Ormat added $24.8 million of sales in the latest three months. Its cash balance was $425.2 million higher than a year earlier. Those are very different kinds of growth, and the income statement shows the distinction.
Revenue rose 10.6% to $258.8 million, while gross profit climbed 20.7% to $68.7 million. Gross margin widened from 24.3% to 26.5%. Then the gains stopped: operating income fell 3.2% to $34.2 million, net income slipped 3.4% to $27.1 million, and diluted EPS dropped 6.5% to $0.43.
The latest 10-Q gives a plant-level explanation for much of the revenue improvement. Blue Mountain contributed after Ormat bought it in June 2025. Olkaria generated more after additional wells were drilled, while Puna recovered from prior-year wellfield issues. Several plants also faced fewer transmission curtailments than they did a year earlier.
Ormat summarized those changes this way:
"This increase of $9.3 million was mainly attributable to: (i) $2.6 million related to the Blue Mountain power plant which was purchased in June 2025; (ii) $2.5 million related to the Olkaria power plant primarily due to an increase in generation resulting from a successful drilling of additional wells as well as lower curtailments; (iii) $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 plant, primarily as a result of curtailments from the transmission system operator during the second quarter of the prior year."
10-Q, Aug. 6, 2026
The arithmetic shows the pattern. The assets produced more revenue and a better gross margin, but the business converted that improvement into less operating profit. The company does not say in the supplied receipts why operating income declined, leaving the widening gap between gross and operating margins as the central unresolved detail.
That pattern has some history. Ormat's annual operating margin fell from 20.1% in 2023 to 17.1% in 2025, while revenue reached $989.5 million. The latest period improves the gross margin but extends the question about what happens below it.
Management also flags a specific inflation offset and a specific limit. Some power-purchase agreements contain price adjustments, but those provisions are conditional rather than a blanket shield.
"The negative impact of inflation would be partially offset by price adjustments built into some of our PPAs that could be triggered upon such occurrences."
10-Q, Aug. 6, 2026
That matters because the latest numbers show plant-level revenue gains alongside higher gross profit, while operating profitability does not keep pace. Cash provides another large balance-sheet fact, but the supplied disclosures do not identify what drove the increase from $88.5 million to $513.7 million.
Ormat's next quarterly report will provide the missing comparison by showing whether operating expenses and cash flow moved with the plant-level revenue gains. For now, the figures show higher revenue and gross profit alongside lower operating income and diluted EPS.
Ormat's latest 10-Q records higher revenue and gross margin alongside lower operating income and diluted EPS.