# EDGAR Filing Document

**Accession Number:** 0001296445
**File Stem:** 0001296445-25-000012
**Filing Date:** 2025-11
**Character Count:** 264105
**Document Hash:** 602c13d6a79a6c783f59965186e19b82
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001296445-25-000012.hdr.sgml**: 20251105

**ACCESSION NUMBER**: 0001296445-25-000012

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 84

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251105

**DATE AS OF CHANGE**: 20251105

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ORMAT TECHNOLOGIES, INC.
- **CENTRAL INDEX KEY:** 0001296445
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTRIC SERVICES [4911]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 880326081
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32347
- **FILM NUMBER:** 251453042

**BUSINESS ADDRESS:**
- **STREET 1:** 6884 SIERRA CENTER PARKWAY
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89511
- **BUSINESS PHONE:** 775-356-9029

**MAIL ADDRESS:**
- **STREET 1:** 6884 SIERRA CENTER PARKWAY
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89511

?xml version='1.0' encoding='ASCII'? ora-20250930

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-Q**<br>

---

| | |
|:---|:---|
| ☑ | **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**For the quarterly period ended September 30, 2025**

**or**

---

| | |
|:---|:---|
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| | **For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to** |

---

**Commission file number: 001-32347**

**ORMAT TECHNOLOGIES, INC.**

*(Exact name of registrant as specified in its charter)*

---

| | |
|:---|:---|
| **Delaware** | **88-0326081** |
| *(State or other jurisdiction of incorporation or organization)* | *(I.R.S. Employer Identification Number)* |
| **6884 Sierra Center Parkway,, Reno,, Nevada** | **89511-2210** |
| *(Address of principal executive offices)* | *(Zip Code)* |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(775) 356-9029**

*(Registrant's telephone number, including area code)* 

**6140 Plumas Street, Reno, Nevada 89519-6075**

*(Former name, former address and former fiscal year, if changed from last report)*

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered <br> Common Stock ORA NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes 🗹&nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes 🗹&nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ <br> Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes&nbsp;&nbsp;&nbsp;&nbsp; 🗹 No

As of November 1, 2025, the number of outstanding shares of common stock, par value $0.001 per share, was 60,781,792.

------

**ORMAT TECHNOLOGIES, INC.**

**FORM 10-Q**

**FOR THE QUARTER ENDED SEPTEMBER 30, 2025** 

---

| | | |
|:---|:---|:---|
| **PART I — FINANCIAL INFORMATION** | **PART I — FINANCIAL INFORMATION** | |
| ITEM 1. | FINANCIAL STATEMENTS | [4](#if727388c4f8d4198b2a85b1d8b35e633_13) |
| ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  | [27](#if727388c4f8d4198b2a85b1d8b35e633_70) |
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | [54](#if727388c4f8d4198b2a85b1d8b35e633_181) |
| ITEM 4. | CONTROLS AND PROCEDURES | [54](#if727388c4f8d4198b2a85b1d8b35e633_184) |
| **PART II — OTHER INFORMATION** | **PART II — OTHER INFORMATION** | [55](#if727388c4f8d4198b2a85b1d8b35e633_187) |
| ITEM 1. | LEGAL PROCEEDINGS | [55](#if727388c4f8d4198b2a85b1d8b35e633_190) |
| ITEM 1A. | RISK FACTORS | [55](#if727388c4f8d4198b2a85b1d8b35e633_193) |
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | [55](#if727388c4f8d4198b2a85b1d8b35e633_196) |
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | [55](#if727388c4f8d4198b2a85b1d8b35e633_199) |
| ITEM 4. | MINE SAFETY DISCLOSURES | [55](#if727388c4f8d4198b2a85b1d8b35e633_202) |
| ITEM 5. | OTHER INFORMATION | [55](#if727388c4f8d4198b2a85b1d8b35e633_205) |
| ITEM 6. | EXHIBITS | [55](#if727388c4f8d4198b2a85b1d8b35e633_211) |
| **SIGNATURES**  | **SIGNATURES**  | [57](#if727388c4f8d4198b2a85b1d8b35e633_217) |

---

ii

------

**Certain Definitions**

*Unless the context otherwise requires, all references in this quarterly report to "Ormat", "the Company", "we", "us", "our company", "Ormat Technologies" or "our" refer to Ormat Technologies, Inc. and its consolidated subsidiaries.*

iii

------

**PART I - FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **ASSETS** | **ASSETS** | **ASSETS** |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $79555 | $94395 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash and cash equivalents (primarily related to VIEs) | 126182 | 111377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade less allowance for credit losses of $290 and $224, respectively (primarily related to VIEs) | 150066 | 164050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 38747 | 50792 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 44604 | 38092 |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs and estimated earnings in excess of billings on uncompleted contracts | 23127 | 29243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | 42434 | 59173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 504715 | 547122 |
| Investment in unconsolidated companies | 160369 | 144585 |
| Deposits and other (primarily related to VIEs) | 119873 | 75383 |
| Deferred income taxes | 159667 | 153936 |
| Property, plant and equipment, net ($3,364,152 and $3,271,248 related to VIEs, respectively)  | 3590567 | 3501886 |
| Construction-in-process ($548,991 and $251,442 related to VIEs, respectively)  | 1067942 | 755589 |
| Operating leases right of use ($14,675 and $13,989 related to VIEs, respectively) | 35583 | 32114 |
| Finance leases right of use (none related to VIEs)  | 4467 | 2841 |
| Intangible assets, net | 281804 | 301745 |
| Goodwill | 167871 | 151023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $6092858 | $5666224 |
| **LIABILITIES AND EQUITY** | **LIABILITIES AND EQUITY** | **LIABILITIES AND EQUITY** |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $190079 | $234334 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short term revolving credit lines with banks (full recourse) | 35000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial paper (less deferred financing costs of $19 and $23, respectively) | 99981 | 99977 |
| &nbsp;&nbsp;&nbsp;&nbsp;Billings in excess of costs and estimated earnings on uncompleted contracts | 32681 | 23091 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited and non-recourse (primarily related to VIEs) | 79313 | 70262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Full recourse | 201843 | 161313 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing liability | 9749 | 4093 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 4310 | 3633 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities | 1881 | 1375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 654837 | 598078 |
| Long-term debt, net of current portion: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited and non-recourse (primarily related to VIEs and less deferred financing costs of $13,208 and $8,849, respectively) | 664321 | 578204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Full recourse (less deferred financing costs of $4,359 and $4,671, respectively) | 951912 | 822828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible senior notes (less deferred financing costs of $4,774 and $6,820, respectively) | 471663 | 469617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing liability | 206647 | 216476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | 25404 | 22523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance lease liabilities | 2646 | 1529 |
| Liability associated with sale of tax benefits | 195364 | 152292 |
| Deferred income taxes | 74404 | 68616 |
| Liability for unrecognized tax benefits | 7125 | 6272 |
| Liabilities for severance pay | 11378 | 10488 |
| Asset retirement obligation | 139443 | 129651 |
| Other long-term liabilities | 34857 | 29270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 3440001 | 3105844 |
| Commitments and contingencies (Note 9) |  |  |
| Redeemable noncontrolling interest | 9904 | 9448 |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;The Company's stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value $0.001 per share; 200,000,000 shares authorized; 60,781,792 and 60,500,580 issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 61 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1649718 | 1635245 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost (258,667 shares held as of September 30, 2025 and December 31, 2024, respectively) | (17964) | (17964) |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 885233 | 814518 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | (7251) | (6731) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity attributable to Company's stockholders | 2509797 | 2425129 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interest | 133156 | 125803 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 2642953 | 2550932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, redeemable noncontrolling interest and equity | $6092858 | $5666224 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND**

**COMPREHENSIVE INCOME**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in thousands, <br>except per share data)** | **(Dollars in thousands, <br>except per share data)** | **(Dollars in thousands, <br>except per share data)** | **(Dollars in thousands, <br>except per share data)** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electricity | $167110 | $164638 | $507263 | $522117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Product | 62247 | 37357 | 153628 | 100018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Energy storage | 20370 | 9789 | 52616 | 26778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 249727 | 211784 | 713507 | 648913 |
| Cost of revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Electricity | 124588 | 114941 | 365657 | 342186 |
| &nbsp;&nbsp;&nbsp;&nbsp;Product | 48766 | 30166 | 116568 | 83982 |
| &nbsp;&nbsp;&nbsp;&nbsp;Energy storage | 12336 | 7815 | 37423 | 23687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 185690 | 152922 | 519648 | 449855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 64037 | 58862 | 193859 | 199058 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 1284 | 1816 | 5265 | 5110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing expenses | 4895 | 4248 | 13437 | 13541 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 20174 | 22973 | 57869 | 60536 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating income | (3125) | (6250) | (10519) | (6250) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets |  | 323 |  | 1280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Write-off of unsuccessful exploration and storage activities  | 377 | 77 | 1144 | 1456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 40432 | 35675 | 126663 | 123385 |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 1626 | 2051 | 4868 | 6494 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | (35677) | (34822) | (106832) | (99506) |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives and foreign currency transaction gains (losses) | (891) | 2046 | 6237 | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income attributable to sale of tax benefits | 14356 | 19760 | 48178 | 53034 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-operating income, net | 124 | 22 | 422 | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations before income tax and equity in earnings of investees | 19970 | 24732 | 79536 | 83661 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax (provision) benefit | 4283 | 1193 | 13544 | 4518 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity in earnings (losses) of investees | 455 | (1624) | 861 | 437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | 24708 | 24301 | 93941 | 88616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to noncontrolling interest | (571) | (2219) | (1396) | (5704) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to the Company's stockholders | $24137 | $22082 | $92545 | $82912 |
| Comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | 24708 | 24301 | 93941 | 88616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of related taxes: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in foreign currency translation adjustments | (2578) | 4914 | 7730 | 2485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of the Company's share in derivatives instruments of an unconsolidated investment that qualifies as a cash flow hedge | (263) | (1863) | (1373) | (924) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of a cross-currency swap derivative instrument that qualifies as a cash flow hedge | (1881) | (2649) | (4023) | (3277) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge | (258) | (2401) | (1003) | (1294) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other changes in comprehensive income | 10 | 11 | 33 | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income (loss), net of related taxes: | (4970) | (1988) | 1364 | (2974) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income | 19738 | 22313 | 95305 | 85642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income attributable to noncontrolling interest | (555) | (3071) | (3280) | (5992) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income attributable to the Company's stockholders | $19183 | $19242 | $92025 | $79650 |
| Earnings per share attributable to the Company's stockholders: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic: | $0.40 | $0.37 | $1.53 | $1.37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted: | $0.39 | $0.36 | $1.51 | $1.37 |
| Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 60749 | 60480 | 60666 | 60439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 61252 | 60770 | 61132 | 60726 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF EQUITY**

**(Unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **The Company's Stockholders' Equity** | **The Company's Stockholders' Equity** | **The Company's Stockholders' Equity** | **The Company's Stockholders' Equity** | **The Company's Stockholders' Equity** | **The Company's Stockholders' Equity** | **The Company's Stockholders' Equity** | **The Company's Stockholders' Equity** | **The Company's Stockholders' Equity** |
| | **Common Stock** | **Common Stock** | | | | | | | |
| | **Shares** | **Amount** |<br>**Additional**<br>**Paid-in**<br>**Capital** |<br>**Treasury**<br>**Stock** |<br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income (Loss)** |<br><br>**Total** |<br>**Noncontrolling**<br>**Interest** |<br>**Total**<br>**Equity** |
| | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** |
| **Balance at December 31, 2023** | 60359 | $60 | $1614769 | $(17964) | $719894 | $(1332) | $2315427 | $125560 | $2440987 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 4769 |  |  |  | 4769 |  | 4769 |
| &nbsp;&nbsp;&nbsp;Exercise of stock-based awards by employees and directors <sup>(\*)</sup> | 63 |  | 55 |  |  |  | 55 |  | 55 |
| &nbsp;&nbsp;&nbsp;Cash paid to noncontrolling interest |  |  |  |  |  |  |  | (2587) | (2587) |
| &nbsp;&nbsp;&nbsp;Cash dividend declared, $0.12 per share  |  |  |  |  | (7243) |  | (7243) |  | (7243) |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 38587 |  | 38587 | 1924 | 40511 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of related taxes: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustments |  |  |  |  |  | (1701) | (1701) | (462) | (2163) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of the Company's share in derivative instruments of an unconsolidated investment that qualifies as a cash flow hedge |  |  |  |  |  | 510 | 510 |  | 510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of a cross-currency swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | 561 | 561 |  | 561 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | 1066 | 1066 |  | 1066 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  |  |  | 53 | 53 |  | 53 |
| **Balance at March 31, 2024** | 60422 | $60 | $1619593 | $(17964) | $751238 | $(843) | $2352084 | $124435 | $2476519 |
| &nbsp;&nbsp;&nbsp;**Balance as of the beginning of the period** | 60422 | $60 | $1619593 | $(17964) | $751238 | $(843) | $2352084 | $124435 | $2476519 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 5077 |  |  |  | 5077 |  | 5077 |
| &nbsp;&nbsp;&nbsp;Exercise of stock-based awards by employees and directors <sup>(\*)</sup> | 31 | 1 | 93 |  |  |  | 94 |  | 94 |
| &nbsp;&nbsp;&nbsp;Cash paid to noncontrolling interest |  |  |  |  |  |  |  | (90) | (90) |
| &nbsp;&nbsp;&nbsp;Cash dividend declared, $0.12 per share |  |  |  |  | (7344) |  | (7344) |  | (7344) |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 22243 |  | 22243 | 1777 | 24020 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of related taxes: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustment |  |  |  |  |  | (164) | (164) | (102) | (266) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment that qualifies as a cash flow hedge |  |  |  |  |  | 429 | 429 |  | 429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of a cross-currency swap derivative instrument that qualifies as a<br>cash flow hedge |  |  |  |  |  | (1189) | (1189) |  | (1189) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | 41 | 41 |  | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  |  |  | (28) | (28) |  | (28) |
| **Balance at June 30, 2024** | 60453 | $61 | $1624763 | $(17964) | $766137 | $(1754) | $2371243 | $126020 | $2497263 |
| &nbsp;&nbsp;&nbsp;**Balance as of the beginning of the period** | 60453 | $61 | $1624763 | $(17964) | $766137 | $(1754) | $2371243 | $126020 | $2497263 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 5042 |  |  |  | 5042 |  | 5042 |
| &nbsp;&nbsp;&nbsp;Exercise of stock-based awards by employees and directors <sup>(\*)</sup> | 24 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid to noncontrolling interest |  |  |  |  |  |  |  | (1948) | (1948) |
| &nbsp;&nbsp;&nbsp;Cash dividend declared, $0.12 per share |  |  |  |  | (7260) |  | (7260) |  | (7260) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyout of Class B membership in ORTP |  |  | 530 |  |  |  | 530 | (1697) | (1167) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 22082 |  | 22082 | 1959 | 24041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of related taxes: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustment |  |  |  |  |  | 4062 | 4062 | 852 | 4914 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment that qualifies as a cash flow hedge |  |  |  |  |  | (1863) | (1863) |  | (1863) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of a cross-currency swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | (2649) | (2649) |  | (2649) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | (2401) | (2401) |  | (2401) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other  |  |  |  |  |  | 11 | 11 |  | 11 |
| **Balance at September 30, 2024** | 60477 | $61 | $1630335 | $(17964) | $780959 | $(4594) | $2388797 | $125186 | $2513983 |
| **Balance at December 31, 2024** | 60501 | $61 | $1635245 | $(17964) | $814518 | $(6731) | $2425129 | $125803 | $2550932 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 4911 |  |  |  | 4911 |  | 4911 |
| &nbsp;&nbsp;&nbsp;Exercise of stock-based awards by employees and directors (\*) | 162 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid to noncontrolling interest |  |  |  |  |  |  |  | (2767) | (2767) |
| &nbsp;&nbsp;&nbsp;Cash dividend declared, $0.12 per share |  |  |  |  | (7273) |  | (7273) |  | (7273) |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 40362 |  | 40362 | 955 | 41317 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of related taxes: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustments |  |  |  |  |  | 2183 | 2183 | 578 | 2761 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of the Company's share in derivative instruments of an unconsolidated investment that qualifies as a cash flow hedge |  |  |  |  |  | (896) | (896) |  | (896) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of a cross-currency swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | (3466) | (3466) |  | (3466) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | (512) | (512) |  | (512) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  |  |  | 12 | 12 |  | 12 |
| **Balance at March 31, 2025** | 60663 | $61 | $1640156 | $(17964) | $847607 | $(9410) | $2460450 | $124569 | $2585019 |
| &nbsp;&nbsp;&nbsp;**Balance as of the beginning of the period** | 60663 | $61 | $1640156 | $(17964) | $847607 | $(9410) | $2460450 | $124569 | $2585019 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 4621 |  |  |  | 4621 |  | 4621 |
| &nbsp;&nbsp;&nbsp;Exercise of stock-based awards by employees and directors <sup>(\*)</sup> | 60 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash dividend declared, $0.12 per share |  |  |  |  | (7282) |  | (7282) |  | (7282) |
| &nbsp;&nbsp;&nbsp;Increase in noncontrolling interest related to tax monetization transaction |  |  |  |  |  |  |  | 276 | 276 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 28046 |  | 28046 | (327) | 27719 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of related taxes: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustment |  |  |  |  |  | 6225 | 6225 | 1322 | 7547 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment that qualifies as a cash flow hedge |  |  |  |  |  | (214) | (214) |  | (214) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of a cross-currency swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | 1324 | 1324 |  | 1324 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | (233) | (233) |  | (233) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  |  |  | 11 | 11 |  | 11 |
| **Balance at June 30, 2025** | 60723 | $61 | $1644777 | $(17964) | $868371 | $(2297) | $2492948 | $125840 | $2618788 |
| &nbsp;&nbsp;&nbsp;**Balance as of the beginning of the period** | 60723 | $61 | $1644777 | $(17964) | $868371 | $(2297) | $2492948 | $125840 | $2618788 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 4941 |  |  |  | 4941 |  | 4941 |
| &nbsp;&nbsp;&nbsp;Exercise of stock-based awards by employees and directors <sup>(\*)</sup> | 58 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid to noncontrolling interest |  |  |  |  |  |  |  | (2941) | (2941) |
| &nbsp;&nbsp;&nbsp;Cash dividend declared, $0.12 per share |  |  |  |  | (7275) |  | (7275) |  | (7275) |
| &nbsp;&nbsp;&nbsp;Increase in noncontrolling interest related to tax monetization transactions |  |  |  |  |  |  |  | 9587 | 9587 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 24137 |  | 24137 | 686 | 24823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Currency translation adjustment |  |  |  |  |  | (2562) | (2562) | (16) | (2578) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of the Company's share in derivative instruments of unconsolidated investment that qualifies as a cash flow hedge |  |  |  |  |  | (263) | (263) |  | (263) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of a cross-currency swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | (1881) | (1881) |  | (1881) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gains or losses in respect of an interest rate swap derivative instrument that qualifies as a cash flow hedge |  |  |  |  |  | (258) | (258) |  | (258) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) |  |  |  |  |  | 10 | 10 |  | 10 |
| **Balance at September 30, 2025** | 60781 | $61 | $1649718 | $(17964) | $885233 | $(7251) | $2509797 | $133156 | $2642953 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(\*)</sup> Resulted in an amount lower than $1,000.

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW**

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $93941 | $88616 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 214789 | 192813 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of asset retirement obligation | 6379 | 5839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 14474 | 14887 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income attributable to sale of tax benefits, net of interest expense | (20612) | (24365) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in earnings of investees | (861) | (437) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark-to-market of derivative instruments | (1206) | 870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposal of property, plant and equipment | (317) | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off of unsuccessful exploration and storage activities | 1144 | 1456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off of long-lived assets |  | 1280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on severance pay fund asset | (167) | (43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on foreign currency exchange rates | (8139) | (218) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax provision | (22036) | (30601) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability for unrecognized tax benefits | 853 | (813) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities, net of businesses acquired: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables | 19139 | 42527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs and estimated earnings in excess of billings on uncompleted contracts | 6623 | (12978) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term costs and estimated earnings in excess of billings on uncompleted contracts | (40063) | (12252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (6512) | (2371) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | (1535) | (10713) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating lease right of use asset | 3741 | 2950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and other | 2527 | (3518) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (34734) | 7022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Billings in excess of costs and estimated earnings on uncompleted contracts | 8196 | (8664) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities for severance pay | 890 | (1610) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating lease liabilities | (3656) | (5730) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities | (2796) | 8290 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 230061 | 252300 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (474693) | (359941) |
| &nbsp;&nbsp;&nbsp;Investment in unconsolidated companies | (16296) | (1815) |
| &nbsp;&nbsp;&nbsp;Buyout of Class B membership in Opal Geo |  | (9800) |
| &nbsp;&nbsp;&nbsp;Cash paid for business acquisition, net of cash acquired | (88650) | (274632) |
| &nbsp;&nbsp;&nbsp;Decrease (increase) in severance pay fund asset, net of payments to retired employees  | (158) | 1073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (579797) | (645115) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term loans, net of transaction costs | 444580 | 442639 |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of options by employees |  | 150 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of convertible notes, net of transaction costs |  | 44203 |
| &nbsp;&nbsp;&nbsp;Proceeds related to tax monetization transactions | 109828 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from revolving credit lines with banks | 1448500 | 134500 |
| &nbsp;&nbsp;&nbsp;Repayment of revolving credit lines with banks | (1413500) | (154500) |
| &nbsp;&nbsp;&nbsp;Cash received from noncontrolling interest | 10276 | 12251 |
| &nbsp;&nbsp;&nbsp;Repayments of long-term debt | (203264) | (164616) |
| &nbsp;&nbsp;&nbsp;Cash paid to noncontrolling interest | (7388) | (6075) |
| &nbsp;&nbsp;&nbsp;Payments under finance lease obligations | (1284) | (1023) |
| &nbsp;&nbsp;&nbsp;Debt issuance costs  | (16837) | (3652) |
| &nbsp;&nbsp;&nbsp;Cash dividends paid | (21830) | (21847) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 349081 | 282030 |
| Effect of exchange rate changes | 620 | (210) |
| Net change in cash and cash equivalents and restricted cash and cash equivalents | (35) | (110995) |
| Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | 205772 | 287770 |
| Cash and cash equivalents and restricted cash and cash equivalents at end of period | $205737 | $176775 |
| **Supplemental non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Change in accounts payable related to purchases of property, plant and equipment | $(11197) | $(36245) |
| &nbsp;&nbsp;&nbsp;Right of use assets obtained in exchange for new lease liabilities | $7789 | $9045 |

---

The accompanying notes are an integral part of the condensed consolidated financial statements.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 1 — GENERAL AND BASIS OF PRESENTATION**

These unaudited condensed consolidated interim financial statements of Ormat Technologies, Inc. and its subsidiaries (collectively, the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company's condensed consolidated balance sheet as of September 30, 2025, the condensed consolidated statements of operations and comprehensive income, the condensed consolidated statements of cash flows and the condensed consolidated statements of equity for the periods presented.

The financial data and other information disclosed in the notes to the condensed consolidated financial statements related to these periods are unaudited. The results for the periods presented are not necessarily indicative of the results to be expected for the year.

These condensed unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Annual Report"). The condensed consolidated balance sheet data as of December 31, 2024 was derived from the Company's audited consolidated financial statements for the year ended December 31, 2024 but does not include all disclosures required by U.S. GAAP.

Dollar amounts, except per share data, in the notes to these financial statements are rounded to the closest $1,000.

**Mammoth Senior Secured Notes 2025 - Limited-Recourse**

On September 18, 2025, a wholly-owned indirect subsidiary of the Company (the "Issuer"), entered into a note purchase agreement with certain noteholders under the management of Prudential Investment Management, Inc., pursuant to which the Issuer issued $23.4 million principal amount of senior secured notes (the "Mammoth Senior Secured Notes 2025" or "MSSN 2025"). The note purchase agreement also includes a $3.0 million tranche of floating rate notes to be issued in the event of a shortfall in debt service with respect to the MSSN 2025. The Issuer shall pay a commitment fee on the revolving note tranche at a rate of 0.75% per annum. If drawn, the revolving notes shall bear interest at a rate equal to Term SOFR+2.50%. The MSSN 2025 are secured by the equity interests in the Issuer, and by the Issuer's 100% ownership interests in a wholly-owned holding subsidiary that owns project subsidiaries including four geothermal power plants known as the Mammoth G1, G2, G3 and Casa Diablo 4 ("CD4") projects. The MSSN 2025 will be repaid in 15 semi-annual payments, commencing on July 7, 2027. The MSSN 2025 bear interest at a fixed rate of 6.95% per annum and have a final maturity date of July 15, 2034. The Company provided a limited guarantee with respect to certain obligations of the Issuer as a member of CD4 which was amended and restated to accommodate the Mammoth Senior Secured Notes 2025.

The MSSN 2025 contains various customary restrictive covenants under the MSSN 2025, including limitations on additional indebtedness of the Issuer and its subsidiaries. Failure to comply with these and other covenants will, subject to customary cure rights, constitute an event of default by the Issuer. In addition, there are restrictions on the ability of the Issuer to make distributions to its shareholders. Among other things, the distribution restrictions include both a historical and projected minimum debt service coverage ratio requirement.

**TOPP2 Power Plant in New Zealand**

In August 2025, the Company received an option exercise notice (the "Notice") from Eastland Generation Limited ("EGL") pursuant to which EGL wishes to acquire the TOPP2 power plant in New Zealand pursuant to a previously signed option agreement between the Company and EGL (the "Parties"). The Company applied the guidance in Accounting Standard Codification 606 - Revenue from Contracts with Customers ("ASC 606") to this transaction, under which several criteria must be met before a reporting entity can recognize revenue from contracts with customers. The Company concluded that as of September 30, 2025, not all required criteria for identifying a contract have been met, including but not limited to the Parties being required to sign and close on a sale agreement following the Notice. As a result, the Company did not record any revenues from this transaction in the third quarter of 2025.

**Heber 1 and 2 Tax Monetization Transaction**

On July 10, 2025, one of the Company's wholly-owned subsidiaries that indirectly owns the Heber 1 and Heber 2 geothermal power plants entered into a partnership agreement with a private investor. Under the terms of the partnership agreement, the private investor acquired membership interests in the two Heber Geothermal power plants for an initial

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

purchase price of $77.1 million and for which it will pay additional installments that are expected to amount to $25.7 million. The Company continues to operate and maintain the power plants and will receive substantially all the distributable cash flow generated by the power plants, as described below.

Under the terms of the partnership agreement, prior to December 31, 2032 (the "Target Flip Date"), the Company's wholly-owned subsidiary, Ormat Nevada Inc. ("Ormat Nevada"), receives substantially all of the distributable cash flow generated by the project, while the private investor receives substantially all of the tax attributes of the project. Following the later of the Target Flip Date and the date on which the private investor reaches its target return, Ormat Nevada will receive 95% of the distributable cash and taxable income, on a go-forward basis. In the event that the private investor will not reach its target return by the Target Flip Date, then for the period between the Target Flip Date and the date on which the private investor reaches its target return, the private investor will receive 75% of the distributable cash generated by the power plants and 99% of the tax attributes as long as the power plants are generating Production Tax Credits ("PTCs").

On the Target Flip Date, Ormat Nevada has the option to purchase the private investor's interests at the then-current fair market value, plus an amount that causes the private investor to reach its target return, if needed. If Ormat Nevada exercises this purchase option, it will become the sole owner of the power plants again.

**Geothermie Bouillante Loan - Limited-Recourse**

On July 31, 2025, Geothermie Bouillante S.A. ("GB"), a subsidiary of the Company that owns and operates the geothermal power plant in Guadeloupe, in which the Company indirectly holds a 63.75% ownership interest, entered into loan agreements (the "GB Loan Agreements") with a consortium of French banks, pursuant to which GB will borrow up to €99.8 million aggregate principal amount, in connection with GB's geothermal project in Guadeloupe.

The loan (the "GB Loan") is comprised of two tranches. One tranche of €33.5 million was drawn on August 14, 2025 to cover the refinancing of investment in the existing power plant. It bears interest of 3-month Euro Interbank Offered Rate ("EUROBOR") plus 1.8%, and matures in 5 years. The base rate as of August 18, 2025 was 2.14%. The second tranche covers the construction of GB's 10MW expansion project which is expected to be commissioned in 2026, bears interest of 3-month EUROBOR plus 2.0%, and matures in 21 years. The base rate as of August 14, 2025 was 2.68%. €42.5 million of the second tranche was drawn on August 18, 2025. The remainder of the GB Loan withdrawals are expected to occur during the fourth quarter of 2025 and the first half of 2026.

The GB Loan is secured by all of the assets of GB and by the ownership interests in GB. The GB Loan Agreements require GB to comply with certain covenants, including, among others, restrictions on the incurrence of indebtedness or liens, amendment or modification of material project documents, or the ability of GB to merge or consolidate with another entity. In addition, there are restrictions on the ability of GB to make distributions to its shareholders, which include a required historical and projected debt service cover ratio. The drawdowns are subject to typical conditions for draws, including, among others, verification of project costs, and compliance with certain gearing ratios.

**GB Loan Interest Rate Swap**

Concurrently with the issuance of the GB Loan, the Company entered into a long-term interest rate swap (the "IR Swap") transaction with the objective of hedging the variable interest rate fluctuations related to the GB Loan. The first tranche was hedged at a fixed 3-month EUROBOR of 2.29%, and the second tranche was hedged at a 3-month EUROBOR of 2.83%. The Company designated the IR Swap as a cash flow hedge as per ASC 815, Derivatives and Hedging, and accordingly measures the IR Swap instrument at fair value. The changes in the IR Swap fair value are initially recorded in Other Comprehensive Income (Loss) and reclassified to Interest Expense, Net in the same period or periods during which the hedged transaction affects earnings. The hedged transaction and the IR Swap effect in earnings are presented in the same line item in the consolidated statement of operations and comprehensive income.

**Dominica Loan - Limited-Recourse** 

On June 23, 2025, one of the Company's subsidiaries, Geothermal Power Company of Dominica ("GPCD"), entered into loan agreements (the "Dominica Loan Agreements") with the Caribbean Development Bank ("CDB") and Caricom Development Fund ("CDF"), (collectively, the "Lenders") pursuant to which GPCD will borrow up to $49.8 million aggregate principal amount at an average interest rate of 2.4% (the "Dominica Loan") in connection with GPCD's 10MW Geothermal Project in Dominica.

On August 13, 2025, an aggregate principal amount of $37.6 million was drawn under the Dominica Loan, and the remainder is expected to be drawn during the remaining construction period. The proceeds are used to refinance the development and construction of the power plant, which were initially financed using equity.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

The Dominica Loan is secured by all of the assets of GPCD. The GPCD Loan Agreements require GPCD to comply with certain covenants, including, among others, restrictions on the incurrence of indebtedness or liens, amendment or modification of material project documents, or the ability of GPCD to merge or consolidate with another entity. In addition, there are restrictions on the ability of GPCD to make distributions to its shareholders after the commercial operation of the power plant, which include a required historical and projected DSCR.

**Blue Mountain Purchase Transaction**

On June 18, 2025, the Company closed a purchase transaction with Cyrq Energy to acquire 100% ownership of the Blue Mountain geothermal power plant for a total consideration of $88.7 million (including customary post-closing working capital adjustments). The Blue Mountain power plant is a 20MW facility, located in Humboldt County, NV, under a Power Purchase Agreement (the "PPA") with NV Energy that expires at the end of 2029.

As a result of the acquisition, the Company expanded its overall generation capacity and expects to improve the profitability of the power plant through cost reduction, synergies and upgrades. The Company accounted for the transaction in accordance with Accounting Standard Codification ("ASC") 805, Business Combinations, and following the transaction, the Company consolidates the power plant in accordance with ASC 810, Consolidation.

During the three and nine months ended September 30, 2025, the Company incurred $0.5 million and $1.2 million, respectively, of acquisition- related costs. Such costs are included under "General and administrative expenses" in the condensed consolidated statements of operations and comprehensive income for the respective periods. Accounting guidance provides that the allocation of the purchase price may be adjusted for up to one year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date.

The following table summarizes the preliminary purchase price allocation to the fair value of the assets acquired and liabilities assumed (in millions):

---

| | |
|:---|:---|
| Trade receivables and others <sup>(1)</sup> | $1.7 |
| Deferred income taxes | 5.3 |
| Property, plant and equipment and construction-in-process <sup>(2)</sup> | 86.2 |
| Operating lease right-of-use | 1.4 |
| Total assets acquired | $94.6 |
| Accounts payable, accrued expenses and others | $0.3 |
| Long-term operating lease liabilities | 1.2 |
| Other long-term liability <sup>(3)</sup> | 16.8 |
| Asset retirement obligation | 3.7 |
| Total liabilities assumed | $22.0 |
| Total assets acquired, and liabilities assumed, net | $72.6 |
| Goodwill <sup>(4)</sup> | $16.1 |

---

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> The gross amount of trade receivables was collected subsequent to the acquisition date.

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> The fair value of Property, plant and equipment was estimated by applying the income approach and utilizing the discounted cash flow method. This methodology assesses the value of tangible assets by computing the anticipated cash flows expected to be generated by the respective assets.

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)</sup> Other long-term liability is related to the long-term electricity PPA described above, and is amortized over the term of the PPA. The fair value of the long-term liability represents a PPA price that is relatively lower than the related prevailing market price, and was estimated by applying the income approach and utilizing the With and Without method.

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(4)</sup> Goodwill is primarily related to the expected synergies, potential cost savings in operations as a result of the purchase transaction as well as potential future enhancements to the geothermal assets. The goodwill is allocated to the Electricity segment and is deductible for tax purposes.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

During the three months ended September 30, 2025, the acquired power plant contributed $2.9 million to the Company's Electricity revenues, and $1.9 million to the Company's earnings which were included in the Company's consolidated statements of operations and comprehensive income for that period.

During the nine months ended September 30, 2025, the acquired power plant contributed $3.3 million to the Company's Electricity revenues, and $2.1 million to the Company's earnings which were included in the Company's consolidated statements of operations and comprehensive income for that period. Pro forma information is not provided as the Company deemed this information to be immaterial.

**Hybrid Tax Equity Partnership** 

On May 20, 2025, the Company entered into a partnership agreement with a private investor under which the private investor acquired indirect membership interests in the Lower Rio and Arrowleaf storage facilities (the "Project Facilities") for total estimated consideration of $62.0 million, of which $32.7 million was paid during the second and third quarters of 2025. The remainder of the total consideration will be paid upon the achievement of the substantial completion milestone of the Arrowleaf storage facility. Such milestone is expected to be reached during the fourth quarter of 2025. Following the transaction, the Company continues to operate and maintain the Project Facilities.

Under the transaction agreements, prior to reaching the flip date, which was defined as the later of the date on which the private investor reaches its target return, and the end of the Investment Tax Credits ("ITCs") recapture period (the "Flip Date"), the private investor receives substantially all of the distributable cash flow generated by the Project Facilities, and substantially all of the tax attributes of the Project Facilities. Following the Flip Date, the Company will receive substantially all of the distributable cash and taxable income, on a go-forward basis.

Following the Flip Date, but no later than May 19, 2033, the Company has the option to purchase the private investor's interests at the greater of (i) the fair market value of the post-flip residual interest, (ii) five percent of the aggregate capital contributions of the private investor, (iii) the fair market value of the Class A units and (iv) the private investor's book value investment. If the Company exercises this purchase option, it will become the sole owner of the storage facilities again.

As further described below under the caption "Transferable Production and Investment Tax Credits", the Company accounts for ITCs under ASC 740 through the "Income tax (provision) benefit" line in the consolidated statement of operations and comprehensive income, and therefore, proceeds allocated to ITCs were included in the "Income tax (provision) benefit" line. Proceeds allocated to other tax attributes, will be included under "Income attributable to the sale of tax benefits" line in the consolidated statement of operations and comprehensive income. The private investor's contribution of $32.7 million was primarily related to ITC benefits, and thus recorded against the related deferred tax asset. Contributions related to other tax attributes will be recorded to the liability associated with sales of tax benefits on the condensed consolidated balance sheets.

**Discount 2025 II Loan**

On May 14, 2025, the Company entered into a definitive loan agreement (the "Discount 2025 II Loan Agreement") with Discount Bank. The Discount 2025 II Loan Agreement provides for a loan by Discount Bank to the Company in an aggregate principal amount of $50.0 million (the "Discount 2025 II Loan"). The outstanding principal amount of the Discount 2025 II Loan will be repaid in 32 quarterly payments of $1.6 million each, commencing on August 22, 2025. The duration of the Discount 2025 II Loan is 8 years and it bears interest of 3-month SOFR+2.40%, payable every three months. The Discount 2025 II Loan Agreement includes various affirmative and negative covenants, including a requirement that the Company maintain (i) a net debt-to-adjusted EBITDA ratio not to exceed 6.0, (ii) a minimum equity capital amount of not less than $750 million and (iii) an equity capital to total assets ratio of not less than 25%. The Discount 2025 II Loan Agreement includes other customary affirmative and negative covenants, including payment and covenant events of default.

**Hapoalim 2025 Loan**

On March 31, 2025, the Company entered into a definitive loan agreement (the "Hapoalim Loan Agreement 2025") with Bank Hapoalim B.M. The Hapoalim Loan Agreement 2025 provides for a loan by Bank Hapoalim B.M. to the Company in an aggregate principal amount of $100.0 million (the "Hapoalim 2025 Loan"). On June 30, 2025, the Company amended and restated the Hapoalim Loan Agreement 2025 in order to increase the original principal amount of the Hapoalim 2025 Loan by an additional aggregated principal amount of $50 million (the "Amended Hapoalim 2025 Loan"). The outstanding principal amount of the Amended Hapoalim 2025 Loan will be repaid in 31 quarterly payments of $4.74 million each, commencing on September 30, 2025. The duration of the Amended Hapoalim 2025 Loan is 8 years and it bears interest of 3-month SOFR+2.45%, payable every three months. The Amended Hapoalim 2025 Loan agreement includes various affirmative and negative covenants, including a requirement that the Company maintain (i) a net debt to adjusted EBITDA ratio not to exceed 6.0, (ii) a minimum equity capital amount of not less than $750 million and (iii) an equity capital to total assets ratio of not

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

less than 25%. The amended Hapoalim 2025 Loan agreement includes other customary affirmative and negative covenants, including payment and covenant events of default.

**Discount 2025 Loan**

On March 27, 2025, the Company entered into a definitive loan agreement (the "Discount Loan Agreement 2025") with Discount Bank. The Discount Loan Agreement 2025 provides for a loan by Discount Bank to the Company in an aggregate principal amount of $50.0 million (the "Discount 2025 Loan"). The outstanding principal amount of the Discount 2025 Loan will be repaid in 32 quarterly payments of $1.6 million each, commencing on May 22, 2025. The duration of the Discount 2025 Loan is 8 years and it bears interest of 3-month SOFR+2.40%, payable every three months. The Discount Loan Agreement 2025 includes various affirmative and negative covenants, including a requirement that the Company maintain (i) a net debt to adjusted EBITDA ratio not to exceed 6.0, (ii) a minimum equity capital amount of not less than $750 million, and (iii) an equity capital to total assets ratio of not less than 25%. The Discount Loan Agreement 2025 includes other customary affirmative and negative covenants, including payment and covenant events of default.

**Mizrahi 2025 Loan**

On February 2, 2025, the Company entered into a definitive loan agreement (the "Mizrahi Loan Agreement 2025") with Mizrahi Bank. The Mizrahi Loan Agreement 2025 provides for a loan by Mizrahi Bank to the Company in an aggregate principal amount of $50.0 million (the "Mizrahi 2025 Loan"). The outstanding principal amount of the Mizrahi 2025 Loan will be repaid in 16 semi-annual payments of $3.1 million each, commencing on October 15, 2025. The duration of the Mizrahi 2025 Loan is 8 years and it bears interest of 6-month SOFR+2.35%, payable every six months. The Mizrahi Loan Agreement 2025 includes various affirmative and negative covenants, including a requirement that the Company maintain (i) a net debt to adjusted EBITDA ratio not to exceed 6.0, (ii) a minimum equity capital amount of not less than $750 million, and (iii) an equity capital to total assets ratio of not less than 25%. The Mizrahi Loan Agreement 2025 includes other customary affirmative and negative covenants, including payment and covenant events of default.

**Settlement Agreement**

As previously disclosed, on August 1, 2024, the Company entered into a settlement agreement, effective April 2024, (the "Agreement") with a third-party battery systems supplier (the "Supplier"). Under the Agreement, the Supplier paid to the Company $35.0 million as a recovery of damages, such as significant loss of potential profit due to project delays, as well as additional costs incurred by the Company, related to locating and purchasing substitute battery solutions from alternative vendors (the "Recovery of Damages"), to settle the dispute. On August 16, 2024, the Company received the Recovery of Damages payment contingent upon certain conditions which the Company expects to be met, on a pro-rata basis, during the period until March 31, 2026. The Company accounted for the Recovery of Damages amount under the guidance of ASC 450, Contingencies, and ASC 705, Cost of Sales and Services, and as a result, deemed $25.0 million as a recovery of damages, which is recognized as income once contingency conditions are met, and $10.0 million as a reduction to the cost of battery systems to be purchased under the Agreement. During the three and nine months ended September 30, 2025, the Company recognized income of $2.0 million, and $9.4 million, respectively, and during the three and nine months ended September 30, 2024, the Company recognized income of $6.3 million for both periods. Such income was recorded under "Other operating income" in the consolidated statements of operations and comprehensive income. These amounts represent the non-refundable portion of the recovery of damages for which contingency conditions have been met.

**War in Israel** 

Starting October 7, 2023, Israel has been engaged in a complex multifront war in the Middle East. An agreement for a ceasefire in Gaza was reached in October 2025, conditioned on the parties meeting certain ongoing requirements. As of the date of these consolidated financial statements, none of the Company's facilities or infrastructure have been damaged nor have its supply chains been significantly impacted since the war broke out. Management continuously monitors the effect of the war on the Company's financial position and results of operations. For more information, see Note 1 to the consolidated financial statements in the Company's 2024 Annual Report.

**Write-offs of Unsuccessful Exploration and Storage Activities**

The write-off of unsuccessful exploration and storage activities for the three and nine months ended September 30, 2025 of $0.4 million, and $1.1 million, respectively, are related to a number of storage projects that the Company decided to no longer pursue. The write-off of unsuccessful exploration and storage activities for the three and nine months ended September 30, 2024 of $0.1 million, and $1.5 million, respectively, is related to geothermal exploration projects that the Company decided to no longer pursue.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**Reconciliation of Cash and Cash Equivalents and Restricted Cash and Cash Equivalents**

The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents as reported on the balance sheet to the total of the same amounts shown on the statement of cash flows:

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Cash and cash equivalents  | $79555 | $94395 |
| Restricted cash and cash equivalents  | 126182 | 111377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents and restricted cash and cash equivalents  | $205737 | $205772 |

---

**Concentration of Credit Risk**

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash investments and accounts receivable.

*Cash investments:*

The Company places its cash investments with high credit quality financial institutions located in the United States ("U.S.") and in foreign countries. At September 30, 2025 and December 31, 2024, the Company had deposits totaling $39.3 million and $31.2 million, respectively, in ten U.S. financial institutions that were federally insured up to $250,000 per account. At September 30, 2025 and December 31, 2024, the Company's deposits in foreign countries amounted to $66.1 million and $73.9 million, respectively.

*Account receivables:*

At September 30, 2025 and December 31, 2024, account receivables related to operations in foreign countries amounted to $99.8 million, and $105.2 million, respectively. At September 30, 2025 and December 31, 2024, accounts receivable from the Company's primary customers, which each accounted for revenues in excess of 10% of total consolidated revenues for the related period, amounted to 56% and 57% of the Company's trade receivables, respectively. The aggregate amount of notes receivable exceeding 10% of total receivables as of September 30, 2025 and December 31, 2024 is $81.3 million, and $99.7 million, respectively.

The Company's revenues from its primary customers as a percentage of total revenues are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Southern California Public Power Authority ("SCPPA") | 15.1% | 17.9% | 17.9% | 20.9% |
| Sierra Pacific Power Company and Nevada Power Company | 12.1 | 13.5 | 13.7 | 15.0 |
| Kenya Power and Lighting Co. Ltd. ("KPLC") | 11.9 | 13.5 | 12.1 | 12.9 |

---

The Company has historically been able to collect on substantially all of its receivable balances. As of September 30, 2025, the amount overdue from KPLC in Kenya was $36.3 million of which $11.0 million was paid in October of 2025. The Company believes it will be able to collect all past due amounts from KPLC. This belief is supported by the fact that in addition to KPLC's obligations under its power purchase agreement, the Company holds a support letter from the Government of Kenya that covers certain cases of KPLC non-payment (such as non-payments that are caused by government actions and/or political events).

In Honduras, as of September 30, 2025, the total amount overdue from Empresa Nacional de Energía Eléctrica ("ENEE") was $16.0 million, of which $1.0 million was paid in October of 2025. In addition, due to the financial situation in Honduras, the Company may experience further delays in collection. The Company believes it will be able to collect all past due amounts from ENEE.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**Allowance for Credit Losses**

The following table describes the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2025 and 2024 (all related to trade receivables):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Beginning balance of the allowance for expected credit losses | $275 | $200 | $224 | $90 |
| Change in the provision for expected credit losses for the period | 15 | 10 | 67 | 120 |
| Ending balance of the allowance for expected credit losses | $290 | $210 | $290 | $210 |

---

**Revenues from Contracts with Customers**

Contract assets related to the Company's Product segment reflect revenue recognized and performance obligations satisfied in advance of customer billing. Contract liabilities related to the Company's Product segment reflect payments received in advance of the satisfaction of performance under the contract. The Company receives payments from customers based on the terms established in the contracts. Total contract assets and contract liabilities as of September 30, 2025 and December 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
| | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Contract assets (\*) | $23127 | $29243 |
| Contract liabilities (\*) | $(32681) | $(23091) |

---

(\*) Contract assets and contract liabilities are presented as "Costs and estimated earnings in excess of billings on uncompleted contracts" and "Billings in excess of costs and estimated earnings on uncompleted contracts", respectively, on the condensed consolidated balance sheets. The contract liabilities balance at the beginning of the year was fully recognized as product revenues during the nine months ended September 30, 2025 as a result of performance obligations having been fully satisfied as of September 30, 2025, except for certain immaterial amounts. Additionally, as of September 30, 2025 and December 31, 2024, long-term costs and estimated earnings in excess of billings on uncompleted contracts related to the Dominica project in the amount of $66.1 million and $26.0 million, respectively, are included under "Deposits and other" in the condensed consolidated balance sheets, and not under the contract assets and contract liabilities above, due their long-term nature.

On September 30, 2025, the Company had approximately $208.3 million of remaining performance obligations not yet satisfied or partly satisfied related to our Product segment. The Company expects to recognize approximately 100% of this amount as Product revenues during the next 24 months.

Disaggregated revenues from contracts with customers for the three and nine months ended September 30, 2025, and 2024 are disclosed under Note 8 - Business Segments, to the condensed consolidated financial statements.

**Leases in which the Company is a Lessor**

The table below presents lease income recognized as a lessor:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Lease income relating to lease payments from operating leases | $143109 | $131441 | $417820 | $407962 |

---

**Derivative Instruments** 

The Company maintains a risk management strategy that may incorporate the use of swap contracts, put options, forward exchange contracts, interest rate swaps, and cross-currency swaps to minimize significant fluctuation in cash flows and/or earnings that are caused by oil and natural gas prices, exchange rate or interest rate volatility.

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**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

**Transferable Production and Investment Tax Credits**

The Inflation Reduction Act ("IRA") that was signed into law in August 2022, introduced a transferability provision for certain tax credits related to the clean production of energy. The recent enactment of the One Big Beautiful Bill ("OBBB" or "OBBBA") continues to allow the transfer of certain clean energy tax credits. Under the OBBB act, a reporting entity can monetize such credits through sale to a third party. The option for transferability of credits applies to taxable years beginning after December 31, 2022. Several of the Company's projects, which are not currently part of a tax monetization transaction, generate eligible tax credits, such as ITCs and PTCs, that are eligible to be transferred to a third-party under the provisions of the OBBB. The Company accounts for ITCs under ASC 740 through the "Income tax (provision) benefit" line in the condensed consolidated statement of operations and comprehensive income. PTCs are accounted similarly to refundable or direct-pay credits outside of the "Income tax (provision) benefit" line with income recognized in the "Income attributable to sale of tax benefits" line in the condensed consolidated statement of operations and comprehensive income. Income recognized related to the expected sale of such transferable PTCs during the three and nine months ended September 30, 2025, was $2.7 million and $16.0 million, respectively, net of discount, and $7.1 million, and $15.1 million, respectively, net of discount, for the three and nine months ended September 30, 2024. Tax benefits recognized under Income tax (provision) benefit related to transferable ITCs during the three and nine months ended September 30, 2025, was $9.6 million and $33.8 million, respectively, net of discount, and $9.6 million, and $27.3 million, respectively, net of discount, for the three and nine months ended September 30, 2024.

**NOTE 2 — NEW ACCOUNTING PRONOUNCEMENTS**

**New Accounting Pronouncements Effective in the Nine Months Ended September 30, 2025**

None.

**New Accounting Pronouncements Effective in Future Periods**

***Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract***

In September 2025, the FASB issued ASU 2025-07 "Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606)" to address concerns about (1) the application of derivative accounting to contracts with features based on the operations or activities of one of the parties to the contract and (2) the diversity in accounting for share-based noncash consideration from a customer that is consideration for the transfer of goods or services. The amendments in this ASU expand the scope exception for application of derivative accounting for certain contracts not traded on an exchange to include contracts for which settlement is based on operations or activities specific to one of the parties to the contract. The amendments in this ASU also clarify that an entity should apply the guidance in Topic 606 to a contract with share-based noncash consideration from a customer for the transfer of goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. This ASU may be applied prospectively or on a modified retrospective basis. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements; however, it anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements.

***Measurement of Credit Losses for Accounts Receivable and Contract Assets***

In July 2025, the FASB issued ASU 2025-05 "Financial Instruments – Credit Losses (Topic 326)" to address challenges encountered when applying the guidance in Topic 326 to current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. Under the current accounting guidance, an entity estimates expected credit losses based on relevant information about past events, current economic conditions, and reasonable and supportable forecasts of future economic conditions that affect the collectability of the reported amounts. The amendments in this ASU introduce a practical expedient that allows all entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when developing reasonable and supportable forecasts as part of estimating expected credit losses. This ASU is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. This ASU should be applied on a prospective basis. Early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements, however, it anticipates that the adoption of ASU 2025-05 will not have a material impact on its consolidated financial statements.

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**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

***Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity***

In May 2025, the FASB issued ASU 2025-03 "Business Combinations (Topic 805) and Consolidation (Topic 810)" to modify the Topic 805 framework for identifying the accounting acquirer in certain business combinations when the legal acquiree is a variable interest entity ("VIE"). Under current accounting guidance, when a VIE is acquired, the primary beneficiary (i.e., the entity that consolidates the VIE) is the accounting acquirer. The amendments in this ASU revise current guidance to: (1) limit situations in which entities must identify the primary beneficiary as the accounting acquirer in certain business combinations, and (2) require that when a business combination involving a VIE is primarily effected through exchanging equity interests, entities must consider the general factors in Topic 805 to determine which entity is the accounting acquirer. This ASU is effective for annual and interim reporting periods beginning after December 15, 2026. This ASU should be applied prospectively to any acquisition transaction that occurs after the initial application date. Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements; however, it anticipates that the adoption of ASU 2025-03 will not have a material impact on its consolidated financial statements.

***Improvements to Income Tax Disclosures***

In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topic 740)–Improvements to Income Tax Disclosures" to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The amendments in this ASU require that public entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This ASU also requires that all entities disclose, on an annual basis, (1) the amount of income taxes paid disaggregated by federal, state, and foreign taxes, (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid, (3) income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign, and (4) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, and should be applied on a prospective basis with the option to apply retrospectively. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is near completion of the evaluation of the impact of ASU 2023-09, and plans to implement these amendments in its 2025 consolidated annual financial statements.

***Disaggregation of Income Statement Expenses***

In November 2024, the FASB issued ASU 2024-03 "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40)" to improve the disclosure about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this ASU require disclosure of the following items in the notes to the financial statements at each interim and annual reporting date:

1The amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities included in each relevant expense caption. A relevant expense caption is an expense caption presented on the face of the income statement within continuing operations that contain any of the expense categories listed in (a) through (e).

2A qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively.

3The total amount of selling expenses recognized in continuing operations, and the entity's definition of selling expenses.

The amendments of this ASU also require that an entity include certain amounts that are already required to be disclosed under current generally accepted accounting principles in the same disclosure as the other disaggregation requirements. The amendments in this ASU are effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, and should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of the ASU or (2) retrospectively to any or all prior periods presented in the financial statements. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of these amendments on its consolidated financial statements.

***Induced Conversions of Convertible Debt Instruments***

In November 2024, the FASB issued ASU 2024-04 "Debt – Debt with Conversion and Other Options (Subtopic 470-20)" to improve the relevance and consistency in application of induced conversion guidance. The amendments in this ASU clarify the assessment of whether a transaction should be accounted for as an induced conversion or extinguishment of convertible

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

debt when changes are made to conversion features as part of an offer to settle the instrument. This ASU is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. This ASU can be adopted either on a prospective or retrospective basis. Early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements; however, it anticipates that the adoption of ASU 2024-04 will not have a material impact on its consolidated financial statements.

**NOTE 3 — INVENTORIES**

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
| | **September 30,** | **December 31,** |
| | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Raw materials and purchased parts for assembly | $24724 | $20575 |
| Self-manufactured assembly parts and finished products | 19880 | 17517 |
| &nbsp;&nbsp;Total inventories | $44604 | $38092 |

---

**NOTE 4— FAIR VALUE OF FINANCIAL INSTRUMENTS**

The fair value measurement guidance clarifies that fair value is an exit price, representing the amount that would be received upon selling an asset or paid upon transferring a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the fair value measurement guidance are described below:

Level 1 — unadjusted observable inputs that reflect quoted prices for identical assets or liabilities in active markets;

Level 2 — inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly;

Level 3 — unobservable inputs.

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**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

**(Unaudited)**

The following table sets forth certain fair value information at September 30, 2025 and December 31, 2024 for financial assets and liabilities measured at fair value by level within the fair value hierarchy, as well as cost or amortized cost. As required by the fair value measurement guidance, assets and liabilities are classified in their entirety based on the lowest level of inputs that is significant to the fair value measurement.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;**September 30, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**September 30, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**September 30, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**September 30, 2025** |
| | | &nbsp;&nbsp;&nbsp;&nbsp;**Fair Value** | &nbsp;&nbsp;&nbsp;&nbsp;**Fair Value** | &nbsp;&nbsp;&nbsp;&nbsp;**Fair Value** | &nbsp;&nbsp;&nbsp;&nbsp;**Fair Value** |
| |<br>&nbsp;&nbsp;&nbsp;&nbsp;**Carrying Value at September 30, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;**Total** | &nbsp;&nbsp;&nbsp;&nbsp;**Level 1** | &nbsp;&nbsp;&nbsp;&nbsp;**Level 2** | &nbsp;&nbsp;&nbsp;&nbsp;**Level 3** |
| | &nbsp;&nbsp;&nbsp;&nbsp;**(Dollars in thousands)** | &nbsp;&nbsp;&nbsp;&nbsp;**(Dollars in thousands)** | &nbsp;&nbsp;&nbsp;&nbsp;**(Dollars in thousands)** | &nbsp;&nbsp;&nbsp;&nbsp;**(Dollars in thousands)** | &nbsp;&nbsp;&nbsp;&nbsp;**(Dollars in thousands)** |
| <u>Assets:</u> |  |  |  |  |  |
| &nbsp;&nbsp;Current assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents (primarily restricted cash accounts)  | $45002 | $45002 | $45002 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: cross-currency swap <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;288 | &nbsp;&nbsp;&nbsp;&nbsp;288 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;288 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: currency forward contracts <sup>(2)</sup>  | &nbsp;&nbsp;&nbsp;&nbsp;1757 | &nbsp;&nbsp;&nbsp;&nbsp;1757 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;1757 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;Long-term assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: cross-currency swap <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;4070 | &nbsp;&nbsp;&nbsp;&nbsp;4070 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;4070 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: interest rate swap <sup>(3)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;677 | &nbsp;&nbsp;&nbsp;&nbsp;677 | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;677 | &nbsp;&nbsp;&nbsp;&nbsp;— |
| <u>Liabilities:</u> |  |  |  |  |  |
| &nbsp;&nbsp;Current liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: interest rate swap <sup>(3)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;(1043) | &nbsp;&nbsp;&nbsp;&nbsp;(1043) | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(1043) | &nbsp;&nbsp;&nbsp;&nbsp;— |
| &nbsp;&nbsp;Long term liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: interest rate swap <sup>(3)</sup> | &nbsp;&nbsp;&nbsp;&nbsp;(536) | &nbsp;&nbsp;&nbsp;&nbsp;(536) | &nbsp;&nbsp;&nbsp;&nbsp;— | &nbsp;&nbsp;&nbsp;&nbsp;(536) | &nbsp;&nbsp;&nbsp;&nbsp;— |
|  | $50215 | $50215 | $45002 | $5213 | $— |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
| |<br>**Carrying Value at December 31, 2024** | **Total** | **Level 1** | **Level 2** | **Level 3** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| <u>Assets:</u> |  |  |  |  |  |
| &nbsp;&nbsp;Current assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash equivalents (primarily restricted cash accounts)  | $52031 | $52031 | $52031 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: interest rate swap <sup>(3)</sup> | 180 | 180 |  | 180 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: currency forward contracts <sup>(2)</sup> | 550 | 550 |  | 550 |  |
| <u>Liabilities:</u> |  |  |  |  |  |
| &nbsp;&nbsp;Current liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: cross-currency swap <sup>(1)</sup> | (3500) | (3500) |  | (3500) |  |
| &nbsp;&nbsp;Long-term liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives: cross-currency swap <sup>(1)</sup> | (6653) | (6653) |  | (6653) |  |
|  | $42607 | $42607 | $52031 | $(9424) | $— |

---

<sup>1.</sup>These amounts relate to cross-currency swap contracts valued primarily based on the present value of the cross-currency swap future settlement prices for U.S. Dollar ("USD") and New Israeli Shekel ("NIS") zero yield curves and the applicable exchange rate as of September 30, 2025 and December 31, 2024, as applicable. These amounts are included within "Prepaid expenses and other", "Deposits and other", "Accounts payable and accrued expenses" or "Other long-term liabilities", as applicable, in the consolidated balance sheets on September 30, 2025 and December

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

**(Unaudited)**

31, 2024. There were no cash collateral deposits as of September 30, 2025. Cash collateral deposits in the amount of $9.7 million as of December 31, 2024, are presented under "Receivables, other" in the consolidated balance sheets.

<sup>2.</sup>These amounts relate to currency forward contracts valued primarily based on observable inputs, including forward and spot prices for currencies, net of contracted rates and then multiplied by notional amounts, and are included within "Receivables, other" or "Accounts payable and accrued expenses", as applicable, in the consolidated balance sheets on September 30, 2025 and December 31, 2024, with the corresponding gain or loss being recognized within "Derivatives and foreign currency transaction gains (losses)" in the consolidated statements of operations and comprehensive income.

<sup>3.</sup>This amount relates to interest rate swap contracts valued primarily based on the present value of the interest rate swap settlement prices and the future 3-month SOFR and EUROBOR prices, based on USD and Euro zero yield curves as of September 30, 2025 and December 31, 2024. These amounts are included within "Receivables, other", "Deposits and other", "Accounts payable and accrued expenses", or "Other long-term liabilities", as applicable, in the consolidated balance sheets on September 30, 2025.

The following table presents the amounts of gain (loss) recognized in the condensed consolidated statements of operations and comprehensive income on derivative instruments:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Amount of recognized gain (loss)** | **Amount of recognized gain (loss)** | **Amount of recognized gain (loss)** | **Amount of recognized gain (loss)** |
|<br>**Derivative instruments** |<br>**Location of recognized gain (loss)** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  |  | **2025** | **2024** | **2025** | **2024** |
|  |  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Derivatives not designated as hedging instruments** |  |  |  |  |  |
| Currency forward contracts <sup>(1)</sup> | (a) | $399 | $735 | $4092 | $222 |
| **Derivatives designated as cash flow hedging instruments** |  |  |  |  |  |
| Cross-currency swap <sup>(2)</sup> | (a) | $3552 | $2460 | $18535 | $(2903) |
| Interest rate swap <sup>(2)</sup> | (b) | $27 | $412 | 229 | 1302 |
| &nbsp;&nbsp;Total |  | $3579 | $2872 | $18764 | $(1601) |

---

(a) Derivatives and foreign currency transaction gains (losses)

(b) Interest expense, net

<sup>1.</sup>The foregoing currency forward transactions were not designated as hedge transactions and were marked to market with the corresponding gains or losses recognized within "Derivatives and foreign currency transaction gains (losses)" in the consolidated statements of operations and comprehensive income.

<sup>2.</sup> The foregoing cross-currency and interest rate swap transactions were designated as a cash flow hedging instruments. The changes in the cross-currency swap fair value are initially recorded in "Other comprehensive income (loss)" and a corresponding amount is reclassified out of "Accumulated other comprehensive income (loss)" to "Derivatives and foreign currency transaction gains (losses)" to offset the remeasurement of the underlying hedged transaction which also impacts the same line item in the condensed consolidated statements of operations and comprehensive income. The changes in the interest rate swap fair value are initially recorded in "Other comprehensive income (loss)" and a corresponding amount is reclassified out of "Accumulated other comprehensive income (loss)" to "Interest expenses, net" to offset the remeasurement of the underlying hedged transaction which also impacts the same line item in the condensed consolidated statements of operations and comprehensive income.

There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the three and nine months ended September 30, 2025 and 2024.

The following table presents the effect of derivative instruments designated as cash flow hedges on the consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2025, and 2024:

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Cash flow hedges:** |  |  |  |  |
| Balance in Accumulated other comprehensive income (loss) beginning of period | $(2204) | $162 | $684 | $(318) |
| &nbsp;&nbsp;Gain or (loss) recognized in Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cross-currency swap | 1670 | (189) | 14511 | (6179) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap | (231) | (1989) | (774) | 8 |
| &nbsp;&nbsp;Amounts reclassified from Other comprehensive income (loss) into earnings: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cross-currency swap | (3552) | (2460) | (18535) | 2903 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap | (27) | (412) | (229) | (1302) |
| Balance in Accumulated other comprehensive income (loss) end of period | $(4343) | $(4889) | $(4343) | $(4889) |

---

The estimated net amount of existing gain (loss) that is reported in "Accumulated other comprehensive income (loss)" as of September 30, 2025 that is expected to be reclassified into earnings within the next 12 months is immaterial. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flow is from the transaction commencement date through June 2031.

The fair value of the Company's long-term debt approximates its carrying amount, except for the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Fair Value** | **Fair Value** | **Carrying Amount** <sup>(\*)</sup> | **Carrying Amount** <sup>(\*)</sup> |
| | **Fair Value**<br> **Hierarchy Level** | **September 30, 2025** | **December 31, 2024** | **September 30, 2025** | **December 31, 2024** |
| | | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** | **(Dollars in millions)** |
| Limited and non-recourse loans: fixed rate | 3 | $747.8 | $636.5 | $757.0 | $657.3 |
| Full recourse loans: |  |  |  |  |  |
| &nbsp;&nbsp;Fixed-rate | 3 | 822.1 | 920.4 | 826.8 | 940.4 |
| &nbsp;&nbsp;Variable-rate | 3 | 341.3 | 48.5 | 331.2 | 48.4 |
| Financing liability: fixed-rate | 3 | 217.7 | 223.4 | 216.4 | 220.6 |
| Convertible senior note | 2 | 576.3 | 471.2 | 476.4 | 476.4 |

---

<sup>(\*)</sup> The carrying amount value of the loans excludes the related deferred financing costs.

The fair value of the long-term debt is determined by a valuation model, which is based on a conventional discounted cash flow methodology, and utilizes assumptions of current borrowing rates, except for the fair value of the Convertible senior notes for which the fair value was estimated based on a quoted bid price of the notes in an over-the-counter market on the last trading day of the reporting period. A hypothetical change in the quoted bid price will result in a corresponding change in the estimated fair value of these notes. The carrying value of the deposits of $13.2 million, the short term revolving credit lines with banks of $35.0 million, and the commercial paper of $100.0 million, approximate their fair value. Future changes to the interest rate may have a direct impact on the fair value of the Company's long-term debt.

**NOTE 5 — STOCK-BASED COMPENSATION**

In March 2025, the Company granted certain members of its management and employees an aggregate of 210,961 restricted stock units ("RSUs") and 45,190 performance stock units ("PSUs") under the Company's 2018 Incentive Compensation Plan. The RSUs and PSUs have vesting periods of between 1 to 3 years from the grant date.

------

The fair value of each RSU and PSU on the grant date was $68.9 and $70.9, respectively. The Company calculated the fair value of each RSU and PSU on the grant date using the complex lattice, tree-based option-pricing model, and the Monte Carlo simulation, based on the following assumptions:

---

| | | |
|:---|:---|:---|
| Risk-free interest rates | 3.95% | 4.08% |
| Expected life (in years) | 1 | 3 |
| Dividend yield | 0.69% | 0.69% |
| Expected volatility (weighted average) | 27.0% | 31.0% |

---

There were no other significant grants that were made by the Company during the nine months ended September 30, 2025.

**NOTE 6 — INTEREST EXPENSE, NET**

The components of interest expense are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Interest related to sale of tax benefits | $5330 | $5119 | $12828 | $14358 |
| Interest expense | 39593 | 33461 | 111310 | 96206 |
| Less — amount capitalized | (9246) | (3758) | (17306) | (11058) |
| Total interest expense, net | $35677 | $34822 | $106832 | $99506 |

---

**NOTE 7 — EARNINGS PER SHARE**

Basic earnings per share attributable to the Company's stockholders is computed by dividing net income or loss attributable to the Company's stockholders by the weighted average number of shares of common stock outstanding for the period. The Company does not have any equity instruments that are dilutive, except for employee stock-based awards and convertible senior notes (the "Notes").

The table below shows the reconciliation of the number of shares used in the computation of basic and diluted earnings per share (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Weighted average number of shares used in computation of basic earnings per share | 60749 | 60480 | 60666 | 60439 |
| Additional shares from the assumed exercise of employee stock awards | 503 | 290 | 466 | 287 |
| Weighted average number of shares used in computation of diluted earnings per share | 61252 | 60770 | 61132 | 60726 |

---

The number of stock-based awards that could potentially dilute future earnings per share and that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive was 0.5 thousand, and 29.5 thousand for the three months ended September 30, 2025 and 2024, respectively, and 7.9 thousand, and 42.3 thousand, for the nine months ended September 30, 2025 and 2024, respectively.

As per ASU 2020-06, the if-converted method is required for calculating any potential dilutive effect from convertible instruments. For the three and nine months ended September 30, 2025, the average price of the Company's common stock did not exceed the per share conversion price of the Notes of $90.27, and other requirements for the Notes to be convertible were not met and as such, there was no dilutive effect from the Notes in respect with the aforementioned periods.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

 **NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

**(Unaudited)**

**NOTE 8 — 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under the Electricity segment, the Company builds, owns and operates geothermal, solar PV and recovered energy-based power plants ("REG") in the United States and geothermal power plants in foreign countries, and sells the electricity generated by those power plants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 ("EPC") of geothermal and recovered energy-based power plants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under the Energy Storage segment, the Company owns and operates grid connected In-Front-of-the-Meter battery energy storage systems ("BESS"), 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** | **Consolidated** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Three Months Ended September 30, 2025:** | | | | |
| &nbsp;&nbsp;Revenues from external customers: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;United States <sup>(1)</sup>  | $118391 | $3021 | $20370 | $141782 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign <sup>(2)</sup>  | 48719 | 59226 |  | 107945 |
| &nbsp;&nbsp;Net revenue from external customers | 167110 | 62247 | 20370 | 249727 |
| &nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expenses <sup>(3)</sup> | 60140 | 2661 | 7467 | 70269 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other cost of revenues expenses <sup>(4)</sup> | 64448 | 46105 | 4869 | 115421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment gross profit (loss) | 42522 | 13481 | 8034 | 64037 |
| &nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment operating expenses (income) <sup>(5)</sup> | 17340 | 6492 | (227) | 23605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment operating income | $25182 | $6989 | $8261 | $40432 |
| &nbsp;&nbsp;Total depreciation and amortization expense <sup>(6)</sup> | $64506 | $3006 | $7469 | $74981 |
| &nbsp;&nbsp;Segment assets at period end <sup>(7)</sup> <sup>(\*)</sup> | 5262660 | 245858 | 584340 | 6092858 |
| &nbsp;&nbsp;Expenditures for long-lived assets | 110793 | 4089 | 32385 | 147267 |
| &nbsp;&nbsp;&nbsp;&nbsp;\* Including unconsolidated investments | 160369 |  |  | 160369 |
| **Three Months Ended September 30, 2024:** |  |  |  |  |
| &nbsp;&nbsp;Revenues from external customers: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;United States <sup>(1)</sup>  | $116914 | $3202 | $9789 | $129905 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign <sup>(2)</sup>  | 47724 | 34155 |  | 81879 |
| &nbsp;&nbsp;Net revenue from external customers | 164638 | 37357 | 9789 | 211784 |

---

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

 **NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expenses <sup>(3)</sup> | 55675 | 2745 | 4885 | 63305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other cost of revenues expenses <sup>(4)</sup> | 59266 | 27421 | 2930 | 89617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment gross profit (loss) | 49697 | 7191 | 1974 | 58862 |
| &nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment operating expenses <sup>(5)</sup> | 18720 | 4157 | 310 | 23187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment operating income (loss) | $30977 | $3034 | $1664 | $35675 |
| &nbsp;&nbsp;Total depreciation and amortization expense <sup>(6)</sup> | $58704 | $3100 | $4858 | $66661 |
| &nbsp;&nbsp;Segment assets at period end <sup>(7) (\*)</sup>  | 5001907 | 189824 | 398610 | 5590341 |
| &nbsp;&nbsp;Expenditures for long-lived assets | 101895 | 1940 | 5881 | 109716 |
| &nbsp;&nbsp;&nbsp;&nbsp;\* Including unconsolidated investments | 126767 |  |  | 126767 |
| **Nine Months Ended September 30, 2025:** |  |  |  |  |
| &nbsp;&nbsp;Revenues from external customers: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;United States <sup>(1)</sup>  | $364021 | $9783 | $52616 | $426420 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign <sup>(2)</sup>  | 143242 | 143845 |  | 287087 |
| &nbsp;&nbsp;Net revenue from external customers | 507263 | 153628 | 52616 | 713507 |
| &nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense <sup>(3)</sup> | 175117 | 7864 | 21390 | 204371 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other cost of revenues expenses <sup>(4)</sup> | 190540 | 108704 | 16033 | 315277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment gross profit (loss) | 141606 | 37060 | 15193 | 193859 |
| &nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment operating expenses (income) <sup>(5)</sup> | 53610 | 16235 | (2649) | 67196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment operating income | 87996 | 20825 | 17842 | 126663 |
| &nbsp;&nbsp;Total depreciation and amortization expenses <sup>(6)</sup> | 184427 | 8855 | 21506 | 214789 |
| &nbsp;&nbsp;Segment assets at period end <sup>(7)</sup> <sup>(\*)</sup>  | 5262660 | 245858 | 584340 | 6092858 |
| &nbsp;&nbsp;Expenditures for long-lived assets | 316548 | 7098 | 151047 | 474693 |
| &nbsp;&nbsp;&nbsp;&nbsp;\* Including unconsolidated investments | 160369 |  |  | 160369 |
| **Nine Months Ended September 30, 2024:** |  |  |  |  |
| &nbsp;&nbsp;Revenues from external customers: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;United States <sup>(1)</sup>  | $380424 | $5693 | $26778 | $412895 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign <sup>(2)</sup>  | 141693 | 94325 |  | 236018 |
| &nbsp;&nbsp;Net revenue from external customers | 522117 | 100018 | 26778 | 648913 |
| &nbsp;&nbsp;Less |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense <sup>(3)</sup> | 160691 | 7775 | 14120 | 182586 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other cost of revenues expenses <sup>(4)</sup> | 181495 | 76207 | 9567 | 267269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment gross profit (loss) | 179931 | 16036 | 3091 | 199058 |
| &nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Segment operating expenses (income) <sup>(5)</sup> | 60859 | 11134 | 3680 | 75673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment operating income (loss) | 119072 | 4902 | (589) | 123385 |
| &nbsp;&nbsp;Total depreciation and amortization expenses <sup>(6)</sup> | 170009 | 8753 | 14051 | 192813 |
| &nbsp;&nbsp;Segment assets at period end <sup>(7)</sup> <sup>(\*)</sup>  | 5001907 | 189824 | 398610 | 5590341 |

---

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

 **NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Expenditures for long-lived assets | 300,925 | 4,952 | 54,064 | 359,941 |
| &nbsp;&nbsp;&nbsp;&nbsp;\* Including unconsolidated investments | 126,767 |  |  | 126,767 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup>Electricity segment revenues in the United States are all accounted for under lease accounting except for $32.3 million and $103.9 million, in the three and nine months ended September 30, 2025, respectively, and $33.9 million and $116.2 million, in the three and nine months ended September 30, 2024, respectively, that are accounted for under ASC 606. Product and Energy Storage segment revenues in the United States are accounted for under ASC 606, except for Energy Storage revenues of $8.3 million and $14.4 million, for the three and nine months ended September 30, 2025, respectively, and $0.7 million and $2.1 million, for the three and nine months ended September 30, 2024, respectively, that are accounted for under lease accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup>Electricity segment revenues in foreign countries are all accounted for under lease accounting. Product segment revenues in foreign countries are all accounted for under ASC 606.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(3)</sup>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 segments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(4)</sup>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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(5)</sup>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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(6)</sup>Total depreciation and amortization expenses for each segment are related to the specific tangible and intangible assets associated with the respective reportable segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(7)</sup>Electricity segment assets include goodwill in the amount of $163.2 million, and $146.7 million as of September 30, 2025 and 2024, respectively. Energy Storage segment assets include goodwill in the amount of $4.6 million, and $4.6 million as of September 30, 2025 and 2024, respectively. No goodwill is included in the Product segment assets as of September 30, 2025 and 2024.

------

**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

 **NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

**(Unaudited)**

Reconciling information between reportable segments and the Company's consolidated totals is shown in the following table:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Reconciliation of profit or loss (segment gross profit): |  |  |  |  |
| Total segment gross profit (loss) | $64037 | $58862 | $193859 | $199058 |
| &nbsp;&nbsp;Less operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 1284 | 1816 | 5265 | 5110 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing expenses | 4895 | 4248 | 13437 | 13541 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 20174 | 22973 | 57869 | 60536 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating income | (3125) | (6250) | (10519) | (6250) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets |  | 323 |  | 1280 |
| &nbsp;&nbsp;&nbsp;&nbsp;Write-off of unsuccessful exploration and storage activities  | 377 | 77 | 1144 | 1456 |
| Operating income | $40432 | $35675 | $126663 | $123385 |
| Interest income | 1626 | 2051 | 4868 | 6494 |
| Interest expense, net | (35677) | (34822) | (106832) | (99506) |
| Derivatives and foreign currency transaction gains (losses) | (891) | 2046 | 6237 | 132 |
| Income attributable to sale of tax benefits | 14356 | 19760 | 48178 | 53034 |
| Other non-operating income, net | 124 | 22 | 422 | 122 |
| Total consolidated income before income taxes and equity in income of investees  | $19970 | $24732 | $79536 | $83661 |
| Reconciliation of profit or loss (segment operating income): |  |  |  |  |
| Total segment operating income | $40432 | $35675 | $126663 | $123385 |
| Interest income | 1626 | 2051 | 4868 | 6494 |
| Interest expenses, net | (35677) | (34822) | (106832) | (99506) |
| Derivatives and foreign currency transaction gains (losses) | (891) | 2046 | 6237 | 132 |
| Income attributable to sale of tax benefits | 14356 | 19760 | 48178 | 53034 |
| Other non-operating income, net | 124 | 22 | 422 | 122 |
| Total consolidated income before income taxes and equity in income of investees  | $19970 | $24732 | $79536 | $83661 |

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**NOTE 9 — COMMITMENTS AND CONTINGENCIES**

On July 29, 2024, a former employee filed a class action against the Company in Imperial County, California seeking to act in a representative capacity for other Ormat employees in California alleging violations of the California Labor Code's wage and hour regulations. The complaint was amended on September 12, 2024 to add companion Private Attorneys General Act claims. The complaint seeks recovery of various damages as well as equitable relief. The parties attended a mediation in April 2025 and have reached a settlement for an immaterial amount. A hearing for the court to approve the settlement is scheduled to take place in January 2026.

On February 7, 2025, Engie Resources, LLC and certain of its affiliates filed an action against one of the Company's wholly owned subsidiaries in the United States District Court for the Northern District of Texas. The matter was dismissed for lack of jurisdiction and refiled in state court. The complaint alleges that the Company breached its contractual obligations, including certain indemnity obligations, under certain service agreements with or involving the plaintiffs, by failing to properly schedule responsive reserve service on behalf of the plaintiffs during the power crisis in Texas in February 2021. The complaint seeks recovery from the Company of $47.5 million in damages. No amounts have been accrued for potential

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**ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES**

 **NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)**

**(Unaudited)**

losses under this matter, as the Company considers it has strong legal defenses and intends to vigorously defend itself against the claims and take all necessary legal actions to have them dismissed. Due to the early stage of the matter, the Company cannot reasonably predict the outcome of the proceedings, which is inherently uncertain, however, the Company believes that the probability of the claimant receiving a material award is low.

Additionally, from time to time, the Company is named as a party to other various lawsuits, claims and other legal and regulatory proceedings that arise in the ordinary course of the Company's business. These actions typically seek, among other things, compensation for alleged personal injury, breach of contract, property damage, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. With respect to such lawsuits, claims and proceedings, the Company accrues reserves when a loss is probable, and the amount of such loss can be reasonably estimated. It is the opinion of the Company's management that the outcome of these proceedings, individually and collectively, will not be material to the Company's consolidated financial statements as a whole.

**Other Matters**

In Kenya, since 2021, various task forces have been appointed by the President and/or the Senate to review and analyze Power Purchase Agreements ("PPA"s) entered into between KPLC and various independent power producers (including our long-term PPA for the Olkaria complex), with the recommendation that KPLC review its contracts and attempt renegotiation with these independent power producers to reduce PPA tariffs within existing contractual arrangements. The Company has been approached by certain of these task forces and has participated in requested discussions with them, which remain ongoing.

**NOTE 10 — INCOME TAXES**

The Company's effective tax rate benefit for the three months ended September 30, 2025 and 2024 was (21.4)% and (4.8)%, respectively, and (17.0)% and (5.4)%, for the nine months ended September 30, 2025 and 2024, respectively. The effective rate differs from the federal statutory rate of 21% primarily due to the generation of investment tax credits, and the jurisdictional mix of earnings at differing tax rates.

The Organization for Economic Co-operation and Development ("OECD") issued a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2). Certain aspects of Pillar 2 became effective January 1, 2024, and other aspects became effective January 1, 2025. Effective January 1, 2025, the Company met the revenue threshold requirements and is now subject to Pillar 2. The impact of Pillar 2 is not a material component of income tax expense in the nine months ended September 30, 2025.

On July 4, 2025, the OBBBA was enacted into law in the United States. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017 and numerous changes to the energy tax credits initially introduced and expanded under the IRA. The OBBBA allows for geothermal and battery storage to qualify for 100% PTC or ITC related to projects that start construction by the end of December 2033, 75% PTC or ITC by the end of December 2034 and 50% PTC or ITC by the end of December 2035. In order to qualify for 100% energy credit, solar projects must start construction by July 4, 2026 and be placed-in-service within four years, or start construction after July 3, 2026 and be placed-in-service by December 31, 2027. The law seeks to limit content from foreign entities of concern ("FEOC") used in energy related projects that start construction after December 31, 2025. The FEOC restrictions apply at both the product and taxpayer levels, which primarily affects products and ownership related to China. As a result of the enactment of the OBBB, the Company does not expect there to be a material impact to its to the consolidated financial statements for 2025.

**NOTE 11 — SUBSEQUENT EVENTS**

**Cash Dividend**

On November 3, 2025, the Board of Directors of the Company declared, approved and authorized payment of a quarterly dividend of $7.3 million ($0.12 per share) to all holders of the Company's issued and outstanding shares of common stock on November 17, 2025, payable on December 1, 2025.

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**ITEM 2.*&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS*** 

**Cautionary Note Regarding Forward-Looking Statements** 

This quarterly report on Form 10-Q includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this quarterly report that address activities, events or developments that we expect or anticipate will or may occur in the future, including such matters as our projections of annual revenues, expenses and debt service coverage with respect to our debt securities, future capital expenditures, business strategy, competitive strengths, goals, development or operation of generation assets, market and industry developments and the growth of our business and operations, are forward-looking statements. When used in this quarterly report on Form 10-Q, the words "may", "will", "could", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "projects", "potential", "contemplate", or "target" or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. The forward-looking statements in this quarterly report are primarily located in the material set forth under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations", "Risk Factors", and "Notes to Condensed Consolidated Financial Statements", but are found in other locations as well. These forward-looking statements generally relate to our plans, objectives and expectations for future operations and are based upon management's current estimates and projections of future results or trends. Although we believe that our plans and objectives reflected in or suggested by these forward-looking statements are reasonable, we may not achieve these plans or objectives. You should read this quarterly report on Form 10-Q completely and with the understanding that actual future results and developments may be materially different from what we expect attributable to a number of risks and uncertainties, many of which are beyond our control.

These forward-looking statements are made only as of the date hereof, and, except as legally required, we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

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:

***Risks Related to the Company's Business and Operation***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our financial performance depends on the successful operation of our geothermal, REG, solar PV power plants under the Electricity segment as well as our energy storage facilities, which are subject to various operational risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our exploration, development, and operation of geothermal energy resources are subject to geological risks and uncertainties, which may result in insufficient prospects to support our growth, decreased performance or increased costs for our power plants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may decide not to implement, or may not be successful in implementing, one or more elements of our multi-year strategic plan, and the plan may not achieve its goal of enhancing shareholder value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in U.S. and foreign government policy, including the imposition of or increases in tariffs and changes to existing trade agreements, could have a material adverse effect on global economic conditions and our business, results of operations, prospects and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Concentration of customers, specific projects and regions may expose us to heightened financial exposure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our international operations expose us to risks related to the application of foreign laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Political, economic and other conditions in the emerging economies where we operate, including Israel, may subject us to greater risk than in the developed U.S. economy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Some of our leases will terminate if we do not extract geothermal resources in "commercial quantities" or if we fail to comply with the terms or stipulations of such leases or any of the provisions of the Geothermal Steam Act or if the lessor under any such lease defaults on any debt secured by the relevant property, thus requiring us to enter into new leases or secure rights to alternate geothermal resources, none of which may be available on terms as favorable to us as any such terminated lease, if at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our business development activities may not be successful and our projects under construction or facilities undergoing enhancement and repowering may encounter delays.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our future growth depends, in part, on the successful enhancement of a number of our existing facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We rely on power transmission facilities that we do not own or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our use of joint ventures may limit our flexibility with jointly owned investments.

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not be able to successfully complete acquisitions, and we may not be able to successfully integrate, or realize anticipated synergies from, companies that we have acquired and may acquire in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We encounter intense competition from electric utilities, other power producers, power marketers, developers and third-party investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in costs and technology may significantly impact our business by making our power plants and products less competitive, resulting in our inability to sign new or recontracted PPAs for our Electricity segment and new supply and EPC contracts for our Products segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our intellectual property rights may not be adequate to protect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may experience a cyber-incident, cyber security breach, severe natural event or physical attack on our operational networks and information technology systems.

***Risks Related to Governmental Regulations, Laws and Taxation***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our financial performance could be adversely affected by changes in the legal and regulatory environment affecting our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to the terms of some of our PPAs with investor-owned electric utilities and publicly-owned electric utilities in states that have renewable portfolio standards, the failure to supply the contracted capacity and energy thereunder may result in the imposition of penalties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If any of our domestic power plants lose their current Qualifying Facility status under the U.S. Public Utility Regulatory Policies Act of 1978 ("PURPA"), or if amendments to PURPA are enacted that substantially reduce the benefits currently afforded to Qualifying Facilities, our domestic operations could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, future results and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are a holding company and our cash depends substantially on the performance of our subsidiaries and the power plants they operate, most of which are subject to restrictions and taxation on dividends and distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The costs of compliance with federal, state, local and foreign environmental laws and our ability to obtain and maintain environmental permits and governmental approvals required for development, construction and/or operation may result in liabilities, costs and delays in construction (as well as any fines or penalties that may be imposed upon us in the event of any non-compliance or delays with such laws or regulations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We could be exposed to significant liability for violations of hazardous substances laws because of the use or presence of such substances at our power plants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. federal, state and foreign country income tax reform could adversely affect us.

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***Risks Related to Economic and Financial Conditions***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be unable to obtain the financing we need on favorable terms to pursue our growth strategy and any future financing we receive may be less favorable to us than our current financing arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have incurred substantial indebtedness that may decrease our business flexibility, access to capital, and/or increase our borrowing costs, and we may still incur substantially more debt, which may adversely affect our operations and financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our debt obligations may adversely affect our ability to raise additional capital and will be a burden on our future cash resources, particularly if we elect to settle these obligations in cash upon conversion or upon maturity or required repurchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our foreign power plants and foreign manufacturing operations expose us to risks related to fluctuations in currency rates, which may reduce our profits from such power plants and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our power plants have generally been financed through a combination of our corporate funds and limited or non-recourse project finance debt and lease financing. If our project subsidiaries default on their obligations under such limited or non-recourse debt or lease financing, we may be required to make certain payments to the relevant debt holders, and if the collateral supporting such leveraged financing structures is foreclosed upon, we may lose certain of our power plants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may experience fluctuations in the costs of construction, raw materials, commodities and drilling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our commodity derivative activity may limit potential gains, increase potential losses, result in earnings volatility and involve other risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are exposed to swap counterparty credit risk.

***Risks Related to Force Majeure***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The existence of a prolonged force majeure event or a forced outage affecting a power plant, or the transmission systems could reduce our net income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Threats of terrorism may impact our operations in unpredictable ways and could adversely affect our business, financial condition, future results and cash flow.

***Risks Related to Ownership of our Common [Stock](#if727388c4f8d4198b2a85b1d8b35e633_91)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Future equity issuances, including through our current or any future equity compensation plans, could result in dilution, which could cause the price of our shares of common stock to decline.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may issue additional shares of our common stock in connection with conversions of the Notes, and thereby dilute our existing stockholders and potentially adversely affect the market price of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The fundamental change provisions of the Notes may delay or prevent an otherwise beneficial takeover attempt of us.

Investors are cautioned that these forward-looking statements are inherently uncertain. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein. Other than as required by law, we undertake no obligation to update forward-looking statements even though our situation may change in the future. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

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.

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**General**

***Overview***

We are a leading vertically integrated company that is primarily engaged in the geothermal energy power business. We leverage our core capabilities and global presence to expand our activity in recovered energy generation and into different energy storage services and solar PV (including hybrid geothermal and solar PV as well as solar plus energy storage). Our objective is to become a leading global provider of renewable energy and help to mitigate climate change by providing a replacement to carbon-intensive energy sources. We have adopted a strategic plan to focus on several key initiatives to expand our business.

We currently conduct our business activities in three business segments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *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 nine months ended September 30, 2025, we derived 70.8% and 71.8%, respectively, of our Electricity segment revenues from our operations in the United States, and 29.2% and 28.2%, respectively, from the rest of the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *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 nine months ended September 30, 2025, we derived 4.9% and 6.4%, respectively, of our Product segment revenues from our operations in the United States and 95.1% and 93.6%, respectively, from the rest of the world.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *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 nine months ended September 30, 2025, we derived all of our Energy Storage segment revenues from our operations in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;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.

 ***Recent Developments***

The most significant developments in our Company and business since January 1, 2025 are described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In October 2025, the Company and SLB announced an agreement to fast-track the development and commercialization of integrated geothermal assets, including enhanced geothermal systems ("EGS"). Together, Ormat and SLB intend to streamline project deployment, from concept to power generation. As part of this effort, SLB will develop, pilot and scale EGS solutions to enable wide-scale EGS adoption. This collaboration will include the design and construction of an EGS pilot at an Ormat site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In September 2025, we successfully commenced the commercial operations of our 60MW/120MWh Lower Rio energy storage facility, located in Texas. This facility will provide energy and ancillary services under a seven-year tolling agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In August 2025, we announced the signing of a strategic commercial agreement with Sage Geosystems Inc. ("Sage"), a pioneer in next-generation geothermal and energy storage technology. Under the terms of the agreement, Sage will pilot its advanced pressure geothermal technology to extract geothermal heat energy from hot dry rock at an existing Ormat power plant. This collaboration aims to significantly reduce the time needed to bring geothermal energy to market and is expected to enhance the Company's operational efficiency while accelerating the implementation of next-generation geothermal solutions. The strategic commercial agreement is expected to close by the end of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In August 2025, we signed two Geothermal Exploration and Energy Conversion Agreements ("GEECA"), a novel form of power purchase agreement, with Perusahaan Listrik Negara ("PLN"), each covering up to 20 MW of geothermal capacity each in Songa Wayaua and Atadei located in Indonesia. Under the terms of these agreements, the Company, through its project companies, will undertake exploration drilling, finance, design, construct, install, and operate the Geothermal Power Plant on a BOT ("Build, Operate and Transfer") basis , with a 23 year operating term. PLN will reimburse the cost of successful drilling and retains the option to acquire up to a 30% equity interest in the project companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In August 2025, we announced the signing of a 25-year extension to its existing power purchase agreement with the Southern California Public Power Authority ("SCPPA"), for the 52MW from Heber 1 geothermal facility. This long-term agreement, which is effective February 2026, will ensure the continued delivery of clean, baseload geothermal energy to the Los Angeles Department of Water and Power and the Imperial Irrigation District. The

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Company will supply the SCPPA with electricity from the Ormat Heber 1 geothermal facility, located in the Imperial Valley of Southern California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2025, we entered into loan agreements with a consortium of French banks pursuant to which we will borrow up to approximately €99.8 million aggregate principal amount in connection with our new Bouillante geothermal power plant in Guadeloupe.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In July 2025, we entered into a tax partnership agreement with a private investor, under which the private investor paid approximately $77.1 million for the tax benefits related to the Heber 1&2 Geothermal power plants that are part of our Heber Complex. The private investor will pay over eight years additional installments that are expected to amount to approximately $25.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In June, 2025, we entered into loan agreements with the Caribbean Development Bank and Caricom Development Fund pursuant to which we will borrow up to $49.8 million aggregate principal amount in connection with the 10MW Geothermal Project in Dominica.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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. The Company 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In May 2025, we announced the signing of a $62.0 million Hybrid Tax Equity partnership with Morgan Stanley Renewables, Inc. The partnership's transaction covers the Lower Rio 60MW/120MWh storage facility and the Arrowleaf 35MW/140MWh storage and 42MW solar projects, which are expected to achieve Commercial Operation Date ("COD") by the end of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In February 2025, we won a tender issued by the Israeli Electricity Authority and have been awarded two separate 15-year tolling agreements for two Energy Storage facilities. The facilities under the tolling agreements are expected to have a combined capacity of approximately 300MW/1200MWh. The ownership of the projects will be shared, 50/50 between Ormat and Allied Infrastructure LTD, a leading infrastructure company in Israel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In February 2025, we announced the successful COD for the Ijen geothermal power plant that is owned jointly with PT Medco Power Indonesia ("Medco Power"). The Ijen Geothermal Power Plant, equipped with Ormat Energy Converter, began operations with its first phase, delivering 35MW of electricity power to the Java grid, Ormat's share of the facility is 17MW.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In January 2025, we announced the signing of a 10-year PPA with Calpine Energy Solutions, one of North America's largest energy suppliers. Under this agreement, Calpine Energy Solutions agreed to purchase up to 15MW of clean, renewable energy from the Mammoth 2 geothermal power plant located near Mammoth Lakes, California, to support demand within its retail portfolio. Energy deliveries under the PPA are scheduled to begin in the first quarter of 2027 and will replace the existing PPA with Southern California Edison. The new PPA includes an increase in production capacity and a higher price point.

***Trends and Uncertainties***

Different trends, factors and uncertainties may impact our operations and financial condition, including many that we do not or cannot foresee. However, we believe that our results of operations and financial condition for the foreseeable future will be primarily affected by trends, factors and uncertainties discussed in our 2024 Annual Report under "Part II - Item 7 – Management Discussion and Analysis of Financial Condition and Results of Operation", in addition to the information set forth in this quarterly report. These trends, factors and uncertainties are, from time to time, also subject to market cycles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Throughout 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 while certain of these tariffs and other trade restrictions have already taken effect, 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.

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

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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"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On July 4, 2025, the OBBB was signed into law by the President of the United States. Rules under the OBBB were updated in August 2025. For more information, see Note 10 of notes to the unaudited condensed consolidated financial statements contained in this quarterly report. The Company is currently evaluating the impact of the OBBBA on its consolidated financial statements, however, it does not expect the impact to be material.

***Revenues***

For the nine months ended September 30, 2025, 93.6% 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.

To comply with obligations under their respective PPAs, certain of our project subsidiaries are structured as special purpose, bankruptcy remote entities and their assets and liabilities are ring-fenced. Such assets are not generally available to pay our debt, other than debt at the respective project subsidiary level. However, these project subsidiaries are allowed to pay dividends and make distributions of cash flows generated by their assets to us, subject in some cases to restrictions in debt instruments, as described below.

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.

Revenues attributable to our Product segment are based on the sale of equipment, engineering, procurement and construction contracts and the provision of various services to our customers, or as related to the Dominica project, under a BOT agreement with the Commonwealth of Dominica. Product segment revenues vary from period to period because of the timing of our receipt of purchase orders and the progress of our equipment manufacturing and execution of the relevant project.

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.

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The following table sets forth a breakdown of our revenues for the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Revenue** | **Revenue** | **Increase (Decrease)** | **Increase (Decrease)** | **% of Revenues for Period Indicated** | **% of Revenues for Period Indicated** |
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2025** | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | | | |
| Revenues: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity | $167110 | $164638 | $2472 | 1.5% | 66.9% | 77.7% |
| &nbsp;&nbsp;&nbsp;Product | 62247 | 37357 | 24890 | 66.6 | 24.9 | 17.6 |
| &nbsp;&nbsp;&nbsp;Energy storage | 20370 | 9789 | 10581 | 108.1 | 8.2 | 4.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $249727 | $211784 | $37943 | 17.9% | 100.0% | 100.0% |
|  | **Revenue** | **Revenue** | **Increase (Decrease)** | **Increase (Decrease)** | **% of Revenues for Period Indicated** | **% of Revenues for Period Indicated** |
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2025** | **2025** | **2024** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |  |  |  |
| Revenues: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity | $507263 | $522117 | $(14854) | (2.8)% | 71.1% | 80.5% |
| &nbsp;&nbsp;&nbsp;Product | 153628 | 100018 | 53610 | 53.6 | 21.5 | 15.4 |
| &nbsp;&nbsp;&nbsp;Energy storage | 52616 | 26778 | 25838 | 96.5 | 7.4 | 4.1 |
| &nbsp;&nbsp;&nbsp;Total | $713507 | $648913 | $64594 | 10.0% | 100.0% | 100.0% |

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The following table sets forth the geographic breakdown of the revenues attributable to our Electricity, Product and Energy Storage segments for the periods indicated:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Revenue** | **Revenue** | **Increase (decrease)** | **Increase (decrease)** | **% of Revenues for Period Indicated** | **% of Revenues for Period Indicated** |
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2025** | **2025** | **2024** |
| Electricity Segment: | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |  |  |  |
| United States | $118391 | $116914 | $1477 | 1.3% | 70.8% | 71.0% |
| Foreign | 48720 | 47724 | 995 | 2.1 | 29.2 | 29.0 |
| Total | $167110 | $164638 | $2472 | 1.5% | 100.0% | 100.0% |
| Product Segment: |  |  |  |  |  |  |
| United States | $3021 | $3202 | $(181) | (5.7)% | 4.9% | 8.6% |
| Foreign | 59226 | 34155 | 25071 | 73.4 | 95.1 | 91.4 |
| Total | $62247 | $37357 | $24890 | 66.6% | 100.0% | 100.0% |
| Energy Storage Segment: |  |  |  |  |  |  |
| United States | $20370 | $9789 | $10581 | 108.1% | 100.0% | 100.0% |
| Total | $20370 | $9789 | $10581 | 108.1% | 100.0% | 100.0% |
|  | **Revenue** | **Revenue** | **Increase (decrease)** | **Increase (decrease)** | **% of Revenues for Period Indicated** | **% of Revenues for Period Indicated** |
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2025** | **2025** | **2024** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |  |  |  |
| Electricity Segment: |  |  |  |  |  |  |
| United States | $364021 | $380424 | $(16403) | (4.3)% | 71.8% | 72.9% |
| Foreign | 143242 | 141693 | 1549 | 1.1 | 28.2 | 27.1 |
| Total | $507263 | $522117 | $(14854) | (2.8)% | 100.0% | 100.0% |
| Product Segment: |  |  |  |  |  |  |
| United States | $9783 | $5693 | $4090 | 71.8% | 6.4% | 5.7% |
| Foreign | 143845 | 94325 | 49520 | 52.5 | 93.6 | 94.3 |
| Total | $153628 | $100018 | $53610 | 53.6% | 100.0% | 100.0% |
| Energy Storage Segment: |  |  |  |  |  |  |
| United States | $52616 | $26778 | $25838 | 96.5% | 100.0% | 100.0% |
| Total | $52616 | $26778 | $25838 | 96.5% | 100.0% | 100.0% |

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In the nine months ended September 30, 2025 and 2024, 40.2% and 36.4% of our total revenues, respectively, were derived from foreign locations, and 43.2% and 38.7%, for the three months ended September 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.

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*Electricity Segment.* Our Electricity segment domestic revenues were approximately 71.8% and 72.9% of our total Electricity segment revenues for the nine months ended September 30, 2025 and 2024, respectively, and 70.8% and 71.0%, for the three months ended September 30, 2025 and 2024, respectively. Our Electricity segment foreign revenues were approximately 28.2% and 27.1% of our total Electricity segment revenues for the nine months ended September 30, 2025 and 2024, respectively and 29.2% and 29.0%, for the three months ended September 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 nine months ended September 30, 2025 and 2024, our foreign operations of the segment accounted for 40.7% and 40.2%, respectively, of our total gross profits, 78.6% and 79.7%, respectively, of our net income (assuming the majority of corporate operating expenses and financing are recorded under our domestic jurisdiction), and 29.2% and 31.2%, respectively, of our EBITDA.

*Product Segment.* Our Product segment foreign revenues were approximately 93.6% and 94.3% of our total Product segment revenues for the nine months ended September 30, 2025 and 2024, respectively, and 95.1% and 91.4%, for the three months ended September 30, 2025 and 2024, respectively.

*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, 2025 and 2024.

***Seasonality***

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.

***Breakdown of Cost of Revenues***

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."

***Critical Accounting Estimates and Assumptions***

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."

***New Accounting Pronouncements***

See Note 2 to our condensed consolidated financial statements set forth in Item 1 of this quarterly report for information regarding new accounting pronouncements.

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**Results of Operations** 

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** |
| **Statements of Operations Historical Data:** |  |  |  |  |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity | $167110 | $164638 | $507263 | $522117 |
| &nbsp;&nbsp;&nbsp;Product | 62247 | 37357 | 153628 | 100018 |
| &nbsp;&nbsp;&nbsp;Energy storage | 20370 | 9789 | 52616 | 26778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenues | 249727 | 211784 | 713507 | 648913 |
| **Cost of revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity | 124588 | 114941 | 365657 | 342186 |
| &nbsp;&nbsp;&nbsp;Product | 48766 | 30166 | 116568 | 83982 |
| &nbsp;&nbsp;&nbsp;Energy storage | 12336 | 7815 | 37423 | 23687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 185690 | 152922 | 519648 | 449855 |
| **Gross profit** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity | 42522 | 49697 | 141606 | 179931 |
| &nbsp;&nbsp;&nbsp;Product | 13481 | 7191 | 37060 | 16036 |
| &nbsp;&nbsp;&nbsp;Energy storage | 8034 | 1974 | 15193 | 3091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit | 64037 | 58862 | 193859 | 199058 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 1284 | 1816 | 5265 | 5110 |
| &nbsp;&nbsp;&nbsp;Selling and marketing expenses | 4895 | 4248 | 13437 | 13541 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 20174 | 22973 | 57869 | 60536 |
| &nbsp;&nbsp;&nbsp;Other operating income | (3125) | (6250) | (10519) | (6250) |
| &nbsp;&nbsp;&nbsp;Impairment of long-lived assets |  | 323 |  | 1280 |
| &nbsp;&nbsp;&nbsp;Write-off of unsuccessful exploration and storage activities | 377 | 77 | 1144 | 1456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 40432 | 35675 | 126663 | 123385 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 1626 | 2051 | 4868 | 6494 |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (35677) | (34822) | (106832) | (99506) |
| &nbsp;&nbsp;&nbsp;Derivatives and foreign currency transaction gains (losses) | (891) | 2046 | 6237 | 132 |
| &nbsp;&nbsp;&nbsp;Income attributable to sale of tax benefits | 14356 | 19760 | 48178 | 53034 |
| &nbsp;&nbsp;&nbsp;Other non-operating income, net | 124 | 22 | 422 | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations before income tax and equity in earnings (losses) of investees  | 19970 | 24732 | 79536 | 83661 |
| Income tax (provision) benefit | 4283 | 1193 | 13544 | 4518 |
| Equity in earnings (losses) of investees | 455 | (1624) | 861 | 437 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 24708 | 24301 | 93941 | 88616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to noncontrolling interest | (571) | (2219) | (1396) | (5704) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to the Company's stockholders | $24137 | $22082 | $92545 | $82912 |
| Earnings per share attributable to the Company's stockholders: |  |  |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Basic: | $0.40 | $0.37 | $1.53 | $1.37 |
| &nbsp;&nbsp;&nbsp;Diluted: | $0.39 | $0.36 | $1.51 | $1.37 |
| Weighted average number of shares used in computation of earnings per share attributable to the Company's stockholders: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 60749 | 60480 | 60666 | 60439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 61252 | 60770 | 61132 | 60726 |

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*Operating results as a percentage of total revenues:*

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Statements of Operations Data:** |  |  |  |  |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity | 66.9% | 77.7% | 71.1% | 80.5% |
| &nbsp;&nbsp;&nbsp;Product | 24.9 | 17.6 | 21.5 | 15.4 |
| &nbsp;&nbsp;&nbsp;Energy storage | 8.2 | 4.6 | 7.4 | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenues | 100.0 | 100.0 | 100.0 | 100.0 |
| **Cost of revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity | 74.6 | 69.8 | 72.1 | 65.5 |
| &nbsp;&nbsp;&nbsp;Product | 78.3 | 80.8 | 75.9 | 84.0 |
| &nbsp;&nbsp;&nbsp;Energy storage | 60.6 | 79.8 | 71.1 | 88.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 74.4 | 72.2 | 72.8 | 69.3 |
| **Gross profit** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Electricity | 25.4 | 30.2 | 27.9 | 34.5 |
| &nbsp;&nbsp;&nbsp;Product | 21.7 | 19.2 | 24.1 | 16.0 |
| &nbsp;&nbsp;&nbsp;Energy storage | 39.4 | 20.2 | 28.9 | 11.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit | 25.6 | 27.8 | 27.2 | 30.7 |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 0.5 | 0.9 | 0.7 | 0.8 |
| &nbsp;&nbsp;&nbsp;Selling and marketing expenses | 2.0 | 2.0 | 1.9 | 2.1 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 8.1 | 10.8 | 8.1 | 9.3 |
| &nbsp;&nbsp;&nbsp;Other operating income | (1.3) | (3.0) | (1.5) | (1.0) |
| &nbsp;&nbsp;&nbsp;Impairment of long-lived assets |  | 0.2 |  | 0.2 |
| &nbsp;&nbsp;&nbsp;Write-off of unsuccessful exploration and storage activities | 0.2 |  | 0.2 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income | 16.2 | 16.8 | 17.8 | 19.0 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 0.7 | 1.0 | 0.7 | 1.0 |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (14.3) | (16.4) | (15.0) | (15.3) |
| &nbsp;&nbsp;&nbsp;Derivatives and foreign currency transaction gains (losses) | (0.4) | 1.0 | 0.9 |  |
| &nbsp;&nbsp;&nbsp;Income attributable to sale of tax benefits | 5.7 | 9.3 | 6.8 | 8.2 |
| &nbsp;&nbsp;&nbsp;Other non-operating income, net |  |  | 0.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations before income tax and equity in earnings (losses) of investees  | 8.0 | 11.7 | 11.1 | 12.9 |
| Income tax (provision) benefit | 1.7 | 0.6 | 1.9 | 0.7 |
| Equity in earnings (losses) of investees | 0.2 | (0.8) | 0.1 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 9.9 | 11.5 | 13.2 | 13.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to noncontrolling interest | (0.2) | (1.0) | (0.2) | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to the Company's stockholders | 9.7% | 10.4% | 13.0% | 12.8% |

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***Comparison of the Three Months Ended September 30, 2025 to the Three Months Ended September 30, 2024*** 

***Total Revenues***

The table below compares revenues for the three months ended September 30, 2025 to the three months ended September 30, 2024.

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | |
| | **2025** | **2024** |<br>**Change** |
| | **(Dollars in millions)** | **(Dollars in millions)** | |
| Electricity segment | $167.1 | $164.6 | 1.5% |
| Product segment | 62.2 | 37.4 | 66.6 |
| Energy Storage segment | 20.4 | 9.8 | 108.1 |
| &nbsp;&nbsp;Total revenues | $249.7 | $211.8 | 17.9% |

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*Electricity Segment*

Revenues attributable to our Electricity segment for the three months ended September 30, 2025 were $167.1 million, compared to $164.6 million for the three months ended September 30, 2024. This increase of $2.5 million was mainly attributable to: (i) $2.9 million increase related to the Blue Mountain power plant which was purchased in June 2025; and (ii) $4.0 million increase compared to the third quarter of 2024 during which the Dixie Valley power plant had an unscheduled outage. This increase was partially offset by $3.2 million decrease in revenues primarily due to reduction in Puna's energy rates that are tied to oil prices and by $1.7 million increase in curtailments in the U.S..

Power generation in our power plants increased by 1.9% from 1,616,634 MWh in the three months ended September 30, 2024 to 1,647,912 MWh in the three months ended September 30, 2025.

*Product Segment* 

Revenues attributable to our Product segment for the three months ended September 30, 2025 were $62.2 million, compared to $37.4 million for the three months ended September 30, 2024. This increase of $24.9 million, or 66.6%, is primarily related to the progress in our projects and timing of when revenues are recognized during the period. During the three months ended September 30, 2025 and 2024, Product revenues included projects primarily in New Zealand and Dominica.

*Energy Storage Segment*

Revenues attributable to our Energy Storage segment for the three months ended September 30, 2025 were $20.4 million compared to $9.8 million for the three months ended September 30, 2024. This increase of $10.6 million is primarily related to $9.2 million from new energy storage facilities which commenced commercial operation in the fourth quarter of 2024 or later such as Bottleneck, Montague, and Lower Rio, as well as higher energy rates at PJM storage facilities in the three months ended September 30, 2025, compared to the same period in the previous year.

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***Total Cost of Revenues***

The table below compares cost of revenues for the three months ended September 30, 2025 to the three months ended September 30, 2024.

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | |
| | **2025** | **2024** |<br>**Change** |
| | **(Dollars in millions)** | **(Dollars in millions)** | |
| Electricity segment | $124.6 | $114.9 | 8.4% |
| Product segment | 48.8 | 30.2 | 61.7 |
| Energy Storage segment | 12.3 | 7.8 | 57.9 |
| &nbsp;&nbsp;Total cost of revenues | $185.7 | $152.9 | 21.4% |

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 *Electricity Segment*

Total cost of revenues attributable to our Electricity segment for the three months ended September 30, 2025 was $124.6 million, compared to $114.9 million for the three months ended September 30, 2024, which represents an increase of $9.6 million, or 8.4%. This increase is primarily attributable to (i) an increase in the power plant depreciation expenses of $5.8 million, as a results of our investments in our power plants; (ii) an increase of $1.3 million in the Stillwater power plant as a result of maintenance work during the third quarter of 2025; (iii) a $1.4 million increase in the Steamboat complex, primarily as a result of a property tax refund which was recorded in the third quarter of 2024; and (vi) a $0.8 million increase related to the Blue Mountain power plant which was purchased in June 2025.

Our total Electricity segment cost of revenues for the three months ended September 30, 2025 was 74.6% of Electricity segment revenues, compared to 69.8% for the three months ended September 30, 2024. The cost of revenues attributable to our international power plants for the three months ended September 30, 2025 was 17.6% of our total Electricity segment cost of revenues for this period compared to 16.9% for the same period in the prior year.

*Product Segment*

Total cost of revenues attributable to our Product segment for the three months ended September 30, 2025 was $48.8 million, compared to $30.2 million for the three months ended September 30, 2024, which represented a 61.7% 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 September 30, 2025, and 2024, was 78.3% and 80.8%, respectively, which results from the different profitability of the different projects included in each period.

 *Energy Storage Segment* 

Cost of revenues attributable to our Energy Storage segment for the three months ended September 30, 2025 was $12.3 million compared to $7.8 million for the three months ended September 30, 2024. This increase of $4.5 million includes an increase of $2.7 million in depreciation and amortization expenses, and is primarily related to the new energy storage facilities which commenced commercial operation in the fourth quarter of 2024, or later such as Bottleneck, Montague, and Lower Rio.

***Research and Development Expenses, Net***

Research and development expenses for the three months ended September 30, 2025 were $1.3 million, compared to $1.8 million for the three months ended September 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.

***Selling and Marketing Expenses***

Selling and marketing expenses for the three months ended September 30, 2025 were $4.9 million compared to $4.2 million for the three months ended September 30, 2024. Selling and marketing expenses for the three months ended September 30, 2025 and 2024 constituted 2.0% and 2.0% of total revenues, respectively.

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 ***General and Administrative Expenses***

General and administrative expenses for the three months ended September 30, 2025 were $20.2 million compared to $23.0 million for the three months ended September 30, 2024. General and administrative expenses for the three months ended September 30, 2025 and 2024 constituted 8.1% and 10.8% of total revenues, respectively. The decrease in general and administrative expenses of $2.8 million is primarily attributable to consulting fees related to a settlement agreement with a third-party battery systems supplier of $4.8 million which was recorded in the third quarter of 2024. This decrease was partially offset by higher consulting fees in the three months ended September 30, 2025 of $1.3 million, out of which $0.5 million is related to the Blue Mountain purchase transaction, and the remainder is related to the timing of when we incur services from our vendors.

***Other Operating Income***

Other operating income for the three months ended September 30, 2025 was $3.1 million compared to $6.3 million for the three months ended September 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.

***Impairment of Long-Lived Assets***

There was no impairment of long-lived assets in the three months ended September 30, 2025. Impairment of long-lived assets for the three months ended September 30, 2024 of $0.3 million is related to the termination of the waste heat agreement between the Company's wholly-owned subsidiary, OREG 4, and Highline Electric Association, Inc., effective May 2024.

***Write-off of Unsuccessful Exploration and Storage Activities***

Write-off of unsuccessful exploration and storage activities for the three months ended September 30, 2025 was $0.4 million compared to $0.1 million for the three months ended September 30, 2024. These write-offs are primarily related to geothermal exploration and storage projects that the Company decided to no longer pursue.

***Interest Income***

Interest Income for the three months ended September 30, 2025 was $1.6 million, compared to $2.1 million for the three months ended September 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.

***Interest Expense, Net***

Interest expense, net for the three months ended September 30, 2025 was $35.7 million, compared to $34.8 million for the three months ended September 30, 2024. This increase of $0.9 million was primarily attributable to interest expense relating to loan agreements entered into during, or subsequently to, the third quarter of 2024 such as: (i) the Discount 2024 II loan entered into in September 2024; (ii) the issuance of the Additional 2.50% Senior Convertible Notes in July 2024; (iii) the Bottleneck Loan entered into in November 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; (vii) the GB Loan entered into in July 2025; and (vii) the Heber 1 and 2 tax monetization transaction entered into in July 2025. This increase was partially offset by an increase in the amount of interest capitalized due to an increase in the construction-in-process balance, period over period, as well as lower interest expenses on other existing loans as a result of scheduled payments.

***Derivatives and Foreign Currency Transaction Gains (Losses)***

Derivatives and foreign currency transaction gains and losses for the three months ended September 30, 2025 was a loss of $0.9 million, compared to a gain of $2.0 million for the three months ended September 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 rates against the U.S. Dollar.

***Income Attributable to Sale of Tax Benefits***

Income attributable to the sale of tax benefits for the three months ended September 30, 2025 was $14.4 million, compared to $19.8 million for the three months ended September 30, 2024. This income primarily represents the value of

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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.

***Other Non-Operating Income (Expense), Net***

Other non-operating income (expense), net for the three months ended September 30, 2025 was an income of $0.1 million, compared to an income of $22.0 thousand for the three months ended September 30, 2024.

***Income Taxes***

Income tax benefit for the three months ended September 30, 2025 was $4.3 million compared to income tax benefit of $1.2 million for the three months ended September 30, 2024. This change primarily relates to the generation of additional investment tax credits, and the change in "Income from operations before income tax and equity in earnings of investees". Our effective tax rate for the three months ended September 30, 2025 and 2024, was (21.4)% and (4.8)%, respectively.

***Equity in Earnings (Losses) of Investees, Net***

Equity in earnings of investees, net for the three months ended September 30, 2025 was earnings of $0.5 million, compared to losses of $1.6 million for the three months ended September 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.

***Net Income Attributable to the Company's Stockholders***

Net income attributable to the Company's stockholders for the three months ended September 30, 2025 was $24.1 million, compared to $22.1 million for the three months ended September 30, 2024, which represents an increase of $2.1 million. This increase is attributable to a increase of $0.4 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.

***Comparison of the Nine Months Ended September 30, 2025 to the Nine Months Ended September 30, 2024***

***Total Revenues***

The table below compares revenues for the nine months ended September 30, 2025 to the nine months ended September 30, 2024.

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| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | |
| | **2025** | **2024** |<br>**Change** |
| **Segment Revenues:** | **(Dollars in millions)** | **(Dollars in millions)** |  |
| Electricity segment | $507.3 | $522.1 | (2.8)% |
| Product segment | 153.6 | 100.0 | 53.6 |
| Energy Storage segment | 52.6 | 26.8 | 96.5 |
| &nbsp;&nbsp;Total revenues | $713.5 | $648.9 | 10.0% |

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*Electricity Segment*

Revenues attributable to our Electricity segment for the nine months ended September 30, 2025, were $507.3 million, compared to $522.1 million for the nine months ended September 30, 2024. The decrease of $14.9 million in our Electricity segment revenues was mainly attributable to: (i) a $9.6 million decrease in revenues due to a temporary reduction in generation in our Puna power plant, primarily caused by wellfield issues during the first half of 2025 and lower energy rates in the third quarter; (ii) a $15.6 million decrease in revenues primarily related to curtailments from McGinness Hills, Tungsten and Dixie Valley; (iii) a $3.2 million decrease in revenues related to the Stillwater power plant, primarily due to planned repowering of the power plant; and (iv) an additional reduction in revenues in lower amounts at a number of other power plants. This decrease was partially offset by (i) a $3.3 million increase in revenues related to the Blue Mountain power plant which was purchased in June 2025; (ii) a $4.3 million increase in revenues related to the Beowawe repower project which commenced commercial operation in the second quarter of 2024; and (iii) a $4.2 million increase in revenues in the Dixie Valley power plant, net of curtailment, due to the unscheduled maintenance work in 2024.

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Power generation in our power plants decreased by 1.8% from 5,437,679 MWh in the nine months ended September 30, 2024 to 5,338,053 MWh in the nine months ended September 30, 2025.

*Product Segment* 

Revenues attributable to our Product segment for the nine months ended September 30, 2025 were $153.6 million, compared to $100.0 million for the nine months ended September 30, 2024. This increase of $53.6 million, or 53.6%, is primarily related to the progress in our projects which results in the timing of when revenues are recognized. During the nine months ended September 30, 2025, and 2024, Product revenues included projects primarily in New Zealand and Dominica.

*Energy Storage Segment*

Revenues attributable to our Energy Storage segment for the nine months ended September 30, 2025 were $52.6 million compared to $26.8 million for the nine months ended September 30, 2024. The increase of $25.8 million is primarily related to (i) the East Flemington energy storage facility which commenced commercial operations during the first quarter of 2024; (ii) the Bottleneck, Montague, and Lower Rio energy storage facilities which commenced commercial operation in the fourth quarter of 2024 or later; and (iii) higher energy rates at PJM storage facilities in the nine months ended September 30, 2025, compared to the same period in the previous year.

***Total Cost of Revenues***

The table below compares cost of revenues for the nine months ended September 30, 2025 to the nine months ended September 30, 2024.

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| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | |
| | **2025** | **2024** |<br>**Change** |
| **Segment Cost of Revenues:** | **(Dollars in millions)** | **(Dollars in millions)** |  |
| Electricity segment | $365.7 | $342.2 | 6.9% |
| Product segment | 116.6 | 84.0 | 38.8 |
| Energy Storage segment | 37.4 | 23.7 | 58.0 |
| &nbsp;&nbsp;Total cost of revenues | $519.6 | $449.9 | 15.5% |

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*Electricity Segment* 

Total cost of revenues attributable to our Electricity segment for the nine months ended September 30, 2025 was $365.7 million, compared to $342.2 million for the nine months ended September 30, 2024, which represents an increase of $23.5 million, or 6.9%. This increase is primarily attributable to (i) an increase in power plants depreciation expenses of $15.9 million, as a result of our investments in our power plants; (ii) an increase of $3.8 million and $2.0 million, in the CD4 power plant and the Heber complex, respectively, primarily associated with property tax expenses relating to prior years which were recorded in 2025; (iii) an increase of $1.3 million in the Stillwater power plant as a result of maintenance work during the third quarter of 2025; and (iv) additional increases in lower amounts in our other power plants.

Our total Electricity segment cost of revenues for the nine months ended September 30, 2025 was 72.1% of Electricity revenues, compared to 65.5% for the nine months ended September 30, 2024. The cost of revenues attributable to our international power plants for the nine months ended September 30, 2025 was 17.6% of our total Electricity segment cost of revenues for this period, compared to 18.0% for the same period in the prior year.

*Product Segment*

Total cost of revenues attributable to our Product segment for the nine months ended September 30, 2025 was $116.6 million, compared to $84.0 million for the nine months ended September 30, 2024, which represented a 38.8% increase. This increase was primarily attributable to the increase in Product segment revenues as discussed above. As a percentage of total Product segment revenues, our total cost of revenues attributable to our Product segment for the nine months ended September 30, 2025, and 2024, was 75.9% and 84.0%, respectively, which results from the different profitability of the different projects included in each period.

*Energy Storage Segment*

Cost of revenues attributable to our Energy Storage segment for the nine months ended September 30, 2025 was $37.4 million compared to $23.7 million for the nine months ended September 30, 2024. This increase of $13.7 million includes an

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increase of $7.3 million in depreciation and amortization expenses, and is primarily related to the new energy storage facilities which commenced commercial operation in the fourth quarter of 2024 or later such as Bottleneck, Montague, and Lower Rio.

***Research and Development Expenses, Net***

Research and development expenses for the nine months ended September 30, 2025 were $5.3 million, compared to $5.1 million for the nine months ended September 30, 2024. The increase in research and development expenses is mainly attributable to the timing of when we allocate resources to research and development projects.

***Selling and Marketing Expenses***

Selling and marketing expenses for the nine months ended September 30, 2025 were $13.4 million compared to $13.5 million for the nine months ended September 30, 2024. Selling and marketing expenses for the nine months ended September 30, 2025, constituted 1.9% of total revenues for such period, compared to 2.1% for the nine months ended September 30, 2024.

***General and Administrative Expenses***

General and administrative expenses for the nine months ended September 30, 2025 were $57.9 million compared to $60.5 million for the nine months ended September 30, 2024. The decrease of $2.7 million 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, which was recorded in the third quarter of 2024.

***Other Operating Income***

Other operating income for the nine months ended September 30, 2025 was $10.5 million compared to $6.3 million for the nine months ended September 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.

***Impairment of Long-Lived Assets***

There was no impairment of long-lived assets in the nine months ended September 30, 2025. Impairment of long-lived assets for the nine months ended September 30, 2024 of $1.3 million was related to the termination of the waste heat agreement between the Company's wholly-owned subsidiary, OREG 4, and Highline Electric Association, Inc., effective May 2024.

***Write-off of Unsuccessful Exploration and Storage Activities***

Write-off of unsuccessful exploration and storage activities for the nine months ended September 30, 2025 was $1.1 million, compared to $1.5 million for the nine months ended September 30, 2024. These write-offs are related to accumulated costs of geothermal exploration and storage projects that the Company decided to no longer pursue.

***Interest Income***

Interest Income for the nine months ended September 30, 2025 was $4.9 million, compared to $6.5 million for the nine months ended September 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.

***Interest Expense, Net***

Interest expense, net for the nine months ended September 30, 2025 was $106.8 million, compared to $99.5 million for the nine months ended September 30, 2024. This increase of $7.3 million is primarily attributable to interest expenses relating to loan agreements entered into during, or subsequent to, the nine months ended September 30, 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 issuance of the Additional 2.50% Senior Convertible Notes in July 2024; (v) the Bottleneck Loan entered into in November 2024; (vi) the Mizrahi 2025 Loan entered into in February 2025; (vii) the Discount 2025 Loan and Hapoalim 2025 Loan entered into in March 2025; (viii) the Discount 2025 II Loan entered into in May 2025; (ix) the GB Loan entered into in July 2025; and (x) the Heber 1 and 2 tax monetization transaction entered into in July 2025. This increase was partially offset by an increase in the amount of interest capitalized due to an increase in the construction-in-process balance and lower interest expenses on other long-term loans as a result of regular principal payments.

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***Derivatives and Foreign Currency Transaction Gains (Losses)***

Derivatives and foreign currency transaction gains and losses for the nine months ended September 30, 2025 was a gain of $6.2 million, compared to a gain of $0.1 million for the nine months ended September 30, 2024. Derivatives and foreign currency transaction gains and 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 rates against the U.S. Dollar.

***Income Attributable to Sale of Tax Benefits***

Income attributable to the sale of tax benefits for the nine months ended September 30, 2025 was $48.2 million, compared to $53.0 million for the nine months ended September 30, 2024. This income primarily represents the value of 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 IRA regulations.

***Other Non-Operating Income (Expense), Net***

Other non-operating income (expense), net for the nine months ended September 30, 2025 was $0.4 million, compared to $0.1 million for the nine months ended September 30, 2024.

***Income Taxes***

Income tax benefit for the nine months ended September 30, 2025 was $13.5 million compared to income tax benefit of $4.5 million for the nine months ended September 30, 2024. This change primarily relates to the generation of additional investment tax credits. Our effective tax rate for the nine months ended September 30, 2025 and 2024, was (17.0)% and (5.4)%, respectively.

 ***Equity in Earnings (Losses) of Investees, Net***

Equity in earnings and losses of investees, net for the nine months ended September 30, 2025 was earnings of $0.9 million, compared to earnings of $0.4 million for the nine months ended September 30, 2024. Equity in earnings and losses of investees, net is mainly derived from our 12.75% share in the earnings or losses in the Sarulla consortium and our 49% share in the earnings or losses from the Ijen geothermal project. The increase in equity in earnings of investees is primarily related to the increase in net income generated by the Ijen project.

***Net Income Attributable to the Company's Stockholders***

Net income attributable to the Company's stockholders for the nine months ended September 30, 2025 was $92.5 million, compared to $82.9 million for the nine months ended September 30, 2024, which represents an increase of $9.6 million. This increase was attributable to the increase of $5.3 million in net income which was affected by the explanations described above, as well as a decrease of $4.3 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.

**Liquidity and Capital Resources**

Our principal sources of liquidity have been derived from cash flows from operations, proceeds from third party debt such as borrowings under our credit facilities, private or public offerings and issuances of debt or equity securities, project financing and tax monetization transactions, short term borrowing under our lines of credit, and proceeds from the sale of equity interests in one or more of our projects. We have utilized this cash to develop and construct power plants, fund our acquisitions, pay down existing outstanding indebtedness, and meet our other cash and liquidity needs.

As of September 30, 2025, we had access to (i) $79.6 million in cash and cash equivalents, of which $28.1 million is held by our foreign subsidiaries; and (ii) $387.1 million of unused corporate borrowing capacity under existing committed lines for credit and letters of credit with different commercial banks.

Our estimated capital needs for the remainder of 2025 include $140 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, $60.6 million will be needed for long-term debt repayment.

We expect to finance these requirements with: (i) the sources of liquidity described above; (ii) positive cash flows from our operations; and (iii) future project financings and re-financings (including construction loans and tax equity transactions). Management believes that, based on the current stage of implementation of our strategic plan, the sources of liquidity and capital resources described above will address our anticipated liquidity, capital expenditures, and other investment requirements.

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As of September 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 nine months ended September 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.

As further described under Note 1 to the condensed consolidated financial statements, the Company entered into the following new loan agreements during the nine months ended September 30, 2025: (i) the Mizrahi 2025 Loan in February 2025 for $50.0 million; (ii) the Discount 2025 Loan in March 2025 for $50.0 million; (iii) the Hapoalim 2025 Loan in March 2025, and later in June 2025, for a total of $150.0 million; (iv) the Discount 20205 II Loan in May 2025 for $50 million; (v) the GB Loan in August 2025 for €76.0 million; (vi) the Dominica Loan in August 2025 for $37.6 million; and (vii) the Mammoth Senior Secured Notes 2025 in September for $23.4 million. Additionally, (1) in May 2025, the Company entered into a hybrid tax equity partnership with a private investor for the purpose of monetizing ITCs for a total estimated consideration of $62.0 million, of which $32.7 million was made during the second and third quarters of 2025, as further described under Note 1 to the consolidated financial statements, and (2) in July 2025, the Company entered in a tax monetization transaction with a private investor for the purpose of monetizing PTCs for a total consideration of $77.1 million, and for additional installments expected to amount to approximately $25.7 million.

**Letters of Credits Under Credit Agreements** 

Some of our customers require our project subsidiaries to post letters of credit in order to guarantee their respective performance under relevant contracts. We are also required to post letters of credit to secure our obligations under various leases and licenses and may, from time to time, decide to post letters of credit in lieu of cash deposits in reserve accounts under certain financing arrangements. In addition, our subsidiary, Ormat Systems, is required from time to time to post performance letters of credit in favor of our customers with respect to orders of products.

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| | | | |
|:---|:---|:---|:---|
| **Credit Agreements** | **Amount Issued** | **Issued and Outstanding as of September 30, 2025** | **Termination Date** |
|  | **(Dollars in millions)** | **(Dollars in millions)** | 387.1 |
| Committed lines for credit and letters of credit | $533.0 | $145.9 | November 2025-June 2028 |
| Committed lines for letters of credit | 155.0 | 95.6 | November 2025-March 2026 |
| Non-committed lines |  | 54.5 | October 2025 |
| Total | $688.0 | $296.0 |  |

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**Restrictive Covenants** 

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 September 30, 2025: (i) total equity was $2,643.0 million and the actual equity to total assets ratio was 43.4% and (ii) the 12-month debt, net of cash, cash equivalents, to Adjusted EBITDA ratio was 4.42. During the nine months ended September 30, 2025, we distributed interim dividends in an aggregate amount of $21.8 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.

As described above, we are currently in compliance with our covenants with respect to the credit agreements, the loan agreements and the trust instrument (except as described below), and believe that the restrictive covenants, financial ratios and other terms of any of our full-recourse bank credit agreements will not materially impact our business plan or operations.

As of September 30, 2025, we did not meet the dividend distribution criteria related to the Mammoth Senior Secure Notes and the DAC 1 Senior Secured Notes, which resulted in certain equity distribution restrictions from these related subsidiaries. As of September 30, 2025, the amount restricted for distribution by these subsidiaries was $9.3 million and $0.7 million,

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respectively. Additionally, as of September 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. On October 27, 2025, a waiver and amendment to the finance agreement were signed between the Company and the lender, effectively resolving the noncompliance issue as of September 22, 2025. As of September 30, 2025, the amount restricted for distribution by this subsidiary was $11.5 million. 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 September 30, 2025.

**Future minimum payments**

Future minimum cash payments under long-term obligations (including long-term debt, lease obligations and financing liability), as of September 30, 2025, are as follows:

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| | |
|:---|:---|
| | **(Dollars in thousands)** |
| **Year ending December 31:** | |
| 2025 | $62657 |
| 2026 | 311110 |
| 2027 | 785554 |
| 2028 | 338381 |
| 2029 | 315230 |
| Thereafter | 966710 |
| &nbsp;&nbsp;Total | $2779642 |

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**Third-Party Debt** 

Our third-party debt consists of (i) non-recourse and limited-recourse project finance debt or acquisition financing debt that we or our subsidiaries have obtained for the purpose of developing and constructing, refinancing or acquiring our various projects; (ii) full-recourse debt incurred by us or our subsidiaries for general corporate purposes; (iii) financing liability related to the business combination purchase transaction of the Terra-Gen geothermal assets; (iv) convertible senior notes; (v) commercial paper; and (vi) short term revolving credit lines with banks which may be drawn as needed.

***Non-Recourse, Limited-Recourse, Full-Recourse Third-Party Debt, Financial Liability and Convertible Senior Notes***

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| | | | |
|:---|:---|:---|:---|
| **Loan** | **Amount Outstanding as of September 30, 2025** | **Interest Rate Range** | **Maturity Date** |
| | **(Dollars in millions)** | | |
| Limited and non-recourse loans: fixed rate | $757.0 | 2.4% - 7.0% | June-30 - July-47 |
| Full recourse loans: |  |  |  |
| &nbsp;&nbsp;Fixed-rate | 826.8 | 2.9% - 7.9% | January-28- February-33 |
| &nbsp;&nbsp;Variable-rate | 331.2 | 6.6% - 6.7% | September-28 - May-33 |
| Financing liability <sup>(1)</sup> | 216.4 | 6.0% | June-38 |
| Convertible senior notes <sup>(2)</sup> | 476.4 | 2.5% | July-27 |
| Short term revolving credit lines with banks | 35.0 | 6.6% | March-26 |

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&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> ***Financing Liability***

The financing liability is related to the sale and lease back transaction of the Dixie Valley power plant which was acquired as part of the business combination transaction of the Terra-Gen geothermal assets in July 2021. The financing liability bears a fixed interest rate of 6.01% per annum, principal and interest are payable semi-annually, and it matures in June 2038.

&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> ***Convertible Senior Notes***

The Original Convertible Notes due 2027 were issued in June 2022 in a single series of a $431.3 million aggregate principal amount. The Original Convertible Notes bear annual interest at a rate of 2.5%, payable semiannually in arrears on January 15 and July 15 of each year, beginning on January 15, 2023. The Original Convertible Notes mature on July 15,

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2027, unless earlier converted, redeemed or repurchased. In July 2024, the Company issued an additional $45.2 million aggregate principal amount of its 2.50% Original Convertible Notes.

***Short-term Commercial Paper***

In October 2023, the Company completed the issuance of the commercial paper in the aggregate amount of $73.2 million, and subsequently on December 11, 2023, the Company issued an additional amount of $26.8 million, under the same terms of the commercial paper framework agreement (together, the "Commercial Paper"). The Commercial Paper was issued for a period of 90 days and extends automatically for additional 90-day periods for up to five years, unless the Company notifies the participants otherwise or a notice of termination is provided by the participants in accordance with the provisions of the Commercial Paper agreement. The Commercial Paper bears an annual interest of three months SOFR +1.1% which is paid at the end of each 90-day period. As of September 30, 2025, the base rate was 4.3%, and the aggregate outstanding amount of the Commercial Paper is $100.0 million.

**Dividends** 

The Company has declared and distributed quarterly dividends of $0.12 per share during the past two years.

**Historical Cash Flows**

The following table sets forth the components of our cash flows for the periods indicated:

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| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Net cash provided by operating activities | $230061 | $252300 |
| Net cash used in investing activities | (579797) | (645115) |
| Net cash provided by financing activities | 349081 | 282030 |
| Translation adjustments on cash and cash equivalents | 620 | (210) |
| Net change in cash and cash equivalents and restricted cash and cash equivalents | $(35) | $(110995) |

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*For the Nine Months Ended September 30, 2025* 

Net cash provided by operating activities for the nine months ended September 30, 2025 was $230.1 million, compared to $252.3 million for the nine months ended September 30, 2024, representing an decrease of $22.2 million. Net cash provided by operating activities for the nine months ended September 30, 2025 was primarily attributable to net income of $93.9 million, adjusted for certain non-cash items such as depreciation and amortization, income attributable to the sale of tax benefits, and deferred income tax provision, among others, and primarily by: (i) a net change of $14.8 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 $19.1 million, due to the timing of collection from our customers. This was partially offset by: (i) a net increase of $40.1 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 $34.7 million as a result of the timing of payments to our suppliers; and (iii) a net increase in inventories of $6.5 million, primarily related to the timing of allocating costs to projects under construction. Net cash provided by operating activities for the nine months ended September 30, 2024 was primarily attributable to net income of $88.6 million for the period, adjusted for certain non-cash items, such as depreciation and amortization, income attributable to the sale of tax benefits, and deferred income tax provision, among others, and primarily by:(i) a cash inflow related to the net decrease in trade receivables of $42.5 million, due to timing of collection from our customers; (ii) an increase in other long-term liabilities of $8.3 million primarily related to recovery of damages received from a third-party battery systems supplier as part of a settlement agreement, for which contingency conditions have not yet been met; and (iii) a net increase in accounts payable and accrued expenses of $7.0 million as a result of timing of payments to our suppliers, and $22.5 million of the recovery of damages received from a third-party battery systems supplier as part of a settlement agreement, for which contingency conditions have not yet been met, and which is presented in the short-term. This increase was partially offset by (i) a net increase of $33.9 million in costs and estimated earnings in excess of billings on uncompleted contracts, including the long-term balance related to the Dominica project, and billings in excess of costs and estimated earnings on uncompleted contracts, as a result of timing of billing to our customers; and (ii) an increase in prepaid expenses and other of $10.7 million, primarily related to timing of prepayments to suppliers and governmental authorities.

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Net cash used in investing activities for the nine months ended September 30, 2025 was $579.8 million, compared to $645.1 million for the nine months ended September 30, 2024. The principal factors that affected our net cash used in investing activities during the nine months ended September 30, 2025, and 2024 were: (i) capital expenditures of $474.7 million during the nine months ended September 30, 2025, compared to $359.9 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 nine months ended September 30, 2025, compared to $274.6 million for the purchase of a portfolio of assets from Enel in the nine months ended September 30, 2024.

Net cash provided by financing activities for the nine months ended September 30, 2025 was $349.1 million, compared to $282.0 million for the nine months ended September 30, 2024. The principal factors that affected the net cash provided by financing activities during the nine months ended September 30, 2025 were: (i) net proceeds of $444.6 million from long-term loans entered into during the first half of 2025; (ii) proceeds of $109.8 million from tax monetization transactions entered into during the period; (iii) net cash received from revolving credit lines with banks of $35.0 million; and (iv) 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 $203.3 million; (ii) cash paid in relation to debt issuance and line of credit transactions of $16.8 million, (iii) cash dividend payment of $21.8 million; and (iv) a cash paid to noncontrolling interest of $7.4 million. The principal factors that affected our net cash provided by financing activities during the nine months ended September 30, 2024 were: (i) net proceeds of $442.6 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 $164.6 million; (ii) cash paid to noncontrolling interest of $6.1 million; (iii) net cash outflow from revolving credit lines with banks of $20.0 million; and (iv) a cash dividend payment of $21.8 million.

***Non-GAAP Measures: EBITDA and Adjusted EBITDA***

We calculate EBITDA as net income before interest, taxes, depreciation, amortization and accretion. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation, amortization and accretion, adjusted for (i) mark-to-market gains or losses from accounting for derivatives not designated as hedging instruments; (ii) stock-based compensation, (iii) merger and acquisition transaction costs; (iv) gain or loss from extinguishment of liabilities; (v) cost related to a settlement agreement; (vi) non-cash impairment charges; (vii) write-off of unsuccessful exploration and storage activities; and (viii) other unusual or non-recurring items. We adjust for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. We believe that presentation of these measures will enhance an investor's ability to evaluate our financial and operating performance. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally accepted in the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. Our Board of Directors and senior management use EBITDA and Adjusted EBITDA to evaluate our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

Net income for the three and nine months ended September 30, 2025 was $24.7 million and $93.9 million, respectively, compared to $24.3 million and $88.6 million, for the three and nine months ended September 30, 2024, respectively.

Adjusted EBITDA for the three and nine months ended September 30, 2025 was $138.4 million and $423.3 million, respectively, compared to $137.7 million and $405.0 million, for the three and nine months ended September 30, 2024, respectively.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three and nine months period ended September 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| Net income | $24708 | $24301 | $93941 | $88616 |
| Adjusted for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net (including interest income and amortization of deferred financing costs)  | 34051 | 32771 | 101964 | 93012 |
| &nbsp;&nbsp;&nbsp;Income tax provision (benefit) | (4283) | (1193) | (13544) | (4518) |
| &nbsp;&nbsp;&nbsp;Adjustment to investment in unconsolidated companies: our proportionate share in interest expense, tax and depreciation and amortization in Sarulla and Ijen  | 3580 | 5903 | 10857 | 12673 |
| &nbsp;&nbsp;&nbsp;Depreciation, amortization and accretion | 73239 | 65885 | 213071 | 190244 |
| EBITDA | $131295 | $127667 | $406289 | $380027 |
| Mark-to-market (gains) or losses of derivative instruments  | 1198 | (409) | (1206) | 870 |
| Stock-based compensation | 4941 | 5042 | 14473 | 14887 |
| Allowance for bad debts | 158 | 121 | 210 | 342 |
| Impairment of long-lived assets |  | 323 |  | 1280 |
| Merger and acquisition transaction costs | 479 | 80 | 1488 | 1379 |
| Settlement agreement |  | 4750 | 900 | 4750 |
| Write-off of unsuccessful exploration and storage activities | 377 | 77 | 1144 | 1456 |
| Adjusted EBITDA | $138448 | $137651 | $423298 | $404992 |

---

As of September 30, 2025, the outstanding carrying value of long-term debt owed by SOL and Ijen, our unconsolidated investments, was $645.3 million, and $105.0 million, respectively, in which our proportionate share was $82.3 million, and $51.5 million, respectively.

***Capital Expenditures***

Our capital expenditures primarily relate to: (i) the development and construction of new power plants, (ii) the enhancement of our existing power plants; and (iii) investment in activities under our strategic plan.

The following is an overview of projects that are fully released for construction:

*<u>Zunil Upgrade (Guatemala)</u>.* We are expanding the Zunil geothermal power plant in Guatemala to add 5MW of additional capacity. We are planning to sell the electricity generated under the existing PPA with the local utility, Institute Nacional de Electrification or "INDE". Construction has been completed and drilling was delayed to 2026.

*<u>Bouillante Repowering (Guadeloupe)</u>.* We are currently in the process of upgrading the Bouillante project and planning to install a new Ormat energy converter that will add net capacity of 10MW. Construction is progressing and the PPA was signed. We expect commercial operation in the second quarter of 2026.

*<u>Topp 2 (New Zealand).</u>* We are developing the 50MW Topp 2 geothermal power plant in New Zealand which was recently released for construction. We signed an agreement with Eastland Generation Limited ("EGL"), under which the Company will design, build, commission and own the power plant. EGL will operate and maintain the power plant under a separate services arrangement. As part of the development agreement with EGL, the Company has granted EGL a contractual option to purchase the power plant at an agreed purchase price, subject to certain conditions. Ormat recently received an option exercise notice from EGL pursuant to which EGL wishes to acquire the power plant. The Parties are expected to sign the sale agreement in the fourth quarter of 2025, or the first quarter of 2026.

*<u>Dominica.</u>* We are developing the 10MW Dominica geothermal power plant in the Dominica Island. We signed a 25-year PPA with the local utility. At the end of the agreement term, ownership of the power plant will be transferred to the local Government. Construction is progressing towards commissioning. An extreme rainy season caused construction delays and we expect commercial operation in the first quarter of 2026.

*<u>Cove Fort Upgrade (U.S.).</u>* We are upgrading the power plant that was purchased in January 2024 to add 7MW. Construction is ongoing and we expect commercial operation in the second quarter of 2026.

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*<u>Stillwater Upgrade (U.S.).</u>* We are upgrading the power plant that was purchased in January 2024 to add 5MW. Upgrade is nearly completed and the power plant is online. We expect to complete the upgrade in Q4 2025.

*<u>Salt Wells Upgrade (U.S.).</u>* We are upgrading the power plant that was purchased in January 2024 to add 5MW. Construction is ongoing and we expect commercial operation in the second quarter of 2026.

*<u>Blue Mountain Upgrade (U.S.).</u>* We are upgrading the power plant that was purchased in June 2025 to add 3.5MW. Engineering and procurement is ongoing and commercial operation is expected to start in the first half of 2027.

*<u>Heber Complex (U.S.)</u>* We are currently in the process of upgrading the Heber complex. We are planning to add a new 23MW power plant and increase the operating power plants by additional 2MW. We expect commercial operation in the second half of 2027.

In addition, we are in the process of repowering the Puna power plant.

In the Energy Storage segment, we are currently in the process of constructing several facilities as detailed below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Project Name</u>** | **<u>Size</u>** | **<u>Location</u>** | **<u>Customer</u>** | **<u>Expected COD</u>** |
| Arrowleaf | 35MW/140MWh | CA | SDCP | Q4 2025 |
| Bird Dog | 60MW/120MWh | CA | SDCP | Q2 2026 |
| Shirk | 80MW/320MWh | CA | CAISO | Q1 2026 |
| Israel High Voltage (\*) | 150MW/600MWh | Israel | Israeli Electricity Authority | 2028 |

---

(\*) Represents our share of two projects, which are joint ventures.

We have budgeted approximately $558.0 million in capital expenditures for the construction of new projects and enhancements to our existing power plants in the Electricity segment, of which we had invested $266.0 million as of September 30, 2025. We expect to invest approximately $30.0 million in the rest of 2025 and the remaining amount of approximately $262.0 million thereafter.

In addition, we estimate approximately $110.0 million in additional capital expenditures in 2025 to be allocated as follows: (i) approximately $55.0 million for the exploration, drilling and development of new projects and enhancements of existing power plants that are not yet released for full construction; (ii) approximately $15.0 million for maintenance capital expenditures for our operating power plants; (iii) approximately $34.0 million for the construction and development of energy storage projects; and (iv) approximately $6.0 million for enhancements to our production facilities.

In the aggregate, we estimate our total capital expenditures for the fourth quarter of 2025 to be approximately $140 million.

***Exposure to Market Risks***

Based on current conditions, we believe that we have sufficient financial resources to fund our activities and execute our business plans. However, due to various factors (including those discussed in "—General—Trends and Uncertainties" in this quarterly report and in the same section of Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report), the cost of obtaining financing for our project needs may increase significantly or such financing may be difficult to obtain.

We, like other power plant operators, are exposed to electricity price volatility risk. Our exposure to such market risk is currently limited (except for the 25MW PPA for the Puna complex) because the majority of our long-term PPAs have fixed or escalating rate provisions that limit our exposure to changes in electricity prices. Our energy storage projects sell primarily on a "merchant" basis and are exposed to changes in the electricity market prices.

The Puna Complex is currently benefiting from energy prices which are higher than the floor under the 25MW PPA as a result of higher fuel costs that impact HELCO's avoided cost. In 2024, the HPUC approved a new PPA for our Puna power plant, which has a fixed energy price with no escalation and de-links it from oil prices, as discussed above.

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As of September 30, 2025, 87.3% of our consolidated long-term debt was at fixed interest rates, and therefore not subject to interest rate volatility risk. During the nine months ended September 30, 2025, we entered into the following variable interest rate loans: the Hapoalim 2025 Loan, the Mizrahi 2025 Loan, the Discount 2025 Loan, and the Discount 2025 II Loan, which increased the portion of our variable interest rate in our total consolidated long-term debt. Our short-term commercial paper, which was issued on October 23, 2023, bears an annual interest rate of three months SOFR plus 1.1%, therefore presenting an exposure to interest rate volatility. The outstanding amount of the short-term commercial paper as of September 30, 2025 was $100.0 million.

Our cash equivalents are subject to interest rate risk. We currently maintain our surplus cash in short-term, interest-bearing bank deposits, money market funds, corporate bonds and debt securities that are classified as available for sale (with a minimum investment grade rating of A+ by Standard & Poor's Ratings Services).

We are also exposed to foreign currency exchange risk, in particular the fluctuation of the U.S. dollar versus the New Israeli Shekel ("NIS") in Israel, the Euro, and the New Zealand Dollar. Risks attributable to fluctuations in currency exchange rates can arise when we, or any of our foreign subsidiaries, borrow funds or incur operating or other expenses in one type of currency but receive revenues in another. In such cases, an adverse change in exchange rates can reduce such subsidiary's ability to meet its debt service obligations, reduce the amount of cash and income we receive from such foreign subsidiary, or increase such subsidiary's overall expenses. In Kenya, the tax related asset and liability are recorded in Kenyan Shillings ("KES"), therefore, any change in the exchange rate in the KES versus the U.S. dollar has an impact on our financial results. Risks attributable to fluctuations in the foreign currency exchange rates can also arise when the currency denomination of a particular contract is not the U.S. dollar. Substantially all of our PPAs in the international markets are either U.S. dollar-denominated or linked to the U.S. dollar except for our operations on Guadeloupe, where we own and operate the Bouillante power plant which sells its power under a Euro-denominated PPA with Électricité de France S.A. Our construction contracts from time to time contemplate costs which are incurred in local currencies. The way we often mitigate such risk is to receive part of the proceeds from the contract in the currency in which the expenses are incurred. Currently, we have forward and cross-currency swap contracts in place to reduce our NIS/U.S. dollar currency exposure and expect to continue to use currency exchange and other derivative instruments to the extent we deem such instruments to be the appropriate tool for managing such exposure.

On July 1, 2020, we concluded an auction tender and accepted subscriptions for senior unsecured bonds comprised of NIS 1.0 billion aggregate principal amount (the "Senior Unsecured Bonds - Series 4"). The Senior Unsecured Bonds - Series 4 were issued in New Israeli Shekels and converted to approximately $290 million using a cross-currency swap transaction shortly after the completion of such issuance.

In June 2022, we issued $431.3 million aggregate principal amount of our 2.5% convertible senior notes due in 2027. The convertible senior notes bear annual interest at a rate of 2.5%, payable semiannually in arrears, and mature on July 15, 2027, unless earlier converted, redeemed or repurchased. In July 2024, we issued an additional $45.2 million aggregate principal amount of our 2.50% senior secured notes.

We performed a sensitivity analysis on the fair values of our long-term debt obligations, commercial paper and foreign currency exchange forward contracts. The foreign currency exchange forward contracts listed below principally relate to trading activities. The sensitivity analysis involved increasing and decreasing forward rates at September 30, 2025 and December 31, 2024 by a hypothetical 10% and calculating the resulting change in the fair values.

At this time, the development of our strategic plan has not exposed us to any additional market risk. However, as the implementation of the plan progresses, we may be exposed to additional or different market risks.

------

The results of the sensitivity analysis calculations as of September 30, 2025 and December 31, 2024 are presented below:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Assuming a <br>10% Increase in Rates** | **Assuming a <br>10% Increase in Rates** | **Assuming a <br>10% Decrease in Rates** | **Assuming a <br>10% Decrease in Rates** | |
|<br>**Risk** | **September 30, 2025** | **December 31, 2024** | **September 30, 2025** | **December 31, 2024** |<br>**Change in the Fair Value of:** |
| | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | |
| Foreign currency | $238 | $(700) | $2624 | $2078 | Foreign currency forward contracts |
| Interest rate | (604) |  | 628 |  | Mammoth Senior Secured Notes 2025 |
| Interest rate | (1376) |  | 1455 |  | Dominica Loan |
| Interest rate | (1888) |  | 1968 |  | GB Loan |
| Interest rate | (928) |  | 957 |  | Mizrahi 2025 Loan |
| Interest rate | (961) |  | 991 |  | Discount 2025 Loan |
| Interest rate | (1026) |  | 1059 |  | Discount 2025 II Loan |
| Interest rate | (2841) |  | 2930 |  | Hapoalim 2025 Loan |
| Interest rate | (2752) | (2986) | 2916 | 3180 | Bottleneck Loan |
| Interest rate | (4702) | (5096) | 5037 | 5469 | Mammoth Senior Secured Notes |
| Interest rate | (356) | (574) | 361 | 584 | Mizrahi Loan |
| Interest rate | (642) | (886) | 659 | 914 | Mizrahi Loan 2023 |
| Interest rate | (409) | (679) | 414 | 691 | Hapoalim Loan |
| Interest rate | (1454) | (1708) | 1497 | 1762 | Hapoalim Loan 2023 |
| Interest rate | (993) | (1295) | 1018 | 1333 | Hapoalim 2024 Loan |
| Interest rate | (176) | (289) | 179 | 294 | HSBC Loan |
| Interest rate | (738) | (1213) | 747 | 1233 | HSBC Bank 2024 Loan |
| Interest rate | (507) | (759) | 516 | 776 | Discount Loan |
| Interest rate | (478) | (599) | 491 | 617 | Discount 2024 Loan |
| Interest rate | (583) | (851) | 593 | 871 | Discount 2024 II Loan |
| Interest rate | (8665) | (9275) | 9199 | 9882 | Financing Liability |
| Interest rate | (2207) | (2617) | 2274 | 2704 | OFC 2 Senior Secured Notes |
| Interest rate | (1389) | (1909) | 1422 | 1965 | Olkaria III - DFC Loan |
| Interest rate | (762) | (924) | 786 | 960 | DEG 4 Loan |
| Interest rate | (2978) | (3542) | 3060 | 3661 | Senior Unsecured Bonds |
| Interest rate | (149) | (240) | 151 | 245 | DEG 2 Loan |
| Interest rate | (1003) | (1142) | 1043 | 1189 | DAC 1 Senior Secured Notes |
| Interest rate | (1838) | (2491) | 1878 | 2561 | Senior Unsecured Loan (Migdal) |
| Interest rate | (769) | (835) | 814 | 886 | Prudential - NV |
| Interest rate | (485) | (583) | 500 | 603 | DOE Loan |
| Interest rate | (1855) | (2026) | 1975 | 2164 | Prudential - Idaho Refinancing Loan |
| Interest rate | (1254) | (1517) | 1296 | 1574 | Platanares DFC Loan |
| Interest rate | (121) | (197) | 123 | 201 | DEG 3 Loan |
| Interest rate | (18) | (22) | 19 | 22 | Commercial paper |
| Interest rate |  | (17) |  | 17 | Other long-term loans |

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**Effect of Inflation**

While inflation has recently slowed to more normal levels, we saw an increase in overall operating and other costs from early 2022 until 2024, as the result of higher inflation rates, in particular in the United States. The inflation rates in the U.S. may rise due to expected changes in the import tariffs. In order to address the possibility of rising inflation, some of our contracts include certain provisions that mitigate inflation risk, such as escalating price provisions built into some of our PPAs.

In connection with the Electricity segment, none of our U.S. PPAs, including the SCPPA Portfolio PPA, are directly linked to the Consumer Price Index ("CPI"). Inflation may directly impact expenses we incur for the operation of our projects, thereby increasing our overall operating costs and reducing our profit and gross margin. The negative impact of inflation would be partially offset by price adjustments built into some of our PPAs that could be triggered upon such occurrences. In our Product segment, inflation may directly impact fixed and variable costs incurred in the construction of third-party power plants, thereby lowering our profit margins at the Product segment. We are more likely to be able to offset long term, all or part of this inflationary impact through our project pricing. With respect to power plants that we build for our own electricity production, inflationary pricing may impact our operating costs which may be partially offset in the pricing of the new long-term PPAs that we negotiate. Interest rates for both short-term and long-term debt have increased in the past five years, although they have decreased slightly recently. Although our outstanding debt mostly bears fixed interest rates, as we refinance it, or borrow additional amounts, we may incur additional interest expense as a result.

**Contractual Obligations and Commercial Commitments**

We have various contractual obligations, which are recorded as liabilities in our consolidated condensed financial statements. Other items are not recognized as liabilities in our consolidated condensed financial statements but are required to be disclosed. There have been no material changes, outside of the ordinary course of business, to our contractual obligations as previously disclosed in our 2024 Annual Report.

**Concentration of Credit Risk** 

Our credit risk is currently concentrated with the following major customers: Sierra Pacific Power Company and Nevada Power Company (subsidiaries of NV Energy), SCPPA and KPLC. If any of these electric utilities fail to make payments under its PPAs with us, such failure would have a material adverse impact on our financial condition. Also, as we implement our multi-year strategic plan we may be exposed, by expanding our customer base, to different credit profile customers than our current customers.

The Company's revenues from its primary customers as a percentage of total revenues are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Sierra Pacific Power Company and Nevada Power Company | 12.1% | 13.5% | 13.7% | 15.0% |
| Southern California Public Power Authority ("SCPPA") | 15.1 | 17.9 | 17.9 | 20.9 |
| Kenya Power and Lighting Co. Ltd. ("KPLC") | 11.9 | 13.5 | 12.1 | 12.9 |

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The Company has historically been able to collect on substantially all of its receivable balances. As of September 30, 2025, the amount overdue from KPLC in Kenya was $36.3 million of which $11.0 million was paid in October of 2025. The Company believes it will be able to collect all past due amounts from KPLC. This belief is supported by the fact that in addition to KPLC's obligations under its power purchase agreement, the Company holds a support letter from the Government of Kenya that covers certain cases of KPLC non-payment (such as non-payments that are caused by government actions and/or political events).

In Honduras, as of September 30, 2025, the total amount overdue from Empresa Nacional de Energía Eléctrica ("ENEE") was $16.0 million of which $1.0 million was paid in October of 2025. In addition, due to the financial situation in Honduras, the Company may experience further delays in collection. The Company believes it will be able to collect all past due amounts from ENEE.

**Government Grants and Tax Benefits** 

A comprehensive discussion on government grants and tax benefits is included in "Part II - Item 7 – Management Discussion and Analysis of Financial Condition and Results of Operation" of our 2024 Annual Report, as updated by "General—Trends and Uncertainties" in Part I, Item 2 of this quarterly report on Form 10-Q.

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**ITEM 3. *QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK***

The information appearing under the headings "Exposure to Market Risks" and "Concentration of Credit Risk" in Part I, Item 2 of this quarterly report on Form 10-Q is incorporated by reference herein.

**ITEM 4. *CONTROLS AND PROCEDURES***

**a. Evaluation of disclosure controls and procedures** 

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our CEO (principal executive officer) and CFO (principal financial officer), as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act, we carried out an evaluation, under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of our disclosure controls and procedures as of September 30, 2025. Based on this evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of September 30, 2025 to provide the reasonable assurance described above.

&nbsp;&nbsp;&nbsp;&nbsp;**b. Changes in internal control over financial reporting** 

There were no changes in our internal controls over financial reporting in the third quarter of 2025 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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**PART II — OTHER INFORMATION**

**ITEM 1. *LEGAL PROCEEDINGS*** 

The information required with respect to this item can be found under "Commitments and Contingencies" in Note 9 of notes to the unaudited condensed consolidated financial statements contained in this quarterly report and is incorporated by reference into this Item 1.

**ITEM 1A. *RISK FACTORS***

A comprehensive discussion of our other risk factors is included in the "Risk Factors" section of our annual report on Form 10-K for the year ended December 31, 2024 which was filed with the SEC on February 27, 2025. The risks described in our Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. 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, except as reflected in the disclosure in "General—Trends and Uncertainties" in Part I, Item 2 of this quarterly report on Form 10-Q.

**ITEM 2. *UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS***

None.

**ITEM 3. *DEFAULTS UPON SENIOR SECURITIES***

None.

**ITEM 4. *MINE SAFETY DISCLOSURES***

None.

**ITEM 5. *OTHER INFORMATION***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the fiscal quarter ended September 30, 2025, none of our directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

**ITEM 6. EXHIBITS**

We hereby file, as exhibits to this quarterly report, those exhibits listed on the Exhibit Index below. As in previous filings, pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, the Company has not filed as exhibits to this quarterly report on Form 10-Q certain long-term debt instruments (including indentures) under which the total amount of securities authorized does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis. The Company agrees to furnish a copy of any such instrument to the SEC upon request.

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**EXHIBIT INDEX**

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| | |
|:---|:---|
| **<u>Exhibit No</u>.** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>Document</u>**  |
| 31.1\* | <u>[Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.](ex311.htm)</u> |
| 31.2\* | <u>[Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.](ex312.htm)</u> |
| 32.1# | <u>[Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.](ex321.htm)</u> |
| 32.2# | <u>[Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.](ex322.htm)</u> |
| 101.SC\* | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CA\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DE\* | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LA\* | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PR\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101). |
| \* | Filed herewith |
| # | Furnished herewith. |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | |
|:---|:---|
| **ORMAT TECHNOLOGIES, INC.** | **ORMAT TECHNOLOGIES, INC.** |
| By: | /s/ ASSAF GINZBURG |
| Name: | Assaf Ginzburg |
| Title: | Chief Financial Officer and Authorized Signatory |

---

Date: November 5, 2025

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**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO**

**SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Doron Blachar, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2025 of Ormat Technologies, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| By: <u>/s/ Doron Blachar</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Doron Blachar<br>Title: Chief Executive Officer |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |

---

Date: November 5, 2025

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**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO**

**SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Assaf Ginzburg, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2025 of Ormat Technologies, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| |
|:---|
| By: <u>/s/ Assaf Ginzburg</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Assaf Ginzburg<br>Title: Chief Financial Officer |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial Officer) |

---

Date: November 5, 2025

------

**Exhibit 32.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

I, Doron Blachar, certify, pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, the quarterly report of Ormat Technologies, Inc. on Form 10-Q for the quarter ended September 30, 2025 (i) fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act and (ii) that information contained in such quarterly report on Form 10-Q fairly presents in all material respects the financial condition, results of operations and cash flows of Ormat Technologies, Inc. as of and for the periods presented in such Quarterly Report on Form 10-Q. This written statement is being furnished to the Securities and Exchange Commission as an exhibit accompanying such quarterly report and shall not be deemed filed pursuant to the Exchange Act.

---

| | |
|:---|:---|
| By: | <u>/s/ Doron Blachar</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |
|  | Name: Doron Blachar |
|  | Title: Chief Executive Officer |
|  | (Principal Executive Officer) |

---

Date: November 5, 2025

------

**Exhibit 32.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

I, Assaf Ginzburg, certify, pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge, the quarterly report of Ormat Technologies, Inc. on Form 10-Q for the quarter ended September 30, 2025 (i) fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act and (ii) that information contained in such quarterly report on Form 10-Q fairly presents in all material respects the financial condition, results of operations and cash flows of Ormat Technologies, Inc. as of and for the periods presented in such Quarterly Report on Form 10-Q. This written statement is being furnished to the Securities and Exchange Commission as an exhibit accompanying such quarterly report and shall not be deemed filed pursuant to the Exchange Act.

---

| | |
|:---|:---|
| By: | <u>/s/ Assaf Ginzburg</u> |
|  | Name: Assaf Ginzburg <br>Title: Chief Financial Officer |
|  | (Principal Financial Officer) |

---

Date: November 5, 2025

## Exhibit 31.1

![](ex311001.jpg)

Exhibit 31.1 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Doron Blachar, certify that: 1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2025 of Ormat Technologies, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. By: /s/ Doron Blachar Name: Doron Blachar Title: Chief Executive Officer (Principal Executive Officer) Date: November 5, 2025

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## Exhibit 31.2

![](ex312001.jpg)

Exhibit 31.2 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15(d)-14(a), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Assaf Ginzburg, certify that: 1. I have reviewed this quarterly report on Form 10-Q for the quarter ended September 30, 2025 of Ormat Technologies, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. By: /s/ Assaf Ginzburg Name: Assaf Ginzburg Title: Chief Financial Officer (Principal Financial Officer) Date: November 5, 2025

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## Exhibit 32.1

![](ex321001.jpg)

Exhibit 32.1 CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Doron Blachar, certify, pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, the quarterly report of Ormat Technologies, Inc. on Form 10-Q for the quarter ended September 30, 2025 (i) fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act and (ii) that information contained in such quarterly report on Form 10-Q fairly presents in all material respects the financial condition, results of operations and cash flows of Ormat Technologies, Inc. as of and for the periods presented in such Quarterly Report on Form 10-Q. This written statement is being furnished to the Securities and Exchange Commission as an exhibit accompanying such quarterly report and shall not be deemed filed pursuant to the Exchange Act. By: /s/ Doron Blachar Name: Doron Blachar Title: Chief Executive Officer (Principal Executive Officer) Date: November 5, 2025

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## Exhibit 32.2

![](ex322001.jpg)

Exhibit 32.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 I, Assaf Ginzburg, certify, pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge, the quarterly report of Ormat Technologies, Inc. on Form 10-Q for the quarter ended September 30, 2025 (i) fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act and (ii) that information contained in such quarterly report on Form 10-Q fairly presents in all material respects the financial condition, results of operations and cash flows of Ormat Technologies, Inc. as of and for the periods presented in such Quarterly Report on Form 10-Q. This written statement is being furnished to the Securities and Exchange Commission as an exhibit accompanying such quarterly report and shall not be deemed filed pursuant to the Exchange Act. By: /s/ Assaf Ginzburg Name: Assaf Ginzburg Title: Chief Financial Officer (Principal Financial Officer) Date: November 5, 2025

------