OPAL Fuels (NASDAQ:OPAL) Posts Quarterly Earnings Results, Misses Estimates By $0.05 EPS

OPAL Fuels (NASDAQ:OPAL) announced its quarterly earnings data on Monday. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.05), FiscalAI reports. The business had revenue of $79.49 million during the quarter, compared to analyst estimates of $91.30 million. OPAL Fuels had a return on equity of 15.54% and a net margin of 0.65%.

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

• Third-quarter Adjusted EBITDA rose 32% to $26.7 million, driven by growth in Fuel Station Services, 45Z tax credits and lower G&A. The company maintained its full-year guidance, but expects to finish near the low end.
• Full-year RNG production is expected to come in modestly below prior guidance, as operational improvements took longer than expected. Management said production gains are appearing in the fourth quarter and expects three new projects with 2 million MMBtu of annual design capacity to come online during 2027.
• Fuel Station Services Adjusted EBITDA increased 18% to $13 million in the quarter, supported by higher volumes and improved margins. Management sees diesel prices boosting fleet interest in natural gas and RNG, and expects to direct a greater share of capital toward downstream growth.
• Management cited downward pressure and volatility in D3 RIN prices, which have been trading near the D4 RIN floor amid expectations of potential D3 supply oversupply. Current RIN pricing is incorporated into full-year guidance.
• Co-CEO John Maurer plans to retire effective March 31, 2027, and will remain involved as a senior advisor to support the leadership transition.

OPAL Fuels Stock Performance

Shares of NASDAQ OPAL opened at $1.42 on Tuesday. The company has a quick ratio of 1.68, a current ratio of 1.82 and a debt-to-equity ratio of 10.89. The stock has a market capitalization of $248.16 million, a price-to-earnings ratio of -141.86 and a beta of 0.82. The stock’s fifty day simple moving average is $1.72 and its 200 day simple moving average is $2.10. OPAL Fuels has a 52-week low of $1.36 and a 52-week high of $2.87.

Insider Activity at OPAL Fuels

In related news, CEO Adam Comora bought 20,000 shares of OPAL Fuels stock in a transaction dated Thursday, September 3rd. The stock was acquired at an average cost of $2.08 per share, with a total value of $41,600.00. Following the completion of the acquisition, the chief executive officer directly owned 509,626 shares in the company, valued at approximately $1,060,022.08. This trade represents a 4.08% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders acquired 80,000 shares of company stock worth $157,900 over the last three months. Corporate insiders own 85.69% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. Wall Street Zen lowered shares of OPAL Fuels from a “hold” rating to a “sell” rating in a research note on Saturday, October 17th. Weiss Ratings restated a “sell (d+)” rating on shares of OPAL Fuels in a report on Wednesday, November 4th. One analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Sell” and an average target price of $2.40.

OPAL Fuels Company Profile

OPAL Fuels Inc is a renewable energy company that develops and operates infrastructure for producing and using renewable natural gas (RNG). The company captures methane from landfills and other waste sources and processes it into pipeline-quality RNG, helping convert waste emissions into a usable energy resource.

Its activities include the development, construction, ownership and operation of landfill gas and RNG facilities, as well as the generation of renewable electricity. OPAL Fuels also supplies RNG for use as a transportation fuel and provides fueling infrastructure and related services for fleets, including heavy-duty vehicles.

The company serves customers primarily in the United States through a portfolio of waste-to-energy and renewable fuels projects.