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Jun 30
Opal Fuels Q2 2025 Earnings Report
Opal Fuels reported its second quarter 2025 financial and operating results, showing increased revenue and net income compared to the prior year.
Key Takeaways
OPAL Fuels delivered a strong second quarter in 2025, with significant increases in revenue and net income. RNG production grew substantially, and the company is progressing with its project pipeline, supported by favorable policy developments for biofuels.
Revenue for Q2 2025 increased by 13% to $80.5 million compared to the same period last year.
Net income for Q2 2025 surged to $7.6 million, a significant increase from $1.9 million in Q2 2024.
RNG produced volume increased by 33% to 1.2 million MMBtu in Q2 2025 compared to Q2 2024.
The company maintains its full-year 2025 guidance and is on track with several RNG projects expected to commence commercial operations in 2025, 2026, and 2027.
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, anticipating continued improvement in operating and financial results, driven by ongoing project development and supportive policy.
Positive Outlook
- The Atlantic RNG project is on schedule to commence commercial operations in Q3 2025, adding 0.3 million MMBtu of annual design capacity.
- The Burlington and Cottonwood RNG projects, with an aggregate annual design capacity of 1.1 million MMBtu, are expected to commence commercial operations in 2026.
- The Kirby RNG project in California, with 0.7 million MMBtu annual design capacity, is expected to commence commercial operations in 2027.
- Strengthening market fundamentals for RNG as a transportation fuel for heavy-duty fleets.
- Bipartisan support for biofuels, including the extension of the 45Z production tax credit through 2029, is expected to be beneficial.
Challenges Ahead
- Completion of construction at two dairy projects in California (Hilltop and Vander Schaaf) continues to be delayed due to a dispute with the prior EPC contractor.
- Volatility in RIN prices has been observed, though the EPA's engagement in the Renewable Fuel Standard administration is encouraging.
- The company incurred non-recurring, non-cash expenses related to a contract restructuring in Q2 2025.
- Operating income was negative for the quarter.
- Renewable Power segment revenue decreased compared to the prior year.