Ormat Technologies (NYSE:ORA) shares are up on Tuesday following the announcement of a long-term geothermal Power Purchase Agreement (PPA) with NV Energy to support Alphabet Inc. (NASDAQ:GOOG) Google’s operations in Nevada.
Clean Energy Deal
The agreement creates a portfolio framework under which Ormat will develop multiple geothermal projects in Nevada.
The PPA will enable the development of up to 150 megawatts of new geothermal capacity and is part of a multi-project portfolio that is expected to come online between 2028 and 2030.
The contract term begins when the first project comes online and runs for 15 years after the final project achieves commercial operation, providing long-term stability while supporting efficient, phased development across sites.
This agreement not only supports Ormat’s growth strategy but also aligns with NV Energy’s Clean Transition Tariff, which aims to facilitate investments in clean and reliable electricity.
In addition to the PPA, the agreement is subject to approval by the Public Utilities Commission of Nevada, anticipated in the second half of 2026.
Executive Commentary
Doron Blachar, Chief Executive Officer of Ormat Technologies added, “This portfolio PPA provides long-term profitable revenue growth and clear visibility into our portfolio development plans, while solidifying our conviction in the expanded exploration and drilling activities we have undertaken over the past several years that laid the groundwork for securing this significant agreement and others like it.”
”The combination of this PPA and its favorable terms, together with the extension of the geothermal tax credit provided through the OBBBA framework strengthens our ability to execute our long-term growth strategy and create substantial shareholder value.”
Technical Analysis
The broader market is experiencing mixed performance today, with the S&P 500 up 0.13% and the Dow Jones gaining 0.16%. This context suggests that while Ormat’s stock is moving positively, it is doing so in a generally stable market environment.
The stock is currently trading 5.8% below its 20-day simple moving average (SMA) and 3.2% below its 100-day SMA, indicating some short-term weakness. Over the past 12 months, shares have increased significantly and are currently positioned closer to their 52-week highs than lows, reflecting a strong upward trend.
The RSI is at 45.00, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum, indicating that traders should watch for potential shifts in momentum in the near term.
- Key Resistance: $132.50
- Key Support: $120.00
Earnings & Analyst Outlook
ORA is set to report earnings on February 25, 2026.
- EPS Estimate: 65 cents (Down from 72 cents YoY)
- Revenue Estimate: $257.77 million (Up from $230.74 million YoY)
- Valuation: P/E of 54.2x (Indicates premium valuation)
Analyst Consensus & Recent Actions
The stock carries a Buy Rating with an average price target of $110.69. Recent analyst moves include:
- Jefferies: Downgraded to Hold (Raises Target to $130.00) (Feb. 13)
- Oppenheimer: Outperform (Raises Target to $136.00) (Jan. 27)
- Barclays: Overweight (Lowers Target to $108.00) (Jan. 15)
ORA Price Action: Ormat Technologies shares were up 5.54% at $124.74 at the time of publication on Tuesday, according to Benzinga Pro data.
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