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Sep 30
Montauk Renewables Q3 2025 Earnings Report
Montauk Renewables reported a significant decrease in revenue and net income for Q3 2025, primarily due to lower RINs sold and a decrease in average realized RIN price, despite an increase in RNG and renewable electricity production.
Key Takeaways
Montauk Renewables experienced a challenging third quarter in 2025, with total revenues decreasing by 31.3% to $45.3 million and net income falling by 69.5% to $5.2 million. This decline was largely attributed to a decrease in RINs sold and a lower average realized RIN price. Despite these financial setbacks, the company saw an increase in both RNG and renewable electricity production volumes.
Total revenues for Q3 2025 were $45.3 million, a 31.3% decrease compared to $65.9 million in Q3 2024.
Net income for Q3 2025 was $5.2 million, a 69.5% decrease from $17.0 million in Q3 2024.
Adjusted EBITDA for Q3 2025 was $12.8 million, a 56.4% decrease year-over-year.
RNG production increased by 3.8% to 1.4 million MMBtu, and renewable electricity production increased by 7.3% to 44 thousand MWh in Q3 2025 compared to Q3 2024.
Montauk Renewables
Montauk Renewables
Forward Guidance
Montauk Renewables maintains its full-year 2025 outlook for RNG revenues and production volumes, as well as Renewable Electricity Generation (REG) revenues and production volumes, indicating stable expectations despite the current quarter's performance.
Positive Outlook
- RNG revenues are expected to range between $150 million and $170 million (unchanged).
- RNG production volumes are expected to range between 5.8 million and 6.0 million MMBtu (unchanged).
- REG revenues are expected to range between $17 million and $18 million (unchanged).
- REG production volumes are expected to range between 175 thousand and 180 thousand MWh (unchanged).
- The company's outlook remains stable, suggesting confidence in meeting annual targets despite Q3 challenges.
Challenges Ahead
- The EPA's finalization of the Supplemental Rule and RVOs for 2025, 2026, and 2027 may be extended into 2026 due to the US federal government shutdown and its residual impacts on EPA staffing.
- The duration of the US federal government shutdown could impact regulatory timelines.
- Any residual impacts on EPA staffing after the shutdown concludes may extend finalization of key regulatory items.
- The company's decision to sell more production under fixed/floor-price arrangements contributed to fewer RINs available for sale in Q3 2025.
- Strategic decisions regarding RIN sales during periods of market volatility may impact future revenue and operating profit.