WHITE PLAINS, N.Y.--(BUSINESS WIRE)--August 10, 2026--
OPAL Fuels ("OPAL Fuels" or the "Company") (Nasdaq: OPAL) today announced financial and operating results for the three and six months ended June 30, 2026.
"Second quarter financial results were solid and in line with our expectations with adjusted EBITDA growth of 40% percent over the second quarter of last year," said Adam Comora, Co-Chief Executive Officer of OPAL Fuels. "Contribution from 45Z production tax credits, growth in our FSS segment, and G&A cost savings drove financial results in a flat RIN price environment versus last year. These results keep us on track to meet our annual guidance."
"We continue to pursue opportunities to drive increased production and EBITDA at our existing operating facilities, which require minimal capital investment. In addition, we are advancing the construction of new RNG facilities that will expand our production capacity as they come online," said Jonathan Maurer, Co-Chief Executive Officer of OPAL Fuels. "Longer term growth for OPAL Fuels is underpinned by the structural economic advantage of natural gas versus diesel. Our vertically integrated model allows us to capitalize on this opportunity."
Financial Highlights
-- Adjusted EBITDA(1) for the three and six months ended June 30, 2026,
was $23.1 million and $39.8 million compared to $16.5 million and $36.6
million for the comparable periods last year an increase of 40% and 9%
respectively.
-- Revenue for the three and six months ended June 30, 2026, was $83.4
million and $156.8 million respectively, an increase of 4% and a decrease
of (5)% compared to the same periods last year.
-- Net (loss) income for the three and six months ended June 30, 2026 was
$(4.1) million and $(9.7) million, compared to $7.6 million and $8.8
million in the same periods last year.
-- Basic and diluted net (loss) income per share attributable to Class A
common shareholders for the three and six months ended June 30, 2026 were
$(0.05) and $(0.14) compared to $0.03 and $0.02 in the comparable period
last year.
-- In April we entered into a $100 million Master Agreement establishing
the key terms and conditions to monetize section 45Z Production Tax
Credits.
-- At June 30, 2026, RNG Pending Monetization totaled $16.3 million.
(1) This is a non-GAAP financial measure. A reconciliation of this non-GAAP
financial measure to its comparable GAAP financial measure has been provided
in the financial tables included in this press release. An explanation of this
measure and how it is calculated is also included below under the heading
"Non-GAAP Financial Measures."
Operational Highlights
-- RNG produced was 1.3 million and 2.4 million MMBtu for the three and
six months ended June 30, 2026, an increase of 4% and 6% compared to the
prior-year period.(2)
-- The Fuel Station Services segment sold, dispensed, and serviced an
aggregate of 39.0 and 78.0 million GGEs of transportation fuel for the
three and six months ended June 30, 2026, a decrease of 4% and 4%
compared to the prior-year periods. Of this amount, RNG dispensed as
transportation fuel was 20.9 and 38.8 million GGEs, an increase of 1% and
a decrease of 3% compared to the prior-year periods.
(2) Represents OPAL Fuels' proportional share with respect to RNG projects
owned with joint venture partners. Includes Sunoma and Biotown.
Guidance
-- We maintain 2026 guidance.
Results of Operations
(in thousands of
dollars, except Three Months Ended Six Months Ended
RNG Fuel data) June 30, June 30,
---------------------- ----------------------
2026 2025 2026 2025
------- ------ ------- -------
Revenue
RNG Fuel $ 23,821 $25,130 $ 45,459 $ 52,729
Fuel Station
Services 53,064 47,026 97,630 97,704
Renewable
Power 6,514 8,300 13,685 15,430
------- ------ ------- -------
Total Revenue (1) 83,399 80,456 156,774 165,863
------- ------ ------- -------
Cost of sales 58,929 57,044 $112,778 $115,681
Project
development and
startup costs 3,301 3,477 5,116 9,558
Other operating
expenses (2) 24,180 20,762 46,734 43,393
Net (loss)
income (4,147) 7,559 (9,740) 8,843
------- ------ ------- -------
Adjusted EBITDA
(3)
RNG Fuel (4) 18,551 13,318 32,673 31,455
Fuel Station
Services 12,484 10,900 21,724 21,428
Renewable
Power 253 2,150 2,948 3,809
Corporate (8,147) (9,859) (17,520) (20,120)
------- ------ ------- -------
Consolidated
Adjusted EBITDA $ 23,141 $16,509 $ 39,825 $ 36,572
======= ====== ======= =======
RNG Fuel volume produced (Million MMBtus) 1.3 1.2 2.4 2.3
RNG Fuel volume sold (Million GGEs) 20.9 20.6 38.8 40.1
Total volume delivered (Million GGEs) 39.0 40.8 78.0 81.4
(1) Excludes revenues from equity method investments.
(2) Includes selling, general and administrative expenses, depreciation and
amortization expenses, impairment and income from equity method
investments. Please refer to the Statement of Operations at the end of
the press release for additional information.
(3) This is a non-GAAP financial measure. A reconciliation of this non-GAAP
financial measure to a comparable GAAP financial measure has been
provided in the financial tables included in this press release. An
explanation of this measure and how it is calculated is also included
below under the heading "Non-GAAP Financial Measures."
(4) In 2025 includes incremental virtual pipeline costs (i.e., actual costs
less anticipated operating costs of a permanent interconnection) on our
Prince William RNG project which are temporary in nature and incurred in
2025.
Results of Operations from equity method investments
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- --------------------
(in thousands of
dollars) 2026 2025 2026 2025
------- ------- ------ ------
Revenue $ 34,599 $ 31,757 $ 61,910 $54,274
Gross profit 6,657 11,567 9,901 14,382
Net income (loss) 1,737 8,549 (547) 6,283
OPAL's share of
revenues from equity
method investments 14,361 13,178 26,126 23,466
OPAL's share of gross
profit from equity
method investments 2,400 4,435 3,879 6,765
OPAL's share of net
(loss) income from
equity method
investments (1) (597) 1,962 (2,354) 1,240
OPAL's share of
Adjusted EBITDA from
equity method
investments $ 5,517 $ 6,082 $ 8,697 $ 9,497
(1) Net income from equity method investments represents our portion of the
net income from equity method investments including $1.72 million and
$3.42 million of amortization expense related to basis differences for
the three and six months ended June 30, 2026, and $1.70 million and
$3.42 million for the three and six months ended June 30, 2025.
Landfill RNG Facility Capacity and Utilization Summary
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ----------------------
2026 2025 2026 2025
----------- ----------- ----------- ---------
Landfill RNG Facility
Capacity and Utilization
Design Capacity (Million
MMBtus) (1)(3) 2.2 2.1 4.4 4.3
Volume of Inlet Gas
(Million MMBtus) (2) 1.6 1.6 3.1 3.0
Inlet Design Capacity
Utilization (%) (2) 75.2% 76.3% 73.5% 72.5%
RNG Fuel volume produced
(Million MMBtus)(3) 1.2 1.1 2.4 2.2
Utilization of Inlet Gas
(%) (4) 76.6% 75.0% 76.0% 75.8%
(1) Design Capacity for RNG facilities is measured as the volume of
feedstock biogas that the facility is capable of accepting at the inlet
and processing during the associated period. Design Capacity is
presented as OPAL's ownership share (i.e., net of joint venture
partners' ownership) of the facility and is calculated based on the
number of days in the period. New facilities that come online during a
quarter are pro-rated for the number of days in commercial operation.
Excludes Sunoma and Biotown.
(2) Inlet Design Capacity Utilization is measured as the Volume of Inlet Gas
for a period, divided by the total Design Capacity for such period. The
Volume of Inlet Gas varies over time depending on, among other factors,
(i) the quantity and quality of waste deposited at the landfill, (ii)
waste management practices by the landfill, and (iii) the construction,
operations and maintenance of the landfill gas collection system used to
recover the landfill gas. The Design Capacity for each facility will
typically be correlated to the amount of landfill gas expected to be
generated by the landfill during the term of the related gas rights
agreement. The Company expects Inlet Design Capacity Utilization to be
in the range of 75-85% on an aggregate basis over the next several
years. Typically, newer facilities perform at the lower end of this
range and demonstrate increasing utilization as they mature and the
biogas resource increases at open landfills. Excludes Sunoma and
Biotown.
(3) Excludes Sunoma and Biotown
(4) Utilization of Inlet Gas is measured as RNG Fuel Volume Produced divided
by the Volume of Inlet Gas. Utilization of Inlet Gas varies over time
depending on availability and efficiency of the facility and the quality
of landfill gas (i.e., concentrations of methane, oxygen, nitrogen, and
other gases). The Company generally expects Utilization of Inlet Gas to
be in the range of 80% to 90%. Excludes Sunoma and Biotown.
RNG Pending Monetization Summary
Three Months Ended
(In thousands,
except average
realized sales
prices)
June 30, 2026
-------------------------------------------------
RNG Fuel Fuel Station Services Total
--------- ------------------------- -----------
Value of RNG
awaiting credit
generation using
quarter end price
(1) $ 10,797 $ 4,214 $ 15,011
------- --- ---------------- -------
RIN Metrics
Beginning balance as
of April 1, 2026 145 317 462
Add: Generated in
current period 12,897 4,795 17,692
Less: Sales (12,884) (4,992) (17,876)
------- --- ---------------- -------
Ending RIN credit
balance (Available
for sale) as of
June 30, 2026 158 120 278
------- --- ---------------- -------
D3 price per RIN at
quarter end $ 2.68 $ 2.68
------- --- ---------------- -----------
Value of RINs using
quarter end price
(1) $ 423 $ 322 $ 745
------- --- ---------------- -------
LCFS Metrics
Beginning balance
(net share) as of
April 1, 2026 9 58 67
Add: Generated in
current period 6 37 43
Less: Sales (11) (93) (104)
------- --- ---------------- -------
Ending LCFS credit
balance (Available
for sale) as of
June 30, 2026 4 2 6
------- --- ---------------- -------
LCFS credit price at
quarter end $ 100.00 $ 75.50
------- --- ---------------- -----------
Value of LCFSs using
quarter end price
(1) $ 400 $ 151 $ 551
------- --- ---------------- -------
Value of RECs using
quarter end price $ 17
--------- ------------------------- -------
Other Metrics
Average realized
sales price during
quarter - RIN $ 2.50
Average realized
sales price during
quarter - LCFS $ 75.55
Total Value of RNG
Pending
Monetization and
Credits at quarter
end $ 11,620 $ 4,687 $ 16,324
======= === ================ =======
(1) Reflects OPAL's ownership share of RIN and LCFS credits (i.e., net of
joint venture partners' ownership), including equity method investments,
and presented net of discounts and any direct transaction costs such as
dispensing fees, third-party royalties and transaction costs as
applicable.
As of June 30, 2026, our liquidity was $162.3 million, consisting of $91.4 million of cash and cash equivalents, $19.3 million of unused capacity under the revolver, $51.6 million of undrawn preferred stock facility.
Capital Expenditures
During the six months ended June 30, 2026, OPAL Fuels invested $52.7 million across RNG projects in construction, OPAL Fuels owned fueling stations in construction and finance transformation as compared to $33.4 million in the prior year. As part of OPAL Fuels' accounting policy, maintenance capital on existing facilities is expensed.
In addition, for the six months ended June 30, 2026, the Company's portion of capital expenditures in unconsolidated entities was $10.8 million compared to $12.7 million in the prior year. This represents our share of capital expenditures incurred by equity method investments.
Earnings Call
A webcast to review OPAL Fuels' Second Quarter 2026 results is being held today, August 10, 2026 at 11:00AM EDT.
Materials to be discussed in the webcast will be available before the call on the Company's website.
Participants may access the call at https://edge.media-server.com/mmc/p/qp5g7dch/
Investors can also listen to a webcast of the presentation on the Company's Investor Relations website at https://opalfuels.gcs-web.com/news-events/events-presentations
____________________
Glossary of terms
"D3" refers to cellulosic biofuel with a 60% GHG reduction requirement.
"GGE" refers to gasoline gallon equivalent. The conversion ratio is 1 MMBtu of natural gas equal to 7.74 GGE.
"LCFS" refers to Low Carbon Fuel Standard or similar types of federal and state programs.
"MMBtu" refers to million British thermal units.
"RECs" refers to renewable energy credits.
"Renewable Power" refers to electricity generated from renewable sources.
"RIN" refers to Renewable Identification Numbers.
"RNG" refers to renewable natural gas.
"VIEs" refers to variable interest entities.
About OPAL Fuels
OPAL Fuels (Nasdaq: OPAL) is a leader in the capture and conversion of biogas into low carbon intensity RNG and Renewable Power. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to decarbonize industrial sectors. For additional information, and to learn more about OPAL Fuels and how it is leading the effort to capture North America's naturally occurring methane and decarbonize the economy, please visit www.opalfuels.com.
Forward-Looking Statements
Certain statements in this communication may be considered forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events or the Company's future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management's control, including but not limited to general economic conditions and other risks, uncertainties and factors set forth in the sections entitled "Risk Factors" and "Forward-Looking Statements and Risk Factor Summary" in the Company's annual report on Form 10-K and quarterly reports on Form 10-Q, and other filings the Company makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.
Disclaimer
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
OPAL FUELS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars, except share and per share data)
June 30, December 31,
2026 2025
----------- -----------------
Assets(1) (Unaudited)
Current assets:
Cash and cash equivalents $ 91,363 $ 24,408
Accounts receivable, net of allowances
of $1,040 and $469, respectively(2) 37,517 61,806
Restricted cash - current 915 1,210
Contract assets 6,638 8,276
Parts inventory 12,581 10,964
Prepaid expense and other current
assets 14,335 16,018
--------- ----------
Total current assets 163,349 122,682
--------- ----------
Property, plant, and equipment, net 525,773 495,634
Investments in other entities 234,298 231,223
Net investment in sales-type lease 10,604 8,224
Restricted cash - non-current 2,914 2,700
Goodwill 54,608 54,608
Other long-term assets 48,698 44,398
--------- ----------
Total assets 1,040,244 959,469
========= ==========
Liabilities and Stockholders' Equity
(Deficit)(1)
Current liabilities:
Accounts payable(3) 13,107 19,004
Contract liabilities 3,052 6,296
Loan, current portion 18,882 15,062
Accrued expenses and other current
liabilities 54,843 63,857
--------- ----------
Total current liabilities 89,884 104,219
--------- ----------
Loans, net of debt issuance costs 412,809 337,063
Other long-term liabilities 21,199 20,430
--------- ----------
Total liabilities 523,892 461,712
--------- ----------
Commitments and contingencies
Redeemable preferred non-controlling
interests 158,400 130,000
Redeemable non-controlling interests 320,053 377,898
Stockholders' equity (deficit)
Class A common stock, $0.0001 par
value, shares issued: 31,993,327 and
30,633,161 as of June 30, 2026 and
December 31, 2025, respectively;
shares outstanding: 30,357,544 and
28,997,378 as of June 30, 2026 and
December 31, 2025, respectively 3 3
Class B common stock, $0.0001 par
value, 121,500,000 issued and
outstanding as of June 30, 2026 and
December 31, 2025 12 12
Class C common stock, $0.0001 par
value; none issued and outstanding as
of June 30, 2026 and December 31,
2025 -- --
Class D common stock, $0.0001 par
value, 22,899,037 shares issued and
outstanding as of June 30, 2026 and
December 31, 2025 2 2
Retained earnings (accumulated
deficit) 37,535 (1,307)
Accumulated other comprehensive income
(loss) 416 (26)
Class A common stock in treasury, at
cost; 1,635,783 as of June 30, 2026
and December 31, 2025 (11,614) (11,614)
--------- ----------
Total stockholders' equity
(deficit) attributable to the
Company 26,354 (12,930)
--------- ----------
Non-redeemable non-controlling
interests 11,545 2,789
--------- ----------
Total stockholders' equity
(deficit) 37,899 (10,141)
--------- ----------
Total liabilities, redeemable
preferred, redeemable
non-controlling interests and
stockholders' equity (deficit) $1,040,244 $ 959,469
========= ==========
(1) Includes amounts related to consolidated VIEs, which are presented
separately in the table below.
(2) Includes related--party amounts of $1,016 and $13,318 as of June 30,
2026 and December 31, 2025, respectively.
(3) Includes related--party amounts of $2,715 and $8,951 as of June 30, 2026
and December 31, 2025, respectively.
OPAL FUELS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------------
2026 2025 2026 2025
------ ------ ------- -------
Revenues:
RNG fuel(1) $23,821 $25,130 $ 45,459 $ 52,729
Fuel station
services(2) 53,064 47,026 97,630 97,704
Renewable power(3) 6,514 8,300 13,685 15,430
------ ------ ------- -------
Total revenues 83,399 80,456 156,774 165,863
------ ------ ------- -------
Operating expenses:
Cost of sales - RNG
fuel 12,282 11,414 25,111 23,567
Cost of sales -
Fuel station
services 40,362 38,731 75,752 78,453
Cost of sales -
Renewable power 6,285 6,899 11,915 13,661
Project development
and startup costs 3,301 3,477 5,116 9,558
Selling, general
and
administrative 14,274 17,460 29,458 33,427
Depreciation,
amortization, and
accretion 5,167 5,264 10,780 11,206
Impairment loss (4) 4,142 -- 4,142 --
Loss (income) from
equity method
investments 597 (1,962) 2,354 (1,240)
------ ------ ------- -------
Total operating
expenses 86,410 81,283 164,628 168,632
------ ------ ------- -------
Operating loss (3,011) (827) (7,854) (2,769)
------ ------ ------- -------
Other expense
Interest and
financing expense (8,647) (6,637) (15,291) (13,087)
Interest income 2,101 270 2,861 655
Other income, net 672 1,067 97 2,321
------ ------ ------- -------
Total other
expenses (5,874) (5,300) (12,333) (10,111)
------ ------ ------- -------
Net loss before
income tax
benefit (8,885) (6,127) (20,187) (12,880)
------ ------ ------- -------
Income tax
benefit 4,738 13,686 10,447 21,723
------ ------ ------- -------
Net (loss)
income (4,147) 7,559 (9,740) 8,843
------ ------ ------- -------
Net (loss)
income
attributable to
redeemable
non-controlling
interest (7,136) 3,982 (19,703) 2,808
Net income
attributable to
non-redeemable
non-controlling
interest 137 160 219 236
Accretion of the
redeemable
preferred
non-controlling
interest to its
redemption
amount 4,353 2,617 13,887 5,234
------ ------ ------- -------
Net (loss)
income
attributable to
Class A common
stockholders $(1,501) $ 800 $ (4,143) $ 565
====== ====== ======= =======
(1) Includes revenues from related parties of $125 and $17,878 for the three
months ended June 30, 2026 and 2025, respectively.
Includes revenues from related parties of $17,167 and $37,979 for the