OPAL Fuels 2025 Q2 Earnings Strong Performance as Net Income Surges 296%

OPAL Fuels (OPAL) reported its fiscal 2025 Q2 earnings on August 7, 2025. The company delivered a strong performance, with revenue and net income both rising year-over-year. The company reaffirmed its full-year 2025 guidance and highlighted continued progress across its renewable energy initiatives.

Revenue
OPAL Fuels reported a 13.4% year-over-year increase in total revenue, reaching $80.46 million for Q2 2025 compared to $70.95 million in Q2 2024. The company's RNG Fuel segment contributed $25.13 million, while Fuel Station Services accounted for the largest portion at $47.03 million. Renewable Power added $8.30 million, reflecting the company’s diversified energy portfolio and ongoing expansion in the renewable fuels sector.

Earnings/Net Income
The company returned to profitability with an EPS of $0.03 in Q2 2025, a dramatic reversal from a loss of $0.01 in the same period a year earlier. This represents a 400.0% improvement. Furthermore, net income surged to $7.56 million, a 296.2% increase from $1.91 million in Q2 2024. This performance marked the highest quarterly net income in four years, underscoring the company’s improving operational efficiency and cost management.

Price Action
Despite the strong earnings report, OPAL Fuels' stock experienced a downturn in the short term. The stock fell 4.64% on the most recent trading day and continued to decline by 4.64% during the most recent full trading week. Over the past month, the stock has dropped 12.40%.

Post Earnings Price Action Review
The investment strategy of buying OPAL Fuels stock on earnings report dates following revenue growth and holding for 30 days has proven unprofitable. Over the past three years, this strategy has delivered a loss of 86.08%, significantly underperforming the benchmark return of 51.69%. The resulting excess return was -137.77%, with an annualized compound growth rate of -48.67%, illustrating a challenging performance for investors relying on such a strategy.

CEO Commentary
Co-CEOs Adam Comora and Jonathan Maurer emphasized the robust second-quarter results, noting a 33% year-over-year increase in RNG production, driven by the expanding renewable fuels market. Comora highlighted the importance of bipartisan support for biofuels, including the extension of the 45Z tax credit through 2029, while Maurer underscored the commercial viability of RNG and CNG as alternatives to diesel. Both leaders expressed confidence in the company’s future, citing strategic investments in scalable technologies and a vertically integrated operating model to support continued growth.

Guidance
The company reiterated its full-year 2025 guidance, expecting continued improvement in operating and financial performance. For Q2 2025, revenue reached $80.5 million with EPS of $0.03 versus $0.01 in the prior-year period. Adjusted EBITDA came in at $16.5 million, down from $21.1 million in Q2 2024. Looking ahead, OPAL Fuels anticipates elevated RNG production levels, with new projects such as Atlantic RNG expected to begin operations in Q3 2025 and additional initiatives launching in 2026.

Additional News
In Nigeria, the Punch newspaper reported on several breaking news developments on August 7, 2025. Notably, a traffic accident in Lagos involving a fuel tanker and a commercial bus left at least five people injured. In other business news, Stanbic IBTC announced that 148 customers won N23 million in its savings promotion campaign. Political developments included the resignation of the former Deputy Governor of Abia State from the Peoples Democratic Party, as well as calls from Rivers stakeholders for President Tinubu to halt local government elections and reinstate Fubara. These events reflect the broader economic and political landscape in Nigeria during this period.