OPAL Fuels Inc. (NASDAQ:OPAL) reported fourth-quarter results that exceeded revenue expectations but missed earnings estimates, with the stock rising about 2.3% following the release.
The renewable natural gas producer generated quarterly revenue of $99.8 million, surpassing the analyst consensus of $93.4 million and representing a 25% increase from $80.0 million recorded in the same quarter last year.
Adjusted earnings per share, however, came in at $0.02, below analyst projections of $0.16. Adjusted EBITDA for the quarter reached $34.2 million, compared with $22.6 million a year earlier, supported by higher production levels and benefits from 45Z production tax credits.
For the full year 2025, the company reported revenue of $349.0 million, up 16% from the prior year. Adjusted EBITDA totaled $90.2 million, roughly unchanged from $90.0 million in 2024. During the year, OPAL Fuels sold $42.9 million worth of Investment Tax Credits and began recognizing revenue from its first 45Z production tax credits.
“We are encouraged by fourth quarter results. Adjusted EBITDA was $34.2 million as we benefited from increased production and 45Z production tax credits,” said Adam Comora, Co-Chief Executive Officer. “As we look to 2026, we are well positioned to drive continued RNG production growth from our existing facilities based on improvements in our team, in our gas collection, and in overall plant efficiencies.”
For the full year, RNG production increased 29% to 4.9 million MMBtu, while the company’s Fuel Station Services segment dispensed 161.9 million gallons of gasoline equivalent, an 8% increase compared with the previous year.
Looking ahead to 2026, OPAL Fuels expects adjusted EBITDA to range between $95 million and $110 million. The midpoint of $102.5 million would represent growth from 2025 levels. The outlook assumes an average D3 RIN price of $2.45 per gallon and RNG production of between 5.4 million and 5.8 million MMBtu.