NASDAQ$OPAL

Opal Fuels Inc-A · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Opal Fuels reported first quarter 2025 results, with revenue increasing by 31% and net income more than doubling compared to the prior-year period.

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.

Headline financials

Total Revenue

$85.4M

Previous: $65M+31.5%
EPS (adj)

-$0.01

Previous: -$0.01+0.0%
RNG Produced (MMBtu)

1.1M

Previous: 800.0K+37.5%
RNG Dispensed (GGEs)

19.5M

Previous: 16.4M+18.9%
Total Volumes Sold/Dispensed/Serviced (GGEs)

40.6M

Previous: 35.0M+16.0%
Landfill RNG Design Capacity (MMBtu)

2.3M

Previous: 1.3M+76.9%
Inlet Design Capacity Utilization

69.0%

Previous: 80.0%-13.8%
Utilization of Inlet Gas

77.0%

Previous: 81.0%-4.9%
Capital Expenditures

-$11.6M

Previous: -$26.8M+56.8%
Net Income

$1.28M

Previous: $677K+89.7%
Operating Income

-$1.94M

Previous: $3.57M-154.4%

Revenue & EPS history

Opal Fuels · Revenue · Quarterly

$85.4M

Q1 2025+31.5%vs Q1 2024
Beat estimate in 1 of 13 quarters(8%)
ActualEstimate

Revenue by segment

Opal Fuels · $71.1M total across 3 segments · Q3 2023

  • Fuel Station Services
    $37.3M
  • RNG Fuel
    $20.1M
  • Renewable Power
    $13.7M

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 14 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-1.1%

Avg return

Earnings day

-3.6%

Avg return

5 days after

-0.7%

Avg return

30 days after

40%

6 / 15 earnings

Positive

+30.3%

Q4 2025

Best reaction

-12.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%-14.5%
Q4 2025+30.3%-3.7%+15.0%
Q3 2025+4.0%+13.1%+30.2%
Q1 2025-7.5%-6.6%+33.2%
Q4 2024-12.9%-7.2%-26.4%
Q3 2024+0.0%-3.9%-4.7%
Q2 2024-2.4%-9.0%-14.9%
Q1 2024+2.4%-1.0%-7.3%
Q4 2023+1.9%+1.5%+0.4%
Q3 2023+0.9%+7.0%+0.3%
Q2 2023-5.1%-4.0%-9.5%
Q1 2023+0.5%+0.0%-5.0%
Q4 2022-3.4%-1.3%+7.5%
Q3 2022-10.4%-12.4%-16.5%
Q2 2022-10.9%-12.2%-12.9%

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