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Jun 30
Montauk Renewables Q2 2025 Earnings Report
Montauk Renewables reported its second quarter 2025 financial and operational results, highlighting increased revenues and RINs sold, alongside a decrease in Adjusted EBITDA and a net loss.
Key Takeaways
Montauk Renewables experienced a 4.1% increase in total revenues to $45.1 million in Q2 2025 compared to the prior year, primarily due to the timing of revenue recognition from a short-term fixed-priced contract. However, the company reported a net loss of $5.5 million and a 27.7% decrease in Non-GAAP Adjusted EBITDA to $5.0 million, largely impacted by a significant decrease in average realized RIN prices and increased operating and maintenance expenses.
Total revenues increased by 4.1% to $45.1 million in Q2 2025, up from $43.3 million in Q2 2024.
The company reported a net loss of $5.5 million in Q2 2025, a significant increase from a $0.7 million loss in Q2 2024.
Non-GAAP Adjusted EBITDA decreased by 27.7% year-over-year to $5.0 million.
RNG production remained flat at 1.4 million MMBtu, while RINs sold increased by 10.5% to 11.1 million.
Montauk Renewables
Montauk Renewables
Forward Guidance
Montauk Renewables reaffirmed its full-year 2025 outlook, expecting RNG revenues between $150 million and $170 million and RNG production volumes between 5.8 million and 6.0 million MMBtu. Renewable Electricity Generation (REG) revenues are projected to be between $17 million and $18 million, with REG production volumes between 178 thousand and 186 thousand MWh.
Positive Outlook
- Reaffirmed full-year 2025 RNG revenue guidance of $150 million to $170 million.
- Reaffirmed full-year 2025 RNG production volume guidance of 5.8 million to 6.0 million MMBtu.
- Reaffirmed full-year 2025 REG revenue guidance of $17 million to $18 million.
- Reaffirmed full-year 2025 REG production volume guidance of 178 thousand to 186 thousand MWh.
- Completion and commissioning of the second RNG processing facility at Apex.
Challenges Ahead
- Profitability highly dependent on volatile market prices of environmental attributes, including RINs.
- Impact of EPA actions (BRRR K2 separation) temporarily affected RIN commitment timing, reducing RINs available for sale.
- Proposed RFS Standards for 2026 and 2027 and a proposed Partial Waiver of 2025 Cellulosic Biofuel Volume Requirement cited limitations in RNG usage capacity for transportation.
- Company plans to participate in comment period to advocate for increased Cellulosic Biofuel Volume Requirement, indicating potential for unfavorable regulatory outcomes.
- Average realized RIN price decreased significantly by 22.4% in Q2 2025 compared to Q2 2024.