Ormat Technologies, Inc.

Q4 2025 Earnings Call — February 26, 2026

Analyst: Justin Clare (Roth Capital): Hi, thanks for taking our questions. And I wanted to start off here just talking about the PPAs. You've obviously signed a lot recently here. You highlighted the 40 megawatts of PPAs signed under a blend and extend strategy. And just wanted to see, you know, how should we think about the additional opportunity in terms of the amount of capacity that could be proactively renewed and with PPAs extended ahead of expiration. And then also just wondering if you could provide an update on the amount of capacity that might be coming up for renewal still here in 2026, 2027, 2028. Thanks.

Executive: Asi (Title): Hi, Justin. Good morning. As you said, you know, we initiated this blend and extend the 40 megawatts that are in the approval phase. And hopefully in the next few weeks, we will be able to announce once they are fully signed and approved. And we have a few more assets, not too many assets that we can blend and extend. And we have started to work on the next phase that will take a few months to get them updated to the current pricing.

Got it. So then maybe shifting over just on the curtailments, I think there was an 18.6 million impact in 2025. Wondering if you could quantify what the impact was in Q4. I think things improved in the quarter. Maybe if you could just speak to that improvement. And then your expectations for 2026, what level of curtailments might be assumed in the electricity segment guidance?

Good morning, Justin. This is Asi. I'll start by saying that the curtailment in Q4 did lessen. We saw around three and a half billion dollars of curtailment in Q4. I will say that for the full year 2026, we are not expecting more than four to five million, maybe slightly higher than that. But at least what we know today from nve which is the one that caused most of the development during 2025 we're not expecting too much into it also in 2025 if you remember in January there was some fires in California luckily to us this year we didn't so we don't expect in Q1 any significant development so things definitely are coming our way as we look into a 2026.

Got it. Okay. And then maybe just one more. Considering those factors, could you share what you anticipate for the gross margin for the electricity segment in 26 and how that compares to 25 in the factors you mentioned?

Yeah, we do expect anywhere from 1% to 2% increase in gross margin. You know, it's around 14, 15 million in total, which is in line with the difference in the curtailment. One thing that we do see this year slightly less than last year is the prices in Pune are lower. But with the tension in the Middle East, you know, this can change very quickly. So right now the prices in Pune are slightly lower. But again, we took it already into consideration in the guidance.

Thank you.

Analyst: Noah K. (Oppenheimer): Thanks. Lots going on, lots to talk about. And I want to start with the comments you made in reference to the Google PPA. You know, you talked about this portfolio structure being, you know, a model for future activity. And I was just wondering if you could expand on that a little bit in terms of, you know, how the structure kind of came to be, why it was the right fit for both you and Google as a counterparty, and some of the optionality that it gives you in terms of development.

Executive: Asi (Title): Thank you, Noah. So Google basically, as we all know, is looking continuously for clean renewable energy, and that aligns perfectly with geothermal. It is a baseload. Over the last few years, we've invested quite a lot and we're continuously investing in exploration and developing green fields. And we actually released, as you've seen on the presentation, our first green field, a 30 megawatt project, the first time after close to seven years. And we have a few in the pipeline that are in the final stages of exploration and I expect to release a few more this year and the next year. And the structure of the PPA basically which is up to allows us on one hand to know that we have a PPA, a very strong and profitable PPA if we are successful in the exploration and it basically gives us the confidence to continue with this investment and exploration effort that we are doing that will grow significantly the company in the coming years. I'm almost sure to say that if we do maximize this PPA, we will be able to add another one. At this stage, it relates to until the end of 2030. And with the exploration efforts we have, this gives us the confidence to continue with this strategy.

Okay, thanks. And then I think on the blend and extend comments that you made in response to Justin's question. So as we understood it, at this point, most of what was expiring through, I think, 2028 has already been recontracted. This blend and extend seems like a pull forward of contracts that were going to expire beyond that. So maybe you could just give us a little bit more insight on the contracts that are being affected here and the amount of kind of post-2028 capacity that you're looking at recontracting right now.

Yes, the contracts that are being blended and extended are contracts that end, as you said, in the next three to five years. We have one more contract in this timeframe that we are looking to blend and extend. The next wave of contracts, actually, that are looking for re-contracting are mainly in 2032. In 2033, that is... Jersey Valley, Don Campbell, McGuinness One, Tungsten. So we will be looking at this for Blend and Extend. I don't know if the sales will do it in the next few months because it is longer term. But today when NV Energy and others that have contracts with us that are set to expire in the range of five years plus minus, they want to secure the re-contracting with them. The fact that we did sign with Switch and we did sign with Google PPAs for a similar timeframe actually drives their willingness or their desire to sign, blend and extend and basically secure the baseload geothermal energy for a longer period of time.

Makes sense. One quick one to sneak in before I turn it over. Asi, I think you mentioned that the CapEx guide is $675 million, but once the top two conversion to products revs complete, it'll actually be $575. Can you just walk us through the mechanics of that and explain the timing on that a little bit, please?

Executive: Asi (Title): Sure. So in Q1, we closed the sale of the top two transaction to our customer after he basically exercised his option to buy the asset. As a result, you will see through the P&L around $100 million revenue with approximately 20% margin that will boost Q1 results. And what you will see in the financials, in addition, in the cash flow section, you will see a line item that will be a sale of an asset that will offset the capex. So when we look at the cash flow for 2026, we will expect to see a capex of 675. In addition to that, we did make an acquisition in Q1 that was another 80.5. So you will see also the M&A of the 80.5 in Q1. And then you will see a sale of assets of approximately 100 million. So that's what we expect to see on the cash flow. This is just for modeling, for you guys to understand the debt and the net debt of the company throughout the year. I want to mention one more thing. You asked us how did Google came about. I do have a recording call with you that you told me, Asi, if you have to sign with somebody, you have to sign it with Google. So that day I went to Doron and that's how it all started. So I think you can give yourself some kudos and we appreciate the support here.

Well, thank you very much. And with that, I'll turn it over.

Analyst: Hannah Velasquez (Jefferies): Hey everyone, this is Hannah Velasquez on for Julian. Thank you for the update and good morning. So I'll go ahead and just get started. I wanted to circle back on this curtailment question. So if I'm just, you know, using 2024 revenue for the electricity segment as a baseline, you know, around 700 million. That's also what you did in 2025 for the segment you brought on, you know. Yeah, I mean you brought on over 100 megawatts in the electricity segment across that time period. And if I do the math there, that would suggest about 30 million of incremental revenue from those new assets that came online. And so that gets you to where your guidance currently is. So does that imply that curtailment is not being recovered from 2025? Or I know you talked about 4 to 5 million recuperating it, but I'm just having a hard time bridging to the new assets or new capacity that you brought online for that segment. And then also the curtailment that you expect to recover in the year.

Executive: Asi (Title): Hannah, good morning. Thank you for the question. First, some of the 100 mega that you mentioned is solar. So the capacity factor is closer to 22%. So I suggest that you look into it when you model the number. Second, as I mentioned, we do expect four to five million curtailment in the year in 20, maybe even six in 2026 versus the 18.6. So there is around 10, 12 million dollars reduction in curtailment. But I think the main difference is that some of the additions are solar.

Right. About 42 megawatts. Yeah, I did do the math and I'm getting about, you know, 25 to 30 million contribution from the new geothermal and then, you know, less than 10 million from the new solar. So it still suggests to me that there might be, that you're not recovering.

As I mentioned earlier, the prices in Pune are slightly lower. And then we also been trying to be quite careful with our guidance for 2026, making sure we can, uh, if possible, toward the years, try to raise the guidance and not be in a position that, like we've been in 2025, that we were behind on electricity sales. So it's, again, also us being proactive here.

Okay, I got it. That's super clear. So you do expect some of the, I guess, segment headwinds that you saw in 2025 to extend over, potentially, but you're being cautious in your guidance outlook.

Okay. As a follow-up question, just on the EGS front, from what I understand, there are multiple technologies or variations within EGS? It sounds like you're currently vetting through Sage Geosystems and also partnership with SLB. But would you consider any incremental partnerships with other next gen technologies? Just because again, it seems like there's such a wide variance in how different companies are approaching EGS. I'm just trying to get a sense of like the probability of success here.

Executive: Asi (Title): Yes, thank you. That's exactly the way that we are operating. The reason that we have started the joint venture with SLB and also signed a commercial agreement with Sage and invested in Sage is exactly, as you say, multiple approaches to EGS. There are technological barriers in EGS, mainly the water loss and the economics of it. And we are looking at spreading the risk. We are discussing with other developers in the EGS arena, different corporations agreement. We believe that EGS if successful will turn the industry into something that is much much bigger because you will be able to generate geothermal energy baseload energy in many many places. So we are focused a lot on it we are looking at the different players all of them are speaking with us. We are the largest operator of geothermal globally we are the largest a binary seller of supply of products in EPC. And I assume that over the next time you'll see us making additional moves in the EGS in order to make sure that if EGS is successful, OMAT will be able to capture this opportunity.

Okay, that's super clear. Thank you.

Analyst: Mark Strauss (JP Morgan): Yes, thank you very much for taking our questions. Maybe a follow-up to Hannah's question there on EGS. Instead of kind of looking beyond the existing partnerships, within the partnerships that you have with SLB and SAGE, do you think that we could see additional pilot activity announced in 2026, potentially different site selection with different conditions, whatever it might be? And then on that same slide, on slide 25, you mentioned the equipment sales to third-party developers. Can you talk about what you've embedded in your guide for 2026 from that and how we should think about the timing of when that could potentially become more material?

Executive: Asi (Title): Thank you, Mark. I'll start maybe with the second part of the question. EGS has technological challenges that need to be solved. I think most of the players that we know are dealing with these challenges. I would expect that during 2026 we will be able to negotiate with some of them, maybe EPC contracts, but revenue from that first, they will need to demonstrate the technological issue, they will need to do it well, and then the EPC revenue will come. So we have multiple discussions with different of them, as I said before, both on EPC agreements, but this will be EPC that will impact product segment, probably second half of 27, 28, definitely if it is successful.

Regarding additional, we are speaking with other companies that are looking at technological ideas that have already invested and raised cash in order to develop them. We are also building internal capabilities to see how we adjust our technology to fit these large-scale power plants. We are speaking with different hyperscalers and data centers on PPAs once the technology is successful. So there's a lot a lot of work that is being done within ORMAT in the different areas. I'm sure that during the coming quarters and discussions will keep on updating you on the various issues. And as I said before, if this is successful, then it will take ORMAT in the industry into a different level.

Yeah, I understand. Okay, that's helpful. And then can I just switch over to the storage side of the business? Just given the initial fiat guidelines that came out recently, just curious for your take on that and how you're approaching potential safe harbor before the July deadline that would give you further visibility out to 2030.

Executive: Omer Tover (Title): Thank you. Omer Tover, the last year safe harbored over one giga of project, and we plan to install and use it over the next few years. I will start by saying that Griffith, which is a 100 megawatt, 400 megawatt hour, which is our largest project, was also safe harbor. We have basically for all of our interconnections for 2028, 2029, safe harbor, basically the majority of the projects. We were able to reiterate our 2028 targets for the storage, taking into consideration the field. All in all, we are in a very good situation to continue and grow. We also see more and more capacity of batteries coming from outside China, which is very favorable. We see also an increase in US production. So I believe that the Fioc eventually will not impact us. I think that our position in the queue, especially in California, is very good, which should enable us to release over the next year potentially additional two projects, almost similar size to Griffith. So again, all in all, the ability to buy batteries, the extension of the credits, and the fact that we save Harvard a sufficient project for the next three years really put us in a good place. In addition to the fact, when you look at our pipeline, you see the majority of it is in California, which battery is really, really needed. And those lines that we have in the queue really put us in a position to sign the good tolling agreements or good RA contracts.

Analyst: Ben Callow (Baird): Hey, guys. Thank you for taking my question. Just thinking about, you know, as you think about longer-term targets, you know, past the 28, and there's, you know, been a lot of changes, you know, from the federal level in the United States, you know, when do you think that you're in a position to, you know, update us on longer-term targets? And then, you know, have you adjusted the operations, you know, to, you know, the benefit of, off of any of that and specifically just, you know, faster permitting or anything like that. And then my second question is, and thank you for that. You kind of answered this, but just on the EGS front, outside of technology, how do you think about just building the infrastructure around your own development? You know, if we look at the 2030, 2031, whether that's, you know, employees and or it's financing, or other things there, because scale will get bigger if and when you're successful.

Executive: Asi (Title): Thank you, Ben. So we are, I'll start with the second part, but we're definitely looking at how to prepare ourselves for this transformation event if EGS is successful. We are doing the exploration. We have increased our BD efforts. Obviously, the land position that you need for an EGS project is significantly bigger than what you need for geothermal. So we are looking at much larger land positions in additional states, not just Nevada and California. So the look for EGS is much broader than just Nevada and California. We are looking on our binary technology, how you manufacture so many turbines to a power plant, heat exchangers, how to multiple or match efforts. All of these are things that we are working on in parallel to make sure that once the technology is successful, we are able to utilize it and move forward with it.

Regarding the question on the growth target, so one, we've increased significantly over the last three years, the exploration efforts. We see the greenfield, the first one, coming to fruition now. We will see additional coming. The change in the permitting helped us a lot and moved us faster than what happened in the past. The fact that there are multiple land auctions by BLM in different states in the West, again, pushes us faster. We are planning an analyst day in the September timeframe. And at that time, we will give longer term targets for megawatts.

And thank you.

Executive: Management: And with no further questions in queue, I'd like to turn the conference back over to Duran for closing remarks. Thank you all for joining us today. 2025 was a very good year for OMAD. Looking to 2026, we continue to see growth in all our segments and expect significant progress in EGS during 2026. Thank you. This concludes today's conference call. You may now disconnect.

Q3 2025 Earnings Call — November 4, 2025

Analyst (Oppenheimer): Well, good morning, Daron, Asi. Thanks for taking the questions. Hope you're well. So maybe to start with, you know, it was in the slide deck on page 15, just referencing the 250 megawatts of PPAs under negotiation with hyperscalers and data centers. I don't believe I heard an update in the prepared remarks. Can you maybe just update on the PPA discussions with hyperscalers?

Management: We are actually in very final negotiations on a couple of PPAs with hyperscalers and the same magnitude that we have been discussing. We hope to be able to finalize them, sign them and announce them in the next couple of months, hopefully even before that. But we had quite a significant development in the negotiations and drafting, and we're very close to finishing them in the next couple of months.

Analyst (Oppenheimer): Great. We look forward to that. Second question, you know, I think you mentioned top two will likely convert over to a products revenue. You'll be doing the EPC work there. Just how to think about how that might translate into additional products backlog and the revenue opportunity associated with that.

Management: I would say it's an EPC project, roughly $100 million in that range. So they have exercised the option. We need to close the transaction that will probably occur in Q1 of 26. And at that point, once the transaction closes, it's the accounting-wise the time we can actually account it as part of the project signal.

Analyst (Oppenheimer): Very helpful. Thanks. And then, you know, you mentioned a couple of these key collaborations on EGS. I was hoping you'd give us a little bit more color on some of the pilots that are associated with that. Can you give us a little bit more detail on the scope of the pilot? What steps exactly you'll kind of be taking here in the early days to kind of assess commercial viability and what you'll be looking for to go ahead with a larger project?

Management: Sure. So these are two different transactions. So with SLB, we've started a joint venture and we've chosen the site, the pilot for the SLB will be next to our facility in Desert Peak in Nevada. Actually, it's the same location that 20 years ago OMAT started an EGS project there. So the project, the pilot starts, you know, SLB looking into the right technology and developing the right technology for an EGS project. Once they are complete or actually in parallel to that, we will be looking for permitting and all the business development related issues that we will be working on. Once these two are aligned, we will drill the pilot wells. We expect that will happen towards the second half of the end of 26. And then we will run the pilot and we will utilize our Desert Peak site. And by that, save a lot of time or the need to build a facility to generate electricity. So this is on the SMP part. On the SAGE, so the SAGE pilot is a pilot that they are managing. We are discussing with them what is the right location for an EGS project next to one of our facilities, similar again to save time. But on this case, you know, BD permitting and everything is done by Sage, not by us. We're just allowing them to utilize one of our facilities, which we haven't finalized with them yet which one.

Analyst (Roth Capital): Hi. Thanks for the time. So I wanted to start out with the electricity segment. I'm wondering if you could just discuss, you know, within the electricity segment, how you anticipate the gross margins trending in Q4. There were a number of different factors that affected the margins in Q3 wondering if those are being resolved, or if they could affect Q4. And then just looking into 2026 be great if you could just talk about the puts and takes you see for the electricity segment in regard to kind of operational issues that impacted 2025 and the curtailment and how you see things evolving for that segment next year.

Management: What we've seen, we are not aware today of any material curtailments that are planned by NV Energy or from California near the control substation. So the big impact that we had this year is not something that we expect to see next year. But, you know, this is usually up to the utilities and the operators, not us. This is regarding 2026. Regarding Q4, I can tell you that we had some curtailment in October by NV Energy, which wasn't a planned one. It was an unplanned curtailment that they've done. Q4 is usually much stronger than Q3 and Q2. So we do expect a higher curtailment growth margin in Q4 versus Q3.

Analyst (Roth Capital): Got it. And then I guess just some of the factors that affected Q3, the still water enhancement, the Imperial Valley grid failure, have those been resolved at this point or could there be an effect in Q4? I'm wondering, for Q4, could we see directionally an improvement versus the year-ago period, or could those factors result in a year-over-year decline?

Management: The storm in the Imperial Valley impacted IID; they had, I think, a few hundred poles that fell down and it took them a while to bring them up, so this event is over and behind us. And the still water upgrade continued into October. So it will have some impact, but not as big of an impact as in Q3. From a season perspective, Q4 is usually one of the strongest quarters for the year. We expect this to be probably the strongest for 2025. We see lessening the curtailment, which is very positive. If you look at 2024, our margin was 36%. We are running in general this year 200 to 300 basis points below that. So that's the expectation for Q4. So overall, again, it should be much improved versus what we saw this quarter. It should be probably the highest for the year, but slightly below 2024.

Analyst (Roth Capital): Got it. Okay. That's really helpful. And then just one more on PPAs. It seems like PPAs are continuing to trend higher. You mentioned pricing above $100 a megawatt hour. Wondering if you're seeing pricing at 105 or 110, or if you could provide any more granularity on the pricing that you're seeing. And then just related to that, it sounds like off-takers may be looking to recontract earlier in order to lock in pricing before potential future increases in PPAs. Are you seeing any of that? Could you look to recontract assets earlier than what you typically would be expecting?

Management: It's very hard to comment on the PPA price if it's 105 or 110. It's in a similar vicinity and both of them are good numbers depending on the specific location and the offtaker. We are looking for recontracting today our 29 and 2030 projects coming off contract. It's important, you know, we would like to recontract them to get the stability and the ability to forecast for longer term. Also, when you recontract a project, you know, it doesn't come up with a lot of copies or some copies associated with the enhancement, but it doesn't come with the full carpet. So in today's environment and PPA pricing, it is very attractive.

Analyst (JP Morgan): Yes, thanks for taking our questions. Just a follow-up to Noah's earlier question. I know it's early, but can you talk about how it's kind of a reasonable expectation of how long these pilots on the EGS side might last? And I appreciate kind of the longer-term opportunity here, but just specific to your 2028 targets, do you think that there's potential upside to that from these EGS deals?

Management: It's a bit aggressive to assume that EGS will have an impact. One of the main challenges with EGS is the water loss. Once you circulate the water, inject water, and then bring it up again hot. This is something that will be verified or learned over time. So if we see the pilot operating in 27 sometime, I think it's likely that we'll be able to, after a few months, be able to get the input on the viability of this technology. I can tell you that once we are starting the pilot development, we will be looking to sign long PPAs, obviously, for a later period based on this technology, if it is successful.

Analyst (Jefferies): Hey, good morning. This is Hannah Velazquez on for Julian. So as another follow-up question on the EGS part, can you just give us a sense of the scale of EGS-type projects that you would be looking to target in terms of megawatts?

Management: The nice thing about EGS projects is that it is based on the amount of wells that you drill and the water that you use. The megawatts that can be developed are significant. It can be in the hundreds of megawatts, similar to other companies' PPAs. It's not like today that when we release a project, it's 25, 30, 35 megawatts. I believe the EGS projects will be in a few hundred megawatts. But again, it's very, very early to say before we have the pilot operating.

Analyst (Jefferies): OK, thank you. And as a follow up, can you give us an update? I know a while back we had talked about an executive order on the permitting side that came out of the Trump administration that was trying to accelerate the permitting process for geothermal. I think it was like down to 28 days or something like that. Have you seen any updates or progress on that front?

Management: In general, we do see getting permits become much less of an issue when it's federal permits. Although over the last few weeks, as we all know, the government is in a shutdown mode, so we don't see a lot happening there. But I can tell you that we were able to get, within weeks, permits. And you will see in 2026, that will lead, as Doron mentioned on the call last time, to accelerating drilling program. Doron mentioned that we're adding a second rig for the second half of 2025. We may even add a third rig at one point next year. So that's going to be a different situation for us. And what it gives us is the ability to develop more assets to meet both our 2028 and, of course, our longer-term goals. So very positive. Last few weeks, nothing is being done. You know, it's all on a shutdown mode and we hope it will change shortly.

Analyst (UBS Financial): Perfect thanks for taking the questions. I'd be really interested if you just provide some more color about how you're managing risk around the storage business. There's obviously a lot of uncertainty in the market around that just how the contracts or how your development pipeline risk mitigates for potential outcomes for that. I'd be very interested to hear your thoughts.

Management: So, you saw the storage margins this quarter, and we also increased guidance for the year for the storage. So, all in all, and operations between PGM, Texas and California is working very well. All the projects that we are developing have secured a safe harbor and a few additional ones that we haven't already released for construction have safe harbor. Apart from that, the FAOC and the entire storage market is still trying to align itself to the new world that the administration has put. And we're looking also on the impact longer term, but at this stage, all the projects and the plans that we have are in line and we are working on them.

Analyst (Baird): Hey, good morning, guys. Thank you for the time and hope you're doing well. Most of my questions on EGS have already been answered, so maybe if I could just pivot. Asi, I wonder if you could talk just a little bit more about financing needs for next year, and really maybe even for next year or 27, just looking at the 200 megawatts of geothermal and solar, roughly, that you guys plan on bringing online and any needs or any of the things we should consider for tax partnerships between now and then.

Management: If you look at this year, our expected EBITDA, the middle range, plus the over $160 million, close to $167 million of cash, cover basically completely all of our CapEx needs. And the only additional borrowing that we did this year is to basically for the acquisition that we made. We haven't finalized our plan yet for CapEx for next year, but also next year we expect to have at least $70 million of tax equity or ITC that we will get from two projects. In addition to that, next year towards the end of the year, the Puna plant is expected to come on. If we close the transaction of the Puna plant already in December, which is unlikely, but it's possible, then this year and next year, tax credits will be quite similar, maybe even higher next year. So overall, the starts for us is very, very good. It's around, can be as much as 170 million next year. In addition to that, next year, as we mentioned at the beginning of the call, we expect to sell for around $100 million, a project that we already fully financed in New Zealand. So basically we will start the year next year with the above $250 million of non-process. Together with ongoing EBITDA, that should cover the majority of our CapEx needs. And if we will need slightly more, we can borrow. So at this point, we don't see a need for equity for the company.

Analyst (Baird): Thank you for that. That's super helpful. And maybe, I guess, just building on that last question and to your point about EGS and the excitement there, is there any opportunity that you guys see to maybe accelerate this development through M&A or any other actions you guys could take to build more or bigger partnerships in the near term?

Management: We've just started these initiatives. I don't see an M&A transaction in the EGS field that can push it forward. I don't believe there's any targets today for M&A transaction. We believe that developing with SLB and the commercial agreement with SAGE, which is a different technology than SLB, actually will allow us to have two paths to reach EGS. And if either one or both of them are successful, as we said, the number of megawatts that can be developed that will impact OMAT's own project as well as the product segment are significant.

Analyst (Barclays): On the Schlumberger agreement, they're providing the technology, they're doing the permitting and the drilling. If this is successful, does Schlumberger participate in this project in the longer term in terms of CapEx or other means on this? How does that work longer term if this all works out?

Management: I cannot answer for Schlumberger themselves, but the way partnership works, see that we're developing together. And after that, we can build projects together or each one can build by itself projects. And we, Sanbaje is a service company, that's what they've done all the years. And we're developers. So once the pilot is successful, we will be able to utilize all the technology that was developed in the pilot and build geothermal EGS projects that will be owned by OMAP.

Analyst (Barclays): Can you talk about the differences in the technologies that are being applied, that what SAGE is doing versus what Schlumberger is doing?

Management: These are two different technologies. These are very proprietary technology for Sage and SMB are still developing them. I think over time, as the pilot progresses and technology is developing, we will be able to share more information on how we are developing it and how do we see both of them operating over time.

Analyst (Oppenheimer): Well, thanks for taking the follow-up. Really two ones. You know, the first one is around the electricity performance, kind of following up on the margin question before. I think maybe another way to get at it is, you know, there have been a number of events all year. You know, there were wildfires in California in 1Q, the Puna maintenance in 2Q, and now Imperial Valley in 3Q, and obviously the Nevada curtailment all year, and I guess outside of Puna, these were really kind of exogenous factors, right? So I guess if we add up all of these non-recurring factors, it's possible to kind of quantify the total impact to revenue in EBITDA this year. So I think that'll help us re-baseline for next year.

Management: When we look at the curtailment, it's probably around $14 to $15 million this year. If you add to it some of the Pune impact plus the ivy storms, you're probably going to be somewhere between 20 to 25 million. But let's remember every year there are a few events. So I will say it's probably a 20 million impact for the year. And when you look at our focus for the year, you can see that we reduced our higher end part of the guidance by exactly those 20 million. That's why we went from 725 to 705. So if you want to make it easy on you, this is the high-level impact.

Analyst (Oppenheimer): That's perfect. Thanks, Hase. And the second one is really to think about land position and interconnection position. We noticed that NV Energy's interconnection queue, just to pick one utility, for geothermal increased by roughly 10x over the last couple of months. It does look like there is obviously a lot of project development. Can you talk about your interconnection position and your ability to bring online the geothermal projects you have in development?

Management: Projects and prospects that we have that we are developing today have most of them already interconnection agreements and dates. The others are in various stages of negotiations on finalizing the megawatts and the cost of the interconnection, the date. So when we look at the near to mid-term future, we feel confidence that we will have interconnection for the projects that should be coming online in the next few years. Obviously, as you go down to later years, interconnection is something that needs to be worked on. But we are in this... in Nevada and California for many, many years in the geothermal, and we are continuously filing for interconnection. And we have, as I said, for most of our projects going forward, interconnection.

Analyst (Piper Sadler): I just want to ask about product. Maybe just your outlook there on the backlog seems to be growing nicely. Just up your top line revenue guidance. Your implied 2028 guidance is I think in the 140 million dollar range. You just got it up to 180 to 190. Margins are sitting above 20%. Is this just a new run rate we should think about? Maybe just some comments around product and how you see that progressing over the next couple of years, given that you're trending above your 2028 implied guidance.

Management: Our long-term target for margin is anywhere from 17% to 20%. This year, we have an exceptional year with our ability to negotiate much better procurement on some of our contracts. In addition to the fact that some of the projects that are being finished right now in New Zealand were able to complete the EPC at a much lower cost than anticipated. So I would say from a margin perspective, this year is definitely, I would say, outstanding and probably on the higher end. And when I look forward, probably between, I would say, 17 to 20 is making more sense. On a revenue line item, there is no doubt that we continue to stay elevated and also next year we expect to stay elevated. Historically, Ormat, at least in the years of COVID and a few years others, we sold around 100 million. I will say right now we are moving probably to the 200 million level. Next year may gonna be slightly higher, but that's the idea at this point. We signed a large contract in Asia a few weeks ago, and we're negotiating a few more as we speak.

I think that what's more important when you look at the product segment is to show to the world that geothermal is life-kicking, not just in the US with all the AI, but it's a viable solution in many, many countries and the cheapest option to get electricity. One more thing that will boost our revenues, but that's towards 2028, 2029 and 2030, is the fact that we did win two new PPAs in Indonesia. These are BOT projects with PLN. During a BOT project, we recognize revenue already at the time of the construction in the product segment. So I would say that over the next few years, we should see very nice support coming from the project in Indonesia, from the New Zealand project, and also what we just signed in Asia. So overall, good timing. As I said, margin this year is exceptionally high. We're not anticipating that to be at this level.

Analyst (Piper Sadler): That's helpful. And then just back to the partnership with SLB, maybe looking at it from a different angle. We already talked about EGS, but what about on the traditional side of things, your traditional geothermal development? Are you exploring projects with SLB to develop that type of power plants? Just trying to think of the cross synergies that can be utilized with SLB applying some of their technologies into the traditional space, you know, fully acknowledging that EGS is where the interest is, but just thinking about traditional asset development as well.

Management: Definitely, you know, traditional geothermal is, you know, the core of what we're doing today. EGS needs to be developed. So we are looking also with SLB on potential customers that are looking for geothermal energy and have the relevant locations or land that we can develop traditional geothermal. So it definitely exists in the partnership. It's something that both companies can enjoy if we get the additional customer for them for the services they provide for drilling and us for the power plant.

Management: Thank you, everyone. This was a strong quarter on our operations with strategic developments in the EGS technology. Our partnership with SLB and the commercial agreement we signed with SAGE will impact our growth in the future and will allow us together with SLB to respond to the significant demand we see today in the market by data centers and AI for electricity. We will obviously continuously update you on any progress we have in these pilots and how we plan to see them materializing into real projects. So thank you all. This concludes today's call. Thank you for joining. You may now disconnect your lines.