OPAL Fuels (NASDAQ:OPAL) reported fourth-quarter and full-year 2025 results and provided 2026 guidance, highlighting production growth and operational improvements that were offset in 2025 by weaker environmental credit pricing. Management also discussed strengthening liquidity through a new preferred equity facility and offered an update on market conditions for its Fuel Station Services segment.
2025 results: production growth tempered by lower RIN prices
Co-CEO Adam Comora said the company finished 2025 strongly, with adjusted EBITDA of $90.2 million, which was within guidance. He characterized 2025 adjusted EBITDA as “flat” versus 2024, but emphasized that RNG production grew 28% year-over-year, with financial results “masked” by factors including 22% lower RIN prices.
For the fourth quarter, OPAL Fuels reported revenue of $99.8 million and adjusted EBITDA of $34.2 million, compared with $80.0 million and $22.6 million in the prior-year period. Hasan said the year-over-year improvement was driven primarily by increased production and recognition of 45Z tax credits.
Operational updates: utilization improvements and Atlantic ramp
Hasan said RNG production reached 4.9 million MMBtu in 2025, up 28% year-over-year. Fourth-quarter production exceeded 1.3 million MMBtu, up about 24% from the fourth quarter of 2024. Co-CEO Jonathan Maurer said facilities commissioned late in 2024 increased production meaningfully during 2025, supporting a stronger operating position entering 2026.
Maurer also pointed to improvements in operating efficiency and availability. In Q&A, he said the company’s efficiency and availability improved through 2025 from “the 70-ish% level” to “closer to the 80% level,” and that management views 85%–86% utilization as “readily achievable,” with certain assets capable of outperforming that range.
Maurer said a full year of operations at the Atlantic facility in 2026 is expected to contribute to growth, noting it came online in late 2025 and has been ramping more quickly than recent project experience due to higher gas flows at the landfill. Management also described a focus on operational tuning, including improving inlet gas quality (methane concentration and lower nitrogen/oxygen) and balancing systems such as membranes and rejection units across the fleet.
On projects in construction, management said it was being conservative on timing and ramp. In response to a question about Cottonwood and Burlington, Comora said there were “no significant delays,” but guidance was focused primarily on improving operations at existing facilities rather than relying on new project ramp contributions.
Fuel Station Services: near-term lag, longer-term opportunity
OPAL Fuels continued expanding its downstream footprint, ending 2025 with 61 OPAL-owned stations, according to Maurer. He said the trucking and logistics sector experienced macro softness in 2025, but that fundamentals stabilized and improved entering 2026, leading fleets to re-engage on deferred truck purchases. Management argued that CNG and RNG are receiving more attention as diesel replacements due to lower and more stable fuel costs, regulatory clarity regarding combustion engines, and sustainability tailwinds.
Hasan reported Fuel Station Services segment EBITDA rose to $46.7 million in 2025 from $38.4 million in 2024, a 22% increase. However, he said results came in below guidance due primarily to deferred investment decisions by fleet partners involving new stations and new truck purchases.
Comora cautioned that new fleet deployments typically take time to translate into financial results, noting it generally takes about a year to build a fueling station and begin selling fuel. Management described 2026 as a year where business development activity could set up stronger growth beyond 2026, and Comora said the segment would still be feeling the effects of sluggish 2025 activity.
Capital structure and liquidity: preferred facility and available capacity
Management highlighted the completion of a $180 million Series A preferred facility provided by Fortistar. Maurer said the facility allowed OPAL Fuels to fully repay an existing $100 million preferred investment and strengthen liquidity. He also noted the company drew approximately $128 million under its senior secured credit facility to improve visibility for executing its project portfolio.
Hasan said OPAL Fuels ended 2025 with $184 million of total liquidity, comprised of approximately $30 million of cash and short-term investments, $138 million of undrawn capacity under its term facility, and $16 million of revolver availability. Capital expenditures and investments in joint venture projects were about $16 million in the fourth quarter and $90 million for full-year 2025. He also said the company monetized approximately $43 million of investment tax credits during 2025.
In Q&A, Comora said the company had updated its liquidity position and had about $160 million available to complete projects in construction, which he described as about 2.8 million MMBtu of in-construction projects plus some Fuel Station Services investments. He also referenced $60 million of undrawn capacity on the preferred facility, along with growing operating cash flow, as additional sources for capital deployment.
2026 outlook: higher EBITDA and production, with winter impacts noted
For 2026, OPAL Fuels issued adjusted EBITDA guidance of $95 million to $110 million, which Hasan said represents about 14% growth at the midpoint versus 2025. The company expects RNG production of 5.4 million to 5.8 million MMBtu, more than 14% growth, driven primarily by improved performance from the existing asset base, continued ramp of recently commissioned projects, and “marginal” contributions from projects entering service during 2026.
Hasan said guidance assumes approximately $15 million to $20 million of 45Z credits during 2026 and also reflects what management described as a challenging winter to start the year. Comora additionally cautioned that snowstorms can affect both production and operating costs early in the year, though the company did not provide quarterly guidance.
On policy, Comora referenced the EPA sending a final Set Rule with updated 2026 and 2027 renewable volume obligation targets to the Office of Management and Budget on February 5, saying the rule was expected shortly. He said OPAL Fuels believes the D3 RIN market has shown relative stability and “could have an upward bias with the broader biofuels complex,” while also suggesting cellulosic-focused policy attention has been less prominent than support for liquid agricultural biofuels.
About OPAL Fuels (NASDAQ:OPAL)
OPAL Fuels (NASDAQ: OPAL) is a publicly traded company headquartered in San Diego, California, specializing in the production, distribution and dispensing of renewable natural gas (RNG) for heavy-duty transportation. The company operates a network of RNG fueling stations across California, offering fleets of trucks, transit buses and logistics providers a low-carbon alternative to conventional diesel without requiring significant changes to existing vehicle technology or fueling infrastructure.
OPAL Fuels sources organic byproducts from dairy farms, landfills and food-processing facilities, converting methane-rich biogas into pipeline-quality RNG through a series of anaerobic digestion and gas-upgrading processes.
