Montauk Q3 revenue beats estimates

Montauk Renewables

05/11/2025 21:58

Overview

Montauk Q3 revenue fell 31.3% yr/yr but beat analyst expectations

Adjusted EBITDA for Q3 decreased 56.4% yr/yr but beat estimates

RNG production increased 3.8% yr/yr, despite fewer RINs sold

Outlook

Montauk expects 2025 RNG revenues between $150 mln and $170 mln

Company anticipates RNG production volumes between 5.8 mln and 6.0 mln MMBtu

Montauk sees REG revenues between $17 mln and $18 mln for 2025

Result Drivers

FIXED-PRICE ARRANGEMENTS - Co's decision to sell more production under fixed/floor-price arrangements led to fewer RINs available for sale

RIN PRICE DECLINE - Average D3 RIN index price dropped 34.8%, affecting revenue and operating profit

INCREASED OPERATING EXPENSES - Higher operating expenses due to maintenance and enhancements at Rumpke, Atascocita, and Apex facilities

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$45.30 mln
$44.69 mln (3 Analysts)
Q3 Net Income
$5.20 mln
Q3 Adjusted EBITDA
Beat
$12.80 mln
$11.08 mln (4 Analysts)
Q3 Operating income
$4.40 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the electric utilities peer group is "buy."

Wall Street's median 12-month price target for Montauk Renewables Inc is $3.00, about 39.3% above its November 4 closing price of $1.82

The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 89 three months ago

Press Release: ID:nGNXcXBNl

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)