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- **RNG Production Surges**: 30% YoY growth to 1.3 million MMBtu, with record October output. 
- **Project Pipeline Expansion**: 12 operating RNG facilities (9.1 million MMBtu capacity) and 2.8 million MMBtu under construction. 
- **Financial Resilience**: $19.5 million adjusted EBITDA despite lower RIN prices, $43 million ITC proceeds YTD. 
- **2026 Growth Drivers**: Full-year 45Z tax credits, RNG production expansion, and downstream fuel station services diversification. 
- **Regulatory Watch**: EPA RVO delay impacts 2026 RIN pricing outlook, but RNG bipartisan support persists. 


**【CEO Summary Section】**
- **RNG Production Growth**: Q3 2025 RNG production reached 1.3 million MMBtu, up 30% YoY. October production set a record, aligning with full-year guidance. 
- **Project Expansion**: Brought Atlantic RNG project online (0.33 million MMBtu capacity) and started CMS RNG construction (1.0 million MMBtu). Total operating capacity now 9.1 million MMBtu. 
- **Financial Highlights**: Adjusted EBITDA $19.5 million (down 37% YoY due to lower RIN prices). Completed $17 million ITC monetization, total YTD $43 million. 
- **2026 Outlook**: Expect full-year 45Z tax credits contribution and RNG production growth driven by new projects. Fuel station services segment to support diversification. 

**【CFO Financial Commentary】**
- **Revenue & EBITDA**: Q3 revenue $83 million (down 1% YoY), adjusted EBITDA $19.5 million (down 37% YoY). Lower RIN prices ($2.15 vs $3.13 YoY) and expiring ISCC pathway impacted results. 
- **Liquidity**: $184 million total liquidity (cash $30 million, undrawn revolver $138 million). Capital expenditures $16.4 million for new projects. 
- **ITC Monetization**: On track for $50 million gross proceeds YTD, supporting capital deployment. 
- **45Z Credits**: Begin recognizing in Q4, contributing to 2026 EBITDA. 

**【Q&A Key Highlights】**
- **Production Trajectory**: Sequential growth of ~0.1 million MMBtu/Q, targeting 2.0 million MMBtu annual capacity additions in 2025. 
- **Regulatory Environment**: EPA RVO delay due to government shutdown, but bipartisan support for RNG. 2026 RIN pricing uncertain until rules finalized. 
- **Free Cash Flow**: Maintenance CapEx in OCF, new projects funded through ITC monetization and balance sheet. 2026 EBITDA expected to benefit from 45Z and higher RIN prices. 
- **Downstream Strategy**: Fuel station services segment (47 stations operational, 41 under construction) provides stable cash flow uncorrelated to RIN prices. 
- **Capital Allocation**: Disciplined approach to projects with 4-5 year payback periods. Refinancing of preferred equity with NextEra expected in 2026. 


OPAL Fuels Inc. (OPAL) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

OPAL

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