OPAL Fuels Q3 adj EBITDA edges past estimates on higher RNG output, higher fuel station margins
Overview
US RNG fuel producer's Q3 revenue fell 5% yr/yr, missing analyst expectations
Q3 adjusted EBITDA grew 32% and slightly beat consensus, driven by higher RNG output and lower costs
Company maintained full-year Adjusted EBITDA guidance but expects 2026 RNG production below target
Outlook
Company maintains 2026 Adjusted EBITDA guidance
Company expects 2026 RNG production to be modestly below prior guidance
Company expects aggregate inlet design capacity utilization of 75-85% over next several years
Result Drivers
RNG PRODUCTION GROWTH - Co said RNG production rose 5% yr/yr and 7% sequentially, though operational improvements took longer than expected
FUEL STATION SERVICES - Co said Fuel Station Services EBITDA grew 18% yr/yr due to higher fuel volumes and stronger margins
COST CONTROL - Co said lower general and administrative costs contributed to Adjusted EBITDA growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $79.49 mln | $95.56 mln (3 Analysts) |
Q3 Loss Per Share | $0.03 | ||
Q3 Net Income | $1.66 mln | ||
Q3 Adjusted EBITDA | Slight Beat* | $26.69 mln | $26.68 mln (5 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy."
Wall Street's median 12-month price target for Opal Fuels Inc. is $2.88, about 98.3% above its November 6 closing price of $1.45
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 7 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)