OPAL Fuels 2025 Q3 Earnings Misses Revenue Targets, Expands RNG Projects

OPAL Fuels reported Q3 2025 results that fell short of revenue expectations but maintained full-year guidance. The company’s revenue declined 0.8% year-over-year to $83.36 million, while net income dropped 33.4% to $11.39 million. Despite these declines, management reiterated confidence in 2025 guidance, citing operational progress and policy tailwinds.

Revenue

Earnings/Net Income

OPAL Fuels’s EPS declined 44.4% to $0.05 in 2025 Q3 from $0.09 in 2024 Q3, while net income fell to $11.39 million, a 33.4% decrease. The EPS result reflects weaker RIN pricing and operational challenges, marking a significant underperformance compared to prior-year levels.

Post-Earnings Price Action Review

The stock price of OPAL Fuels surged 5.03% during the latest trading day but declined 13.28% over the past week and 14.34% month-to-date. Post-earnings volatility underscores investor skepticism despite management’s confidence in long-term growth. The mixed price action highlights concerns over near-term profitability amid soft RIN prices and construction delays, though optimism persists around policy-driven expansion.

CEO Commentary

Adam Comora and Jonathan Maurer emphasized operational milestones, including a 30% YoY increase in RNG production to 1.3 million MMBtu and the launch of the Atlantic RNG project. Both co-CEOs expressed confidence in meeting 2025 guidance and accelerating 2026 growth, citing 45Z tax credits and vertical integration advantages.

Guidance

The company reaffirmed full-year 2025 guidance but noted Q4 adjusted EBITDA may fall toward the lower end of the range due to lower RIN prices and production growth. Management highlighted $184 million in liquidity and $50 million in ITC monetization as strategic pillars for 2026.

Additional News

In the three weeks following the earnings report, OPAL Fuels expanded RNG production capacity through the Atlantic and CMS RNG projects, adding 1.0 million MMBtu of annual design capacity. The company also completed its fourth IRA Investment Tax Credit sale, generating $40 million in proceeds. Delays in California dairy projects due to contractor disputes were disclosed, though management remains optimistic about 2026 execution.