Ormat Technologies Inc

ITEM 1A. RISK FACTORS

A comprehensive discussion of our other risk factors is included in the Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2024 which was filed with the SEC on February 27, 2025. The risks described in our Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. During the period covered by this quarterly report on Form 10-Q, there have been no material changes in our risk factors previously disclosed in our 2024 Annual Report.

Risks Related to the Companys Business and Operation

Changes in U.S. and foreign government policy, including the imposition of or increases in tariffs and changes to existing trade agreements, could have a material adverse effect on global economic conditions and our business, results of operations, prospects and financial condition

During and shortly after the first quarter of 2025, the United States introduced actions to increase import tariffs at various rates, including on certain products import, except as reflected from almost all countries and individualized higher tariffs on certain other countries, such as China. Other countries have announced retaliatory actions or plans for retaliatory actions in response. As of the date of this quarterly report, discussions remain ongoing regarding U.S. trade restrictions and tariffs on imports and retaliatory tariffs from numerous countries, including China. For more information, see Part I, Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operationsin the disclosure in GeneralTrends and Uncertainties in this quParterly report.

Given these events, there continues to be significant uncertainty about the future relationship between the United States and other countries regarding such trade policies, treaties and tariffs, and so we can make no assurance about the eventual impact on our operating results and business. However, there could be significant negative impacts on our business, results of operations and prospectus to the extent certain tariffs go into effect or are increased. Our Energy Storage segment growth relies on imported batteries from China, and the growth of projects in the United States in the Electricity segment require raw materials and equipment from various countries. If we are unable to pass price increases from tariffs through to our customers in our Energy Storage segment, we would likely face challenges in achieving our long-term growth targets due to increased cost of revenues and decreased net income. Additionally, increases in the cost of raw materials and equipment resulting from tariffs could increase our capital expenditures for projects built in the United States under our Electricity segment. While we are currently working to accelerate im I, Item 2 of this quarterly reports as certain tariffs are paused, we can make no assurance that we will succeed in avoiding these increases in operating costs, cost of revenues or capital expenditures throughout our business due to tariffs. To continue our investments and other strategic growth plans despite the expected rising costs, we might need to reduce or delay investments and plans, or refinance or restructure debt, sell assets, or seek to raise additional capital. Each of these risks would also be heightened to the extent that we become unable to take advantage of ITCs and other tax incentives for our projects in the United States.  on For more information, see Part I, Item 1A Risk FactorsRisks Related to the Companys Business and OperationsThe reduction, elimination or inability to monetize government incentives could adversely affect our business, financial condition, future results and cash flows in our 2024 Annual Report. Furthermore, the impact of tariffs, or of the perception that they will be imposed, on global trade generally could depress economic activity, restrict our access to suppliers or customers, and cause delays to our projects and growth plans that make their completion impractical, and, in turn, have a material adverse effect on our business and financial condition.

m 10-Q.