OPAL Fuels Inc. Q4 FY2025 earnings call

• Adam mentioned 2025 ended strongly with adjusted EBITDA at 90.2M within guidance, production grew 28% masked by lower RIM prices. Outlook for 2026: encouraged by approved operations team, new gas collection opportunities, and plant efficiencies driving incremental production growth from existing assets. Fuel station services segment sees improving macro conditions as potential inflection point for new fleet adoption of CNG and RNG, but 2026 will still feel effects of 2025 business development sluggishness. • John discussed successful completion of $180M Series A preferred facility, drew ~$128M under senior secured credit facility. Upstream focus on improving existing operating assets, advancing RNG projects in construction/development. Downstream focus on expanding fuel station services platform, ending 2025 with 61 OPAL-owned stations. Market fundamentals stabilized and improved in 2026 for trucking and logistics sector, supporting re-engagement by fleets. • Kazi reviewed financial performance: Q4 revenue 99.8M, adjusted EBITDA 34.2M vs prior year's 80M and 22.6M. Full year 2025 adjusted EBITDA 90.2M, flat Y/Y despite D3 RIN pricing decline. RNG production growth, fuel station services segment EBITDA growth. Restated GNA presentation to allocate facility-specific GNA to operating segments. Ended year with $184M total liquidity, capital expenditures and investments in 2025, 2026 adjusted EBITDA guidance $95M - $110M with RNG production between 5.4 - 5.8 million MMBTU and ~$15 - $20M of 45Z credits.

In 2025, RNG production reached 4.9 million MMBTU, a 28% growth year over year. Fourth quarter production exceeded 1.3 million MMBTU, up ~24% from Q4 2024. Fuel station services segment EBITDA increased to 46.7 million in 2025 from 38.4 million in 2024, a 22% increase. Revenue in Q4 was 99.8 million and adjusted EBITDA was 34.2 million, compared with 80 million and 22.6 million in the same period last year. Full year 2025 adjusted EBITDA was 90.2 million, essentially flat year-over-year despite declining environmental credit prices.

• 2026 adjusted EBITDA guidance is $95 million to $110 million, representing approximately 14 percent growth at the midpoint compared to 2025. • Expect RNG production between 5.4 million and 5.8 million MMBTU, representing more than 14 percent growth versus 2025, driven primarily by improved performance from existing asset base, continued ramp of recently commissioned projects, and marginal contributions from projects entering service during 2026. • Assuming approximately $15 to $20 million of 45Z credits during the year.

Q: Starting with liquidity and growth outlook, could you speak to next phase of growth beyond current development queue and CapEx for bringing projects online?

A: Adam said they updated liquidity position on March 10th with about 160M liquidity available to complete current construction projects, 60M unused drawn capacity on preferred facility plus operating cash flows. They've got robust project opportunities, more capital to be deployed into fuel station services business.

Q: In 4Q, you accomplished increase in inlet utilization levels, could you speak to drivers and where utilization levels may level out?

A: Proud of operations team, utilization increased from 70-ish% to closer to 80% in 2025. See opportunity for continued improvement to 85 - 86% utilization level. Growth from operating projects better and growth in gas.

Q: Are there specific examples of things changing to improve operations and specific assets to improve utilization? And are Cottonwood and Burlington still expected to start up in 2026?

A: Examples include tuning gas quality, training teams, focusing on improving inlet gas quality for projects. No significant delays in Cottonwood and Burlington, focus on improving operations at existing facilities.

Q: Could you talk about relationship with Nextera?

A: Nextera is a terrific partner, still work closely on environmental credit trading agreement, they are 50% owners in Noble and Pine Bend projects, nothing materially changing.

Q: Do you have a goal for MMB2 capacity to place into construction in 2026?

A: Adam said they see significant pipeline of new project opportunities, including greenfield biogas rights, renewable power conversion projects, fuel station service segment investments, and opportunistic M&A, will continue to invest capital mindful of balance sheet strength and liquidity.

Q: About 2026 CapEx breakdown between RNG projects and fuel stations?

A: 154M primarily on committed construction projects and some downstream dispensing station investments, lion's share in production.

Q: What level of growth embedded in guidance for fuel station services in 2026 and margin expansion?

A: 2026 is biz dev activity setting stage for future growth, not anticipating same levels of growth as later years. Margin expansion expected as own more fueling stations, margins naturally move higher.

Q: Take on RFS cellulosic side impacts and expectations?

A: EPA sent final rule to OMB, hope it gets released soon. Cellulosic category has bipartisan support on tax policy, not getting same level of intention as liquid agricultural biofuels, remains stable with potential upward bias to D3 in cellulosic category with broader biofuels complex.

Q: More color on 2026 EBITDA guidance between segments?

A: Kazi said challenging start to 2026 with winter storms factored into guidance, don't give specific segment guidance, upstream and downstream growth dynamics differ with downstream more pivoting in 2026