OPAL Fuels (NASDAQ:OPAL) Announces Quarterly Earnings Results, Misses Expectations By $0.16 EPS

Key Points

• OPAL Fuels reported a quarterly loss of $0.09 EPS, missing the consensus estimate of $0.07 by $0.16. The company also said net margin was 1.98% and return on equity was 77.65%.
• Operationally, the company said RNG production rose 9% year over year to 1.2 million MMBtu, with management expecting faster growth starting in Q2 and more than 2 million MMBtu of new design capacity coming online over the next year.
• Despite lower adjusted EBITDA of $16.7 million due to weaker RIN prices, OPAL strengthened its balance sheet with about $233 million in liquidity after completing roughly $288 million in financings to support projects and acquisitions.

OPAL Fuels (NASDAQ:OPAL - Get Free Report) issued its earnings results on Monday. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.16), Zacks reports. OPAL Fuels had a net margin of 1.98% and a return on equity of 77.65%.

Here are the key takeaways from OPAL Fuels' conference call:

• Operations improved with RNG production up 9% year‑over‑year to 1.2 million MMBtu and management expects accelerating production growth starting in Q2 plus >2 million MMBtu of new design capacity coming online over the next year.
• Adjusted EBITDA fell to $16.7 million from $20.1 million a year ago, chiefly due to lower realized RIN prices which reduced Q1 EBITDA by roughly $4 million and pressured revenue versus 2025.
• Balance sheet and financing strengthened: the company completed ~$288 million of financings (including a $180 million preferred facility), drew its term loan, and exited the quarter with approximately $233 million of liquidity
• Commercial outlook is improving as fleets show momentum toward CNG/RNG deployments—citing diesel price volatility, regulatory clarity, and successful Cummins X15N tests—with initial deployments expected to begin contributing in 2027 (not materially in 2026).
• The company reiterated full‑year 2026 guidance but warned of near‑term lumpiness from weather, construction timing, and one‑off contracts, and noted its forward‑looking optimism reflects management’s perspective rather than guaranteed outcomes.

OPAL Fuels Stock Performance

OPAL stock traded down $0.12 during mid-day trading on Monday, hitting $2.15. 292,562 shares of the company were exchanged, compared to its average volume of 214,217. The business has a 50 day simple moving average of $2.30 and a 200-day simple moving average of $2.35. The company has a current ratio of 1.18, a quick ratio of 1.07 and a debt-to-equity ratio of 32.18. The stock has a market capitalization of $372.81 million, a PE ratio of 14.53 and a beta of 0.76. OPAL Fuels has a 1-year low of $1.65 and a 1-year high of $4.08.

Analyst Upgrades and Downgrades

OPAL has been the subject of several recent analyst reports. Weiss Ratings upgraded shares of OPAL Fuels from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, April 27th. Zacks Research upgraded shares of OPAL Fuels from a "strong sell" rating to a "hold" rating in a research report on Tuesday, May 5th. The Goldman Sachs Group raised their price objective on shares of OPAL Fuels from $2.10 to $2.40 and gave the stock a "sell" rating in a research report on Tuesday, March 17th. Finally, Wall Street Zen upgraded shares of OPAL Fuels from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. Four investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, OPAL Fuels has an average rating of "Reduce" and an average price target of $2.72.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Zions Bancorporation National Association UT bought a new position in shares of OPAL Fuels during the fourth quarter worth approximately $27,000. Mariner LLC bought a new position in shares of OPAL Fuels during the fourth quarter worth approximately $27,000. Engineers Gate Manager LP bought a new position in shares of OPAL Fuels during the second quarter worth approximately $27,000. Intech Investment Management LLC bought a new position in shares of OPAL Fuels during the second quarter worth approximately $28,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of OPAL Fuels during the second quarter worth approximately $28,000. 12.16% of the stock is owned by institutional investors.

OPAL Fuels Company Profile

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.

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