OPAL Fuels’ Q2 2025: Contradictions Unveiled on Market Demand, Investment Strategies, and Fuel Margins

Market demand and competitive landscape, investment strategy and CapEx allocation, RIN sales and pricing, fuel station margins and growth are the key contradictions discussed in OPAL Fuels' latest 2025Q2 earnings call.



Revenue and EBITDA Performance:
- OPAL Fuels reported revenue of $80.5 million and adjusted EBITDA of $16.5 million for Q2 2025, compared to $71 million and $21.1 million in the same period last year.
- The slight decrease in adjusted EBITDA was primarily due to lower RIN prices and the loss of ISCC carbon credits in the Renewable Power segment.

RNG Production and Fuel Station Services:
- The company produced 1.2 million MMBtus of RNG in the second quarter, a 33% increase year-over-year.
- Second quarter Fuel Station Services segment EBITDA was approximately $11.2 million, 30% higher versus the second quarter of 2024.

Policy Environment and Tax Benefits:
- The passage of the One Big Beautiful Bill Act extended the 45Z production tax credit through 2029 for RNG, which is expected to contribute to OPAL's EBITDA for the next 4 years.
- The bill also left the investment tax credit program largely intact, with expectations of material ITC monetization over the next few years as new RNG projects come online.

Capital Expenditure and Liquidity:
- Capital expenditures for the quarter totaled $16.4 million, including $7.3 million related to equity method investments.
- As of June 30, OPAL's total liquidity was $203.2 million, with plans to use this to fund existing construction projects and anticipated funding needs.