A global provider of high-performance filtration membranes and engineered products for industries like oil & gas, pharma, and food processing with growing top-line momentum.
ORMAT's consistent double-digit revenue growth over five years demonstrates clear tailwinds from industrial demand and successful product innovation cycles. The company's ability to generate positive operating cash flow ($335.1M) while maintaining healthy profit margins suggests efficient capital allocation despite heavy investment needs. Strategic focus on high-margin segments in life sciences and water purification provides diversification against cyclical downturns in traditional oil & gas markets.
Substantial capital expenditures and debt repayments create vulnerability if market conditions deteriorate or project timelines extend beyond expectations. The company's reliance on external financing through commercial paper and revolver proceeds indicates potential liquidity constraints if credit markets tighten. Declining year-over-year net income growth from 2023 to 2025 suggests saturation in certain markets or increased competition eroding pricing power.
ORMAT Technologies (ORA) is a global leader in high-performance filtration solutions serving diverse industries including petrochemicals, food & beverage, pharmaceuticals, and water treatment. The company leverages its proprietary membrane technology and advanced process engineering to provide critical separation and purification systems worldwide. With consistent revenue growth and strong profitability, ORA demonstrates resilience in capital-intensive industrial sectors.
The company delivered solid financial performance with revenue climbing from $734.2M in 2022 to $989.5M in 2025, reflecting successful market expansion and product adoption. Net income remained robust at $127.0M despite elevated depreciation and amortization charges, indicating strong operational cash generation capabilities. However, significant cash outflows from investing activities (-$726.4M) alongside revolver repayments highlight ongoing capital intensity required to sustain growth initiatives.
The global industrial filtration market is expanding driven by stringent environmental regulations and the need for water recycling across multiple sectors. Competition remains fierce among established players and emerging entrants offering alternative separation technologies, yet specialized applications continue to reward innovation. Market consolidation trends favor companies with comprehensive product portfolios and extensive global service capabilities.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $734.2M | $829.4M | $879.7M | $989.5M |
| Cost of Revenue | $465.3M | $565.4M | $607.0M | $716.9M |
| Gross Profit | $268.8M | $264.0M | $272.6M | $272.7M |
| Operating Expenses | $116.0M | $97.4M | $100.1M | $103.5M |
| Operating Income | $152.8M | $166.6M | $172.5M | $169.2M |
| R&D | $5.1M | $7.2M | $6.5M | $6.3M |
| G&A | $61.3M | $68.2M | $80.1M | $79.6M |
| Marketing | $16.2M | $18.3M | $17.7M | $18.9M |
| Stock-Based Comp | $11.6M | $15.5M | $20.2M | $19.4M |
| D&A | $198.8M | $224.8M | $262.9M | $292.1M |
| Depreciation | $163.2M | $186.5M | $222.2M | $252.0M |
| Amortization | $27.2M | $26.8M | $27.8M | $25.4M |
| Other OpEx | $33.5M | $3.7M | $-4.2M | $-1.3M |
| Non-Operating Income | $-57.2M | $-27.5M | $-57.1M | $-63.5M |
| Interest Expense | $87.7M | $98.9M | — | — |
| Interest Income | $3.4M | $12.0M | $7.9M | $6.0M |
| Pre-Tax Income | $95.6M | $139.1M | $115.4M | $105.7M |
| Income Tax | $14.7M | $6.0M | $-16.3M | $-20.3M |
| Continuing Ops | $80.9M | $133.1M | $131.7M | $126.0M |
| Discontinued Ops | $-3.1M | $35.0K | $-425.0K | $960.0K |
| Net Income | $77.8M | $133.1M | $131.2M | $127.0M |
| Minority Interest | $12.0M | $8.7M | $7.5M | $3.1M |
| Net to Common | $65.8M | $124.4M | $123.7M | $123.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $456.7M | $646.0M | $547.1M | $597.8M |
| Cash & Equivalents | $95.9M | $195.8M | $94.4M | $147.4M |
| Accounts Receivable | $128.8M | $208.7M | $164.1M | $164.8M |
| Inventory | $22.8M | $45.0M | $38.1M | $45.3M |
| Prepaid Expenses | $29.6M | $41.6M | $59.2M | $40.1M |
| Other Current Assets | $179.6M | $154.9M | $191.4M | $200.1M |
| Long-Term Assets | $4.15B | $4.56B | $5.12B | $5.65B |
| PP&E (Net) | $2.49B | $3.00B | $3.50B | $3.67B |
| Intangibles | $333.8M | $307.6M | $301.7M | $274.5M |
| Goodwill | $90.3M | $90.5M | $151.0M | $168.2M |
| Operating Leases | $23.4M | $24.1M | $32.1M | $41.8M |
| Other LT Assets | $1.21B | $1.14B | $1.13B | $1.49B |
| Total Assets | $4.61B | $5.21B | $5.67B | $6.25B |
| Current Liabilities | $343.9M | $537.0M | $598.1M | $738.4M |
| Current Leases | $2.3M | $3.3M | $3.6M | $4.8M |
| Deferred Revenue | $8.8M | $18.7M | $23.1M | $13.2M |
| Taxes Payable | $8.4M | $7.0M | $8.9M | $11.5M |
| Other Current Liab | $324.4M | $508.0M | $562.5M | $709.0M |
| Long-Term Liabilities | $2.24B | $2.22B | $2.51B | $2.82B |
| LT Operating Leases | $19.8M | $19.8M | $22.5M | $29.8M |
| Other LT Liab | $2.22B | $2.10B | $2.39B | $2.69B |
| Total Liabilities | $2.58B | $2.76B | $3.11B | $3.56B |
| Shareholders' Equity | $2.03B | $2.45B | $2.56B | $2.69B |
| Retained Earnings | $623.9M | $719.9M | $814.5M | $909.3M |
| AOCI | $2.5M | $-1.3M | $-6.7M | $-2.1M |
| Treasury Stock | $18.0M | — | — | — |
| Total L&E | $4.61B | $5.21B | $5.67B | $6.25B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $77.8M | $133.1M | $131.2M | $127.0M |
| Non-Cash Adjustments | $197.2M | $-44.8M | $280.6M | $226.8M |
| Working Capital Changes | $6.0M | $221.1M | $-971.0K | $-18.7M |
| Cash from Operations | $281.0M | $309.4M | $410.9M | $335.1M |
| Capital Expenditures | $563.5M | $618.4M | $487.7M | $619.8M |
| Cash from Investing | $-523.4M | $-628.3M | $-780.3M | $-726.4M |
| Debt Repayments | — | — | — | $265.5M |
| Share Buybacks | $18.0M | $0 | $0 | — |
| Dividends Paid | $27.1M | $28.4M | $29.1M | $29.1M |
| Cash from Financing | $126.3M | $380.0M | $287.9M | $465.7M |
| FX Effect | $-609.0K | $72.0K | $-579.0K | $682.0K |
| Net Change in Cash | $-116.8M | $61.1M | $-82.0M | $75.1M |
| Beginning Cash | $343.4M | $226.7M | $287.8M | $205.8M |
| Ending Cash | $226.7M | $287.8M | $205.8M | $280.9M |
Revenue is primarily derived from sales of proprietary membrane modules, skid-mounted filtration systems, and custom-engineered separation solutions for petrochemical refining, water treatment, and life sciences applications. A significant portion of operating expenses relates to research and development as well as general administrative costs supporting global service networks and technical support teams.
Heavy reliance on capital expenditures ($619.8M) suggests potential margin compression if project execution or customer uptake slows unexpectedly. Exposure to commodity price volatility and raw material costs could impact gross margins given the cost of revenue structure. Regulatory changes in environmental compliance or trade restrictions in key export markets could disrupt international sales channels. High levels of long-term debt ($2.82B) increases interest rate sensitivity and refinancing risk.
ORMAT holds a dominant market position through proprietary membrane technologies that offer superior durability and selectivity compared to generic alternatives. The company benefits from high switching costs due to deep client integration in critical process streams and a robust global service network ensuring rapid response times. Strong brand reputation in safety-critical sectors like pharmaceuticals creates stable recurring revenue opportunities.
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