OPAL Fuels Inc. (OPAL) Stock: Falls 6% Despite Strong RNG Growth and Steady Q3 Outlook

TLDR

• OPAL Fuels’ Q3 2025 revenue hit $83.4 million, down 1% year over year.
• RNG production surged 30% from Q3 2024 levels.
• Net income dropped to $11.4 million from $17.1 million last year.
• The firm began construction on its CMS RNG Project in North Carolina.
• Shares dropped 6.48% to $2.02 despite strong production growth.

OPAL Fuels Inc. (NASDAQ: OPAL) reported its third-quarter 2025 results for the period ended September 30, 2025. The stock closed at $2.02, down 6.48% after the earnings announcement.

OPAL Fuels Inc., OPAL

Revenue for the quarter came in at $83.4 million, reflecting a 1% decline year over year. Net income was $11.4 million, down from $17.1 million in Q3 2024. On a per-share basis, basic and diluted net income stood at $0.05, compared to $0.09 last year.

Adjusted EBITDA totaled $19.5 million, below the $31.1 million recorded in the same period last year. Despite the softer earnings, management reaffirmed that full-year results remain within the 2025 guidance range.

Strong RNG Production Growth

Co-Chief Executive Officer Adam Comora said RNG production continues to improve, climbing 8% sequentially and 30% year over year. The company’s Atlantic RNG Project began operations last month, adding approximately 0.3 million MMBtu in annual design capacity for its 50% ownership stake.

Comora confirmed that the CMS RNG Project in North Carolina had entered construction, representing 1.0 million MMBtu in annual design capacity net to OPAL Fuels. The firm’s total annual design capacity now stands at 9.1 million MMBtu across twelve active projects.

Expanding Infrastructure and Tax Credit Gains

The company completed its fourth sale of IRA Investment Tax Credits, generating over $40 million in gross proceeds this year. OPAL expects to start recognizing 45Z production tax credits in the fourth quarter.

Co-CEO Jonathan Maurer emphasized that OPAL’s vertically integrated platform, spanning RNG and CNG production, marketing, and fueling, continues to strengthen its role in decarbonizing heavy-duty transportation. RNG and CNG are increasingly seen as efficient alternatives to diesel in the Class 8 trucking sector.

Project Pipeline and Construction Update

Beyond the Atlantic and CMS projects, OPAL expects two major facilities, the Burlington and Cottonwood RNG projects, to commence commercial operations in 2026. Its Kirby RNG Project in California, with 0.7 million MMBtu of design capacity, is scheduled to start operations in 2027.

Two California dairy projects, Hilltop and Vander Schaaf, face construction delays due to disputes with a former contractor. As of September 30, OPAL operated 47 fueling stations, with 16 more under construction and 25 third-party projects also underway.

Stock Performance

Despite operational progress, OPAL’s shares have lagged the market, recording a -40.41% YTD return and -47.53% over the past year, compared to the S&P 500’s 14.26% YTD gain. The company remains focused on long-term value creation and positioning itself as a leader in the renewable transportation energy space.

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