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OPAL Fuels Q3 2026 Earnings Report
OPAL Fuels reports 32% year-over-year growth in adjusted EBITDA despite RIN price volatility.
In brief
OPAL Fuels reports 32% year-over-year growth in adjusted EBITDA despite RIN price volatility. OPAL Fuels achieved $26.7 million adjusted EBITDA for Q3 2026, up 32% from Q3 2025, driven by fuel station services and 45Z tax credits. Originally reported by The Motley Fool.
Q3 2026 Financial Results
OPAL Fuels reported adjusted EBITDA of $26.7 million for Q3 2026, a 32% year-over-year increase.
Revenue and Production
Revenue decreased to $79.5 million from $83.4 million in Q3 2025, with RNG production at 1.3 million MMBtu.
RNG Fuel Segment Performance
RNG Fuel Segment adjusted EBITDA grew to $20.3 million, up 35% year-over-year from $15 million in Q3 2025.
Fuel Station Services Growth
Fuel Station Services Segment adjusted EBITDA increased to $13 million, an 18% year-over-year rise from $11 million.
Total Fuel Volumes
Total fuel volumes delivered reached 40 million GGEs, a 3% increase from 38.9 million GGEs in Q3 2025.
Liquidity and Capital
Company ended Q3 2026 with $122 million liquidity, including $86 million cash and short-term investments.
45Z Tax Credit Impact
Company shifted accounting for 45Z tax credits to government grant approach, reducing cost of sales rather than tax benefits.
RIN Price Volatility
D3 RIN prices traded close to D4 RIN price floor due to potential oversupply from EPA Set Rule 2.
Leadership Transition
Co-CEO Jonathan Maurer will retire effective March 31, 2027, transitioning to senior adviser role.
2027 Capacity Expansion
Cottonwood, Burlington, and CMS projects will add 2 million MMBtu of annual design capacity by end of 2027.
Production Improvements
Fourth quarter production rates reflect benefits of gas collection and plant performance improvements implemented in Q3.
Fleet Conversion Momentum
$6 diesel price not required for fleet conversion economics, with strong acceleration in natural gas adoption.
RNG Production Outlook
Company expects full year RNG production to be modestly below previous guidance due to operational delays.
Downstream Business Growth
Fuel Station Services segment shows strong growth potential with contracted volume-based tolling revenues.
Capital Allocation Strategy
Company prioritizes capital efficiency in upstream production while expanding downstream fueling operations.
2027 EBITDA Guidance
Management maintains full year adjusted EBITDA guidance at low end of range despite RIN price volatility.
The main idea
OPAL Fuels achieved $26.7 million adjusted EBITDA for Q3 2026, up 32% from Q3 2025, driven by fuel station services and 45Z tax credits.
