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Opal Fuels Q1 2025 Earnings Report
Opal Fuels reported first quarter 2025 results, with revenue increasing by 31% and net income more than doubling compared to the prior-year period.
Key Takeaways
OPAL Fuels Inc. reported strong first quarter 2025 results, with total revenue increasing by 31% to $85.4 million and net income rising to $1.3 million from $0.7 million in the comparable prior-year period. Adjusted EBITDA also saw a significant increase, reaching $20.2 million. The company's RNG production and fuel station services both experienced notable growth, and construction projects are progressing as planned, reinforcing the company's positive outlook for the full year.
Revenue increased by 31% to $85.4 million, driven by growth in RNG Fuel and Fuel Station Services.
Net income more than doubled to $1.3 million, up from $0.7 million in the prior-year period.
Adjusted EBITDA grew by 33% to $20.2 million, indicating strong operational performance.
RNG production increased by 38% to 1.1 million MMBtu, and transportation fuel dispensed rose by 16% to 40.6 million GGEs.
Opal Fuels
Opal Fuels
Opal Fuels Revenue by Segment
Revenue by Segment
RNG Fuel Revenue
CapyFin.comFuel Station Services Revenue
CapyFin.comRenewable Power Revenue
CapyFin.com Forward Guidance
OPAL Fuels maintains its full-year 2025 guidance, with key construction projects on schedule to commence commercial operations in 2025 and 2026, despite some delays in dairy projects.
Positive Outlook
- Full year 2025 guidance is maintained, indicating confidence in future performance.
- The Atlantic RNG project is on schedule to commence commercial operations in Q3 2025, adding 0.3 million MMBtu to OPAL Fuels' annual design capacity.
- The Burlington, Cottonwood, and Kirby RNG projects, representing 1.8 million MMBtu for OPAL's share, remain on schedule for commercial operations in 2026.
- The company completed its second ITC sale in Q1 2025 and expects additional sales later in the year.
- The Fuel Station Services segment saw solid first quarter results and expects this trend to continue for the remainder of 2025.
Challenges Ahead
- Completion of construction at two dairy projects (Hilltop and Vander Schaaf) in California continues to be delayed due to a dispute with the prior Engineering, Procurement and Construction contractor over change order requests.
- The macro and policy environment still presents uncertainties.
- Virtual pipeline costs are expected to be incurred in 2025 until permanent interconnection is operational.
- The company did not provide specific financial targets for the full year 2025 in this report, only stating that guidance is maintained.
- No specific details were provided on how the dispute with the EPC contractor for the dairy projects will be resolved or its potential impact on future operations.