OPAL Fuels Q3 revenue misses; maintains FY 2025 forecast

Opal Fuels

07/11/2025 09:13

Overview

OPAL Fuels Q3 2025 revenue declined 1% yr/yr, missing analyst expectations

Adjusted EBITDA for Q3 slightly beats analyst expectations

RNG production increased 30% yr/yr, reflecting operational growth

Outlook

OPAL Fuels maintains full-year 2025 guidance despite lower D3 RIN prices

Company expects to recognize 45Z production tax credits in Q4

OPAL Fuels sees positive policy environment supporting RNG

Result Drivers

RNG PRODUCTION INCREASE - RNG production rose 8% sequentially and 30% yr/yr, contributing to operational growth

PROJECT EXPANSION - Atlantic RNG Project commenced operations; CMS RNG Project construction began, adding capacity

TAX CREDITS - Completed fourth sale of IRA Investment Tax Credits, generating over $40 mln in gross proceeds this year

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$83.36 mln
$93.07 mln (5 Analysts)
Q3 Net Income
$11.39 mln
Q3 Adjusted EBITDA
Slight Beat*
$19.46 mln
$19.36 mln (6 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

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

The average consensus recommendation for the oil & gas exploration and production peer group is "hold"

Wall Street's median 12-month price target for Opal Fuels Inc is $3.50, about 42.3% above its November 6 closing price of $2.02

The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nBw8LyTjya

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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.)