RNG Production Growth
RNG production reached 1.2 million MMBtu in Q1 (up 9% year-over-year), reflecting improved execution across operating facilities and growth in the biogas resource.
OPAL Fuels
· OPAL
May 11th, 2026
Summary
- Earnings Call Date:
- 2026-05-11
- Change Since:
- -8.22%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
PositiveThe call balanced near-term operational and commodity-related headwinds (Q1 revenue and Adjusted EBITDA declines, weather impacts, and RIN-related EBITDA drag) with a number of constructive developments: production growth (+9% YoY), secured financing and ~$233M liquidity, tax-credit monetization, an active project pipeline (projects coming online late 2026–H1 2027 and >2M MMBtu of design capacity expected), and encouraging commercial momentum for future fleet conversions. Management reiterated full-year 2026 guidance and emphasized investments and execution that support growth in 2027 and beyond. Overall, the positives around financing, project execution, production improvement, and market fundamentals appear to outweigh the short-term challenges.
Company Guidance
Management reiterated full‑year 2026 guidance while detailing Q1 metrics: adjusted EBITDA of $16.7 million (down from $20.1M a year ago), revenue of $73.3 million (vs. $85.4M), RNG production of 1.2 million MMBtu (up 9% YoY), and fuel‑station services EBITDA of $9.2M (vs. $10.9M). They attributed a roughly $3.4M YoY EBITDA decline primarily to lower RIN realizations (D3 realized $2.41 in Q1, down $0.30 vs. 2025, with an estimated ~$4M EBITDA impact) even as the broader RIN market has strengthened (D4/D5/D6 over $2 and D3 trading above $2.50). Operationally, management expects accelerating production growth starting in Q2, plans to bring more than 2.0 million MMBtu of annual design capacity online over the next year, has 16 OPAL‑owned stations in construction, and ended the quarter with approximately $233M of liquidity (≈$133M cash & short‑term investments, $60M undrawn preferred commitments, $39M revolver availability) after completing $288M of financings (including a $180M preferred facility and a $109M term‑loan draw); they also sold $11.5M of ITC credits and executed a $100M agreement to monetize Section 45Z production tax credits.
Strong Liquidity and Financing Activity
Completed financing transactions totaling $288 million (including a $180 million preferred stock facility and drawing remainder of term loan of $109 million) and ended the quarter with approximately $233 million of liquidity (about $133 million cash and short-term investments, $60 million undrawn preferred commitments, ~ $39 million revolver availability).
Tax-Credit Monetization and ITC Sale
Signed a $100 million multiyear agreement to monetize Section 45Z production tax credits and sold $11.5 million of ITC credits, strengthening near-term cash generation and de‑risking future tax-credit receipts.
Project and Capacity Build-Out
Advancing in-construction projects (Cottonwood, Burlington, CMS) expected online late 2026 into H1 2027; expecting to bring on more than 2 million MMBtu of annual design capacity over the next year; 16 OPAL-owned fueling stations are in construction.
Improving RIN Environment and Market Momentum
RIN environment showing signs of strength: D4/D5/D6 prices moved above $2, and D3 RINs began participating with broader biofuel market pricing (management noted D3 market pricing moving above $2.50 after quarter), improving the macro tailwinds for RNG economics.
Commercial Momentum on Fleet Conversions
Management reported increased business development engagement for CNG/RNG fleet deployments driven by high/volatile diesel prices, regulatory clarity on combustion engines and successful testing of the Cummins X15N engine—expect initial fleet contributions beginning in 2027 and multi-year growth potential.
Operational Improvements and Platform Investments
Company highlighted investments in personnel, technology, and AI to boost operating performance; noted improved wellfield collection, availability and uptime, and cross-fleet best-practice deployment to lift inlet utilization and ramp production.
Operator
Good morning, and welcome to the OPAL Fuels Inc. First Quarter 2026 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. You will then hear an automated message advising your hand is raised. To withdraw your question, please press 11 again. As a reminder, this event is being recorded. I would now like to turn the call over to Todd M.
Firestone, vice president of investor relations, to begin. Please go ahead.
Todd M. Firestone
Thank you, and good morning, everyone. Welcome to the OPAL Fuels Inc. first quarter 2026 earnings conference call. With me today are Co-CEOs, Adam J. Comora and Jonathan Gilbert Maurer, as well as Kazi Kamrul Hasan, OPAL’s chief financial officer. OPAL Fuels Inc. released financial and operating results for the first quarter 2026 this morning, and those results are available on the Investor Relations section of our website at opalfuels.com. The presentation and access to the webcast for this call are also available on our website.
After completion of today’s call, a replay will be available for 90 days. Before we begin, I would like to remind you that our remarks, including answers to your questions, contain forward-looking statements, which involve risks, uncertainties, and assumptions. Forward-looking statements are not a guarantee of performance, and actual results could differ materially from what is contained in such statements. Several factors that could cause or contribute to such differences are described on slides 2 and 3 of our presentation. These for...
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