ORA 10-K & 10-Q changes, risk factors and insider trading

Our financial performance depends on the successful operation of our geothermal, REG, and solar PV power plants. In connection with such operations, we derived 79.8%70.1% of our total revenues for the year ended December 31, 20242025 from the sale of electricity and 4.3%8.0% from the sale of services in the Storage segment. The cost of operation and maintenance and the operating performance of our geothermal power, REG, and solar PV power plants and our storage facilitiesfacilities, or of third service providers, may be adversely affected by a variety of factors, including:

•catastrophic events such as fires, explosions, earthquakes, volcanic activity, landslides, floods, releases of hazardous materials, severe weather storms or other weather events (including weather conditions associated with climate change,change or similar occurrences affecting our power plants or any of the power purchasers or other third parties providing services to our power plants,occurrences, such as the 2018 volcanic eruption that occurred in Hawaii's Big Island that impactedimpacting our Puna project);

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

There are uncertainties and risks associated with our strategic plan,plan described in Part I of this Annual Report, Item 1, “Business—Business Goals,” including with respect to implementation and outcome. We may decide to change, or to not implement, one or more elements of the plan over time or we may not be successful in implementing one or more elements of the plan, in each case for aseveral numberreasons. There is no assurance that the plan will enhance shareholder value through long-term growth of reasons.the Company to the extent currently anticipated by our management or at all. For example, we may face significant challenges and risks expanding into the energy storage market (or expanding our core geothermal business), including our ability to:

•our ability to compete with the large number of other companies pursuing similar business opportunities in energy storage and solar PV power generation, many of which already have established businesses in these areas and/or have greater financial, strategic, technological or other resources than we have;

•our ability to obtain financing on terms we consider acceptable, or at all, which we may need, for example, to develop new projects, to obtain any technology, personnel, intellectual property, or to acquire one or more existing businesses as a platform for our expansion, or to fund internal research and development, for energy storage and solar PV electric power generation products and services;

•our ability to provide energy storage services that keep pace with rapidly changing technology, customer preferences, equipment costs, increasing raw materials and transportation costs, market conditions and other factors that are unknown to us now that will impact these markets;

•our ability to manage the risks and uncertainties associated with our operating storage facilities and future development of storage and geothermal projects which may operate as facilities without long-term sales agreements, including the variability of revenues and profitability of such projects;

•our ability to devote the amount of management time and other resources required to implement this plan, while continuing to grow our core geothermal and recovered energy businesses; and

•our ability to recruit appropriate employees and labor market challenges.

•Implementing the plan may also involve various costs, including, among other things: opportunity costs associated with forgone alternative uses of our resources, various expense items that will impact our current financial results, and asset revaluations (for example, businesses or other assets acquired for new energy storage or solar PV power generation products or services may suffer impairment charges, as a result of rapidly changing technology, market conditions or otherwise).

These costs may not be recovered, in whole or in part, if one or more elements of the plan are not successfully implemented. These costs, or the failure to implement successfully one or more elements of the plan, could adversely affect our reputation and the reputation of our subsidiaries and could materially and adversely affect our business, financial condition, future results and cash flow.

Apart from the risks associated with implementing the plan, the plan itself will expose us to other risks and uncertainties once implemented. Expanding our customer and/or geographic base may expose us to customers with different credit profiles than our current customers.customers Expanding our geographic base will subject us to risks associated with doing business in newor foreign countries in which we will have to learn the business and political environment. In addition, expanding into new technologies will expose us to new risks and uncertainties that are unknown to us now in addition to the risks and uncertainties that may be similar to those we now face. The success of the plan, once implemented, will depend, among other things, on our ability to manage these risks effectively.

Our investments and profitability in battery Energy Storage System (BESS) technology involves new technologies and new advanced technologies with relatively limited history with respect to reliability and performance and may not perform as expected. In addition, our investments and profitability may be negatively affected by a number of factors, including increases in storage costs, expanded trade restrictions, risk of fire and volatility in merchant prices.

The revenues from our BESS facilities fluctuate over time since a large portion of such revenues are generated in the merchant markets, where price volatility is inherent. This volatility in merchant prices may adversely effect our Energy Storage profitability. DevelopmentsWe are also experiencing intense competition in alternativethe technologiesenergy maystorage materiallymarket from independent power producers, developers, and alsothird-party adversely affect demand for battery energy storage.investors.

In addition, we generate a significant portion of our revenue from our two largest projects, the McGinness Hills complex in east Nevada and the Olkaria III Complex in Kenya, which together accounted for approximately 23.7% of the total generating capacity of our Electricity segment in 2024.2025. These two facilities accounted for 23.5%20.7% of our total revenues for the year ended December 31, 2024.2025. Any disruption to the operation of these facilities would have a disproportionately adverse effect on our revenues and on our profitability. In the fourth quarter of 2024,2025, we experienced high curtailments in the McGinness Hills complex related mostly to third party grid maintenance that impacted our revenues by approximately $3.2$6.3 million. We expect these curtailments to continue also in 2025.

Our globalinternational operations expose us to risks related to the application of international laws and regulations, any of which may adversely affect our business, financial condition, future results and cash flows.regulations.

We have substantial operations outside of the U.S., both in our Electricity segment and our Product segment. In 2024,2025, 36.6%40.3% of our total revenues were derived from international operations, and our Electricity segment international operations had higher gross profit than our U.S. operations. In 2024 a substantial portion of international revenues came from Kenya and, to a lesser extent, from Honduras, Guatemala, Guadeloupe and other countries. Thus, disturbances to and challenges facing our foreign operations, especially in Kenya, could have impacts on our business ranging from moderate to severe. Our foreign operations and our exposure to foreign customers that are in most cases, government owned utilities, subject us to significant political, economic and financial risks, which vary by country, and include:

•the adoption or expansion of trade restrictions, such as Turkey’s ban on trade with Israel, the occurrence or escalation of a “trade war,” or other governmental action related to tariffs or trade agreements or policies among the governments of the U.S. and countries where we operate (such as ones similar to the tariffs imposed by the U.S. in early 2025 on Canada and Mexico, which were subsequently paused, and on China, despite not being countries where we do business, could be illustrative of trade wars with countries where we do have operations and/or customers);

•breach or repudiation of important contractual undertakings by governmental entities; and

Conditions in and around Israel, where the majority of our senior management and our main product segment production and manufacturing facilities are located, may adversely affect our operations and may limit our ability to produce and sell our products, and support our Electricity segment.

Finally, politicalPolitical conditions within Israel could also affect our operations or negatively impact the business environment in Israel due to the reluctance of foreign investors to invest or conduct business in Israel, increased currency fluctuations, downgrades in credit rating, increased interest rates, increased volatility in securities markets, adverse impacts on the labor market, and other related changes in macroeconomic conditions. We cannot be certain whether this will adversely impact the perception of our business and our share price, or impact our business operations in Israel.

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

We depend on transmission facilities owned and operated by others to deliver the power we sell from our power plants to our customers. If transmission is disrupted, or if the transmission capacity infrastructure is inadequate, or if there is a failure that requires long shutdown for repair, or if curtailment is required due to load system inefficiency, our ability to sell and deliver power to our customers may be adversely impacted and we may either incur additional costs or forego revenues. In addition, lack of access to new transmission capacity may affect our ability to develop new projects. ExistingIn certain markets, rapid growth in renewable energy development, including solar, wind, storage and geothermal projects, has increased congestion ofon transmission capacity, as well as expansion ofexisting transmission systems and competitionextended frominterconnection otherstudy developerstimelines. seekingAs accessa toresult, expandedwe systems,may experience delays in securing interconnection approvals, or limitations on available transmission capacity, which could alsoadversely affect ourproject performance.development schedules, and overall project economics.

As a renewable energy solution provider, we are motivated to identify our opportunities and risks with respect to climate change and take efforts to reduce our GHG emissions and improve our energy efficiency. While we generally view this as an opportunity, uncertainty regarding recent regulation or reduction in incentives in this area could also adversely affect us. In the U.S., where we have a significant portion of our operations, no comprehensive climate change legislation has been implemented federally.

Uncertainty associated with these regulations, our inability to meet the demands of these regulations or our failure to predict accurately the impact of our response to these regulations could adversely affect our business and prospects. We could also face an increase in competition asdue a result ofto the energy transition, as new entrants of disruptive technologies and/or competitors, including in the solar, wind, and storage sectors, could adversely impact our ability to renew existing PPAs or sign new contracts. On the other hand, anti-ESG related policies, legislation, initiatives, litigation, legal opinions, and scrutiny could result in the Company facing additional compliance obligations, becoming the subject of investigations and enforcement actions, or sustaining reputational harm. The related reduction or elimination of government incentives around renewable energy may also harm us, as described in “Risks Related to Governmental Regulations, Laws and Taxation—The reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, future results and cash flows.”

In addition, the SEC proposed rules in 2022 that would require public companies to include extensive climate-related disclosures in their SEC filings. While these rules are currently stayed and may eventually not go into effect, we would expect to incur substantial additional compliance costs to the extent these or similar rules are adopted. Such compliance costs could in turn adversely effectLastly, our businesssustainability or results of operations. We publish an annual Sustainability Report, which describes, among other things, the measurement of our greenhouse gas emissions and our efforts to reduce emissions. Our disclosures on these matters,disclosures, a failure to meet evolving stakeholder expectations for ESGsustainability practices and reporting, or expenses required to carry on sustainability reporting and/or meet customer requirements or sustainability targets, may potentially harm our customer relationships and/or subject us to significant costs and liabilities and reputational risks, any of which could adversely affect our business, financial condition and results of operations.

A basic premise of our business model is that generating baseload power at geothermal power plants produces electricity at a competitive price. However, traditional coal-fired systems and gas-fired systems may under certain economic conditions produce electricity at lower average prices than our geothermal plants. In addition, there are other technologies that can produce electricity such as hydroelectric systems, fuel cells, microturbines, wind turbines, energy storage systems and solar PV systems. Some of these alternative technologies currently produce electricity at higher average prices than our geothermal plants while others produce electricity at lower average prices. It is possible that technological advances and economies of scale will further reduce the cost of alternate methods of power generation. It is also possible that intermittent energy technologies will compete with our basic premise of a firm (non-intermittent) renewable baseload power source by combining renewable technologies with energy storage to provide an alternative to firm baseload energy. If this were to happen, the competitive advantage of our power plants may be significantly impaired and will cause reduction and/or inability to sign new PPAs for our Electricity segment and new supply and EPC contracts for our Products segment. Competition in our Product segment has also, in general, started to our affect our ability to secure new purchase orders from potential customers. This increased competition has led to a reduction in the operating margins, in turn impacting our profitability.

We and our third-party vendors have been, and may in the future be, subject to breaches and attempts to gain unauthorized access to our information technology systems or sensitive or confidential data, or to disrupt our operations. To date, none of these breaches or attempts has, individually or in the aggregate, resulted in a security incident with a material effect on our operations or our financial condition, results of operations, liquidity, or cash flows. Despite implementation of security and control measures, we and our third-party vendors have not always been able to, and there can be no assurance that we or our third-party vendors will be able to in the future, anticipate or prevent unauthorized access to our or our third-party vendors’ operational technology networks, information technology systems or data, or the disruption of our or our third-party vendors’ operations. The techniques used to obtain unauthorized access to our and our third-party vendors’ operational technology networks, information technology systems or data are constantly evolving and have become increasingly complex and sophisticated. Furthermore, such techniques change frequently and are often not detected until after they have been launched against a target. Therefore, weWe may be unable to anticipate thesetechniques techniquesused to breach and may not become aware in a timely manner of such a security breach, which could exacerbate any damage we experience. Such events could cause interruptions in the operation of our business, damage our operational technology networks and information technology systems, subject us to significant expenses, remediation costs, litigation, disputes, claims by third parties and regulatory actions or investigations that could result in damages, material fines and penalties, and harm to our reputation, any of which could have a material adverse effect on our financial condition, results of operations, liquidity, and cash flows. We may maintain cyber liability insurance that covers certain damages caused by cyber incidents. However, there is no guarantee that adequate insurance will continue to be available at rates that we believe are reasonable or that the costs of responding to and recovering from a cyber-incident will be covered by insurance or recoverable in rates.

•In February 2025, we announced the successful COD for the Ijen geothermal power plant that is owned jointly with PT Medco Power Indonesia (“Medco Power”). The Ijen Geothermal Power Plant, equipped with OEC,Ormat Energy Converter, began operations with its first phase, delivering 35 MW35MW of electricity power to the Java grid, Ormat’s share of the facility is 17MW. The commencement of this first phase marks a significant step of the Ijen Facility with a total planned capacity of 110 MW under a 30-year PPA.

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

•Increased Demand for Baseload and Data Centers: There has been increased demandDemand for energyelectricity generated from geothermal and other renewable resources in the U.S.United drivenStates byhas bothincreased due to the need for reliable baseload requirementspower and the growing energy needsrequirements of data centers..centers. This demand is largelysupported due toby legislative and regulatory requirementsinitiatives, and incentives, such asincluding state RPS and federalclean taxenergy creditsmandates, suchwhich as PTCsencourage or ITCs (which are discussed in more detail inrequire the sectionprocurement entitledof “Governmentrenewable Grants and Tax Benefits” below). We believe that future demand is expected to be driven primarily by further commitment to, and implementation of, state RPS and greenhouse gas reduction initiatives.energy.

Revenues attributable to our Electricity segment are derived from the sale of electricity from our power plants pursuant to long-term PPAs. While approximately 81.3%93.8% of our Electricity revenues for the year ended December 31, 20242025 were derived from PPAs with fixed price components, we have a variable price PPA in Hawaii, which provide for payments based on the local utilities’ avoided cost. The avoided cost is the incremental cost that the power purchaser avoids by not having to generate such electrical energy itself or purchase it from others. In Hawaii, the prices paid for electricity pursuant to the 25 MW PPA for the Puna Complex change primarily as a result of variations in the price of oil as well as other commodities. Accordingly, our revenues from this power plant may fluctuate. In 2024, the HPUC approved a new PPA related to Puna with fixed prices, increased capacity and an extension of the term until 2052.2052, Accordingly,which ourwe revenuesexpect fromto thisbe powerin planteffect mayin fluctuate.early 2027. Our Electricity segment revenues are also subject to seasonal variations, as more fully described in “Seasonality” below.

Revenues attributable to our Energy Storage segment are generated by several grid-connected BESS facilities that we own and operate from selling energy, capacity and/or ancillary services in merchant markets like PJM Interconnect, ISO New England, ERCOT and CAISO or under tolling agreements that have fixed revenues. The revenues fluctuate over time since a large portion of such revenues are generated in the merchant markets, where price volatility is inherent. We are seeking to reduce volatility by increasing the amount of long-term tolling agreements in our portfolio. In 2024 we signedthe two long-termsolar tollingPV agreement,plus thatenergy willstorage securefacilities, fixedalthough the solar capacity is included in the Electricity Segment portfolio, 100% of the revenues forare recorded under the 60MW/120MWhEnergy LowerStorage Rio and 60MW/120MWh Bird Dog project in Texas.segment.

The principal cost of revenues attributable to our Energy Storage segment are direct costs of the BESS that we own, and depreciation and amortization. Direct costs include the labor associated with operations and maintenance of owned BESS. In addition, the cost of revenue includes insurance and property tax expenses.

Our significant accounting policies are more fully described in Note 1 to our consolidated financial statements set forth in Item 8 of this Annual Report. However, certain of our accounting policies are particularly important to an understanding of our financial position and results of operations. In applying these critical accounting estimates and assumptions,assumptions to our policies, our management uses its judgment to determine the appropriate assumptions to be used in making certain estimates. Such estimates are based on management’s historical experience, the terms of existing contracts, management’s observance of trends in the geothermal industry, information provided by our customers and information available to management from other outside sources, as appropriate. Such estimates are subject to an inherent degree of uncertainty and, as a result, actual results could differ from our estimates. Our critical accounting policiesestimates include:

Electricity Property, Plant and Equipment

If our assets are considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. We believe that for the year ended December 31, 2024,2025, no impairment exists for any of our long-lived assets; however, estimates as to the recoverability of such assets may change based on revised circumstances. Estimates of the fair value of assets require estimating useful lives and selecting a discount rate that reflects the risk inherent in future cash flows.

We evaluate our ability to utilize the deferred tax assets quarterly and assess the need for a valuation allowance. In assessing the need for a valuation allowance, we estimate future taxable income, including the impacts of the enacted tax law, the feasibility of ongoing tax planning strategies and the realizability of tax credits and tax loss carryforwards. Valuation allowances related to deferred tax assets can be affected by changes in tax laws, statutory tax rates, and future taxable income. In the future, if there is insufficient evidence that we will be able to generate sufficient future taxable income in the U.S., we may be required to record a valuation allowance, resulting in income tax loss in our Consolidated Statement of Operations.

For the year ended December 31, 2024,2025, our total revenues increased by 12.5% from $879.7 million in 2024 to $989.5 million in 2025. For the year ended December 31, 2025, our Electricity segment generated 79.8%70.1% of our total revenues, compared to 80.4%79.8% in the previous year, while our Product segment generated 15.9%21.9% of our total revenues, compared to 16.1%15.9% in the previous year, and our Energy Storage segment generated 4.3%8.0% of our total revenues, compared to 3.5%4.3% in the previous year.

•Our investments and profitability in Battery Energy Storage SystemSystems (BESS) may be negatively affected by a number of factors, including major change in battery technology, increases in storage costs, expanded trade restrictions, risk of fire, volatility in merchant prices and competition.

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

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

•Electricity Segment. In the Electricity segment, we develop, build, own and operate geothermal, solar PV and recovered energy-based power plants in the United States and geothermal power plants in other countries around the world and sell the electricity they generate. In the three and six months ended MarchJune 31,30, 2026, we derived 72.5%70.3% and 71.4%, respectively, of our Electricity segment revenues from our operations in the United States and 27.5%29.7% and 28.6%, respectively, from the rest of the world.

•Product Segment. In the Product segment, we design, manufacture and sell equipment for geothermal and recovered energy-based electricity generation and provide services relating to the engineering, procurement and construction of geothermal and recovered energy-based power plants. In the three and six months ended MarchJune 31,30, 2026, we derived 1.2%5.8% and 2.1%, respectively, of our Product segment revenues from our operations in the United States and 98.8%94.2% and 97.9%, respectively, from the rest of the world.

•Energy Storage Segment. In the Energy Storage segment, we own and operate grid connected, stand alone In Front of the Meter BESS facilities, which provide capacity, energy and/or ancillary services directly to the electric grid. We operate our facilities in three main areas in the U.S., California, Texas and the East Coast (mainly in the PJM market) and generate our revenues mainly from the sale of ancillary services in the merchant market and /or tolling agreements and RA contracts. In the three and six months ended MarchJune 31,30, 2026, we derived all of our Energy Storage segment revenues from our operations in the United States.

•In April,April 2026, we signed a long-term Power Purchase Agreement (“PPA”) with NV Energy for the Jersey Valley solar plus storage project, to be located in Lander County, Nevada, subject to Nevada PUC approval. The Jersey Valley project is expected to include approximately 67 MW of solar generation capacity paired with 67 MW / 268 MWh of battery energy storage. The project is expected to achieve commercial operation late in 2027 or early 2028. All output from the project is planned to be sold under the long-term, fixed-price PPA, supporting NV Energy’s clean energy objectives while providing Ormat with predictable, long-term contracted revenues.

•In March 2026, we commenced commercial operations of the Shirk energy storage facility, an 80MW/320MWh Battery Energy Storage System (BESS) located in Visalia, California. The Shirk energy storage facility secures capacity under a 15-year Resource Adequacy Purchase and Sale Agreement (RA Agreement) with the City of Riverside, supporting grid reliability and helping meet California’s growing demand for flexible energy resources. The Shirk project qualifies for a 40% Investment Tax Credit (ITC), the tax benefits of which the Company monetized as part of the hybrid tax equity partnership with Morgan Stanley Renewables, Inc. that the Company announced in May 2025. This partnership supports the funding and optimization of the Company’s growing energy storage portfolio.

•In February 2026, we entered into a long-term geothermal portfolio PPA to supply up to 150MW of new geothermal capacity to support Google’s data center’scenter energy needs, through NV Energy’s Clean Transition Tariff program. The portfolio structure is expected to enable the development of multiple new geothermal projects across Nevada, with energy deliveries anticipated to commence between 2028 and 2030 as projects reach commercial operations. Per the PPA structure, the contract term begins with the first geothermal project achieving commercial operations and extends 15 years beyond the final project’s commercial operations date. The agreement and related energy supply arrangements are subject to approval by the Nevada PUC, which is expected in the second half of 2026.

•In January 2026, we acquired Hoku, a recently built operational solar-plus-storage facility on the Big Island of Hawaii, from Innergex RenewableRenewables EnergyUSA Inc.LLC for total cash consideration of $79.3 million. The acquired assets include a 30MW solar PV facility paired with a 30MW/120MWh battery energy storage system, which achieved commercial operation in March 2025 and is fully operational. All output from the facility is sold under a 25-year fixed-price power purchase agreement with HECO.

For the threesix months ended MarchJune 31,30, 2026, 94.7%94.4% of our Electricity segment revenues were derived from PPAs with fixed energy rates, which are not affected by fluctuations in energy commodity prices. We have a variable price PPA in Hawaii, which provides for payments based on the local utilities’ avoided cost, which is the incremental cost that the power purchaser avoids by not having to generate such electrical energy itself or purchase it from others. In Hawaii, the prices paid for electricity pursuant to the 25MW PPA for the Puna Complex in Hawaii change primarily as a result of variations in the price of oil, as well as other commodities. In 2024, the HPUC approved a new PPA related to Puna with fixed prices, increased capacity and an extension of the term until 2052, which we expect to be in effect in 2027.

In the threesix months ended MarchJune 31,30, 2026 and 2025, 55.8%48.2% and 32.4%38.6% of our total revenues, respectively, were derived from foreign locations.locations, and 36.4% and 44.7% for the three months ended June 30, 2026 and 2025, respectively. Our foreign operations had higher Electricity gross margins than our U.S. operations in each of those periods. A substantial portion of Electricity segment foreign revenues came from Kenya and to a lesser extent, from Honduras, Guadeloupe and Guatemala. Our operations in Kenya contributed disproportionately to gross profit and net income. The contribution to combined pre-tax income of our domestic and foreign operations within our Electricity segment and Product segment differ in a number of ways, as summarized below.

Electricity Segment. Our Electricity segment domestic revenues were approximately 72.5%71.4% and 74.5%72.2% of our total Electricity segment revenues for the six months ended June 30, 2026 and 2025, respectively, and 70.3% and 69.7% for the three months ended MarchJune 31,30, 2026 and 2025, respectively. Our Electricity segment foreign revenues were approximately 27.5%28.6% and 25.5%27.8% of our total Electricity segment revenues for the six months ended June 30, 2026 and 2025, respectively, and 29.7% and 30.3% for the three months ended MarchJune 31,30, 2026 and 2025, respectively. However, domestic operations have higher costs of revenues and expenses than our foreign operations. Our foreign power plants are located in lower-cost regions, like Kenya, Guatemala, and Honduras, which favorably impact payroll, maintenance expenses and other items. Our power plants in those foreign locations are also newer than most of our domestic power plants and therefore tend to have lower maintenance costs and higher availability factors than our domestic power plants. Consequently, in the threesix months ended MarchJune 31,30, 2026 and 2025, our foreign operations of the segment accounted for 22.6%28.5% and 34.8%,40.1%, respectively, of our total gross profits, 30.1%39.3% and 38.1%,49.2%, respectively, of our net income (assuming the majority of corporate operating expenses and financing are recorded under our domestic jurisdiction), and 26.3%27.7% and 26.5%,28.6%, respectively, of our EBITDA.

Product Segment. Our Product segment foreign revenues were approximately 98.8%97.9% and 89.8%92.6% of our total Product segment revenues for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively.

Energy Storage Segment. Our Energy Storage segment domestic revenues were 100% of our total Energy Storage segment revenues for each of the three and six months ended MarchJune 31,30, 2026 and 2025.

Electricity generation from some of our geothermal power plants is subject to seasonal variations. In the winter, our power plants produce more energy primarily attributable to the lower ambient temperature, which has a favorable impact on the energy component of our Electricity segment revenues as the prices under many of our contracts are fixed throughout the year with no time-of-use impact. The prices paid for electricity under the PPAs for the Mammoth Complex and the North Brawley power plant in California, the Raft River power plant in Idaho, the Neal Hot Springs power plant in Oregon and Dixie Valley power plant in Nevada, are higher in the months of June through September. The higher payments payable under these PPAs in the summer months partially offset the negative impact on our revenues from lower generation in the summer attributable to a higher ambient temperature. As a result, we expect the revenues and gross profit in the winter months to be higher than the revenues and gross profit in the summer months and in general we expect the first and fourth quarters to generate higher revenues than the second and third quarters. In the Energy Storage segment pursuant to the Bottleneck tolling agreement, approximately 45% of the revenues are generated in the third quarter, and the rest is roughly even between the first, second and fourth quarters. In addition, we see in the last two years higher revenues during the first quarter and fourth quarter due to high merchant pricing at PJM market.market, although during 2026 we experienced high merchant prices in the second quarter as well.

Comparison of the Three Months Ended MarchJune 31,30, 2026 to the Three Months Ended MarchJune 31,30, 2025

The table below compares revenues for the three months ended MarchJune 31,30, 2026 to the three months ended MarchJune 31,30, 2025.

Revenues attributable to our Electricity segment for the three months ended MarchJune 31,30, 2026 were $181.6$169.3 million, compared to $180.2$159.9 million for the three months ended MarchJune 31,30, 2025. This increase of $1.4$9.3 million was mainly attributable to: (i) $3.2$2.6 million related to the Blue Mountain power plant which was purchased in June 2025; (ii) $4.3$2.5 million related to the Olkaria power plant primarily due to an increase in generation resulting from a successful drilling of additional wells,wells reductionas inwell as lower curtailments and better resource utilization; and (iii) $2.8$3.0 million related to the Puna power plant primarily related to temporary reduction in power generation in the previous year that was caused by wellfield issues, as well as to higher avoided cost prices during the second quarter of 2026 compared to the same period in 2025; and (iv) $4.2 million related to the McGinness Hills complex, Dixie Valley and the Tungsten power plantplant, primarily as a result of reduction in curtailments from SCE.the transmission system operator during the second quarter of the prior year. This increase was partially offset by: (i)smaller $3.7 million decrease in revenues in our Puna power plant, primarily due to reduction in Puna’s energy rates that are tied to oil prices as well as lower generation due to adverse weather during the first quarteramounts of 2026 which disrupted the power plant operations; (ii) $3.3 million decrease in revenues in our Heber complex primarily due to planned maintenance work. In addition, unfavorable ambient temperatures in the first quarter of 2026 resulteddecreases in a declinenumber inof generationpower and, consequently, in revenuesplants across our fleet and primarily in Steamboat with a $1.0 million reduction, the MGH complex with a $0.9 million reduction, and at Stillwater with a $0.4 million reduction.fleet.

Power generation in our power plants increased by 2.6%3.0% from 1,978,0781,747,022 MWh in the three months ended MarchJune 31,30, 2025 to 2,029,6301,800,289 MWh in the three months ended MarchJune 31,30, 2026.

Revenues attributable to our Product segment for the three months ended MarchJune 31,30, 2026 were $177.4$46.7 million, compared to $31.8$59.6 million for the three months ended MarchJune 31,30, 2025. This increasedecrease of $145.6$12.9 million, or 458.4%,21.6%, is primarily related to: (i) the sale of the TOPP2 power plant in New Zealand for which revenues of $105.1 million were recognized in the first quarter of 2026 upon meeting all revenue recognition criteria during that quarter; and (ii) the progress in our other projects and timing of when revenues are recognized during the period. During the three months ended MarchJune 31,30, 2026, Product revenues included projects primarily in New Zealand and Turkey, and during the three months ended MarchJune 31,30, 2025, projects in New Zealand and Dominica.

Revenues attributable to our Energy Storage segment for the three months ended MarchJune 31,30, 2026 were $44.9$42.8 million compared to $17.8$14.5 million for the three months ended MarchJune 31,30, 2025. This increase of $27.2$28.3 million is primarily related to higher energy rates at PJM storage facilities in the three months ended MarchJune 31,30, 2026, compared to the same period in the previous year, and $3.9related million fromto new energy storage facilities such as Arrowleaf and Lower Rio which commenced commercial operationoperations in December 2025 and HokuSeptember 2025, respectively, Hoku, which was acquired in January 2026.2026, and Shirk which commenced commercial operations in March 2026, which contributed $7.7 million to revenues, combined.

The table below compares cost of revenues for the three months ended MarchJune 31,30, 2026 to the three months ended MarchJune 31,30, 2025.

Total cost of revenues attributable to our Electricity segment for the three months ended MarchJune 31,30, 2026 was $125.7$129.1 million, compared to $119.8$121.2 million for the three months ended MarchJune 31,30, 2025, which represents an increase of $5.9$7.9 million, or 4.9%.6.5%. This increase is primarily attributable to $2.0$1.6 million related to the Blue Mountain power plant which was purchased in June 2025, $2.4$2.5 million increase in power plant depreciation expenses,expenses as a result of our investment in our power plant,plants, and to other smaller amount increases in certain other power plants.

Our total Electricity segment cost of revenues for the three months ended MarchJune 31,30, 2026 was 69.2%76.3% of Electricity segment revenues, compared to 66.5%75.8% for the three months ended MarchJune 31,30, 2025. The cost of revenues attributable to our international power plants for the three months ended MarchJune 31,30, 2026 was 18.1%18.3% of our total Electricity segment cost of revenues for this period compared to 17.2%18.0% for the same period in the prior year.

Total cost of revenues attributable to our Product segment for the three months ended MarchJune 31,30, 2026 was $139.4$42.2 million, compared to $24.7$43.1 million for the three months ended MarchJune 31,30, 2025, which represented a 464.8%2.1% increase.decrease. This increasedecrease is primarily attributable to the increasedecrease in Product segment revenues,revenues includingas well as to lower profitability of projects included in the salethree ofmonths ended June 30, 2026 compared to those included in the TOPP2three powermonths plant,ended asJune discussed30, above.2025. As a percentage of total Product segment revenues, total cost of revenues attributable to our Product segment for the three months ended MarchJune 31,30, 2026, and 2025, was 78.6%90.3% and 77.7%,72.3%, respectively, which results from the different profitability of the different projects included in each period.

Cost of revenues attributable to our Energy Storage segment for the three months ended MarchJune 31,30, 2026 was $18.4$18.7 million compared to $12.3$12.8 million for the three months ended MarchJune 31,30, 2025. This increase of $6.1$6.0 million includes an increase of $2.5$3.6 million in depreciation and amortization expenses, and is primarily related to the new energy storage facilities such as Arrowleaf,Arrowleaf and Lower Rio which commenced commercial operations in December 2025 and HokuSeptember as2025, describedrespectively, aboveHoku, underwhich thewas Energyacquired Storagein segmentJanuary revenues2026, caption.and Shirk, which commenced commercial operations in March 2026, which contributed $2.4 million to cost of revenues, combined.

Research and development expenses for the three months ended MarchJune 31,30, 2026 were $1.1$1.5 million, compared to $2.5$1.4 million for the three months ended MarchJune 31,30, 2025. The decreaseincrease in research and development expenses, netnet, is primarily related to the timing of when we allocate resources to research and development projects.

Selling and marketing expenses for the three months ended MarchJune 31,30, 2026 were $5.6$6.0 million compared to $4.2$4.4 million for the three months ended MarchJune 31,30, 2025. Selling and marketing expenses for the three months ended MarchJune 31,30, 2026 and 2025 constituted 1.4%2.3% and 1.8%1.9% of total revenues, respectively. The increase in selling and marketing expenses is primarily related to the timing of recording the related expenses.

Other operating income for the three months ended MarchJune 31,30, 2026 was $4.1$1.0 million compared to $3.1$4.3 million for the three months ended MarchJune 31,30, 2025. Other operating income for the three months ended June 30, 2025 primarily represents the non-refundable portion of the recovery of damages received from a third-party battery systems supplier as part of a previously-disclosed settlement agreement entered into in August 2024, for which contingency conditions have been met. Other operating income for the three months ended June 30, 2026 represents income recognition from services provided to Sage.

Write-off of unsuccessful exploration and storage activities for the three months ended MarchJune 31,30, 2026 was $2.1$6.6 million compared to $0.5$0.3 million for the three months ended MarchJune 31,30, 2025. These write-offs are primarily related to geothermal exploration and storage projects that the Company decided to no longer pursue.

Interest Incomeincome for the three months ended MarchJune 31,30, 2026 was $1.4$7.1 million, compared to $1.3$1.9 million for the three months ended MarchJune 31,30, 2025. Interest income is primarily related to interest earned on cash and cash equivalents held by the Company during the period. The increase in interest income is attributable to higher cash deposits, period over period, originated from the proceeds of 2031 Convertible Notes.

Interest expense, net for the three months ended MarchJune 31,30, 2026 was $45.0$43.9 million, compared to $34.5$36.7 million for the three months ended MarchJune 31,30, 2025. This increase of $10.5$7.3 million was primarily attributable to interest expense relating to issuance of the 2031 Convertible Notes in March 2026, and loan agreements and tax monetization transactions entered into subsequently to the firstsecond quarter of 2025, as well as lower amount of interest capitalized due to the completion of certain of construction-in-process projects.2025. This increase was partially offset by lower interest expenses on other existing loans as a result of their scheduled payments.

Derivatives and foreign currency transaction gains and losses for the three months ended MarchJune 31,30, 2026 was a lossgain of $1.5$0.3 million, compared to a gain of $2.1$5.1 million for the three months ended MarchJune 31,30, 2025. Derivatives and foreign currency transaction gains and losses primarily include gain and losses from foreign currency forward and option contracts which were not accounted for as hedge transactions, and the impact of changes in foreign currency exchange rates against the U.S. Dollar.

Income attributable to the sale of tax benefits for the three months ended MarchJune 31,30, 2026 was $16.6 million, compared to $17.6$16.3 million for the three months ended MarchJune 31,30, 2025. This income primarily represents the value of PTCs and taxable income or loss generated by certain of our power plants which are allocated to investors under tax equity transactions, and to income related to the expected sale of transferable PTCs under the existing IRA regulations.

Other non-operating income (expense), net for the three months ended MarchJune 31,30, 2026 was an expenseincome of $23.1$3.0 million, compared to an income of $0.2$0.1 million for the three months ended MarchJune 31,30, 2025. Other non-operating income for the three months ended MarchJune 31,30, 2026 is primarily related to the induced conversion expenseremeasurement of $33.7our millionSAFE resultinginvestment fromin an unconsolidated investee under the repurchasemeasurement ofalternative the 2027 Convertible Notes, offset primarily by a bargain purchase gain of $9.6 million related to the purchase transaction of the Hoku storage and solar facility.accounting.

Income tax benefit for the three months ended MarchJune 31,30, 2026 was $15.5$9.7 million compared to income tax benefit of $3.8$5.5 million for the three months ended MarchJune 31,30, 2025. This change primarily relates to the generation of additional investment tax credits, the partial reversal of the provision for uncertain tax positions, and the jurisdictional mix of earnings at differing tax rate, and the change in “Income from operations before income tax and equity in earnings of investees”.rate. Our effective tax rate for the three months ended MarchJune 31,30, 2026 and 2025, was (54.056.3)% and (10.124.9)%, respectively. The effective rate differs from the federal statutory rate of 21% primarily due to the generation of investment tax credits, the non-deductible induced conversion expense on the 2027 Convertible Notes, the permanent difference of the bargain purchase gain related to the purchase of Hoku, and the jurisdictional mix of earnings at differing tax rates.credits.

Equity in earnings of investees, net for the three months ended MarchJune 31,30, 2026 was earningsa loss of $0.5$0.8 million, compared to lossesearnings of $0.4$0.8 million for the three months ended MarchJune 31,30, 2025. Equity in earnings (losses) of investees, net is derived from our 12.75% share in the earnings or losses in the Sarulla Consortium (“Sarulla”) and our 49% share in the earnings or losses in the Ijen geothermal project.

Net income attributable to the Company’s stockholders for the three months ended MarchJune 31,30, 2026 was $44.1$27.1 million, compared to $40.4$28.0 million for the three months ended MarchJune 31,30, 2025, which represents ana increasedecrease of $3.7$1.0 million. This increasedecrease is attributable to ana increasedecrease of $3.6$2.2 million in net income which was affected by the explanations described above, and a decrease of $0.1$1.2 million in net income attributable to noncontrolling interest, which is primarily related to the noncontrolling share in the net results of the Puna and Guadeloupe power plants.