Inve US ▾
MNMNTK

Montauk Renewables (MNTK) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 6, 2026

Source: earnings call transcript

Executive summary

Montauk Renewables Q2 FY26 — Turkey NC Facility Begins Power Generation, Strong Adjusted EBITDA Growth

Montauk Renewables reported strong Q2 FY26 revenue and adjusted EBITDA growth, driven by environmental attribute sales and contributions from its GreenWave joint venture. The new Turkey, North Carolina facility commenced power generation, marking a significant step in its development, though initial production requires programming modifications. The company reaffirmed its full-year RNG and renewable electricity production and revenue guidance, focusing on optimizing new assets and managing RIN market dynamics.

Highlights

5

  • Adjusted EBITDA increased by $7.3 million or 154.5% to $12.3 million in Q2 2026.

  • Total revenues increased by $8.9 million or 19.7% to $54.0 million in Q2 2026.

  • Net income increased by $5.7 million to $0.2 million in Q2 2026 (from a loss).

  • The Turkey, NC facility began generating power for sale in July 2026.

  • GreenWave joint venture contributed $3.8 million in income and $1.5 million in distributed RINs in Q2 2026.

Concerns

4

  • Operating loss of $75,000 in Q2 2026.

  • Renewable Electricity generation operating loss of $2.1 million in Q2 2026.

  • RNG commodity revenue decreased by 63.7% due to the expiration of fixed lower-price contracts.

  • RINs generated and unseparated decreased by 95.4% due to the transition to the biogas regulatory reform rule.

Guidance & targets

CategoryTargetConfidence
RNG production volumes
5.8 million to 6 million MMBtu
high materiality
High
RNG revenues
$175 million and $190 million
high materiality
High
Renewable electricity production volumes
185,000 and 195,000 megawatt hours
medium materiality
High
Renewable electricity revenues
$23 million and $26 million
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Renewable Natural Gas
Revenue increased slightly despite lower commodity pricing for natural gas. Production growth was driven by improvements at McCarty and Apex facilities, offset by decreases at Galveston and Atascocita.
Production: 1.5 million MMBtuProduction YoY increase: 43,000 MMBtuMcCarty production increase: 53,000 MMBtuApex production increase: 39,000 MMBtuGalveston production decrease: 26,000 MMBtuAtascocita production decrease: 37,000 MMBtuOperating and maintenance expenses: $15.6 million
$40.9 million0.3%—$9.6 million operating income
Renewable Electricity
Revenue and production increased due to improved gas flows at the Bowerman facility. Operating loss decreased slightly, but O&M expenses increased due to noncapitalizable costs at Montauk Ag Renewables.
Production: 44,000 megawatt hoursProduction YoY increase: 2,000 megawatt hoursBowerman production increase: 3,000 megawatt hoursOperating and maintenance expenses: $5.1 million
$4.5 million4.8%—($2.1 million) operating loss

Orderbook & backlog

Hog spaces secured for Turkey, NC Phase 1 feedstock >350,000 July 2026

Out of a target of 400,000-450,000 hog spaces for the first phase of development; currently collecting from >250,000 hog spaces; collection equipment installations continuing during H2 2026.

Deals & partnerships

GreenWave Addresses limited capacity of RNG utilization for transportation, offering third-party RNG volumes access to unique and proprietary transportation pathways.

GreenWave Match matches available dispensing capacity with available third-party volumes and distributes RINs to partners.

Over 50 separate farming locations Long-term agreements for feedstock collection for the Turkey, NC facility. long-term

Currently able to collect for more than 250,000 hog spaces, with collection equipment installations continuing during H2 2026.

Capital programs

Montauk Ag Renewables (Turkey, NC) first phase development underway $200 million

Capital investment expectation remains unchanged for the first phase of this project.

Risks & headwinds

RNG commodity revenue decline Q2 2026

decreased approximately 63.7%

Mitigation:Offset by an increase in RINs sold of 29.1%.

Decrease in RINs generated and unseparated Q2 2026

decreased approximately 95.4%

Mitigation:Result of the transition to the biogas regulatory reform rule in 2025.

Turkey, NC facility initial production optimization Mid-August 2026 completion expected

Programming modifications to installed electrical switch gear required

Mitigation:Modifications will provide for increased production volumes and enhanced protection for processing equipment and electrical transformers.

What to watch in Q3 FY26

Turkey, NC facility programming completion

Next quarter
Current Underway, expected mid-August
Target Completed, consistent power generation

Why it matters

Ensuring consistent and increased power and REC generation from the new facility is crucial for revenue ramp-up and project economics.

We expect to have all programming completed by mid-August and consistently generate power in RECs from all available collected feedstock volumes.

Find out whether MNTK delivers this. Inve re-checks your case every morning.

Q&A highlights

Analyst inquired about the reasons for RINs pricing stability observed in the market and whether the full-year RNG revenue guidance includes GreenWave-related revenues.

Kevin Van Asdalan attributed RINs stability to the completion of the 2025 vintage settlement and obligated parties purchasing more regularly in 2026. Sean McClain added that Montauk focuses on selling RINs to obligated parties. Kevin confirmed that GreenWave revenues are included in the RNG revenue forecasts.

“The contribution, we include GreenWave in our forecasts for what we expect to receive from the third-party volumes that we're distributing through that pathway. But yes, so there would be expectations of inclusion of RIN revenues from GreenWave.”

asked by Timothy Michael Moore · answered by Kevin Van Asdalan

2 min read 5 chapters

Detailed narrative

Turkey, NC Facility Progress and Optimization

The Turkey, North Carolina facility commenced power generation for sale in July 2026, with expectations to generate swine RECs and enhanced RECs in subsequent months. To increase production volumes and enhance equipment protection, specific programming modifications to the installed electrical switchgear are being implemented. These modifications are anticipated to be completed by mid-August, enabling consistent power and REC generation from all available collected feedstock volumes.

Feedstock Collection for Turkey, NC Development

Montauk has secured long-term agreements with over 50 separate farming locations, providing access to more than 350,000 of the targeted 400,000 to 450,000 hog spaces required for the first phase of the Turkey, NC development. Collection equipment installations are ongoing, with over 250,000 hog spaces currently able to provide feedstock. The company expects to continue these installations throughout the second half of 2026.

GreenWave Joint Venture Contribution

The GreenWave joint venture continues to address the limited capacity for RNG utilization in transportation by offering third-party RNG volumes access to unique transportation pathways. In Q2 2026, Montauk received approximately $1.5 million in separated RINs distributed from GreenWave, and the JV contributed $3.8 million in income. This partnership provides a mechanism for efficient RIN distribution and revenue generation.

RINs Market Dynamics and Strategy

Management observed increased transparency and stability in RINs pricing during the first five to six months of 2026. This stability is attributed partly to the completion of the 2025 vintage settlement and obligated parties engaging in more regular purchases earlier in the compliance year. Montauk's strategy emphasizes self-marketing RINs to obligated parties to ensure their retirement for compliance purposes, rather than short-term sales.

Capital Investment and Financial Position

Capital expenditures for the first six months of 2026 totaled $61.3 million, with significant allocations of $49.8 million to Montauk Ag Renewables and $3.6 million to the Bowerman RNG facility. The capital investment expectation for the first phase of the Turkey, NC project remains unchanged at $200 million.

As of June 30, 2026, the company had $15.8 million in cash and cash equivalents and was in compliance with all financial covenants under its $155 million senior credit facility.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.