Opal Fuels (OPAL) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 13% year-over-year to $80.5M, driven by strong RNG production (up 33% to 1.2M MMBtu) and Fuel Station Services EBITDA growth, despite lower RIN prices and non-recurring expenses impacting adjusted EBITDA.

• Net income rose to $7.6M from $1.9M in Q2 2024, supported by increased revenues and a significant income tax benefit from investment tax credit sales.

• Added to the Russell 2000, Russell 2000 Value, and Russell 2000 Growth Indices, reflecting platform strength and growth.

• Bipartisan support for biofuels strengthened with the extension of the 45Z production tax credit through 2029, expected to benefit future EBITDA.

• A new RNG joint venture was established in May 2025, expanding the project pipeline.

Financial highlights

• Q2 2025 revenue was $80.5M, up from $71M in Q2 2024; six-month revenue was $165.9M, up 22% year-over-year.

• Adjusted EBITDA for Q2 2025 was $16.5M, down from $21.1M in Q2 2024, mainly due to lower RIN prices and loss of ISCC carbon credits.

• Net income for Q2 2025 was $7.6M, up from $1.9M in Q2 2024; six-month net income was $8.8M, up from $2.6M.

• Monetized $16.7M in investment tax credits in Q2 and $21.7M in H1 2025, not included in adjusted EBITDA.

• Liquidity as of June 30, 2025, was $203.2M, including $29.3M in cash and $173.9M in unused credit facilities.

Outlook and guidance

• Full-year 2025 guidance is maintained, with expectations to deliver operating and financial results in line with prior forecasts.

• Adjusted EBITDA for 2025 is projected between $90M and $110M, assuming a $2.60/gallon D3 RIN price.

• RNG production is expected to reach the lower end of the guidance range, with 9.1M MMBtu in operation by year-end, 10.2M in 2026, and over 10.9M in 2027.

• Management expects available cash, assets, and cash flows to cover commitments for at least 12 months.

• $185M in capital expenditures planned over the next 12 months for RNG projects and fuel stations.