CluenexOrmat Technologies ORA
Ormat Technologies scores weak on business quality (4.1 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Ormat Technologies does
Ormat Technologies builds and operates geothermal and recovered energy power plants, selling electricity to utilities and industrial customers under long-term contracts. The company is scaling its capital-heavy project pipeline to capture rising clean energy demand.
- What it does best
Ormat designs and builds proprietary geothermal power equipment that unlocks high-temperature underground reservoirs. This specialized technical expertise is difficult for traditional utilities to replicate without decades of domain-specific drilling and plant-engineering experience.
- The main risk
Heavy capital expenditures for plant construction are consistently outpacing cash generation, forcing the company to pile on debt. Net debt has climbed to $2.7 billion while free cash flow remains deeply negative at -$266 million.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin is 18.3% while return on equity is a modest 5.0%, sitting in the bottom quartile of its sector. Negative free cash flow of -$266 million means the business currently consumes cash as it scales.
Geothermal asset ownership creates a narrow niche locked behind high upfront drilling risks and resource rights. Its gross margin sits in the bottom quartile of the sector at 28%, reflecting high operating costs.
Revenue grew 12.5% to $1.2 billion, maintaining top-line expansion. However, heavy reliance on capital-intensive plant builds keeps cash burn elevated as historical free cash flow remains negative.
Total debt of $2.8 billion towers over cash reserves of $147 million, while interest coverage sits at a weak 1.4x. Free cash flow has been negative for years and deteriorated further to -$266 million, leaving the balance sheet strained.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on ORA
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Ormat Technologies scores weak on the Cluenex quality check (4.1 of 10), measured against its own industry. Profitability is weak, moat weak, growth steady and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 4, 2026, after the close.
See ORA today
- Today's verdict on ORA, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Ormat Technologies (ORA)”, https://cluenex.com/stocks/ora/, data as of Oct 10, 2026.