OPAL Fuels Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Adjusted EBITDA: $23.1 million, a 40% increase year-over-year.

Consolidated Revenue: $83.4 million, up 4% from Q2 2025.

RNG Production: 1.3 million MMBtus, an 8% increase from the previous year.

G&A Costs: Reduced by $3.2 million compared to Q2 2025.

Liquidity: $162.2 million, including $91.4 million in cash.

Discretionary Free Cash Flow: Approximately $0.30 per share over the last 12 months.

2Strategic Updates and Business Highlights

Continued focus on plant improvement initiatives aimed at enhancing gas collection and operational efficiency.

Advancements in the RNG project portfolio, with over 2 million MMBtu of annual design capacity expected to come online in the next 12 months.

Ongoing construction of projects such as Cottonwood and Burlington, with a total expected production increase of approximately 3 million MMBtu over the next 24 months.

Emphasis on vertical integration and capital allocation between upstream and downstream investments to optimize returns.

3Forward Guidance and Outlook

OPAL Fuels is maintaining its annual guidance, projecting EBITDA of $55 to $70 million for the second half of 2026.

Anticipated production growth and improved unit profitability, driven by operational efficiencies and favorable RIN pricing.

Confidence in achieving production growth through existing facilities and new projects, despite some uncertainty regarding RIN pricing.

4Bad News, Challenges, or Points of Concern

Production Performance: Slightly below expectations for the quarter, highlighting the need for improved operational execution.

Renewable Power Segment: Experienced a decline in performance, with adjusted EBITDA dropping to $0.3 million from $2.2 million year-over-year, due to lower production and pricing.

Regulatory Environment: Uncertainty surrounding the Set Rule 3 and its potential impact on RIN pricing and market dynamics.

Operating Expenses: While improved quarter-over-quarter, there are expectations for increased SG&A costs in the third quarter due to normalization of professional services.

5Notable Q&A Insights

Plant Improvement Initiatives: Management highlighted ongoing improvements in operational efficiency and gas collection technology, which are expected to yield significant production and EBITDA increases.

Regulatory Discussions: Management is actively engaging with the EPA to advocate for the recognition of RNG as a transportation fuel and to support growth in the cellulosic category.

Market Conditions: There is cautious optimism regarding RIN pricing and production growth, with management noting that stronger production and pricing would be necessary to reach the upper end of their EBITDA guidance.

M&A Landscape: Management acknowledged ongoing consolidation in the industry but emphasized their focus on organic growth and improving asset utilization rather than pursuing acquisitions aggressively. This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of OPAL Fuels' performance and outlook for Q2 2026.