Ormat Technologies, Inc.

We recognize in the first quarter approximately 60% of the segment expected annual revenue, gross profit, and EBITDA. The energy storage segment reported gross margin of 59.1% during the first quarter, making a significant improvement versus the prior year. The increase was driven by the effectiveness of our strategic approach to balance between contracted pricing and merchant exposure. For the full year 2026, we expect the storage segment gross margin to be approximately 35% to 40%, reflecting the fact that we currently do not forecast similar merchant prices condition during the remainder of the year. Moving to slide eight, we collected $48.6 million in cash from monetizing PTCs and ITC through tax equity transactions. For the full year 2026, we expect to collect approximately $90 million from ITC tax equity transaction and PTC transfers, including ITC tax equity proceeds from the recently signed Burdock tax equity transaction. As we discussed during our fourth quarter call, in 2026, we expect to record a tax benefit driven by higher ITC level that will result in a negative tax rate of 15% to 20%. Slide nine detail our cash flow over the last three months, illustrating OMAD's ability to generate strong cash flow, which allow us to reinvest in our strategic growth, while servicing debt obligation and returning capital to shareholders. Cash and cash equivalents, and restricted cash and cash equivalents, as of March 31st, 2026, were approximately $763 million, compared to approximately $281 million at the end of 2025. Our total debt as of March 31st, 2026 was approximately $3.4 billion net of deferred financing cost. And our cost of debt decreased significantly following the recent convertible notes offering to 3.9%. Moving to slide 10, our net debt as of March 31st, 2026 was approximately $2.6 billion equivalent to 4.2 times net debt to EBITDA. As Daron noted, during the quarter, we successfully completed a $1 billion upsized convertible note offering. We elected to execute this capital raise in the convertible market because it provides us with the best combination of low and no-cash coupons and reduce equity dilution through the repurchase of our shares at an attractive price of $108 per share. We now expect our total capital expenditure for the remainder of 2026 to be $587 million. Our detailed CapEx plans are presented in slide 32 in the appendix. We plan to invest approximately $436 million in the electricity segment for the construction, exploration and drilling and maintenance in 2026. We also plan to invest $111 million in the construction of our storage assets and approximately $20 million in the pilot with SLB as well as in other EGS activities. On May 6th, 2026, our board of directors declared, approved and authorized payment of a quarterly dividend of 12 cents per share payable on June 3, 2026 to shareholders of record as of May 20, 2026. In addition, the company expects to pay a quarterly dividend of 12 cents per share in each of the next three quarters. I would like now to turn the call back to Doron to discuss some of our recent developments.

Thank you, Asi. On slide 12, you can see that our current total portfolio stands at 1.8 gigawatts of geothermal, solar, and energy storage facilities. Turning to slide 13, our electricity portfolio now stands at approximately 1,340 megawatts globally. We added 30 megawatts in the first quarter of 2026 and currently have approximately 216 megawatts under construction and development through 2028. Earlier this year, we acquired HOKU, a recently built solar plus storage facility on the Big Island of Hawaii for approximately $80 million in cash. The acquired assets include a 30 megawatt solar PV facility, paired with a 30 MW, 120 MWh battery energy storage system with a 25-year PPA. Moving to slide 14, our electricity segment benefited mainly from improved generation at our Olkaria complex and contribution from our Blue Mountain facility, which was acquired during the second quarter of last year. We also experienced lower curtailment during the quarter compared to the year ago period, especially in Nevada. And we expect this trend to continue throughout the remainder of the year. As Asi noted, performance within our electricity segment was partially offset by lower energy rates at Puna and extremely high ambient temperatures in Nevada that impacted our power plants generation. With respect to Puna, we anticipate energy rates in the next few months will improve following the impact of oil prices. Internationally, our Dominica plant is now operational. Full COD is expected in the second quarter of 2026 due to third party transmission line delays. Moving to slide 15, we have negotiated to blend and extend PPA for existing plants. The first agreement is for our CD4 geothermal power plant, which is part of our MAMOS geothermal complex in California. The amended agreement extends the original PPA, which was signed in 2022 and scheduled to expire in 2032 by five additional years through 2037, and increases contract pricing by approximately 27%. The amended PPA terms will go into effect in October of this year. The second blend and extend PPA is for another facility that we cannot disclose at this time due to our agreement with the utility provider. These new PPAs show our consistent strategic execution over the past several years and reinforces our ability to secure high-quality, long-term contracts that drive sustainable growth. Turning now to slide 16, our product segment backlog stands at $239 million. The decline from the fourth quarter of 2025 was primarily driven by the recognition of $105 million in revenue from the top two project in the first quarter of 2026. Since the start of the year, we've also secured two supply contracts for project in Asia totaling to $56 million. Moving to slide 17, our energy storage segment produced another strong quarter of year-over-year growth, with total revenues increasing by 153%. The COD of SHIR and the addition of the Huku facility in Hawaii brings the total energy storage portfolio to approximately 1.4 gigawatt hours, with the majority operating in California. On slide 19, we continue to remain on track to achieve our portfolio capacity targets of between 2.6 to 2.8 gigawatts by the end of 2028. Turning to slide 20 and 21, which display our geothermal and hybrid solar PV projects currently underway. We anticipate adding 216 megawatts to our generating capacity from these projects by the end of 2028. In geothermal, we are planning a 30 megawatt Greenfield project that will come online in 2028. We added the Jersey Valley solar plus storage facility following the PPA signing and the Blue Mountain solar facility for the plant auxiliaries. Moving to slides 22 and 23. We currently have six projects under development in our energy storage segment. expected more than double our portfolio and add approximately 1.5 gigawatt hour. As shown on the slide, the Jersey Valley project has been added and is expected to come online late 2027 or early 2028. The 100 megawatt, 400 megawatt hour Griffith facility is now expected to reach COD in 2028 as permitting is still in progress. This timing update is reflected in our plan. It does not impact our long-term targets. Turning to slide 24 for a discussion of our EGS efforts. We continue to advance our next generation geothermal strategy and are making meaningful progress across both technology and commercial development. We are actively progressing subsurface pilot initiatives With SLB, we have completed initial geoscience groundwork and are advancing well-planning appraisal, positioning the project for key milestones over the coming quarters. At the same time, our collaboration with SAIT is moving through planning and early engineering stages, including permitting, drilling design, and fracture testing activities. These efforts are designed to validate technical assumptions ahead of commercial-scale deployment. We are also strengthening our internal capabilities to support long-term scale. This includes advancing our above-ground system design and optimizing our Ormat energy converter for EGS applications, alongside evaluating manufacturing readiness and cost structures. We are investing in resource development, including geographic heat mapping, land acquisition, and state-level resource assessment to build a robust pipeline of future opportunities. Our resource team has already identified two prospects in our existing prospect portfolio, including Dixie Valley, that can potentially support large-scale EGS development. Finally, we are actively pursuing external funding opportunities to accelerate development and reduce upfront capital requirements. We have multiple applications underway under various US DOE programs, supporting both EGS field testing and next-generation resource development. Overall, these combined efforts position us to effectively bridge the gap from pilot project to commercial deployment, while reinforcing our leadership in next-generation geothermal and integrated energy solutions. Please turn to slide 25 for discussion of our 2026 guidance. We are maintaining our guidance and expect revenue to increase by 14.6% year over year at the midpoint, ranging between $1,110,000,000 and $1,160,000,000. Electricity segment revenues are projected to be between $715 and $730 million Product segment revenues are expected to range between 300 and 320 million dollars, and energy storage revenues are expected to range between 95 and 110 million dollars. Adjusted EBITDA is expected to increase by approximately 8.2% at the midpoint, ranging between 615 and 645 million dollars. I will now conclude our prepared remarks with reference to slide 26. The strong performance we delivered in the first quarter across our business segments highlights the strengths of our diversified business and our ability to capitalize on the rising demand for reliable, low-carbon electricity. With improving contract pricing, new project entering service, and our pipeline continuing to grow, we have a clear line of sight towards achieving our long-term targets for 2028. Our focus remains on creating long-term value for our shareholders through discipline execution, strategic investments, and our proven ability to develop and operate world-class clean energy assets. This concludes our prepared remarks. Now, I would like to open the call for questions. Operator, please.

At this time, I would like to remind everyone, in order to ask a question, press par, then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. And your first question comes from the line of Derek Podhacer with Piper Sandler.