Ormat Technologies, Inc. Investor Day 2026

We will have a very full morning with management to give you a background. Our goal is to not just talk about what we are doing today and give you an update on what the company is doing now, but also give you a clear way to what we believe we can do from here. We will start with Doron Blachar, our CEO. He will talk about the changing electricity market and what opportunities it will create to Ormat, how we scale the electricity segment, and how much more value we can capture. Then we have Ofer Ben-Yosef, our EVP, Energy Storage and Business Development, take you through the energy storage segment, and we will talk about how we are building the momentum we have here in this segment.

Assi will come and talk a little bit about the product segment, and more importantly, will convert everything you hear today to financial outlook, capital allocation, and how we create more value from that. We will take a short break after that, maybe a few questions before, a Q&A session, and a short break. Then we come back, switch gears a little bit. We have a few members of management coming to the stage, and we will have a deeper discussion on EGS, what we think, how the EGS is going to change the geothermal market, and what opportunities it may bring to Ormat. We will have another session of Q&A, and Doron will recap the day. Then we will go to lunch.

But I have one important job that I have to do, and apparently, this part of the presentation, I cannot change or skip because I have the GC here that I really like, so I have to do what she is telling me to do. So I have to read now the forward-looking statement with your permission. Today's discussion includes forward-looking statements regarding our EGS strategy, technology development, pilot result, resource potential, project timelines, capital requirement, manufacturing plans, and potential financial outcomes. These statements reflect management's current expectations and assumptions. Actual results could differ materially due to the risks summarized in today's presentation and described in our most recent Form 10-K and subsequent SEC filings. Certain figures discussed today are preliminary estimates, design targets, ambitions, or illustrative scenarios. They are subject to technical validation, commercial arrangements, regulatory approval, interconnection, financing, and our return thresholds.

Please review the forward-looking statements and risk disclosure included in the presentation and available through our investor relations website. Ormat undertakes no obligation to update these statements except as required by law. With that out of the way, Doron, the floor is yours.

Good morning, everyone, and thank you for joining us here and in the webcast. I hope you enjoyed the long weekend you had and happy that you decided to start the week with us. These are the management members here in the room. You will see some of them on the stage later and here, and the others are in the audience and obviously available for any questions that you have during the breaks. Also with us, not on the slide, is Stanley Stern, which is one of our directors in the company. I will start with a very one-slide discussion about Ormat, and we are the largest geothermal owner and operator globally. We have 1.3 GW of operating assets, most of them in the U.S., and we will see later all the locations that we are operating in another five countries. Our energy storage segment is 1.4 GWh.

All of it is in the U.S. Ofer will later present the segment and the status in it and how we are growing it. As a heads-up, we are more than doubling our site as we are working today. The product segment, it is actually complementary to the electricity segment on one hand, but we are also selling our equipment to other developers and building other power plants. We are the largest in binary technology, have been since, I think, the inception of the company, and maintaining that position today. Later, Assi will elaborate on where the product segment is going. Our main market today is New Zealand. Over the last 12 months, just to understand the sizes, we have commissioned three power plants for three different customers.

Each one is a 50 MW power plant, and next year we will commission a 100 MW power plant in New Zealand for a fourth customer. We are used to work and build very large facilities. Let me take you back a little bit in time to what we said 2 and a half years ago in our previous Investor Day. Our previous Investor Day was at the beginning of 2024. All the numbers in the next few slides will be comparing to the year-end 2023. We are 44% growth in the megawatts, from 1.3 GW to 1.9 GW, 22% in the electricity segment and 191% growth in the energy storage segment. If we go to the megawatt hour, it is over 350% growth for the energy storage.

I think what you see here is that we are continuously growing our core business and our energy storage business, the geothermal and the energy storage based on traditional geothermal and standalone storage facilities. Most of our facilities are standalone. Basically, we are delivering services to the grid. Out of the 565, we acquired 180 MW. If you do follow Ormat over the years, we continuously acquire geothermal assets. I can tell you that any asset in the U.S., we see it as a target for an acquisition. We are continuously in discussions with the different owners to know and to see when is the right time for them to sell and for us to buy. We did our first energy storage acquisition earlier this year, the 30 MW in Hawaii.

It is the first one, and I am sure that in the coming months and year, you will see many more acquisitions like that. If I move from the megawatts to the dollars, revenue-wise, we have increased by 43% from the year-end 2023 to the last 12 months in 2026, ending in June. EBITDA went up 32%. This is more than a double-digit growth on both parameters. This is what we have been doing for the last few years. This is what we are committing as we move from Investor Day to Investor Day. On the right, I think you can see somewhat of a change. If you know, in 2023 and before that, Ormat was purely or only a geothermal company, where 94, sometimes more percent of its revenue and adjusted EBITDA was allocated to the electricity segment. Last 12 months, it went down to 75%.

25% is product sales and energy storage. I think the product and the energy storage had a very good run in the last 12 months. Going forward, I do not see the same parameters. I believe the electricity will go up, but it will not go up to the height it was in the past. It might go to 80%-85%. But on the low, you can see a company that is moving from being just a geothermal company to a renewable energy company, a view of a portfolio company, not of a one technology company. If we move from the megawatts dollars to execution, this is what we have been able to do in the last two and a half years. We have signed 700 MW of PPA. These are 11 PPAs that we have signed over the last two and a half years.

We are a developing company, so we are in construction of 700 MW. This is something that continuously goes on because whenever we seal their project, we already release the next project. We are accustomed to developing multiple projects in multiple locations between the geothermal and the energy storage. The additional pipeline that we have, if you look at it is between 2.9 GW to 3.7 GW. If you go to the small print, we have 46 geothermal sites, and these sites have the potential of between 700 MW to 1.5 GW. This is something that we have not discussed in the past, but we are continuously acquiring prospects.

In every BLM auction, we compete on EGS, and we will have a full session later on EGS, but we buy traditional geothermal land positions because as we seal the project and develop project, we need to continue and build our prospects and pipeline to go forward. This is between 750 MW to 1.5 GW. It is a large range because most of these sites have not been fully explored yet. It takes time to evaluate the actual megawatt that we will be able to get from every site. We have 26 sites for energy storage, 8.5 GWh. When we talk about the site, it means it has a name. We usually have the land, and we usually fight for interconnection. But not just putting out megawatts that we think we might get, that we have an option to buy maybe in the future.

These are actual sites that we turn. It is an actual pipeline and site that will turn into actual project as time passes. If you look in the 2.5 years since the last Investor Day, the revenue went up, the EBITDA went up, the megawatt that we have went up. We have grown to a much larger company, and the execution, I think, is unmatched in the industry. With that, I will move actually to see what has changed in the electricity segment and what gives us the confidence that the last 2.5 years are a preview of the next 2.5 years, that will be much better than these 2.5 years. That is before talking or discussing EGS at all. We see here the expected growth in the U.S.

All the numbers that you see here are pure U.S. numbers. If in the past, since 2005 until 2025, 20 years, the electricity market in the U.S. grew 13%, and in previous analyst days, we had to explain that the growth of renewable will come from moving from fossil fuel to renewable energy. That trend has not changed, but what changed is the demand. The demand for the next 25 years is 40% growth, 1.3% growth annually. A lot of it coming to data center, but not just data center. The world is moving to electrification, and that is creating the additional demand. When you look at the demand, it was in 2025, 1,250 gigawatt, with 37% of renewable, and it is expected to grow to almost 2,000 gigawatt. The part of the renewable is expected to grow to 49%.