senior management and our main production and manufacturing facilities are located, including the ongoing military conflicts on the borders of Israel, may adversely affect our operations and may limit our ability to produce and sell our products, and support our Electricity segment.

Current wording

•Conditions in and around Israel, where the majority of our senior management and our main production and manufacturing facilities are located, may adversely affect our operations and may limit our ability to produce and sell our products, and support our Electricity segment.

Previous wording

•Responses in various countries where we have business operations to Israel’s ongoing war with Hamas and military conflicts on some of its borders or future similar conflicts may adversely affect our operations and may limit our ability to produce and sell our products.

Current wording

•Responses in various countries where we have business operations to Israel’s ongoing military conflicts on some of its borders or future similar conflicts may adversely affect our operations and may limit our ability to produce and sell our products.

Previous wording

•Our operations could be adversely impacted by climate change.

Current wording

•Our operations could be adversely impacted by climate change and other extreme weather events..

Previous wording

•We could be negatively impacted by regulatory and other responses to climate change.

Current wording

•We could be impacted by regulatory and other responses to climate change.

Previous wording

•The capped call transactions, into which we entered in connection with the issuance of the June 2022 convertible notes, may affect the value of the Notes and our common stock and we are subject to counterparty risk with respect to the capped call transactions.

Current wording

•The capped call transactions, into which we entered in connection with the issuance of the June 2022 convertible notes , (the "Notes") , may affect the value of the Notes and our common stock and we are subject to counterparty risk with respect to the capped call transactions.

Previous wording

•The price of our common stock may fluctuate substantially, and your investment may decline in value.

Current wording

•The price of our common stock has in the past and may in the future fluctuate substantially, and your investment may decline in value.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes included elsewhere in this quarterly report and the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”) and any updates contained herein as well as those set forth in our reports and other filings made with the SEC.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read together with our condensed consolidated financial statements and related notes included elsewhere in this quarterly report and the “Risk Factors” section of our 2024 Annual Report on Form 10-K for the year ended December 31, 2024 and any updates contained herein as well as those set forth in our reports and other filings made with the SEC.

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 September 30, 2024, we derived 71.0% of our Electricity segment revenues from our operations in the United States and 29.0% 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 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.

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 September 30, 2024, we derived 8.6% of our Product segment revenues from our operations in the United States and 91.4% 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 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.

Previous wording

For the nine months ended September 30, 2024, 91.9% 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 Hawai`i change primarily as a result of variations in the price of oil as well as other commodities. In 2019, we signed a new PPA related to Puna with fixed prices, increased capacity and extended the term until 2052. In February 2024, the HPUC approved two final amendments to the PPA that we expect will be in effect by the end of 2026.

Current 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.

Previous wording

Electricity segment revenues are also subject to seasonal variations and are affected by higher-than-average ambient temperatures, as described below under “Seasonality”.

Current wording

Electricity segment revenues are also subject to seasonal variations and are affected by higher-than-average ambient temperatures, as described below under “Seasonality”. These variations became severe in recent years due to extreme weather events and in some cases cannot be forecasted.

Previous wording

Revenues attributable to our Energy Storage segment are generated by several grid-connected BESS facilities that we own and operate that sell energy, capacity and/or ancillary services in merchant markets like PJM Interconnect, ISO New England, ERCOT and CAISO. The revenues fluctuate over time since a large portion of such revenues are generated in the merchant markets, where price volatility is inherent.

Current wording

Revenues attributable to our Energy Storage segment are generated by several grid-connected BESS facilities that we own and operate that sell energy, capacity and/or ancillary services in merchant markets like PJM Interconnect, ISO New England, ERCOT and CAISO or under tolling agreements that have fixed revenues. The revenues fluctuate over time since a large portion of such revenues are generated in the merchant markets, where price volatility is inherent. We are seeking to reduce volatility by increasing the amount of long-term tolling agreements in our portfolio.

Previous wording

In the nine months ended September 30, 2024 and 2023, 36% and 38% of our total revenues, respectively, were derived from foreign locations. In the three months ended September 30, 2024 and 2023, 39% and 41% 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 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.

Previous wording

Electricity Segment. Our Electricity segment domestic revenues were approximately 73% and 70% of our total Electricity segment revenues for the nine months ended September 30, 2024 and 2023, respectively, and 71% and 69% of our total Electricity segment revenues for the three months ended September 30, 2024 and 2023. Our Electricity segment foreign revenues were approximately 27% and 30% of our total Electricity segment revenues for the nine months ended September 30, 2024 and 2023, respectively, and 29% and 31% of our total Electricity segment revenues for the three months ended September 30, 2024 and 2023. 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 nine months ended September 30, 2024 and 2023, our foreign operations of the segment accounted for 40% and 49% of our total gross profits, 80% and 76% of our net income (assuming the majority of corporate operating expenses and financing are recorded under our domestic jurisdiction) and 31% and 39% of our EBITDA, respectively.

Current 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.

Previous wording

Product Segment. Our Product segment foreign revenues were approximately 94% and 93% of our total Product segment revenues for the nine months ended September 30, 2024 and 2023, respectively.

Current 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.

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 and nine months ended September 30, 2024 and 2023.

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 months ended March 31, 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 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.

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 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

The principal cost of revenues attributable to our three segments are discussed in our 2023 Annual Report under “Part II - Item 7 – Management Discussion and Analysis of Financial Condition and Results of Operation”.

Current wording

The principal cost of revenues attributable to our three segments are discussed in our 2024 Annual Report under “Part II - Item 7 – “Management Discussion and Analysis of Financial Condition and Results of Operations.”

Previous wording

A comprehensive discussion of our critical accounting estimates and assumptions is included in our 2023 Annual Report under “Part II — Item 7 — Management Discussion and Analysis of Financial Condition and Results of Operation.”

Current wording

A comprehensive discussion of our critical accounting estimates and assumptions is included in our 2024 Annual Report under “Part II, Item 7 — “Management Discussion and Analysis of Financial Condition and Results of Operations.”

Previous wording

Our historical operating results in U.S. dollars and as a percentage of total revenues are presented below. A comparison of the different years described below may be of limited utility due to (i) our recent construction of power plants or enhancement of power plants; and (ii) fluctuation in revenues related to our Product segment.

Current wording

Our historical operating results in U.S. dollars and as a percentage of total revenues are presented below for each of the periods indicated.

Previous wording

Power generation in our power plants increased by 7.9% from 5,258,274 MWh in the nine months ended September 30, 2023 to 5,671,532 MWh in the nine months ended September 30, 2024.

Current 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.

Previous wording

Revenues attributable to our Product segment for the three months ended September 30, 2024 were $37.4 million, compared to $39.8 million for the three months ended September 30, 2023. This decrease of $2.5 million, or 6.2%, is primarily related to the progress in our projects and timing of when revenues are recognized during the period. During the three months ended September 30, 2024, Product revenues included projects primarily in New Zealand and Dominica, and during the three months ended September 30, 2023, Product revenues included projects primarily in New Zealand and Indonesia.

Current 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.

Previous wording

Our total Electricity segment cost of revenues for the three months ended September 30, 2024 was 69.8% of Electricity segment revenues, compared to 68.2% for the three months ended September 30, 2023. The cost of revenues attributable to our international power plants for the three months ended September 30, 2024 was 16.9% of our total Electricity segment cost of revenues for this period compared to 16.6% for the same period in the prior year.

Current 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.

Previous wording

Total cost of revenues attributable to our Product segment for the three months ended September 30, 2024 was $30.2 million, compared to $32.4 million for the three months ended September 30, 2023, which represented a 6.9% decrease. This decrease is primarily attributable to the decrease 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 September 30, 2024, and 2023, was 80.8% and 81.3%, 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 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.

Previous wording

Research and development expenses for the three months ended September 30, 2024 were $1.8 million, compared to $1.4 million for the three months ended September 30, 2023. 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 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.

Previous wording

Selling and marketing expenses for the three months ended September 30, 2024 were $4.2 million compared to $4.7 million for the three months ended September 30, 2023. Selling and marketing expenses for the three months ended September 30, 2024 and 2023 constituted 2.0% and 2.3% of total revenues, respectively.

Current 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.

Previous wording

General and administrative expenses for the three months ended September 30, 2024 were $23.0 million compared to $14.0 million for the three months ended September 30, 2023. General and administrative expenses for the three months ended September 30, 2024 and 2023 constituted 10.8% and 6.8% of total revenues, respectively. The increase in general and administrative expenses is primarily attributable to consulting fees related to a settlement agreement with a third-party battery systems supplier of $4.8 million, insurance costs, amortization of stock-based awards, and timing of when we incur services from our vendors.

Current 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.

Previous wording

Other operating income for the three months ended September 30, 2024 was $6.3 million compared to none for the three months ended September 30, 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 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.

Previous wording

Write-off of unsuccessful exploration activities for the three months ended September 30, 2024 was $0.1 million compared to $2.3 for the three months ended September 30, 2023. This write-off is related to exploration activities that the Company decided to no longer pursue.

Current 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.

Previous wording

Interest Income for the three months ended September 30, 2024 was $2.1 million, compared to $2.8 million for the three months ended September 30, 2023. 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 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.

Previous wording

Interest expense, net for the three months ended September 30, 2024 was $34.8 million, compared to $25.1 million for the three months ended September 30, 2023. This increase of $9.8 million was primarily attributable to interest expense relating to loan agreements entered into subsequent to the third quarter of 2023 such as: (i) the Mizrahi 2023 Loan entered into in November 2023; (ii) the short-term commercial paper entered into in October 2023; (iii) the Hapoalim 2024 Loan and the HSBC Bank 2024 Loan entered into in January 2024; (iv) the Mammoth Senior Secured Notes entered into in March 2024; (v) the DEG 4 Loan entered into in April 2024; and (vi) the Discount 2024 Loan entered into in May 2024. 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 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.

Previous wording

Derivatives and foreign currency transaction gains and losses for the three months ended September 30, 2024 was a gain of $2.0 million, compared to a loss of $0.8 million for the three months ended September 30, 2023. Derivatives and foreign currency transaction gains (losses) primarily includes 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 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.

Previous wording

Income attributable to the sale of tax benefits for the three months ended September 30, 2024 was $19.8 million, compared to $14.9 million for the three months ended September 30, 2023. 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, and to income related to the expected sale of transferable production tax credits under the new IRA regulations. This increase of $4.8 million is primarily attributable to the Heber 1 power plant which resumed operations in May 2023, and to the Beowawe Repower power plant which commenced operations in the second quarter of 2024.

Current 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.

Previous wording

Income tax benefit for the three months ended September 30, 2024 was $1.2 million compared to income tax benefit of $7.1 million for the three months ended September 30, 2023. Our effective tax rate for the three months ended September 30, 2024 and 2023, was (4.8)% and (24.1)%, respectively. The effective rate differs from the federal statutory rate of 21% primarily due to the generation of investment tax credits of $9.6 million, and $6.6 million for the three months ended September 30, 2024 and 2023, respectively, and the jurisdictional mix of earnings at differing tax rates.

Current 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.

Previous wording

Equity in earnings of investees, net for the three months ended September 30, 2024 was losses of $1.6 million, compared to losses of $0.4 million for the three months ended September 30, 2023. 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 that was successful, and certain modifications to surface equipment that 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. As we determined that the current situation and circumstances related to our equity method investment in Sarulla are temporary, no impairment testing was required for the period.

Current 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.

Previous wording

Net income attributable to the Company’s stockholders for the three months ended September 30, 2024 was $22.1 million, compared to $35.5 million for the three months ended September 30, 2023, which represents a decrease of $13.4 million. This decrease is attributable to a decrease of $12.0 million in net income which was affected by the explanations described above, and an increase of $1.3 million in net income attributable to noncontrolling interest in the three months ended September 30, 2024, compared to the three months ended September 30, 2023, which is primarily related to the noncontrolling share in the net results of the Puna and Guadaloupe power plants.

Current 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.

Previous wording

As of September 30, 2024, we had access to (i) $88.1 million in cash and cash equivalents, of which $46.2 million is held by our foreign subsidiaries; and (ii) $440.2 million of unused corporate borrowing capacity under existing committed lines for credit and letters of credit with different commercial banks.

Current 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.

Previous wording

Our estimated capital needs for the remainder of 2024 include $143.0 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, $45.5 million will be needed for long-term debt repayment.

Current 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.