Q1 2026 Ormat Technologies Inc Earnings Call

May 7, 2026

Operator: Good morning. Welcome to Ormat Technologies Q1 2026 earnings conference call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I'd now like to turn the conference over to Josh Carroll with Alpha IR. Please go ahead.

Speaker #3: Please note that this event is being recorded. I would now like to turn the conference over to Josh Carroll with Alpha IR. Please go ahead.

Speaker #3: Thank you, Operator. Hosting the call today are Doron Blachar, Chief Executive Officer; Ozzie Ginsburg, Chief Financial Officer; and Smadar ar Lavi, Vice President of Investor Relations and ESG Planning and Reporting.

Joshua Carroll: Thank you, operator. Hosting the call today are Doron Blachar, Chief Executive Officer; Assaf Ginzburg, Chief Financial Officer; and Smadar Lavi, Vice President of Investor Relations and ESG Planning and Reporting. Before beginning, we'd like to remind you that the information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts, and projections about future events that are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operations and are based on management's current estimates and projections, future results, or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties.

Speaker #3: Before beginning, we'd like to remind you that the information provided during this call may contain forward-looking statements relating to current expectations, estimates, forecasts, and projections about future events that are forward-looking as defined in the Private Securities Litigation Form Act of 1995.

Speaker #3: These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operations and are based on management's current estimates and projections of future results or trends.

Joshua Carroll: These forward-looking statements generally relate to the company's plans, objectives, and expectations for future operations and are based on management's current estimates and projections, future results, or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties.

Speaker #3: Actual future results may differ materially from those projected as a result of certain risk and uncertainties. For a discussion of such risks and uncertainties, please see risk factors as described in ORMAT TECHNOLOGIES and report on Form 10-K and code reports on Form 10-Q that are filed with the SEC.

Joshua Carroll: For a discussion of such risks and uncertainties, please see risk factors as described in Ormat Technologies' annual report on Form 10-K and current reports on Form 10-Q that are filed with the SEC. In addition, during the call, the company will present non-GAAP financial measures such as Adjusted EBITDA. Reconciliation to the most directly comparable GAAP measures and management's reason for presenting such information is set forth in the press release that was issued last night as well as in the slides posted on the website. Because these measures are not calculated in accordance with GAAP, they should not be considered in isolation from the financial statements prepared in accordance with GAAP.

Speaker #3: In addition, during the call, the company will present non-GAAP financial measures such as adjusted EBITDA. Reconciliations to the most directly comparable GAAP measures and management's reason for presenting such information is set forth in the press release that was issued last night, as well as in the slides posted on the website.

Speaker #3: Because these measures are not calculated in accordance with GAAP, they should not be considered in isolation from the financial statements prepared in accordance with GAAP.

Speaker #3: Before I turn the call over to management, I would like to remind everyone that a slide presentation accompanying this call may be accessed on the company's website at ormat.com.

Joshua Carroll: Before I turn the call over to management, I'd like to remind everyone that a slide presentation accompanying this call may be accessed on the company's website at ormat.com under the presentation link that's found on the investor relations tab. With all that said, I would now like to turn the call over to Ormat CEO, Doron.

Speaker #3: Under the presentation link that's found on the Investor Relations tab.

Speaker #2: Let's focus.

Speaker #1: With all that said, I would now like to turn the call over to ORMAT CEO. Doron?

Speaker #2: Thank you, Josh. Good morning, everyone, and thank you for joining us today. Let me start with a few key highlights from the first quarter and then I'll touch on several recent developments beginning on slide 4.

Doron Blachar: Thank you, Josh. Good morning, everyone, and thank you for joining us today. Let me start with a few key highlights from the Q1, and then I'll touch on several recent developments beginning on slide four. We began 2026 with a record Q1 revenue, delivering 75.8% year-over-year growth alongside strong expansion in operating income and Adjusted EBITDA. This performance reflects strong execution across our business, with particularly strong contribution from our energy storage and product segments, demonstrating the strength and resilience of our diversified portfolio. Our energy storage segment continues to emerge as a key growth engine, with revenues increasing 153% year over year, driven by both capacity expansion and our ability to capture favorable merchant pricing. This performance reinforces our strategy of optimizing the balance between contracted revenues and merchant exposure to maximize returns.

Speaker #2: We began 2026 with a record first quarter revenue delivering $75.8% year-over-year growth alongside strong expansion in operating income and adjusted EBITDA. This performance reflects strong execution across our business with particularly strong contributions from our energy storage and product segments, demonstrating the strength and resilience of our diversified portfolio.

Doron Blachar: This performance reflects strong execution across our business, with particularly strong contribution from our energy storage and product segments, demonstrating the strength and resilience of our diversified portfolio. Our energy storage segment continues to emerge as a key growth engine, with revenues increasing 153% year over year, driven by both capacity expansion and our ability to capture favorable merchant pricing. This performance reinforces our strategy of optimizing the balance between contracted revenues and merchant exposure to maximize returns.

Speaker #2: Our energy storage segment continues to emerge as a key growth engine with revenues increasing 153% year-over-year, driven by both capacity expansion and our ability to capture favorable merchant pricing.

Speaker #2: This performance reinforces our strategy of optimizing the balance between contracted revenues and merchant exposure to maximize returns. Beyond financial performance, this quarter also reflects meaningful strategic progress within our storage segment, including the COD of our shared energy storage facility, the acquisition of the HUCO hybrid solar plus storage facility in Hawaii, and the signing of a PPA for Jersey Valley 67-megawatt solar paired with a 67-megawatt 268-megawatt-hour storage facility that we expect will come online in late 2027 or early 2028.

Doron Blachar: Beyond financial performance, this quarter also reflects meaningful strategic progress within our storage segment, including the COD of our Shield Energy Storage facility, the acquisition of the Hoku hybrid solar plus storage facility in Hawaii, the signing of a PPA for Jersey Valley, a 67-megawatt solar paired with a 67 megawatt/268 megawatt-hour storage facility that we expect will come online in late 2027 or early 2028. Our product segment delivered significant growth, primarily driven by the top 2 projects, highlighting the strength of our integrated business model and ability to create value across the full life cycle of our assets. In the electricity segment, we signed PPAs for approximately 200 megawatts at favorable pricing, including agreements with Google and Switch in two blend and extend contracts.

Speaker #2: Our product segment delivers significant growth primarily driven by the top two projects, highlighting the strength of our integrated business model and ability to create value across the full lifecycle of our assets.

Doron Blachar: Our product segment delivered significant growth, primarily driven by the top 2 projects, highlighting the strength of our integrated business model and ability to create value across the full life cycle of our assets. In the electricity segment, we signed PPAs for approximately 200 megawatts at favorable pricing, including agreements with Google and Switch in two blend and extend contracts.

Speaker #2: In the electricity segment, we signed PPAs for approximately 200 megawatts at favorable pricing, including agreements with Google and Switch and two blended external contracts.

Speaker #2: These agreements along with future contracts are creating incremental revenue opportunities for our electricity segment, improve visibility across our development pipeline, and support the value of exploration and drilling investment we have made over the past few years.

Doron Blachar: These agreements, along with future contracts, are creating incremental revenue opportunities for our electricity segment, improve visibility across our development pipeline, and support the value of exploration and drilling investments we have made over the past few years. We also strengthened our balance sheet through recent strategic financing transactions. Supported by strong investor demand and favorable market conditions, we completed a $1 billion upside convertible notes offering. This transaction reinforces our financial position, increases flexibility, and expands our capital base to support our growth initiatives. We continue to make significant progress in our next-generation geothermal and EGS strategy and are advancing on multiple fronts. On subsurface technology, we are progressing with 2 pilots, including our pilot with SLB and our collaboration and investment in Sage Geosystems Inc.

Speaker #2: We also strengthened our balance sheet through recent strategic financing transactions. Supported by strong investor demand and favorable market conditions, we completed a $1 billion upside convertible notes offering.

Doron Blachar: Supported by strong investor demand and favorable market conditions, we completed a $1 billion upside convertible notes offering. This transaction reinforces our financial position, increases flexibility, and expands our capital base to support our growth initiatives. We continue to make significant progress in our next-generation geothermal and EGS strategy and are advancing on multiple fronts. On subsurface technology, we are progressing with 2 pilots, including our pilot with SLB and our collaboration and investment in Sage Geosystems Inc.

Speaker #2: This transaction reinforces our financial position, increases flexibility, and expands our capital base to support our growth initiative. We continue to make significant progress in our next-generation geothermal and EGS strategy, and our advancing on multiple fronts.

Speaker #2: On subsurface technology, we are progressing with two pilots including our pilot with SLB and our collaboration and investment in Sage Geosystems. On the commercial development side, we are expanding our resource base mapping our existing land position, advancing land acquisition, and initiating PPA framework discussions with hyperscalers.

Doron Blachar: On the commercial development side, we are expanding our resource base, mapping our existing land positions, advancing land acquisitions, and initiating PPA framework discussions with hyperscalers. On system innovations, we are developing next-generation high-capacity Ormat Energy Converter solutions tailored for EGS deployment. Taken together, these efforts position Ormat at the forefront of scalable, dispatchable, next-generation geothermal, including EGS solutions, with the potential to significantly expand our addressable market over time. Before I provide some additional updates on our business, I would now like to turn the call over to Asi to discuss our financial results. Asi?

Speaker #2: On system innovations, we are developing next-generation high-capacity ORMAT energy converter solutions tailored for EGS deployment. Taking together these efforts position ORMAT at the forefront of scalable, dispatchable, next-generation geothermal including EGS solutions with the potential to significantly expand our addressable market over time.

Doron Blachar: Taken together, these efforts position Ormat at the forefront of scalable, dispatchable, next-generation geothermal, including EGS solutions, with the potential to significantly expand our addressable market over time. Before I provide some additional updates on our business, I would now like to turn the call over to Asi to discuss our financial results. Asi?

Speaker #2: Before I provide some additional updates on our business, I would now like to turn the call over to Asif to discuss our financial results.

Speaker #2: Asif?

Speaker #3: Thank you, Doron. Let me start my review of our financial highlights on slide 6. First quarter revenue was $403.9 million up 75.8% versus the prior year period.

Assaf Ginzburg: Thank you, Doron. Let me start my review of our financial highlights on slide 6. Q1 revenue was $403.9 million, up 75.8% versus the prior year period. This very strong top-line growth was largely driven by the continuing strength in our energy storage and product segments. Q1 gross profit was $120.4 million, up 65.1% from $72.9 million in Q1 2025, driven by contributions from the sale of the top two assets and the performance of our storage assets in the PJM markets. Q1 net income attributable to the company stockholders was $44.1 million or $0.71 per diluted share, compared to $40.4 million or $0.66 per diluted share in the prior period.

Assi Ginzburg: Thank you, Doron. Let me start my review of our financial highlights on slide 6. Q1 revenue was $403.9 million, up 75.8% versus the prior year period. This very strong top-line growth was largely driven by the continuing strength in our energy storage and product segments. Q1 gross profit was $120.4 million, up 65.1% from $72.9 million in Q1 2025, driven by contributions from the sale of the top two assets and the performance of our storage assets in the PJM markets. Q1 net income attributable to the company stockholders was $44.1 million or $0.71 per diluted share, compared to $40.4 million or $0.66 per diluted share in the prior period.

Speaker #3: This very strong top-line growth was largely driven by the continued strength in our energy storage and product segments. First quarter gross profit was $120.4 million up 65.1% from 72.9 million in the first quarter of 2025.

Speaker #3: Driven by contribution from the sale of the top two assets, and the performance of our storage assets in the PGA market. First quarter net income attributable to the company stockholders was $44.1 million or 71 cents per diluted share compared to $40.4 million or 66 cents per diluted share in the prior year period.

Speaker #3: The increase is driven by improved business performance partially offset by approximately $38 million of one-time pre-tax expenses including $33.7 million related to induced conversion resulting from the repurchase of the 2027 convertible note.

Assaf Ginzburg: The increase is driven by improved business performance, partially offset by approximately $38 million of one-time pre-tax expenses, including $33.7 million related to induced conversion resulting from the repurchase of the 2027 convertible notes. $10.2 million in write-offs and immaterial settlement expense, partially offset by $9.6 million gain related to the purchase transaction of the Hoku storage and solar facility in Hawaii. Adjusted net income attributable to the company stockholders for the Q1 increased by 93.5% to $80.3 million or $1.30 per diluted share, compared to $41.5 million or $0.68 per diluted share in the Q1 of the prior year.

Assi Ginzburg: The increase is driven by improved business performance, partially offset by approximately $38 million of one-time pre-tax expenses, including $33.7 million related to induced conversion resulting from the repurchase of the 2027 convertible notes. $10.2 million in write-offs and immaterial settlement expense, partially offset by $9.6 million gain related to the purchase transaction of the Hoku storage and solar facility in Hawaii. Adjusted net income attributable to the company stockholders for the Q1 increased by 93.5% to $80.3 million or $1.30 per diluted share, compared to $41.5 million or $0.68 per diluted share in the Q1 of the prior year.

Speaker #3: $10.2 million in write-offs and immaterial settlement expense partially offset by $9.6 million gain related to the purchase transaction of the HUCO storage and solar facility in Hawaii.

Speaker #3: Adjusted net income attributable to the company stockholders for the first quarter increased by 93.5% to $80.3 million, or $1.30 per diluted share, compared to $41.5 million, or $0.68 per diluted share, in the first quarter of the prior year.

Speaker #3: Adjusted EBITDA for the first quarter was $194.9 million, a 29.7% increase compared to last year. The year-over-year growth was primarily driven by higher contribution from the energy storage segment, reflecting favorable PGM pricing and new capacity addition.

Assaf Ginzburg: Adjusted EBITDA for Q1 was $194.9 million, a 29.7% increase compared to last year. The year-over-year growth was primarily driven by higher contribution from the energy storage segment, reflecting favorable PJM pricing and new capacity additions. All sales are supported by improved performance in the product segment as a result of the top two project sales. Slide 7 breaks down the key financial performance at the segment levels. Electricity segment revenue for Q1 increased by approximately 1% to $181.6 million, mainly due to the recent acquisition of Blue Mountain and the improved performance at our Olkaria facility. The expansion to our operating portfolio helped to more than offset the reduction from lower rates at Puna and extremely high ambient temperature in Nevada, which reduced revenue by approximately $48 million.

Assi Ginzburg: Adjusted EBITDA for Q1 was $194.9 million, a 29.7% increase compared to last year. The year-over-year growth was primarily driven by higher contribution from the energy storage segment, reflecting favorable PJM pricing and new capacity additions. All sales are supported by improved performance in the product segment as a result of the top two project sales.

Speaker #3: All further supported by improved performance in the product segment as a result of the top two project sales. Slide 7 breaks down the key financial performance at the segment levels.

Assi Ginzburg: Slide 7 breaks down the key financial performance at the segment levels. Electricity segment revenue for Q1 increased by approximately 1% to $181.6 million, mainly due to the recent acquisition of Blue Mountain and the improved performance at our Olkaria facility. The expansion to our operating portfolio helped to more than offset the reduction from lower rates at Puna and extremely high ambient temperature in Nevada, which reduced revenue by approximately $48 million.

Speaker #3: Electricity segment revenue for the first quarter increased by approximately 1% to $181.6 million. Mainly due to the recent acquisition of Blue Mountain, and the improved performance at our carrier facility.

Speaker #3: The expansion to our operating portfolio helped to more than offset the reduction from lower rates at Puna and extremely high ambient temperature in Nevada.

Speaker #3: Which reduced revenue by approximately 4.8 million. Product segment revenues increased by $458.4% to $177.4 million during the first quarter. The performance was driven by the $105 million revenue recognition from the top two projects which we have previously disclosed.

Assaf Ginzburg: Product Segment revenues increased by 458.4% to $177.4 million during Q1. The performance was driven by $105 million revenue recognition from the top two projects, which we have previously disclosed. Our Energy Storage segment revenue increased by 153.1% in Q1. As Doron highlighted earlier, the strong performance was driven mainly by high assets availability, which allow us to capitalize on strong merchant prices in the PJM market, as well as new capacity addition over the past 12 months. The gross margin for the Electricity segment decreased to 30.8% in Q1. This decline is driven by lower energy rates at Puna and high temperatures in Nevada that I just touched on.

Assi Ginzburg: Product Segment revenues increased by 458.4% to $177.4 million during Q1. The performance was driven by $105 million revenue recognition from the top two projects, which we have previously disclosed. Our Energy Storage segment revenue increased by 153.1% in Q1. As Doron highlighted earlier, the strong performance was driven mainly by high assets availability, which allow us to capitalize on strong merchant prices in the PJM market, as well as new capacity addition over the past 12 months. The gross margin for the Electricity segment decreased to 30.8% in Q1. This decline is driven by lower energy rates at Puna and high temperatures in Nevada that I just touched on.

Speaker #3: Our energy storage segment revenue increased by $153.1% in the first quarter. As Doron highlighted earlier, the strong performance was driven mainly by high assets availability which allow us to capitalize on strong merchant prices in the PGA market.

Speaker #3: As well as new capacity addition over the past 12 months. The gross margin for the electricity segment decreased to 30.8% in the first quarter this decline is driven by lower energy rates at Puna and high temperatures in Nevada that I just touched on.

Speaker #3: In the product segment, gross margin for the quarter was 21.4%. For the full year 2026, we expect product segment gross margin to be between 18% and 20%.

Assaf Ginzburg: In the product segment, gross margin for Q1 was 21.4%. For the full year 2026, we expect product segment gross margin to be between 18% and 20%, reflecting the segment sales mix. It is worth noting that due to the impact of the top 2 project sales, we recognized in Q1 approximately 60% of the segment's expected annual revenue, gross profit, and EBITDA. The energy storage segment reported gross margin of 59.1% during Q1, making a significant improvement versus the prior year. The increase was driven by the effectiveness of our strategic approach to balance between contracted pricing and merchant exposure.

Assi Ginzburg: In the product segment, gross margin for Q1 was 21.4%. For the full year 2026, we expect product segment gross margin to be between 18% and 20%, reflecting the segment sales mix. It is worth noting that due to the impact of the top 2 project sales, we recognized in Q1 approximately 60% of the segment's expected annual revenue, gross profit, and EBITDA. The energy storage segment reported gross margin of 59.1% during Q1, making a significant improvement versus the prior year. The increase was driven by the effectiveness of our strategic approach to balance between contracted pricing and merchant exposure.

Speaker #3: Reflecting the segment sales mix. It's worth noting that due to the impact of the top two project sale, we recognize in the first quarter approximately 60% of the segment expected annual revenue gross profit and EBITDA.

Speaker #3: The energy storage segment reported gross margin of 59.1% during the first quarter. Making a significant improvement versus the prior year. The increase was driven by the effectiveness of our strategic approach to balance between contracted pricing and merchant exposure.

Speaker #3: For the full year 2026, we expect the storage segment gross margin to be approximately 35 to 40%. Reflecting the fact that we currently do not forecast similar merchant prices condition during the remainder of the year.

Assaf Ginzburg: For the full year 2026, we expect the storage segment gross margin to be approximately 35% to 40%, reflecting the fact that we currently do not forecast similar merchant prices condition during the remainder of the year. Moving to slide eight. We collected $48.6 million in cash from monetizing PTCs and ITCs through tax equity transactions. For the full year 2026, we expect to collect approximately $90 million from ITC tax equity transactions and PTC transfers, including ITC tax equity proceeds from the recently signed Bernardo tax equity transaction. As we discussed during our Q4 call, in 2026, we expect to record a tax benefit driven by higher ITC levels that will result in a negative tax rate of 15% to 20%.

Assi Ginzburg: For the full year 2026, we expect the storage segment gross margin to be approximately 35% to 40%, reflecting the fact that we currently do not forecast similar merchant prices condition during the remainder of the year. Moving to slide eight. We collected $48.6 million in cash from monetizing PTCs and ITCs through tax equity transactions.

Speaker #3: Moving to slide 8. We collected 48.6 million in cash from monetizing PTCs and ITC through tax equity transactions. For the full year 2026, we expect to collect approximately $90 million from ITC tax equity transaction and PTC transfers including ITC tax equity proceeds from the recently signed Burdock tax equity transaction.

Assi Ginzburg: For the full year 2026, we expect to collect approximately $90 million from ITC tax equity transactions and PTC transfers, including ITC tax equity proceeds from the recently signed Bernardo tax equity transaction. As we discussed during our Q4 call, in 2026, we expect to record a tax benefit driven by higher ITC levels that will result in a negative tax rate of 15% to 20%.

Speaker #3: As we discussed during our fourth quarter call, in 2026, we expect to record a tax benefit driven by a higher ITC level that will result in a negative tax rate of 15 to 20 percent.

Speaker #3: Slide 9 details our cash flow over the last three months illustrating OMAT's ability to generate strong cash flow which allow us to reinvest in our strategic growth while servicing debt obligation and returning capital to shareholders.

Assaf Ginzburg: Slide nine detail our cash flow over the last three months, illustrating Ormat's ability to generate strong cash flow, which allow us to reinvest in our strategic growth while servicing debt obligation and returning capital to shareholders. Cash and cash equivalents and restricted cash and cash equivalents as of 31 March 2026 were approximately $763 million compared to approximately $281 million at the end of 2025. Our total debt as of 31 March 2026 was approximately $3.4 billion net of deferred financing costs. Our cost of debt decreased significantly following the recent convertible notes offering to 3.9%. Moving to slide 10. Our net debt as of 31 March 2026 was approximately $2.6 billion, equivalent to 4.2x net debt to EBITDA.

Assi Ginzburg: Slide nine detail our cash flow over the last three months, illustrating Ormat's ability to generate strong cash flow, which allow us to reinvest in our strategic growth while servicing debt obligation and returning capital to shareholders. Cash and cash equivalents and restricted cash and cash equivalents as of 31 March 2026 were approximately $763 million compared to approximately $281 million at the end of 2025. Our total debt as of 31 March 2026 was approximately $3.4 billion net of deferred financing costs. Our cost of debt decreased significantly following the recent convertible notes offering to 3.9%. Moving to slide 10. Our net debt as of 31 March 2026 was approximately $2.6 billion, equivalent to 4.2x net debt to EBITDA.

Speaker #3: Cash and cash equivalents and restricted cash and cash equivalents as of March 31st, 2026 were approximately $763 million compared to approximately $281 million at the end of 2025.

Speaker #3: Our total debt as of March 31st, 2026 was approximately $3.4 billion net of deferred financing cost. And our cost of debt decreased significantly following the recent convertible notes offering to $3.9%.

Speaker #3: Moving to slide 10. Our net debt as of March 31st, 2026 was approximately $2.6 billion equivalent to $4.2 times net debt to EBITDA. As Doron noted, during the quarter, we successfully completed a $1 billion upside convertible note offering.

Assaf Ginzburg: As Doron noted, during the quarter, we successfully completed a $1 billion upsize convertible note offering. We elected to execute this capital raise in the convertible market because it provide us with the best combination of low and no cash coupon and reduced equity dilution through the repurchase of our shares at an attractive price of $108 per share. We now expect our total CapEx for the remainder of 2026 to be $587 million. Our detailed CapEx plans are presented in slide 32 in the appendix. We plan to invest approximately $436 million in the electricity segment for the construction, exploration, drilling, and maintenance in 2026.

Assi Ginzburg: As Doron noted, during the quarter, we successfully completed a $1 billion upsize convertible note offering. We elected to execute this capital raise in the convertible market because it provide us with the best combination of low and no cash coupon and reduced equity dilution through the repurchase of our shares at an attractive price of $108 per share. We now expect our total CapEx for the remainder of 2026 to be $587 million. Our detailed CapEx plans are presented in slide 32 in the appendix. We plan to invest approximately $436 million in the electricity segment for the construction, exploration, drilling, and maintenance in 2026.

Speaker #3: We elected to execute this capital raise in the convertible market because it provided us with the best combination of low and no cash coupon and reduced equity dilution through the repurchase of our shares at an attractive price of $108 per share.

Speaker #3: We now expect our total capital expenditure for the remainder of 2026 to be $587 million. Our detailed CAPEX X plans are presented in slide 32 in the appendix.

Speaker #3: We plan to invest approximately $436 million in the electricity segment for the construction, exploration, and drilling and maintenance in 2026. We also plan to invest $111 million in the construction of our storage assets and approximately $20 million in the pilot with SLB as well as in other EGS activities.

Assaf Ginzburg: We also plan to invest $111 million in the construction of our storage assets and approximately $20 million in the pilot with SLB, as well as in other EGS activities. On 6 May 2026, our board of directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share, payable on 3 June 2026 to shareholders of record as of 20 May 2026. In addition, the company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters. I would like now to turn the call back to Doron to discuss some of our recent developments.

Assi Ginzburg: We also plan to invest $111 million in the construction of our storage assets and approximately $20 million in the pilot with SLB, as well as in other EGS activities. On 6 May 2026, our board of directors declared, approved, and authorized payment of a quarterly dividend of $0.12 per share, payable on 3 June 2026 to shareholders of record as of 20 May 2026. In addition, the company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters. I would like now to turn the call back to Doron to discuss some of our recent developments.

Speaker #3: On May 6th, 2026, our board of directors declared approved and authorized payment of a quarterly dividend of $0.12 per share payable on June 3, 2026 to shareholders of record as of May 20, 2026.

Speaker #3: In addition, the company expects to pay a quarterly dividend of $0.12 per share in each of the next three quarters. I would now like to turn the call back to Doron to discuss some of our recent developments.

Speaker #1: Thank you, Asaf. On slide 12, you can see that our current total portfolio stands at $1.8 gigawatts of geothermal solar and energy storage facilities.

Doron Blachar: Thank you, Asi. On slide 12, you can see that our current total portfolio stands at 1.8 GW of geothermal, solar, and energy storage facilities. Turning to slide 13. Our electricity portfolio now stands at approximately 1,340 MW globally. We added 30 MW in Q1 2026, and currently have approximately 216 MW under construction and development through 2028. Earlier this year, we acquired Hoku, a recently built solar-plus storage facility on the Big Island of Hawaii, for approximately $80 million in cash. The acquired assets include a 30 MW solar PV facility paired with a 30 MW, 120 MWh battery energy storage system with a 25-year PPA. Moving to slide 14.

Speaker #1: Turning to slide 13. Our electricity portfolio now stands at approximately $1,340 megawatts globally. We added 30 megawatts in the first quarter of 2026 and currently have approximately 216 megawatts under construction and development through 2028.

Speaker #1: Earlier this year, we acquired Hoku, a recently built solar plus storage facility on the Big Island of Hawaii for approximately $80 million in cash.

Speaker #1: The acquired asset includes a 30 megawatt solar PV facility paired with a 30 megawatts 120 megawatt hour battery energy storage system with a 25-year PPA.

Speaker #1: Moving to slide 14. Our electricity segment benefited mainly from improved generation at our Olcaya complex and contribution from our Blue Mountain facility, which was acquired during the second quarter of last year.

Doron Blachar: Our electricity segment benefited mainly from improved generation at our Olkaria complex and contribution from our Blue Mountain facility, which was acquired during the Q2 of last year. We also experienced lower curtailment during the quarter compared to the year ago period, especially in Nevada, and we expect this trend to continue throughout the remainder of the year. As Asi noted, performance within our electricity segment was partially offset by lower energy rates at Puna and extremely high ambient temperatures in Nevada that impacted our power plants' generation. With respect to Puna, we anticipate energy rates in the next few months will improve following the impact of oil prices. Internationally, our Dominica plant is now operational. Full COD is expected in the Q2 of 2026 due to third-party transmission line delays. Moving to slide 15. We have negotiated two blend and extend PPAs for existing plants.

Speaker #1: We also experienced lower curtailment during the quarter compared to the year-ago period, especially in Nevada. And we expect this trend to continue throughout the remainder of the year.

Speaker #1: As Asaf noted, performance within our electricity segment was partially offset by lower energy rates at Puna and extremely high ambient temperatures in Nevada that impacted our power plant's generation.

Doron Blachar: As Asi noted, performance within our electricity segment was partially offset by lower energy rates at Puna and extremely high ambient temperatures in Nevada that impacted our power plants' generation. With respect to Puna, we anticipate energy rates in the next few months will improve following the impact of oil prices. Internationally, our Dominica plant is now operational. Full COD is expected in the Q2 of 2026 due to third-party transmission line delays. Moving to slide 15. We have negotiated two blend and extend PPAs for existing plants.

Speaker #1: With respect to Puna, we anticipate energy rates in the next few months will improve following the impact of oil prices. Internationally, our Dominica plant is now operational.

Speaker #1: Full COD is expected in the second quarter of 2026 due to third-party transmission line delay. Moving to slide 15. We have negotiated two blend and extend PPA for existing plants.

Speaker #1: The first agreement is for our CD4 geothermal power plant which is part of our Mammoth geothermal complex in California. The amended agreement extends the original PPA which was signed in 2022 and scheduled to expire in 2032 by five additional years for 2037 and increases contract pricing by approximately $0.27%.

Doron Blachar: The first agreement is for our CD4 geothermal power plant, which is part of our Mammoth geothermal complex in California. The amended agreement extends the original PPA, which was signed in 2022 and scheduled to expire in 2032 by 5 additional years to 2037, and increases contract pricing by approximately 27%. The amended PPA terms will go into effect in October of this year. The second blend-and-extend PPA is for another facility that we cannot disclose at this time due to our agreement with the utility provider. These new PPAs show our consistent strategic execution over the past several years and reinforces our ability to secure high-quality long-term contracts that drive sustainable growth. Turning now to slide 16. Our product segment backlog stands at $239 million.

Speaker #1: The amended PPA terms will go into effect in October of this year. The second blend and extend PPA is for another facility that we cannot disclose at this time due to our agreement with the utility provider.

Speaker #1: These new PPAs show our consistent strategic execution over the past several years and reinforces our ability to secure high-quality long-term contracts that drive sustainable growth.

Speaker #1: Turning now to slide 16. Our product segment backlog stands at $239 million. The decline from the fourth quarter of 2025 was primarily driven by the recognition of $105 million in revenue from the top two projects in the first quarter of 2026.

Doron Blachar: The decline from Q4 2025 was primarily driven by the recognition of $105 million in revenue from the top 2 projects in Q1 2026. Since the start of the year, we've also secured 2 supply contracts for projects in Asia totaling to $56 million. Moving to slide 17. Our energy storage segment produced another strong quarter of year-over-year growth, with total revenues increasing by 153%. The COD of Shield and the addition of the Hoku facility in Hawaii brings the total energy storage portfolio to approximately 1.4 GWh, with the majority operating in California. On slide 19, we continue to remain on track to achieve our portfolio capacity targets of between 2.6 to 2.8 GW by the end of 2028.

Speaker #1: Since the start of the year, we've also secured two supply contracts for projects in Asia totaling to $56 million. Moving to slide 17. Our energy storage segment produced another strong quarter of year-over-year growth with total revenues increasing by $153%.

Speaker #1: The COD of shares and the addition of the Hoku facility in Hawaii brings the total energy storage portfolio to approximately $1.4 gigawatt hours with the majority operating in California.

Speaker #1: On slide 19, we continue to remain on track to achieve our portfolio capacity target of between $2.6 to $2.8 gigawatts by the end of 2028.

Speaker #1: Turning to slide 20 and 21, which display our geothermal and hybrid solar PV projects currently underway. We anticipate adding 216 megawatts to our generating capacity from these projects by the end of 2028.

Doron Blachar: Turning to slide 20 and 21, which display our geothermal and hybrid solar PV projects currently underway. We anticipate adding 216 MW to our generating capacity from these projects by the end of 2028. In geothermal, we are planning a 30 MW greenfield project that will come online in 2028. We added the Jersey Valley solar-plus storage facility following the PPA signing and the Blue Mountain solar facility for the plant auxiliary. Moving to slide 22 and 23. We currently have 6 projects under development in our energy storage segment, expected more than double our portfolio and add approximately 1.5 GWh. As shown on the slide, the Jersey Valley project has been added and is expected to come online late 2027 or early 2028.

Speaker #1: In geothermal, we are planning a 30 megawatt greenfield project that will come online in 2028. We added the Jersey Valley solar plus storage facility following the PPA signing and the Blue Mountain solar facility for the plant auxiliary.

Speaker #1: Moving to slide 22 and 23. We currently have six projects under development in our energy storage segment. Expected more than double our portfolio and add approximately $1.5 gigawatt hour.

Speaker #1: As shown on the slide, the Jersey Valley project has been added and is expected to come online late 2027 or early 2028. The $100 megawatt 400 megawatt hour Griffith facility is now expected to reach COD in 2028 as permitting is still in progress.

Doron Blachar: The 100 MW, 400 MWh Griffith facility is now expected to reach COD in 2028 as permitting is still in progress. This timing update is reflected in our plan. It does not impact our long-term targets. Turning to slide 24 for a discussion of our EGS efforts. We continue to advance our next generation geothermal strategy and are making meaningful progress across both technology and commercial development. We are actively progressing subsurface pilot initiatives with SLB, who have completed initial geoscience groundwork and are advancing well planning appraisals, positioning the project for key milestones over the coming quarters. At the same time, our collaboration with Sage is moving through planning and early engineering stages, including permitting, drilling design, and fracture testing activities. These efforts are designed to validate technical assumptions ahead of commercial scale deployment. We are also strengthening our internal capabilities to support long-term scale.

Speaker #1: This timing update is reflected in our plan and does not impact our long-term targets. Turning to slide 24 for a discussion of our EGS efforts.

Speaker #1: We continue to advance our next-generation geothermal strategy and are making meaningful progress across both technology and commercial development. We are actively progressing subsurface pilot initiatives with SLB we have completed initial geoscience groundwork and are advancing well-planning appraisal positioning the project for key milestones over the coming quarter.

Doron Blachar: We are actively progressing subsurface pilot initiatives with SLB, who have completed initial geoscience groundwork and are advancing well planning appraisals, positioning the project for key milestones over the coming quarters. At the same time, our collaboration with Sage is moving through planning and early engineering stages, including permitting, drilling design, and fracture testing activities. These efforts are designed to validate technical assumptions ahead of commercial scale deployment. We are also strengthening our internal capabilities to support long-term scale.

Speaker #1: At the same time, our collaboration with SAID is moving through planning and early engineering stages. Including permitting, drilling design, and fracture testing activities. These efforts are designed to validate technical assumptions ahead of commercial-scale deployments.

Speaker #1: We are also strengthening our internal capabilities to support long-term scale. This includes advancing our above-ground system design and optimizing our ORMAT energy converter for EGS applications.

Doron Blachar: This includes advancing our above ground system design and optimizing our Ormat Energy Converter for EGS applications, alongside evaluating manufacturing readiness and cost structure. We are investing in resource development, including geographic heat mapping, land acquisition, and state level resource assessment to build a robust pipeline for future opportunities. Our resource team has already identified two prospects in our existing prospect portfolio, including Dixie Valley, that can potentially support large scale EGS development. Finally, we're actively pursuing external funding opportunities to accelerate development and reduce upfront capital requirements. We have multiple applications underway under various US DOE programs, supporting both EGS field testing and next generation resource development. Overall, these combined efforts position us to effectively bridge the gap from pilot project to commercial deployment while reinforcing our leadership in next generation geothermal and integrated energy solutions. Please turn to slide 25 for a discussion of our 2026 guidance.

Speaker #1: Alongside evaluating manufacturing readiness and cost structure. We are investing in resource development including geographic heat mapping, land acquisition, and state-level resource assessment to build a robust pipeline of future opportunities.

Speaker #1: Our resource team has already identified two prospects in our existing prospect portfolio including Dixie Valley that can potentially support large-scale EGS development. Finally, we're actively pursuing external funding opportunities to accelerate development and reduce upfront capital requirements.

Doron Blachar: Finally, we're actively pursuing external funding opportunities to accelerate development and reduce upfront capital requirements. We have multiple applications underway under various US DOE programs, supporting both EGS field testing and next generation resource development. Overall, these combined efforts position us to effectively bridge the gap from pilot project to commercial deployment while reinforcing our leadership in next generation geothermal and integrated energy solutions. Please turn to slide 25 for a discussion of our 2026 guidance.

Speaker #1: We have multiple applications underway under various US DOE programs supporting both EGS field testing and next-generation resource development. Overall, this combines efforts position us to effectively bridge the gap from pilot project to commercial deployment while reinforcing our leadership in next-generation geothermal and integrated energy solutions.

Speaker #1: Please turn to slide 25 for a discussion of our 2026 guide. We are maintaining our guidance and expect revenue to increase by $14.6% year-over-year at the midpoint ranging between $1 billion 110 million and $1 billion 160 million.

Doron Blachar: We are maintaining our guidance and expect revenue to increase by 14.6% year-over-year at the midpoint, ranging between $1,110 and $1,160 million. Electricity segment revenues are projected to be between $715 and $730 million. Product segment revenues are expected to range between $300 and $320 million. Energy storage revenues are expected to range between $95 and $110 million. Adjusted EBITDA is expected to increase by approximately 8.2% at the midpoint, ranging between $615 and $645 million. I will now conclude our prepared remarks with reference to slide 26.

Speaker #1: Electricity segment revenues are projected to be between $715 and $730 million product segment revenues are expected to range between $300 and $320 million and energy storage revenues are expected to range between $95 and $110 million.

Speaker #1: Adjusted EBITDA is expected to increase by approximately 8.2% at the midpoint, ranging between $615 and $645 million. I will now conclude our prepared remarks with reference to slide 26.

Speaker #1: The strong performance we delivered in the first quarter across our business segments highlights the strengths of our diversified business and our ability to capitalize on the rising demand for reliable, low-carbon electricity.

Doron Blachar: The strong performance we delivered in Q1 across our business segments highlights the strengths of our diversified business and our ability to capitalize on the rising demand for reliable, low carbon electricity. With improving contract pricing, new projects entering service, and our pipeline continuing to grow, we have a clear line of sight towards achieving our long-term targets for 2028. Our focus remains on creating long-term value for our shareholders through disciplined execution, strategic investments, and our proven ability to develop and operate world-class clean energy assets. This concludes our prepared remarks. Now, I would like to open the call for questions. Operator, please.

Speaker #1: With improving contract pricing, new projects entering service, and our pipeline continuing to grow, we have a clear line of sight toward achieving our long-term targets for 2028.

Speaker #1: Our focus remains on creating long-term value for our shareholders through disciplined execution, strategic investments, and our proven ability to develop and operate world-class clean energy assets.

Speaker #1: This concludes our prepared remarks. Now, I would like to open the call for questions. Operator, please.

Operator: Your first question comes from the line of Derek Podhaizer with Piper Sandler.

Speaker #2: At this time, I would like to remind everyone in order to ask a question, press star, then the number 1 on your telephone keypad.

Speaker #2: We will pause for just a moment to compile the Q&A roster. And your first question comes from the line of Derek Podhaizer with Piper Sandler.

Operator: Your first question comes from the line of Derek Podhaizer with Piper Sandler.

Speaker #3: Hey, good morning, everybody. I guess maybe let's start on EGS. Obviously, a lot of encouraging and very strong commentary around your developments there. Obviously, there's an IPO going on currently with the new entrants in more of the EGS market.

Derek Podhaizer: Hey, good morning, everybody. I guess maybe let's start on EGS. Obviously, a lot of encouraging and very strong commentary around your developments there. Obviously, there's an IPO going on currently with the new entrants in more of the EGS market. Maybe just if you can expand on it further, as far as the technology advancements you're making on the surface. You talked about a tailored solution for EGS. Maybe if you could help us understand the potential size and scale of some of the progress you're working on with SLB and Sage. You pointed out Dixie Valley as a potential area to scale up EGS. Just, you know, it's obviously a very exciting outlook, and this is about to be more under the spotlight, as far as EGS and geothermal.

Speaker #3: So maybe just if you can expand on it further as far as the technology advancements you're making on the surface. You talked about tailored solution for EGS.

Derek Podhaizer: You talked about a tailored solution for EGS. Maybe if you could help us understand the potential size and scale of some of the progress you're working on with SLB and Sage. You pointed out Dixie Valley as a potential area to scale up EGS. Just, you know, it's obviously a very exciting outlook, and this is about to be more under the spotlight, as far as EGS and geothermal.

Speaker #3: Maybe if you could help us understand the potential size and scale of some of the progress you're working on with SLB and SAGE. You pointed out Dixie Valley as a potential area to scale up EGS.

Speaker #3: Just obviously a very exciting outlook, and this is about to be more under the spotlight as far as EGS with geothermal. So just hoping to get an understanding of how big this could potentially be for you for ORMAT over the medium to long term here.

Derek Podhaizer: Just hoping to get an understanding of how big this could potentially be for you, for Ormat over the, you know, medium to long term here.

Speaker #4: Hi, good morning. Thank you for the questions. So I'll touch it on the different levels that you asked and maybe I'll start with our equipment and technology.

Doron Blachar: Hi, good morning. Thank you for the questions. So I'll touch it on the different levels that you asked. Maybe I'll start with our equipment and technology. We are developing a unique solution, a new OEC, that will be able to work efficiently with EGS. EGS comes with special parameters on the resource that comes out of the ground. This will allow us to standardize our OEC and develop a very much simpler power plant than the power plants we have today, which will over time reduce significantly the cost to construct the power plant.

Speaker #4: We are developing a unique solution, a new OEC that will be able to work efficiently with EGS. EGS comes with special parameters on the resource that comes out of the ground.

Speaker #4: And this will allow us to standardize our OEC and develop a very much simpler power plant than the power plants we have today, which will over time reduce significantly the cost to construct the power plant.

Speaker #4: On the SLB joint venture that we have as well as the work that SAGE are doing, we are doing multiple phases of land analysis and well engineering on both cases.

Doron Blachar: On the SLB joint venture that we have, as well as the work that Sage are doing, we are doing multiple phases of land analysis and well engineering. On both cases, with SLB, we are working to file the permit to drill the first well later this year. Sage, on their part, are working just similarly to design the well and do all the preparation to file for permitting. Both pilots will be adjacent to our facilities in order to reduce the time to market.

Speaker #4: With SLB, we are working to file the permit to drill the first well later this year. And SAGE, on their part, are working similarly to design the well and do all the preparation to file for permitting.

Speaker #4: Both pilots will be adjacent to our facilities in order to reduce the time to market. So once the pilot is successful, the heat can be immediately transferred to our facility to generate an electricity and basically allow us to confirm the pilot performance and success.

Doron Blachar: Once the pilot is successful, the heat can be immediately transferred to our facility to generate electricity and basically allow us to confirm the pilot performance and success. The third element you mentioned, Dixie, obviously, Ormat has a unique and a very large presence in California, in Nevada, with multiple sites that we have been looking for hydrothermal. Also over the last few BLM auctions, we were able to acquire some land that we believe are fit to an EGS project. One of them that we mentioned is Dixie, not far from our Dixie Valley asset. We have additional places that we see that are potential for EGS.

Speaker #4: And the third element you mentioned, Dixie, obviously ORMAT has a unique and very large presence in California, in Nevada, with multiple sites with that we have been looking for hydrothermal.

Speaker #4: But also over the last few BLM auctions, we were able to acquire some land that we believe our feet to an EGS project. One of them that we mentioned is Dixie.

Speaker #4: Not far from our Dixie Valley asset. And we have additional places that we see that are potential for EGS. We are also, at this stage, as part of our business development efforts, scanning multiple states for locations to develop EGS projects.

Doron Blachar: We are also, this is part of our business development efforts, scanning multiple states on locations to develop EGS projects, and we'll obviously update you as we make progress.

Speaker #4: And we'll obviously update you as we make progress.

Derek Podhaizer: Detail comments are very helpful. Maybe just switching to the electricity margins. You know, fully understand you had some elevated ambient temperatures, and if you add that back, it looks like you're flat year-over-year from a margin perspective. Just thinking about how should these margins really develop, you know, this year into next year? Might be able to take advantage of some of the elevated commodity price with Puna here in the short term. As you bring on newer generation or maybe an increase of solar generation, just trying to think through the margin progression, as we work through 2026, 2027 through to 2028. Maybe some thoughts around that would be helpful.

Speaker #3: Detail comes. It was very helpful. Maybe just switching to the electricity margins. Fully understand you had some elevated ambient temperatures. And if you add that back, it looks like you're flat year over year from a margin perspective.

Speaker #3: But just thinking about how should these margins really develop this year into next year? Might be able to take advantage of some of the elevated commodity price with PUNA here in the short term.

Speaker #3: But as you bring on newer generation or maybe an increase of solar generation, just try to think through the margin progression as we work through 26, 27 through 2028.

Speaker #3: So maybe some thoughts around that would be helpful.

Assaf Ginzburg: Hi, Derek Podhaizer. It's Assaf Ginzburg. Good morning, and thank you for joining us. As you know, over the next few quarters, we have roughly 40 MW of new blend and extend that should add anywhere from $7 to 10 million annually to the revenue of the company. That should add maybe another 1% of margin. We have another 40 MW roughly that is being also already negotiated and already in new contracts that will be entering around 2027. That should add another $5, 6 million to the company. Between the two, we should see to the revenue an improvement of 1% to 2%. In addition to that, we are looking also on the expense side, reviewing our expenses, trying to focus on reduction expenses.

Assi Ginzburg: Hi, Derek Podhaizer. It's Assaf Ginzburg. Good morning, and thank you for joining us. As you know, over the next few quarters, we have roughly 40 MW of new blend and extend that should add anywhere from $7 to 10 million annually to the revenue of the company. That should add maybe another 1% of margin. We have another 40 MW roughly that is being also already negotiated and already in new contracts that will be entering around 2027. That should add another $5, 6 million to the company. Between the two, we should see to the revenue an improvement of 1% to 2%. In addition to that, we are looking also on the expense side, reviewing our expenses, trying to focus on reduction expenses.

Speaker #5: Hi, Derek. It's Ashley. y. Good morning. And thank you for joining us. And as you know, over the next few quarters, we have roughly a 14-megawatts of new blend and extend that should add anywhere from 7 to 10 million dollars annually to the revenue of the company.

Speaker #5: So that should add maybe another 1% in margin. And then we have another 14-megawatts roughly that is being also already negotiated and already is in new contracts that will be added in in another in around 2027.

Speaker #5: And that should add another 5, 6 million dollars to the company. So between the two, we should see to the revenue and improvements of 1 to 2 percent.

Speaker #5: In addition to that, we are looking also at the expense side. Reviewing our expenses, trying to focus on reduction expenses. We do not anticipate similar weather also as warm as what we've seen in Q1.

Assaf Ginzburg: We do not anticipate similar weather, also, you know, as warm as what we've seen in the Q1. We are very happy that the curtailment is behind us. It was much more favorable in Q1. I would like to say also, Ormat has a large portfolio. It was very warm on the West Coast, but it was very cold in the East Coast. When you bundle those together, we lost roughly $5 million on the West Coast, but we made over $20 billion in the East Coast. This weather overall does improve Ormat's situation, but it does impact the margin of the electricity.

Assi Ginzburg: We do not anticipate similar weather, also, you know, as warm as what we've seen in the Q1. We are very happy that the curtailment is behind us. It was much more favorable in Q1. I would like to say also, Ormat has a large portfolio. It was very warm on the West Coast, but it was very cold in the East Coast. When you bundle those together, we lost roughly $5 million on the West Coast, but we made over $20 billion in the East Coast. This weather overall does improve Ormat's situation, but it does impact the margin of the electricity.

Speaker #5: We are very happy that the curtailment is behind us. It was much more favorable in Q1. And I would like to say also ORMAT has a large portfolio.

Speaker #5: It was very warm on the West Coast. It was very cold in the East Coast. When you bundle those together, we lost roughly 5 million dollars on the West Coast, but we made approximately not approximately, over 20 million dollars in the East Coast.

Speaker #5: So this weather overall does improve ORMAT situation. But it does impact the margin of electricity. So I do expect in the next two years to see 1 to 2 percent increase year over year.

Assaf Ginzburg: I do expect in the next 2 years to see 1 to 2% increase year over year, starting probably in H2 of this year. We don't expect the weather to impact us.

Assi Ginzburg: I do expect in the next 2 years to see 1 to 2% increase year over year, starting probably in H2 of this year. We don't expect the weather to impact us.

Speaker #5: Starting probably in the second half of this year when we don't expect the weather to impact us.

Derek Podhaizer: Great. Well, I appreciate all the comments. I'll turn it back. Thank you very much.

Speaker #3: Great. Well, I appreciate all the comments. I'll turn it back. Thank you very much.

Speaker #1: Your next question comes from the line of Justin Clare with Roth Capital Partners. You may go ahead, please.

Operator: Your next question comes from the line of Justin Clare with Roth Capital Partners. You may go ahead, please.

Speaker #6: Hey, good morning. Thanks for taking the time here. Wanted to just follow up on the EGS here. Wondering if you could share just how large the pilot projects are expected to be in terms of megawatts?

Justin Clare: Hey, good morning. Thanks for taking the time here. Wanted to just follow up on the EGS here. Wondering if you could share just how large the pilot projects are expected to be in terms of megawatts. If you could just update us on the anticipated timing for initial production from those EGS wells. I think previously you've talked about 2027. What would you need to see from the pilots, in terms of the data or, yeah, just what would you need to see before expanding to larger scale development of EGS projects? Any sense for the timing of, you know, a first, commercial plant?

Speaker #6: And then if you could just update us on the anticipated timing for initial production from those EGS wells? I think previously you've talked about 2027.

Speaker #6: And then just what would you need to see from the pilots in terms of the data or yeah, just what would you need to see before expanding to larger scale development of EGS projects?

Speaker #6: And then any sense for the timing of a first commercial plant?

Speaker #5: I thank you. For the question, I would say that the both pilots are looking to generate somewhere between 2 to 4 megawatts each. And that should occur based on the drilling schedules and permitting in 2027.

Doron Blachar: I thank you for the question. I would say that the both pilots are looking to generate somewhere between 2 to 4 MW each. That should occur, you know, based on the, you know, the drilling schedule and permitting in 2027. I don't know to say exactly who's going to be the first one, both of them are connected to Ormat. Once the pilot will operate, you know, we will need a period of a couple of months, maybe more, to see the performance of these pilots. I think it is going to be a bit different between Sage pilot and ours and SLB pilot. It's a different technology, the two of them.

Speaker #5: I don't know to say exactly who's going to be the first one, but both of them are connected to ORMAT. Once the pilot will operate we will need a period of a couple of months, maybe more, to see the performance.

Speaker #5: Of these pilots. I think it is going to be a bit different between SAGE pilot and ours and SLB pilot. It's a different technology the two of them.

Doron Blachar: I think the duration of the pilot should be a bit different. As the pilot starts and, you know, we're in geothermal area for many, many years. We're doing flow test for hydrothermal, so we are testing the subsurface. In reality, every day that we do a test, you know, we get information. There will be a point in time that we'll feel comfortable enough to release our first EGS project based on the pilot successes.

Speaker #5: So, I think the duration of the pilot should be a bit different. But as the pilot starts, and we are in the geothermal area for many, many years, we're doing flow tests for hydrothermal.

Speaker #5: So, we are testing the subsurface. And in reality, every day that we do a test, we get information. And there will be a point in time that we will feel comfortable enough to release our first EGS project.

Speaker #5: Based on the pilot success.

Speaker #3: Okay. Appreciate it. And then maybe just one on PPA pricing here. So you signed I think 270 megawatts so far in 2026. As you look through the balance of the year, could you speak to the opportunity you have to sign additional PPAs for either new projects or re-contracting existing assets?

Justin Clare: Okay. Appreciate it. Then maybe just one on PPA pricing here. You signed, I think 270 MW so far in 2026. As you look through the balance of the year, you know, could you speak to the opportunity you have to sign additional PPAs for either new projects or recontracting existing assets? Then just any way to quantify the amount of megawatts in terms of capacity that could be eligible for the blend and extend strategy from here over the next, you know, several years here.

Speaker #3: And then just any way to quantify the amount of megawatts in terms of capacity that could be eligible for the blend and extend strategy from here over the next several years here?

Speaker #5: So a new PPA is a thing that we are discussing and it is basically based on the way we are able to do our exploration.

Doron Blachar: New PPAs are thing that we are discussing, and it is basically based on the way we are able to do our exploration. The Jersey Valley Solar and Storage project that we just signed is basically us maximizing our interconnection that we already have in our assets. We have a couple of small assets with free interconnection that we are looking to see if we can duplicate the Jersey Valley Solar and Storage idea. Basically, building a solar and storage facility not far from a geothermal facility and utilizing the same interconnection is something that we are checking today. I hope we'll have some more updates as the year progresses on these two options.

Speaker #5: The Jersey Valley solar and storage project that we just signed is basically us maximizing our interconnection that we already have in our assets. We have a couple of more assets with free interconnection that we are looking to see if we can duplicate the Jersey Valley solar and storage idea.

Speaker #5: Basically, building a solar and storage facility not far from a geothermal facility and utilizing the same interconnection. It is something that we are checking today and I hope we'll have some more updates as the year progresses on these two options.

Speaker #5: Regarding blend and extend, between 2031 and 2034, we have about 190 megawatts that come off contract. Their average PPA rate is in the mid-80s today.

Doron Blachar: Regarding blend and extend, between 2031 and 2034, we have about 190 MW that come off contract. Their average PPA rate is in the mid-eighties today. All of them are basically items that we are looking for a blend and extend. I don't know to say that we will have it in the next quarter or two, since there is some duration. All of them, we are speaking with the relevant off-takers, to see whether blend and extend concept works for them and for us, and at what price.

Speaker #5: And all of them are basically items that we are looking for a blend and extend. I don't know to say that we will have it in the next quarter or two.

Speaker #5: Since there is some duration, but all of them we are speaking with the relevant off-takers to see whether blend and extend concept works for them.

Speaker #5: And for us. And at what price.

Speaker #3: Okay. Appreciate it. Thank you.

Justin Clare: Okay. Appreciate it. Thank you.

Speaker #1: Your next question comes from the line of Noah Kaye with Oppenheimer. Please go ahead.

Operator: Your next question comes from the line of Noah Kaye with Oppenheimer. Please go ahead.

Speaker #3: Hi there. This is Andre Adams. I'm from Noah. Just to go back to the OEC for EGS applications, could you give us a bit more detail on the kind of capacity ranges you're able to produce efficiency gains from the larger size?

Andre Adams [Research Associate: Hi there. This is Andre Adams on for Noah. Just to go back to the OEC for EGS applications, could you give us a bit more detail on the kind of capacity ranges you're able to produce, efficiency gains from the larger size, and how you see the TAM for the product evolving, and when we might see initial orders for that product?

Andre Adams: Hi there. This is Andre Adams on for Noah. Just to go back to the OEC for EGS applications, could you give us a bit more detail on the kind of capacity ranges you're able to produce, efficiency gains from the larger size, and how you see the TAM for the product evolving, and when we might see initial orders for that product?

Speaker #3: And how you see the TAM for the product evolving? And when we might see initial orders for that product?

Doron Blachar: We're now in the final stages of design. I expect that in the next few weeks, we will come out to the market with information about the size of the turbine, which will be much bigger than what we have done so far. The specific number, we will come up in a few weeks. We will also try in that announcement, explain how we see it being a much standardized power plant, and by that, allow us to have a lower cost. Regarding getting POs, we are in various negotiations with multiple EGS developers on potential projects. The minute that we sign with one of them, we'll obviously announce and update the market.

Speaker #5: We're now in the final stages of design. I expect that in the next few weeks, we will come up to the market with information about the size of the turbine which will be much bigger than what we have done so far.

Speaker #5: But the specific number we will come up in a few weeks. We will also try in that announcement to explain how we see it being a much standardized power plant.

Speaker #5: And by that, allow us to have lower cost. Regarding getting POs, we are in various negotiations with multiple EGS developers. On potential projects. And the minute that we sign with one of them, we will obviously announce and update the market.

Speaker #3: And then just as to follow up, given the outperformance of storage and products in the first quarter, could you just give us a little bit of color on the cadence of those businesses for the balance of the year?

Andre Adams [Research Associate: Just as a follow-up, given the outperformance of storage and products in Q1, could you just give us a little bit of color on the cadence of those businesses for the balance of the year and why the company would be reiterating rather than raising guidance?

Andre Adams: Just as a follow-up, given the outperformance of storage and products in Q1, could you just give us a little bit of color on the cadence of those businesses for the balance of the year and why the company would be reiterating rather than raising guidance?

Speaker #3: And why the company would be reiterating rather than raising guidance?

Assaf Ginzburg: You saw the margin achieving was around 59%. With that being said, the whole year, we do expect anywhere from 35% to 40%. We usually do not increase, decrease or change the guidance during the mail call. We will usually do it during the August and the November call. We decided to stick with it. We need to see where the American market will be for the remainder of the year, and then we would make a guidance decision. Got it. Thank you. Thank you. Thank you.

Assi Ginzburg: You saw the margin achieving was around 59%. With that being said, the whole year, we do expect anywhere from 35% to 40%. We usually do not increase, decrease or change the guidance during the mail call. We will usually do it during the August and the November call. We decided to stick with it. We need to see where the American market will be for the remainder of the year, and then we would make a guidance decision.

Speaker #5: Without being third, the whole year we do expect anywhere from 35 to 40%. We usually do not increase or decrease a change the guidance during the May call.

Speaker #5: We usually do it during the August and the November call. And we decided to stick with it. We need to see where the American market will be for the remaining of the year.

Speaker #5: And then we would make sure that decision.

Speaker #3: Got it. Thank you.

Andre Adams: Got it. Thank you.

Speaker #5: Thank you.

Assi Ginzburg: Thank you.

Speaker #3: Thank you.

Andre Adams: Thank you.

Speaker #1: Your next question comes from the line of. Then Brinos with RBC Capital Markets.

Operator: Your next question comes from the line of Chris Dendrinos with RBC Capital Markets.

Speaker #6: And thanks for taking the question. I guess maybe just to go back to EGS again and you talked about the opportunity at Dixie. I guess what I'm wondering is, is there additional opportunities to call it at your existing asset base to use EGS well to bring those back up to flush production if you've got extra transmission capacity or maybe capacity on the turbine?

Chris Dendrinos: Thanks for taking the question. You know, I guess maybe just to go back to EGS again, and you talked about the opportunity at Dixie. I guess what I'm wondering is there additional opportunities to call it at your existing asset base to, you know, using EGS well to bring those back up to flush production if you've got, you know, extra transmission capacity or maybe capacity on the turbine? I'm just kinda wondering how amicable that existing acreage position is, you know, with heat in place or something like that. Thanks.

Speaker #6: I'm just kind of wondering how amicable that existing acreage position is with heat-in-place or something like that. Thanks.

Speaker #3: Okay. Thank you. And welcome. To join us. Dixie Meadows is a one-sided tree located. We have another site that we believe has potential for EGS projects.

Doron Blachar: Okay. Thank you and welcome to join us. Dixie Meadows is one site that we located. We have another site that we believe has potential for EGS projects. Existing interconnection facilities today that we have and free interconnection are not big enough for EGS. EGS projects will be much bigger than what we see today. We are looking to see places that we do have enough new interconnection available to build EGS projects. We have some interconnection requests that we've already filed, some that we're working on to file. For EGS projects, we would need much larger interconnection agreements than what we have available today.

Speaker #3: Existing interconnection facilities today that we have and free interconnection are not big enough for EGS. EGS projects will be much, much bigger than what we see today.

Speaker #3: So we are looking to see places that we do have enough new interconnection available. To build EGS projects. We have some interconnection requests that we've already filed.

Speaker #3: Some that we are working on to file. But for EGS projects, we would need much larger interconnection agreements than what we have available today.

Speaker #6: Maybe as a follow-up here, I think you mentioned additional conversations with potential PPA customers. And I think you mentioned data centers. Are you seeing an increase in interest from, call it, the non-conventional utility customer?

Chris Dendrinos: Maybe as a follow-up here, I think you mentioned, you know, additional conversations with potential PPA customers. I think you mentioned, you know, data centers. You know, are you seeing an increase in interest from, call it, the non-conventional utility customer, you know, outside of Switch and Google? Have they kind of come in to the conversation here more recently? Thanks.

Speaker #6: Outside of switching Google? Have they kind of come in and to the conversation here more recently? Thanks.

Doron Blachar: Definitely. We have discussions with other hyperscalers on top of the names that you mentioned, that they are looking for renewable energy. As EGS will progress, I believe we'll get much, much more attention and ability to sign more PPAs and larger ones.

Speaker #3: Definitely. We have discussions with other hyperscalers on top of the names that you mentioned. That are looking for renewable energy. And as EGS will progress, I believe we'll get much, much more attention.

Speaker #3: And ability to sign more PPAs and larger ones.

Chris Dendrinos: All right. Thank you.

Speaker #6: Thank you.

Speaker #1: Again, if you would like to ask a question, press star. Then the number one on your telephone keypad. And your next question comes from the line of Ben Callow with Baird.

Operator: Your next question comes from the line of Ben Kallo with Baird.

Ben Kallo: Hey, thanks, and congrats on the results. Just maybe going on EGS, I think that's a theme. The JV structure with SLB, could you just talk to us about, you know, if we do advance a couple of years to where you have a commercial project, how you expect or think ownership of the power plant would work, is my first question?

Speaker #7: Hey. Thanks, and congrats on the results. Just maybe going on EGS, I think that's the theme. The JV structure with SLB, could you talk to us about if we advance a couple of years to where you have a commercial project, how you expect or think ownership of the power plant would work is my first question.

Speaker #3: So thanks, Ben. The pilot with SLB is designed to develop the EGS solution for the subsurface. The above surface is obviously utilizing the OMA technology.

Doron Blachar: thanks, Ben. The pilot with SLB is designed to develop the EGS solution for the subsurface. The above surface is obviously utilizing the Ormat technology. Once the pilot is successful, we can develop new EGS projects either as part of Ormat, utilizing our knowledge and the expertise that we've gained from the joint venture, or alternatively, utilize the knowledge within the joint venture that will supply services to the new power plants that we will build. SLB, as you know, is a service provider. Ormat is a developer, owner, and operator of power plants. We will both have utilize, you know, our expertise.

Speaker #3: Once the pilot is successful, we can develop new EGS projects either as part or format. Utilizing our knowledge and the expertise that we've gained from the joint venture.

Speaker #3: Or alternatively, utilize the knowledge within the joint venture that will supply services to the new power plants that we will build. SLB, as you know, is a service provider.

Speaker #3: ORMAT is a developer, owner, and operator of power plants. And we will both have utilized our expertise once the JV is successful. We will be buying subsurface services from the JV that SLB will be able to provide.

Doron Blachar: Once the JV is successful, we will be buying subsurface services from the JV that SLB will be able to provide. We will continue build the power plants and operate them and own them.

Speaker #3: And we will continue to build the power plants and operate them and own them.

Speaker #7: Great. My second question is just on you're in a unique position with both geothermal and then developing energy storage as well. And I just wonder if that comes up or how much it comes up with hyperscalers.

Ben Kallo: Great. My second question is just on, you're in a unique position with both geothermal and then, developing energy storage as well. I just wonder if that comes up or how much it comes up with hyperscalers, and if there's an opportunity for adding storage with hyperscalers independently or with geothermal. Thank you, guys.

Speaker #7: And if there's an opportunity for adding storage with hyperscalers independently or with geothermal. And thank you, guys.

Speaker #3: So with hyperscalers, we haven't had discussions about bundling energy storage with geothermal since geothermal is a 24/7 facility. But we have had discussions and there are RFPs coming out from hyperscalers that are looking for energy storage facilities.

Doron Blachar: With hyperscalers, we haven't had discussions about bundling energy storage with geothermal since geothermal is a 24/7 facility. We have had discussions, and there are RFPs coming out from hyperscalers that are looking for energy storage facilities. We are participating in these tenders and discussing with different hyperscalers about building for them energy storage facilities, standalone energy storage facilities. Once there will be some kind of an agreement on any of these prospects, we will update the market.

Speaker #3: We are participating in these tenders and discussing with different hyperscalers about building for them. Energy storage facilities. Standalone energy storage facilities. And once there will be some kind of an agreement on any of these prospects, we will update the market.

Speaker #1: There are no further questions at this time. I will now turn the conference back over to Doron for closing remarks.

Operator: There are no further questions at this time. I will now turn the conference back over to Doron for closing remarks.

Speaker #3: Thank you. Thank you all for joining us today. It was a very, very good quarter for ORMAT, and we are looking to continue this great year.

Doron Blachar: Thank you. Thank you all for joining us today. It was a very, very good quarter for Ormat, and we are looking to continue this great year. Thank you.

Speaker #3: Thank you.

Operator: This concludes today's conference call. Thank you all for joining. You may now disconnect.