OPAL Fuels Announces Q1 2025 Financial Results
OPAL Fuels Inc. (“OPAL Fuels” or the “Company”) (Nasdaq: OPAL), a vertically integrated producer and distributor of renewable natural gas (RNG), today announced its financial and operational results for the first quarter ended March 31, 2025. The Company delivered performance in line with expectations and reaffirmed its full-year outlook as announced earlier this year.
Consistent Execution Amid Broader Market Challenges
“First quarter results were in-line with expectations as we continue to execute on our strategic and operational goals,” said Adam Comora, co-Chief Executive Officer of OPAL Fuels. “We remain on track to meet our 2025 full-year outlook that we introduced in March. Even though we are operating in a macroeconomic and policy environment that carries a degree of uncertainty, our business fundamentals remain strong. Our operations are stable, and the long-term prospects for RNG remain highly attractive. The environmental benefits of capturing and converting methane emissions from organic waste into a low-carbon fuel source are increasingly recognized as essential for decarbonizing the heavy-duty transportation sector.”
Methane emissions from sources such as landfills and agricultural waste represent one of the largest contributors to greenhouse gas emissions globally. RNG—produced by capturing this methane and converting it into a usable fuel—offers a scalable and immediate solution for reducing emissions from heavy-duty vehicles, particularly Class 8 trucks. According to the Company, its continued focus on developing RNG infrastructure positions it as a key enabler of sustainable freight and logistics solutions.
New Projects Supporting Growth Trajectory
OPAL Fuels made notable operational progress during the quarter. Co-CEO Jonathan Maurer highlighted the performance of the company’s latest RNG production facilities, which commenced operations in the fourth quarter of 2024.
“Our two newest RNG facilities, which came online late last year, are progressing well through their ramp-up phases. Their performance thus far aligns with our expectations and supports our full-year RNG production targets,” said Maurer. “These facilities reflect our strategy of disciplined growth and showcase the efficiency of our development pipeline.”
In addition to its RNG production operations, the Company continued to expand its fuel station infrastructure and related services. “We saw solid performance in our Fuel Station Services segment in the first quarter,” added Maurer. “This area of our business remains a dependable source of revenue and margin contribution, and we expect continued momentum throughout the rest of 2025.”
Steady Financial Performance and Credit Monetization
OPAL Fuels posted strong top-line and bottom-line results for the quarter. Revenue for the three months ended March 31, 2025, totaled $85.4 million, marking a significant 31% increase from the same period in 2024. The growth was driven by both an increase in RNG production and expanded fuel station services.
The Company reported net income of $1.3 million for the quarter, up from $0.7 million in the first quarter of 2024. Adjusted EBITDA—a key performance metric for OPAL Fuels—rose to $20.2 million, representing a 33% year-over-year increase from $15.2 million in the prior-year period.
The Company’s earnings per share attributable to Class A common shareholders remained at a net loss of $0.01 per share, unchanged from the same period last year. This figure reflects the Company’s ongoing investments in growth and the ramp-up costs associated with new RNG facilities.
As of March 31, 2025, OPAL Fuels reported RNG Pending Monetization of $15.1 million. During the quarter, the Company successfully completed the sale of $8.9 million in Investment Tax Credits (ITCs) under the Inflation Reduction Act (IRA). Management indicated that additional ITC sales are expected later in the year, providing a meaningful source of non-dilutive capital to support growth initiatives.
“Our ability to monetize ITCs under the IRA legislation is an important component of our financing strategy,” said Maurer. “These sales enhance our liquidity position and allow us to reinvest in projects with long-term value creation potential.”
Operational Metrics Show Continued Expansion
The Company also posted meaningful gains in key operational metrics. RNG production for the first quarter of 2025 reached 1.1 million MMBtu, representing a 38% increase over the 800,000 MMBtu produced during the same period in 2024. The increase reflects contributions from both legacy sites and newly commissioned facilities.
In the Fuel Station Services segment, OPAL Fuels reported the sale, dispensing, and servicing of approximately 40.6 million gasoline gallon equivalents (GGEs) of transportation fuel during the first quarter—an increase of 16% over the prior-year period. Notably, 19.5 million GGEs of this total consisted of RNG used as transportation fuel, a 19% increase year-over-year.
These results underscore the Company’s integrated business model, which combines RNG production with downstream fuel distribution and services to deliver consistent performance across multiple revenue streams.
Sustainable Growth and Long-Term Value Creation
OPAL Fuels continues to focus on the development and operation of RNG assets that generate stable, recurring revenue with high free cash flow potential. The Company’s landfill-based RNG projects, in particular, are characterized by minimal ongoing capital expenditure requirements once operational, resulting in predictable cash generation over the life of the assets.
“Landfill RNG assets provide clear visibility into future growth and cash flows,” said Maurer. “These characteristics, combined with our disciplined approach to execution and capital allocation, are enabling us to build long-term value for our shareholders. We remain confident in our strategy and believe OPAL Fuels is well positioned to lead the RNG sector in the years ahead.”
