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Montauk Renewables Q1 2025 Earnings Report
Estimated Revenue:$42.4M
-3.7% YoY
Estimated EPS:$0.02
+290.2% YoY
Key Takeaways
Montauk Renewables reported total revenues of $42.6 million for the first quarter of 2025, a 9.8% increase from the same period in 2024. However, the company experienced a net loss of $0.5 million, a significant decrease from the net income of $1.9 million in the first quarter of 2024. Adjusted EBITDA also saw a decline of 7.2% year-over-year.
Revenues increased by 9.8% to $42.6 million in Q1 2025 compared to Q1 2024, primarily driven by the monetization of RINs from 2024 RNG production.
The company reported a net loss of $0.5 million in Q1 2025, a decrease from a net income of $1.9 million in Q1 2024.
Non-GAAP Adjusted EBITDA decreased by 7.2% year-over-year to $8.8 million.
RNG production remained flat at 1.4 million MMBtu, while RINs sold increased by 25.3% to 9.9 million in Q1 2025.
Montauk Renewables
Montauk Renewables
Forward Guidance
Montauk Renewables provided its full year 2025 outlook, expecting RNG revenues between $150 million and $170 million, and REG revenues between $17 million and $18 million.
Positive Outlook
- RNG revenues are expected to range between $150 million and $170 million for the full year 2025.
- RNG production volumes are expected to range between 5.8 million and 6.0 million MMBtu for the full year 2025.
- REG revenues are expected to range between $17 million and $18 million for the full year 2025.
- REG production volumes are expected to range between 178 thousand and 186 thousand MWh for the full year 2025.
- The company plans to begin capital expenditures for long lead time equipment for the Rumpke RNG facility relocation in Q2 2025, targeting commissioning in 2028.
Challenges Ahead
- The timing of obligated party purchases of RINs from 2025 production has been impacted by the EPA extending the compliance period for 2024.
- The EPA's Biogas Regulatory Reform Rule, effective in 2025, has delayed the availability of RINs for sale from current year production by approximately one month.
- The utility for the Blue Granite RNG project will no longer accept RNG into its distribution system, leading to impairment of certain RNG equipment.
- Estimated capital expenditures for the Rumpke RNG facility relocation range between $80 million to $110 million.
- The company continues to discuss alternatives for the Blue Granite site with the landfill host after the utility's decision.
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Key Statistics
Market Cap
$306M
P/E Ratio
134.89
Sector
Process Industries
Industry
Industrial Specialties
52-Week High
$6.01
52-Week Low
$1.73
Adjusted EBITDA
$8.8M
RNG Production (MMBtu)
1.4M
RINs Sold
9.9M
Average Realized RIN Price
$2.46
Natural Gas Index Pricing Increase
62.9%