WHITE PLAINS, N.Y., August 10, 2026--(BUSINESS WIRE)--OPAL Fuels ("OPAL Fuels" or the "Company") (Nasdaq: OPAL) today announced financial and operating results for the three and six months ended June 30, 2026.
"Second quarter financial results were solid and in line with our expectations with adjusted EBITDA growth of 40% percent over the second quarter of last year," said Adam Comora, Co-Chief Executive Officer of OPAL Fuels. "Contribution from 45Z production tax credits, growth in our FSS segment, and G&A cost savings drove financial results in a flat RIN price environment versus last year. These results keep us on track to meet our annual guidance."
"We continue to pursue opportunities to drive increased production and EBITDA at our existing operating facilities, which require minimal capital investment. In addition, we are advancing the construction of new RNG facilities that will expand our production capacity as they come online," said Jonathan Maurer, Co-Chief Executive Officer of OPAL Fuels. "Longer term growth for OPAL Fuels is underpinned by the structural economic advantage of natural gas versus diesel. Our vertically integrated model allows us to capitalize on this opportunity."
Financial Highlights
Adjusted EBITDA(1) for the three and six months ended June 30, 2026, was $23.1 million and $39.8 million compared to $16.5 million and $36.6 million for the comparable periods last year an increase of 40% and 9% respectively.
Revenue for the three and six months ended June 30, 2026, was $83.4 million and $156.8 million respectively, an increase of 4% and a decrease of (5)% compared to the same periods last year.
Net (loss) income for the three and six months ended June 30, 2026 was $(4.1) million and $(9.7) million, compared to $7.6 million and $8.8 million in the same periods last year.
Basic and diluted net (loss) income per share attributable to Class A common shareholders for the three and six months ended June 30, 2026 were $(0.05) and $(0.14) compared to $0.03 and $0.02 in the comparable period last year.
In April we entered into a $100 million Master Agreement establishing the key terms and conditions to monetize section 45Z Production Tax Credits.
At June 30, 2026, RNG Pending Monetization totaled $16.3 million.
(1) This is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to its comparable GAAP financial measure has been provided in the financial tables included in this press release. An explanation of this measure and how it is calculated is also included below under the heading "Non-GAAP Financial Measures." |
Operational Highlights
RNG produced was 1.3 million and 2.4 million MMBtu for the three and six months ended June 30, 2026, an increase of 4% and 6% compared to the prior-year period.(2)
The Fuel Station Services segment sold, dispensed, and serviced an aggregate of 39.0 and 78.0 million GGEs of transportation fuel for the three and six months ended June 30, 2026, a decrease of 4% and 4% compared to the prior-year periods. Of this amount, RNG dispensed as transportation fuel was 20.9 and 38.8 million GGEs, an increase of 1% and a decrease of 3% compared to the prior-year periods.
(2) Represents OPAL Fuels' proportional share with respect to RNG projects owned with joint venture partners. Includes Sunoma and Biotown. |
Guidance
We maintain 2026 guidance.
Results of Operations
(in thousands of dollars, except RNG Fuel data) | Three Months Ended | Six Months Ended | ||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
Revenue | ||||||||||||
RNG Fuel | $ | 23,821 | $ | 25,130 | $ | 45,459 | $ | 52,729 | ||||
Fuel Station Services | 53,064 | 47,026 | 97,630 | 97,704 | ||||||||
Renewable Power | 6,514 | 8,300 | 13,685 | 15,430 | ||||||||
Total Revenue (1) | 83,399 | 80,456 | 156,774 | 165,863 | ||||||||
Cost of sales | 58,929 | 57,044 | $ | 112,778 | $ | 115,681 | ||||||
Project development and startup costs | 3,301 | 3,477 | 5,116 | 9,558 | ||||||||
Other operating expenses (2) | 24,180 | 20,762 | 46,734 | 43,393 | ||||||||
Net (loss) income | (4,147 | ) | 7,559 | (9,740 | ) | 8,843 | ||||||
Adjusted EBITDA (3) | ||||||||||||
RNG Fuel (4) | 18,551 | 13,318 | 32,673 | 31,455 | ||||||||
Fuel Station Services | 12,484 | 10,900 | 21,724 | 21,428 | ||||||||
Renewable Power | 253 | 2,150 | 2,948 | 3,809 | ||||||||
Corporate | (8,147 | ) | (9,859 | ) | (17,520 | ) | (20,120 | ) | ||||
Consolidated Adjusted EBITDA | $ | 23,141 | $ | 16,509 | $ | 39,825 | $ | 36,572 |
RNG Fuel volume produced (Million MMBtus) | 1.3 | 1.2 | 2.4 | 2.3 |
RNG Fuel volume sold (Million GGEs) | 20.9 | 20.6 | 38.8 | 40.1 |
Total volume delivered (Million GGEs) | 39.0 | 40.8 | 78.0 | 81.4 |
(1) | Excludes revenues from equity method investments. |
(2) | Includes selling, general and administrative expenses, depreciation and amortization expenses, impairment and income from equity method investments. Please refer to the Statement of Operations at the end of the press release for additional information. |
(3) | This is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to a comparable GAAP financial measure has been provided in the financial tables included in this press release. An explanation of this measure and how it is calculated is also included below under the heading "Non-GAAP Financial Measures." |
(4) | In 2025 includes incremental virtual pipeline costs (i.e., actual costs less anticipated operating costs of a permanent interconnection) on our Prince William RNG project which are temporary in nature and incurred in 2025. |
Results of Operations from equity method investments
Three Months Ended | Six Months Ended | |||||||||
(in thousands of dollars) | 2026 | 2025 | 2026 | 2025 | ||||||
Revenue | $ | 34,599 | $ | 31,757 | $ | 61,910 | $ | 54,274 | ||
Gross profit | 6,657 | 11,567 | 9,901 | 14,382 | ||||||
Net income (loss) | 1,737 | 8,549 | (547 | ) | 6,283 | |||||
OPAL's share of revenues from equity method investments | 14,361 | 13,178 | 26,126 | 23,466 | ||||||
OPAL's share of gross profit from equity method investments | 2,400 | 4,435 | 3,879 | 6,765 | ||||||
OPAL's share of net (loss) income from equity method investments⁽¹⁾ | (597 | ) | 1,962 | (2,354 | ) | 1,240 | ||||
OPAL's share of Adjusted EBITDA from equity method investments | $ | 5,517 | $ | 6,082 | $ | 8,697 | $ | 9,497 |
(1) | Net income from equity method investments represents our portion of the net income from equity method investments including $1.72 million and $3.42 million of amortization expense related to basis differences for the three and six months ended June 30, 2026, and $1.70 million and $3.42 million for the three and six months ended June 30, 2025. |
Landfill RNG Facility Capacity and Utilization Summary
Three Months Ended | Six Months Ended | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Landfill RNG Facility Capacity and Utilization | ||||||||
Design Capacity (Million MMBtus) (1)(3) | 2.2 | 2.1 | 4.4 | 4.3 | ||||
Volume of Inlet Gas (Million MMBtus) (2) | 1.6 | 1.6 | 3.1 | 3.0 | ||||
Inlet Design Capacity Utilization (%) (2) | 75.2 | % | 76.3 | % | 73.5 | % | 72.5 | % |
RNG Fuel volume produced (Million MMBtus)(3) | 1.2 | 1.1 | 2.4 | 2.2 | ||||
Utilization of Inlet Gas (%) (4) | 76.6 | % | 75.0 | % | 76.0 | % | 75.8 | % |
(1) | Design Capacity for RNG facilities is measured as the volume of feedstock biogas that the facility is capable of accepting at the inlet and processing during the associated period. Design Capacity is presented as OPAL's ownership share (i.e., net of joint venture partners' ownership) of the facility and is calculated based on the number of days in the period. New facilities that come online during a quarter are pro-rated for the number of days in commercial operation. Excludes Sunoma and Biotown. |
(2) | Inlet Design Capacity Utilization is measured as the Volume of Inlet Gas for a period, divided by the total Design Capacity for such period. The Volume of Inlet Gas varies over time depending on, among other factors, (i) the quantity and quality of waste deposited at the landfill, (ii) waste management practices by the landfill, and (iii) the construction, operations and maintenance of the landfill gas collection system used to recover the landfill gas. The Design Capacity for each facility will typically be correlated to the amount of landfill gas expected to be generated by the landfill during the term of the related gas rights agreement. The Company expects Inlet Design Capacity Utilization to be in the range of 75-85% on an aggregate basis over the next several years. Typically, newer facilities perform at the lower end of this range and demonstrate increasing utilization as they mature and the biogas resource increases at open landfills. Excludes Sunoma and Biotown. |
(3) | Excludes Sunoma and Biotown |
(4) | Utilization of Inlet Gas is measured as RNG Fuel Volume Produced divided by the Volume of Inlet Gas. Utilization of Inlet Gas varies over time depending on availability and efficiency of the facility and the quality of landfill gas (i.e., concentrations of methane, oxygen, nitrogen, and other gases). The Company generally expects Utilization of Inlet Gas to be in the range of 80% to 90%. Excludes Sunoma and Biotown. |
RNG Pending Monetization Summary
Three Months Ended | |||||||||
(In thousands, except average realized sales prices) | |||||||||
June 30, 2026 | |||||||||
RNG Fuel | Fuel Station Services | Total | |||||||
Value of RNG awaiting credit generation using quarter end price (1) | $ | 10,797 | $ | 4,214 | $ | 15,011 | |||
RIN Metrics | |||||||||
Beginning balance as of April 1, 2026 | 145 | 317 | 462 | ||||||
Add: Generated in current period | 12,897 | 4,795 | 17,692 | ||||||
Less: Sales | (12,884 | ) | (4,992 | ) | (17,876 | ) | |||
Ending RIN credit balance (Available for sale) as of June 30, 2026 | 158 | 120 | 278 | ||||||
D3 price per RIN at quarter end | $ | 2.68 | $ | 2.68 | |||||
Value of RINs using quarter end price (1) | $ | 423 | $ | 322 | $ | 745 | |||
LCFS Metrics | |||||||||
Beginning balance (net share) as of April 1, 2026 | 9 | 58 | 67 | ||||||
Add: Generated in current period | 6 | 37 | 43 | ||||||
Less: Sales | (11 | ) | (93 | ) | (104 | ) | |||
Ending LCFS credit balance (Available for sale) as of June 30, 2026 | 4 | 2 | 6 | ||||||
LCFS credit price at quarter end | $ | 100.00 | $ | 75.50 | |||||
Value of LCFSs using quarter end price (1) | $ | 400 | $ | 151 | $ | 551 | |||
Value of RECs using quarter end price | $ | 17 | |||||||
Other Metrics | |||||||||
Average realized sales price during quarter - RIN | $ | 2.50 | |||||||
Average realized sales price during quarter - LCFS | $ | 75.55 | |||||||
Total Value of RNG Pending Monetization and Credits at quarter end | $ | 11,620 | $ | 4,687 | $ | 16,324 |
(1) | Reflects OPAL's ownership share of RIN and LCFS credits (i.e., net of joint venture partners' ownership), including equity method investments, and presented net of discounts and any direct transaction costs such as dispensing fees, third-party royalties and transaction costs as applicable. |
Liquidity
As of June 30, 2026, our liquidity was $162.3 million, consisting of $91.4 million of cash and cash equivalents, $19.3 million of unused capacity under the revolver, $51.6 million of undrawn preferred stock facility.
Capital Expenditures
During the six months ended June 30, 2026, OPAL Fuels invested $52.7 million across RNG projects in construction, OPAL Fuels owned fueling stations in construction and finance transformation as compared to $33.4 million in the prior year. As part of OPAL Fuels' accounting policy, maintenance capital on existing facilities is expensed.
In addition, for the six months ended June 30, 2026, the Company's portion of capital expenditures in unconsolidated entities was $10.8 million compared to $12.7 million in the prior year. This represents our share of capital expenditures incurred by equity method investments.
Earnings Call
A webcast to review OPAL Fuels' Second Quarter 2026 results is being held today, August 10, 2026 at 11:00AM EDT.
Materials to be discussed in the webcast will be available before the call on the Company's website.
Participants may access the call at https://edge.media-server.com/mmc/p/qp5g7dch/
Investors can also listen to a webcast of the presentation on the Company's Investor Relations website at https://opalfuels.gcs-web.com/news-events/events-presentations
____________________ |
Glossary of terms
"D3" refers to cellulosic biofuel with a 60% GHG reduction requirement.
"GGE" refers to gasoline gallon equivalent. The conversion ratio is 1 MMBtu of natural gas equal to 7.74 GGE.
"LCFS" refers to Low Carbon Fuel Standard or similar types of federal and state programs.
"MMBtu" refers to million British thermal units.
"RECs" refers to renewable energy credits.
"Renewable Power" refers to electricity generated from renewable sources.
"RIN" refers to Renewable Identification Numbers.
"RNG" refers to renewable natural gas.
"VIEs" refers to variable interest entities.
About OPAL Fuels
OPAL Fuels (Nasdaq: OPAL) is a leader in the capture and conversion of biogas into low carbon intensity RNG and Renewable Power. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to decarbonize industrial sectors. For additional information, and to learn more about OPAL Fuels and how it is leading the effort to capture North America's naturally occurring methane and decarbonize the economy, please visit www.opalfuels.com.
Forward-Looking Statements
Certain statements in this communication may be considered forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events or the Company's future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management's control, including but not limited to general economic conditions and other risks, uncertainties and factors set forth in the sections entitled "Risk Factors" and "Forward-Looking Statements and Risk Factor Summary" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q, and other filings the Company makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.
Disclaimer
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
OPAL FUELS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars, except share and per share data) | ||||||
June 30, | December 31, | |||||
Assets(1) | (Unaudited) | |||||
Current assets: | ||||||
Cash and cash equivalents | $ | 91,363 | $ | 24,408 | ||
Accounts receivable, net of allowances of $1,040 and $469, respectively(2) | 37,517 | 61,806 | ||||
Restricted cash - current | 915 | 1,210 | ||||
Contract assets | 6,638 | 8,276 | ||||
Parts inventory | 12,581 | 10,964 | ||||
Prepaid expense and other current assets | 14,335 | 16,018 | ||||
Total current assets | 163,349 | 122,682 | ||||
Property, plant, and equipment, net | 525,773 | 495,634 | ||||
Investments in other entities | 234,298 | 231,223 | ||||
Net investment in sales-type lease | 10,604 | 8,224 | ||||
Restricted cash - non-current | 2,914 | 2,700 | ||||
Goodwill | 54,608 | 54,608 | ||||
Other long-term assets | 48,698 | 44,398 | ||||
Total assets | 1,040,244 | 959,469 | ||||
Liabilities and Stockholders' Equity (Deficit)(1) | ||||||
Current liabilities: | ||||||
Accounts payable(3) | 13,107 | 19,004 | ||||
Contract liabilities | 3,052 | 6,296 | ||||
Loan, current portion | 18,882 | 15,062 | ||||
Accrued expenses and other current liabilities | 54,843 | 63,857 | ||||
Total current liabilities | 89,884 | 104,219 | ||||
Loans, net of debt issuance costs | 412,809 | 337,063 | ||||
Other long-term liabilities | 21,199 | 20,430 | ||||
Total liabilities | 523,892 | 461,712 | ||||
Commitments and contingencies | ||||||
Redeemable preferred non-controlling interests | 158,400 | 130,000 | ||||
Redeemable non-controlling interests | 320,053 | 377,898 | ||||
Stockholders' equity (deficit) | ||||||
Class A common stock, $0.0001 par value, shares issued: 31,993,327 and 30,633,161 as of June 30, 2026 and December 31, 2025, respectively; shares outstanding: 30,357,544 and 28,997,378 as of June 30, 2026 and December 31, 2025, respectively | 3 | 3 | ||||
Class B common stock, $0.0001 par value, 121,500,000 issued and outstanding as of June 30, 2026 and December 31, 2025 | 12 | 12 | ||||
Class C common stock, $0.0001 par value; none issued and outstanding as of June 30, 2026 and December 31, 2025 | — | — | ||||
Class D common stock, $0.0001 par value, 22,899,037 shares issued and outstanding as of June 30, 2026 and December 31, 2025 | 2 | 2 | ||||
Retained earnings (accumulated deficit) | 37,535 | (1,307 | ) | |||
Accumulated other comprehensive income (loss) | 416 | (26 | ) | |||
Class A common stock in treasury, at cost; 1,635,783 as of June 30, 2026 and December 31, 2025 | (11,614 | ) | (11,614 | ) | ||
Total stockholders' equity (deficit) attributable to the Company | 26,354 | (12,930 | ) | |||
Non-redeemable non-controlling interests | 11,545 | 2,789 | ||||
Total stockholders' equity (deficit) | 37,899 | (10,141 | ) | |||
Total liabilities, redeemable preferred, redeemable non-controlling interests and stockholders' equity (deficit) | $ | 1,040,244 | $ | 959,469 |
(1) | Includes amounts related to consolidated VIEs, which are presented separately in the table below. |
(2) | Includes related‑party amounts of $1,016 and $13,318 as of June 30, 2026 and December 31, 2025, respectively. |
(3) | Includes related‑party amounts of $2,715 and $8,951 as of June 30, 2026 and December 31, 2025, respectively. |
OPAL FUELS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars, except share and per share data) (Unaudited) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||
Revenues: | ||||||||||||
RNG fuel(1) | $ | 23,821 | $ | 25,130 | $ | 45,459 | $ | 52,729 | ||||
Fuel station services(2) | 53,064 | 47,026 | 97,630 | 97,704 | ||||||||
Renewable power(3) | 6,514 | 8,300 | 13,685 | 15,430 | ||||||||
Total revenues | 83,399 | 80,456 | 156,774 | 165,863 | ||||||||
Operating expenses: | ||||||||||||
Cost of sales - RNG fuel | 12,282 | 11,414 | 25,111 | 23,567 | ||||||||
Cost of sales - Fuel station services | 40,362 | 38,731 | 75,752 | 78,453 | ||||||||
Cost of sales - Renewable power | 6,285 | 6,899 | 11,915 | 13,661 | ||||||||
Project development and startup costs | 3,301 | 3,477 | 5,116 | 9,558 | ||||||||
Selling, general and administrative | 14,274 | 17,460 | 29,458 | 33,427 | ||||||||
Depreciation, amortization, and accretion | 5,167 | 5,264 | 10,780 | 11,206 | ||||||||
Impairment loss (4) | 4,142 | — | 4,142 | — | ||||||||
Loss (income) from equity method investments | 597 | (1,962 | ) | 2,354 | (1,240 | ) | ||||||
Total operating expenses | 86,410 | 81,283 | 164,628 | 168,632 | ||||||||
Operating loss | (3,011 | ) | (827 | ) | (7,854 | ) | (2,769 | ) | ||||
Other expense | ||||||||||||
Interest and financing expense | (8,647 | ) | (6,637 | ) | (15,291 | ) | (13,087 | ) | ||||
Interest income | 2,101 | 270 | 2,861 | 655 | ||||||||
Other income, net | 672 | 1,067 | 97 | 2,321 | ||||||||
Total other expenses | (5,874 | ) | (5,300 | ... |