Ormat Technologies Posts Strong 2025 Growth, Secures Major PPAs with Google and Switch
Event summary
- Ormat Technologies reported a 12.5% increase in total revenues for 2025, reaching nearly $1.0 billion.
- Energy Storage segment revenues more than doubled year-over-year, driven by higher merchant pricing and new facility operations.
- Signed long-term PPAs with Google (15-year, up to 150MW) and Switch (20-year, 13MW) to supply data center electricity.
- Invested $25 million in Sage Geosystems to advance next-generation geothermal technologies.
- 2026 revenue guidance set between $1.11 billion and $1.16 billion.
The big picture
Ormat's strong 2025 performance underscores the growing demand for reliable, low-carbon electricity, particularly from data centers. The company's strategic investments in next-generation geothermal technologies and energy storage position it to capitalize on record-high PPA pricing and regulatory support. With a robust pipeline of projects and long-term agreements, Ormat is well-positioned to expand its leadership in the renewable energy sector.
What we're watching
- Geothermal Expansion
- The pace at which Ormat can scale its Enhanced Geothermal Systems (EGS) through partnerships with SLB and Sage Geosystems.
- Data Center Demand
- How sustained demand from data centers will impact Ormat's long-term PPA pricing and revenue growth.
- Energy Storage Growth
- Whether Ormat can maintain its strong Energy Storage segment margins amid market volatility.
Related topics