---
title: "Geothermal Energy Industry: Companies"
description: "Geothermal energy companies develop, own and operate power plants that run on heat from underground reservoirs and sell electricity under long contracts."
canonical: https://www.getswoopr.com/stocks/industries/energy/geothermal-energy/
source: "Swoopr Investment: https://www.getswoopr.com"
---

# Geothermal Energy Industry

## Direct Answer

Geothermal energy companies develop, own and operate power plants that run on heat from underground reservoirs and sell electricity under long contracts. Steady output makes revenue predictable, while drilling and permitting drive project cost.

## Industry Overview

Geothermal Energy sits within the energy sector. The first numbers to compare across companies here are net generating capacity, capacity factor and contracted price per megawatt-hour. The outside forces that move them are listed under Primary Macro Drivers.

## Key Industry Metrics

- **Net generating capacity**: Megawatts of electricity the plants can deliver to the grid after on-site use. Added capacity drives revenue growth; compare it with how much power is actually produced.
- **Capacity factor**: Actual output as a share of the maximum possible if plants ran at full power all year. Geothermal runs steadily, so a decline signals reservoir decline, outages or heavy maintenance.
- **Contracted price per megawatt-hour**: The price set in long-term power purchase agreements for each megawatt-hour. Fixed or escalating prices give predictable revenue; look at expiry dates, when contracts must be repriced.
- **Drilling cost per well**: Spending to drill and complete each production or injection well. This is the largest cost risk for new plants; falling costs improve returns, while dry or weak wells raise the effective cost.
- **Operating margin**: Operating profit as a share of revenue. Geothermal has no fuel bill, so margins are usually steady; drops often come from well maintenance, field decline or one-time repair charges.

## Primary Macro Drivers

- **Long-term power contracts and renewable standards**: Utilities buy geothermal power under long contracts to meet clean energy standards, which fixes the contracted price per megawatt-hour and revenue for years.
- **Tax credits**: Credits reduce the net cost of building plants, so their level and duration affect project returns and how much capital is raised for new capacity.
- **Drilling technology and cost**: Cheaper, faster drilling lowers drilling cost per well, which directly cuts the capital cost and widens the number of sites that can be developed.
- **Interest rates for project finance**: Plants are capital intensive and financed with debt, so higher rates raise financing cost against steady contracted revenue and squeeze margins.

## Major Risks

- **Reservoir performance and drilling risk**: Wells that yield less heat or flow than expected reduce net generating capacity and capacity factor; watch output decline rates and drilling dry holes.
- **Permitting delays**: Land and environmental approvals can stretch timelines, delaying revenue while capital is tied up; watch permit status and construction schedules.
- **Concentrated customers**: A few utilities buy most output, so contract renewals and credit quality matter; watch the contract roll-off schedule and counterparty ratings.
- **Policy changes**: Changes to renewable standards or credits affect new project returns and contract demand; watch legislation and the share of project value tied to incentives.

## Industry Characteristics

| Characteristic | Profile |
| --- | --- |
| Cyclicality | Defensive |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. |

## Companies Associated with Geothermal Energy

The SEC's Standard Industrial Classification has no code that describes geothermal energy as a group, so there is no complete list of its filers. The companies below come from Swoopr's SEC dataset and have operations in or next to the industry. Each is classified by the SEC under its own main business.

| Company | SEC classification | Revenue | Growth | Net margin | Year |
| --- | --- | --- | --- | --- | --- |
| [Ormat Technologies, Inc.](https://www.getswoopr.com/stocks/companies/ormat-technologies-inc/) | Electric Services | $990 million | 12.5% | 12.8% | FY 2025 |

Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. Listing here describes a business relationship to the industry, not a recommendation. To find more companies, use the [company directory](https://www.getswoopr.com/stocks/companies/) and the [energy hub](https://www.getswoopr.com/stocks/industries/energy/).

## Where to Go Next

The Geothermal Energy guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.

### More in Energy

- [Energy sector overview](https://www.getswoopr.com/stocks/industries/energy/)
- [Geothermal Power Developers](https://www.getswoopr.com/stocks/industries/energy/geothermal-power-developers/)
- [Fuel Marketing & Retail](https://www.getswoopr.com/stocks/industries/energy/fuel-marketing-and-retail/)
- [Geothermal Technology](https://www.getswoopr.com/stocks/industries/energy/geothermal-technology/)
- [Energy Transition & Fuels](https://www.getswoopr.com/stocks/industries/energy/energy-transition-and-fuels/)
- [Hydrogen Fuel Cells](https://www.getswoopr.com/stocks/industries/energy/hydrogen-fuel-cells/)
- [Energy Storage Development](https://www.getswoopr.com/stocks/industries/energy/energy-storage-development/)
- [Hydrogen Production](https://www.getswoopr.com/stocks/industries/energy/hydrogen-production/)
- [Energy Royalty Trusts](https://www.getswoopr.com/stocks/industries/energy/energy-royalty-trusts/)

### Put it to work

- [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/)
- [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/)
- [Company research](https://www.getswoopr.com/stocks/companies/)
- [All industries](https://www.getswoopr.com/stocks/industries/)

## Frequently Asked Questions

What are the main KPIs for the Geothermal Energy industry?

Key performance indicators for the Geothermal Energy industry include: Net generating capacity, Capacity factor, Contracted price per megawatt-hour, Drilling cost per well, Operating margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.

How cyclical is the Geothermal Energy industry?

The Geothermal Energy industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions.

What are the biggest risks in the Geothermal Energy industry?

The primary risks for Geothermal Energy companies include: Reservoir performance and drilling risk, Permitting delays, Concentrated customers, Policy changes. Investors should assess each company's exposure to these factors and its track record of navigating them.

**[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)**

Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).