Opal Fuels (OPAL) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA for 2025 was $90.2 million, flat year-over-year, with Q4 Adjusted EBITDA up 51% to $34.2 million, driven by higher RNG production and tax credits.

• Full-year revenue reached $349.0 million, up 16%, and net income rose to $36.4 million from $14.3 million in 2024.

• RNG production grew 28–29% to 4.9 million MMBtu in 2025, with Q4 production up 20%.

• Fuel Station Services segment EBITDA increased 22% to $46.7 million, supported by higher construction revenues.

• Liquidity was enhanced by a $180 million preferred stock facility and $128 million drawn under a senior secured credit facility.

Financial highlights

• Q4 2025 revenue was $99.8 million and Adjusted EBITDA was $34.2 million, up from $80 million and $22.6 million in Q4 2024.

• D3 RIN prices averaged $2.45 in 2025, down from $3.13 in 2024, reducing Adjusted EBITDA by $33 million.

• Monetized $43 million of investment tax credits in 2025.

• Capital expenditures for 2025 totaled $70.7–$90 million, focused on RNG facilities and fueling stations.

• Liquidity at year-end was $168.2 million, increasing to $181.7 million by March 2026.

Outlook and guidance

• 2026 Adjusted EBITDA guidance is $95–$110 million, a 14% increase at the midpoint over 2025.

• RNG production expected between 5.4–5.8 million MMBtu in 2026, up over 14% year-over-year.

• Guidance assumes a $2.45/gallon D3 RIN price; each $0.10/gallon change impacts Adjusted EBITDA by $5–$6 million.

• Guidance includes $15–$20 million in 45Z tax credits and factors in a challenging winter start to 2026.

• Fuel Station Services segment growth in 2026 will be modest, with stronger growth anticipated in 2027 as new fleet deployments materialize.