Latest quarterly snapshot

Ormat Technologies (ORA) has just posted Q1 2026 results with revenue of US$403.9 million and basic EPS of US$0.72, setting the tone for the new financial year. The company reported revenue of US$229.8 million in Q1 2025 and US$403.9 million in Q1 2026, while quarterly basic EPS went from US$0.67 to US$0.72, providing a clear view of how the top and bottom lines are tracking together year on year. With trailing 12 month EPS at US$2.10 and an 11% net margin, investors may now focus on how much of this growth the company is retaining in its margins.

See our full analysis for Ormat Technologies.

With the headline numbers in place, the next step is to see how these results compare with the most common stories about Ormat Technologies, highlighting where the narrative fits the data and where it starts to diverge.

TTM revenue passes US$1.1b mark

• On a trailing 12 month basis, Ormat generated US$1.16b of revenue and US$127.6 million of net income, compared with quarterly Q1 2026 revenue of US$403.9 million and net income of US$44.1 million.
• What stands out for a more bullish view is that trailing EPS of US$2.10 and five year earnings growth of 17.5% a year sit alongside one year earnings growth of 1.7%. Investors who expect long term profit expansion need to weigh the strong multi year record against the slower most recent year.

Curious how these headline figures stack up against what other investors are saying about the stock right now? Curious how numbers become stories that shape markets? Explore Community Narratives.

Margins ease back to 11%

• Net margin on a trailing 12 month basis is 11%, compared with 14.2% a year earlier, while trailing EPS is US$2.10 on US$1.16b of revenue.
• Critics highlight a more cautious, bearish angle that focuses on this margin compression and weak interest coverage, and the numbers give that view some support:
  • The move from a 14.2% net margin to 11% means less profit per dollar of revenue even as trailing revenue reached US$1.16b.
  • Interest costs are described as not well covered by earnings over the last 12 months, which ties those thinner margins directly to a higher financing risk if profit growth does not keep pace.

High P/E and DCF gap

• Ormat trades on a trailing P/E of about 59x at a share price of US$122.52, compared with a global renewable energy industry average of 17x and a DCF fair value of US$110.70.
• What is interesting for a bullish narrative that leans on growth is how the valuation premium sits against the earnings profile:
  • Analysts are forecasting earnings growth of about 15.2% a year while revenue is forecast at around 3.7% a year, so more of the story rests on profitability rather than rapid top line expansion.
  • The DCF fair value of US$110.70 is below the current share price of US$122.52, which means anyone leaning on the growth outlook needs to be comfortable that the 59x P/E and the premium to this DCF reference are justified by future cash flows.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Ormat Technologies's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

With both risks and rewards in play, this update can feel finely balanced. Take a closer look at the underlying metrics and sentiment, then check the 2 key rewards and 1 important warning sign

See What Else Is Out There

Ormat's high 59x P/E, margin compression from 14.2% to 11%, and interest coverage concerns leave little room for comfort if conditions deteriorate.

If you want stocks where pricing looks more forgiving and fundamentals do more of the heavy lifting, check out the 51 high quality undervalued stocks for potential alternatives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.