ORMAT TECHNOLOGIES, INC.ORA
ORMAT TECHNOLOGIES, INC. Segments Disclosure
BUSINESS SEGMENTS
The Company has three reporting segments: the Electricity segment, the Product segment and the Energy Storage segment. These segments are managed and reported separately as each offers different products and serves different markets. Under the Electricity segment, the Company builds, owns and operates geothermal, solar PV and recovered energy-based power plants in the United States, and geothermal power plants in foreign countries, and sells the electricity generated by those power plants. Under the Product segment, the Company designs, manufactures and sells 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. Under the Energy Storage segment, the Company owns and operates grid connected In-Front-of-the-Meter battery energy storage systems, which provide capacity, energy and/or ancillary services directly to the electric grid.
The accounting policies of the segments are the same as those described under Note 1 to the condensed consolidated financial statements. Transfer prices between the segments were determined on current market values or cost plus markup of the seller’s segment. The Company’s Chief Operating Decision Maker (“CODM”) is comprised of its CEO and CFO. To evaluate segment performance and allocate the Company’s resources, the CODM uses segment measures of gross profit and operating income. The CODM reviews budget-to-actual variances of both profit measures on a monthly basis when making decisions about allocation of the Company’s resources to the segments.
Summarized financial information concerning the Company’s reportable segments is shown in the following tables, including the Company's disaggregated revenues from contracts with customers as required by ASC 606, Revenue from Contracts with Customers (“ASC 606”). Total consolidated revenues, gross profit (loss) and operating income (loss) of the Company’s business segments exclude intersegment revenues, gross profit (loss) and operating income (loss) as these activities are eliminated in consolidation and are not included in CODM’s evaluation of performance of each segment.
| Electricity | Product | Energy Storage | Total | |||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| Year Ended December 31, 2025: | ||||||||||||||||||||||||||
| Revenues from external customers: | ||||||||||||||||||||||||||
United States (1) | $ | 500,377 | $ | 10,954 | $ | 78,957 | $ | 590,288 | ||||||||||||||||||
Foreign (2) | 193,523 | 205,732 | — | 399,255 | ||||||||||||||||||||||
| Net revenues from external customers | 693,900 | 216,686 | 78,957 | 989,543 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Depreciation and amortization expenses (3) | 236,278 | 10,377 | 29,365 | 276,020 | ||||||||||||||||||||||
Other cost of revenues expenses (4) | 259,711 | 160,294 | 20,833 | 440,838 | ||||||||||||||||||||||
Segment gross profit (loss) | 197,911 | 46,015 | 28,759 | 272,685 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Segment operating expenses (5) | 83,284 | 22,613 | (2,436) | 103,460 | ||||||||||||||||||||||
| Segment operating income (loss) | $ | 114,627 | $ | 23,402 | $ | 31,195 | $ | 169,225 | ||||||||||||||||||
Total depreciation and amortization expense (6) | 250,787 | 11,751 | 29,586 | 292,124 | ||||||||||||||||||||||
Segment assets at period end (7) (*) | 5,338,343 | 276,205 | 631,960 | 6,246,508 | ||||||||||||||||||||||
| Expenditures for long-lived assets | 446,843 | 13,132 | 159,801 | 619,776 | ||||||||||||||||||||||
| * Including unconsolidated investments | 162,111 | — | — | 162,111 | ||||||||||||||||||||||
| Year Ended December 31, 2024: | ||||||||||||||||||||||||||
| Revenues from external customers: | ||||||||||||||||||||||||||
United States (1) | $ | 510,645 | $ | 8,969 | $ | 37,729 | $ | 557,343 | ||||||||||||||||||
Foreign (2) | 191,619 | 130,692 | — | 322,311 | ||||||||||||||||||||||
| Net revenues from external customers | 702,264 | 139,661 | 37,729 | 879,654 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Depreciation and amortization expenses (3) | 218,252 | 10,363 | 20,262 | 248,876 | ||||||||||||||||||||||
Other cost of revenues expenses (4) | 241,274 | 103,548 | 13,336 | 358,159 | ||||||||||||||||||||||
| Segment gross profit (loss) | 242,738 | 25,750 | 4,131 | 272,619 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Segment operating expenses (5) | 80,832 | 15,428 | 3,889 | 100,149 | ||||||||||||||||||||||
| Segment operating income (loss) | $ | 161,906 | $ | 10,322 | $ | 242 | $ | 172,470 | ||||||||||||||||||
Total depreciation and amortization expense (6) | 230,957 | 11,693 | 20,213 | 262,863 | ||||||||||||||||||||||
Segment assets at period end (7) (*) | 4,983,069 | 229,687 | 453,468 | 5,666,224 | ||||||||||||||||||||||
| Expenditures for long-lived assets | 375,540 | 10,005 | 102,133 | 487,678 | ||||||||||||||||||||||
| * Including unconsolidated investments | 144,585 | — | — | 144,585 | ||||||||||||||||||||||
| Year Ended December 31, 2023: | ||||||||||||||||||||||||||
| Revenues from external customers: | ||||||||||||||||||||||||||
United States (1) | $ | 473,323 | $ | 7,610 | $ | 28,894 | $ | 509,827 | ||||||||||||||||||
Foreign (2) | 193,444 | 126,153 | — | 319,597 | ||||||||||||||||||||||
| Net revenues from external customers | 666,767 | 133,763 | 28,894 | 829,424 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Depreciation and amortization expenses (3) | 189,194 | 5,358 | 14,621 | 209,173 | ||||||||||||||||||||||
Other cost of revenues expenses (4) | 233,355 | 110,444 | 12,434 | 356,233 | ||||||||||||||||||||||
| Segment gross profit (loss) | 244,218 | 17,961 | 1,839 | 264,018 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
Segment operating expenses (5) | 75,384 | 14,425 | 7,624 | 97,433 | ||||||||||||||||||||||
| Segment operating income (loss) | $ | 168,834 | $ | 3,536 | $ | (5,785) | $ | 166,585 | ||||||||||||||||||
Total depreciation and amortization expense (6) | 199,344 | 10,908 | 14,545 | 224,797 | ||||||||||||||||||||||
Segment assets at period end (7) (*) | 4,652,392 | 199,897 | 355,990 | 5,208,279 | ||||||||||||||||||||||
| Expenditures for long-lived assets | 474,592 | 20,599 | 123,192 | 618,383 | ||||||||||||||||||||||
| * Including unconsolidated investments | 125,439 | — | — | 125,439 | ||||||||||||||||||||||
(1)Electricity segment revenues in the United States are all accounted under lease accounting, except for $143.5 million, $153.2 million, and $124.7 million for the years 2025, 2024 and 2023, respectively, which are accounted under ASC 606. Product and Energy Storage segment revenues in the United States are accounted under ASC 606, as further described under Note 1 to the consolidated financial statements, except for Energy Storage revenues of $18.8 million, $4.2 million and none for the years ended December 31, 2025, 2024 and 2023, respectively, that are accounted under lease accounting.
(2)Electricity segment revenues in foreign countries are all accounted under lease accounting. Product revenues in foreign countries are accounted under ASC 606 as further described under Note 1 to the consolidated financial statements.
(3)Depreciation and amortization expense amounts align with the segment-level information that is regularly provided to the CODM, and do not include intersegment transactions. Depreciation and amortization expenses included in the segment measure of gross profit are related to the specific tangible and intangible assets associated with each of the reportable segment.
(4)Other cost of revenues expenses for each reportable segment include:
Electricity: primarily cost of manpower, utilities, repair and maintenance, royalties, and property taxes.
Products: primarily cost of raw materials and finished goods used in manufacturing, manpower, transportation, and third-party subcontractors.
Energy Storage: primarily cost of manpower, utilities, and insurance.
(5)Segment operating expenses include research and development expenses, selling and marketing expenses, and general and administrative expenses such as manpower, depreciation and amortization, legal and professional services. Such expenses do not include intersegment transactions. Segment operating expenses related to the Energy Storage segment are directly related to this segment. Segment operating expenses related to the Electricity and Product segments are allocated between these two segments based on their weighted contribution to revenues, except for certain specific expenses or gains that are specifically allocated to one of these segments, as applicable, such as impairment of long-lived assets, write-off of unsuccessful exploration activities, and other operating income.
(6)Total depreciation and amortization expenses for each segment are related to the specific tangible and intangible assets associated with the respective reportable segment.
(7)Electricity segment assets include goodwill in the amount of $163.6 million , $146.4 million and $85.9 million as of December 31, 2025, 2024 and 2023, respectively. Energy Storage segment assets include goodwill in the amount of $4.6 million , $4.6 million and $4.6 million as of December 31, 2025, 2024 and 2023, respectively. No goodwill is included in the Product segment assets as of December 31, 2025, 2024 and 2023.
Reconciling information between reportable segments and the Company’s consolidated totals is shown in the following table:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
Reconciliation of profit or loss (segment gross profit): | ||||||||||||||||||||
Total segment gross profit (loss) | $ | 272,685 | $ | 272,619 | $ | 264,018 | ||||||||||||||
Less operating expenses: | ||||||||||||||||||||
Research and development expenses | 6,304 | 6,501 | 7,215 | |||||||||||||||||
Selling and marketing expenses | 18,898 | 17,694 | 18,306 | |||||||||||||||||
General and administrative expenses | 79,592 | 80,119 | 68,179 | |||||||||||||||||
| Other operating income | (14,844) | (9,375) | — | |||||||||||||||||
Write-off of long-lived assets | 12,064 | 1,280 | — | |||||||||||||||||
Write-off of unsuccessful exploration activities | 1,446 | 3,930 | 3,733 | |||||||||||||||||
| Operating income | $ | 169,225 | $ | 172,470 | $ | 166,585 | ||||||||||||||
| Interest income | 6,015 | 7,883 | 11,983 | |||||||||||||||||
| Interest expense, net | (141,851) | (134,031) | (98,881) | |||||||||||||||||
| Derivatives and foreign currency transaction gains (losses) | 5,248 | (4,187) | (3,278) | |||||||||||||||||
| Income attributable to sale of tax benefits | 66,726 | 73,054 | 61,157 | |||||||||||||||||
| Other non-operating income (expense), net | 385 | 188 | 1,519 | |||||||||||||||||
| Total consolidated income before income taxes and equity in earnings (losses) of investees | $ | 105,748 | $ | 115,377 | $ | 139,085 | ||||||||||||||
Reconciliation of profit or loss (segment operating income): | ||||||||||||||||||||
Total segment operating income | $ | 169,225 | $ | 172,470 | $ | 166,585 | ||||||||||||||
| Interest income | 6,015 | 7,883 | 11,983 | |||||||||||||||||
| Interest expense, net | (141,851) | (134,031) | (98,881) | |||||||||||||||||
| Derivatives and foreign currency transaction gains (losses) | 5,248 | (4,187) | (3,278) | |||||||||||||||||
| Income attributable to sale of tax benefits | 66,726 | 73,054 | 61,157 | |||||||||||||||||
| Other non-operating income (expense), net | 385 | 188 | 1,519 | |||||||||||||||||
| Total consolidated income before income taxes and equity in earnings (losses) of investees | $ | 105,748 | $ | 115,377 | $ | 139,085 | ||||||||||||||
The Company sells electricity, products, and provides energy storage services mainly to the geographical areas set forth below based on the location of the customer. The following tables present certain data by geographic area:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Revenues from external customers attributable to: | ||||||||||||||||||||
| United States | $ | 590,288 | $ | 557,343 | $ | 509,827 | ||||||||||||||
| Indonesia | 1,489 | 7,616 | 26,732 | |||||||||||||||||
| Kenya | 117,422 | 114,066 | 109,217 | |||||||||||||||||
Dominica | 48,931 | — | — | |||||||||||||||||
| Turkey | 5,147 | 3,013 | 2,469 | |||||||||||||||||
| Guatemala | 28,014 | 28,955 | 30,174 | |||||||||||||||||
| New Zealand | 128,817 | 78,665 | 66,526 | |||||||||||||||||
| Honduras | 28,658 | 30,304 | 31,589 | |||||||||||||||||
| Other foreign countries | 40,777 | 59,692 | 52,889 | |||||||||||||||||
| Consolidated total | $ | 989,543 | $ | 879,654 | $ | 829,424 | ||||||||||||||
The following table presents information on geographic area of long-lived assets:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
Long-lived assets (primarily power plants and related assets) located in: | ||||||||||||||||||||
| United States | $ | 3,897,443 | $ | 3,464,011 | $ | 3,085,892 | ||||||||||||||
| Kenya | 363,422 | 382,738 | 377,563 | |||||||||||||||||
Guadeloupe | 158,627 | 112,375 | 101,728 | |||||||||||||||||
| Other foreign countries | 347,697 | 333,306 | 276,300 | |||||||||||||||||
| Consolidated total | $ | 4,767,189 | $ | 4,292,430 | $ | 3,841,483 | ||||||||||||||
The following table presents revenues from major customers:
| Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| Revenues | % | Revenues | % | Revenues | % | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Southern California Public Power (1) | $ | 175,999 | 17.8 | % | $ | 181,120 | 20.6 | % | $ | 181,656 | 21.2 | % | ||||||||||||||||||||||||||
Sierra Pacific Power Company and Nevada Power Company (1)(2) | 136,730 | 13.8 | 133,108 | 15.1 | 116,797 | 14.1 | % | |||||||||||||||||||||||||||||||
KPLC (1) | 117,422 | 11.9 | 114,066 | 13.0 | 109,217 | 13.2 | % | |||||||||||||||||||||||||||||||
(1 )Revenues reported in Electricity segment.
(2) Subsidiaries of NV Energy, Inc.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.