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    MNTK
    Earnings call· Jun 2026(Q2 FY26)

    Montauk Renewables Q2 FY26 earnings call MNTK

    Aug 6, 2026 Source

    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

    4
    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

    2
    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

    Operational metrics

    32
    Total revenues
    $54.0 millionup $8.9 million or 19.7% vs Q2 2025
    Q2 2026

    Compared to $45.1 million in Q2 2025.

    Environmental attribute revenues
    $8.4 million
    Q2 2026

    Primarily from RINs sold related to GreenWave distribution and pathway dispensing.

    RNG commodity revenue
    decreased 63.7%YoY
    Q2 2026

    Due to expiration of fixed lower-price contracts.

    RINs sold
    increased 29.1%YoY
    Q2 2026

    Offset decreases in RNG commodity revenue.

    RINs generated and unseparated
    decreased 95.4%YoY
    Q2 2026

    As a result of the transition to the biogas regulatory reform rule in 2025.

    General and administrative expenses
    $7.7 milliondecrease of $1.3 million or 15.2% vs Q2 2025
    Q2 2026

    Compared to $9.0 million in Q2 2025, driven primarily by a one-time accelerated vesting of approximately $1.6 million in 2025.

    RINs self marketed
    14.3 millionincrease of $3.2 million or 29.1% vs Q2 2025
    Q2 2026

    Compared to 11.1 million RINs self marketed during Q2 2025.

    Average pricing realized on RIN sales
    $2.45increase of 1.2% vs Q2 2025
    Q2 2026

    Compared to $2.42 during Q2 2025.

    Average D3 RIN index price
    $2.54approximately 7.6% higher than Q2 2025
    Q2 2026

    Compared to $2.36 for Q2 2025.

    RINs available for generation
    0.4 million MMBtu
    June 30, 2026

    Compared to 0.3 million MMBtu at June 30, 2025.

    RINs generated but unseparated
    0.1 million
    June 30, 2026

    Compared to 3.0 million RINs at June 30, 2025.

    RINs separated and unsold
    0
    June 30, 2026

    Compared to 0.1 million RINs at June 30, 2025.

    Cost of RINs distributed from GreenWave and pathway dispensing
    $8.3 million
    Q2 2026

    No such expenses incurred during Q2 2025.

    Impairments
    $0.7 millionincrease of $0.3 million vs Q2 2025
    Q2 2026

    Related to identified, discrete or non-offerable assets.

    Operating loss
    $75,000decrease of $2.3 million or 96.8% vs Q2 2025
    Q2 2026

    Compared to an operating loss of $2.4 million for Q2 2025.

    Other income from GreenWave joint venture
    $3.8 million
    Q2 2026

    No such income reported during Q2 2025.

    RINs distributed from GreenWave
    $1.5 million
    Q2 2026

    Received in Q2 2026.

    RINs sold from GreenWave
    $1.9 million
    Q2 2026

    Resulted in $4.8 million in revenues.

    Outstanding senior credit facility
    $155 million
    June 30, 2026

    With Haze; company in compliance with all applicable financial covenants.

    Capital expenditures
    $61.3 million
    H1 2026

    For the first 6 months of 2026.

    Capital expenditures included in accounts payable or accrued liabilities
    $17.3 million
    June 30, 2026

    As of June 30, 2026.

    Cash and cash equivalents
    $15.8 million
    June 30, 2026

    Net of restricted cash.

    Accounts and other receivables
    $5.6 million
    June 30, 2026

    No collectibility issues expected.

    Adjusted EBITDA
    $12.3 millionincrease of $7.3 million or 154.5% vs Q2 2025
    Q2 2026

    Compared to $5.0 million for Q2 2025.

    EBITDA
    $11.7 millionincrease of $7.1 million or 151.4% vs Q2 2025
    Q2 2026

    Compared to $4.6 million for Q2 2025.

    Net income
    $0.2 millionincrease of $5.7 million vs Q2 2025
    Q2 2026

    Compared to a net loss of $5.5 million for Q2 2025.

    RINs committed for Q3 2026
    $2.66
    Q3 2026

    Average RINs price for majority of expected Q3 2026 RNG production. Compared to average D3 index price for July 2026 of $2.64.

    Average D3 index price
    $2.64
    July 2026

    For the month of July 2026.

    Hog spaces targeted for Turkey NC Phase 1
    400,000-450,000
    Phase 1 development

    To fully supply the first phase of development.

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

    Through long-term agreements with over 50 separate farming locations.

    Hog spaces currently collecting feedstock
    >250,000
    July 2026

    Collection equipment installations continuing during H2 2026.

    Average commodity pricing for natural gas
    15.7% lowerYoY
    Q2 2026

    Compared to Q2 2025.

    Industry KPIs

    5
    MetricValueDetails
    Contracted ppa price—
    Generation output fleet availability1.5 million MMBtu RNG; 44,000 MWh renewable electricity
    Development pipeline by maturity stage>350,000 hog spaces securedhog spaces
    Contracted ppas vs uncontracted capacity—
    Uprates development pipeline m a capacityTurkey, NC facility began generating power

    Orderbook & backlog

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

    2
    GreenWaveAddresses 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 locationsLong-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

    1
    Montauk Ag Renewables (Turkey, NC) first phase developmentunderway$200 million

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

    Risks & headwinds

    3
    RNG commodity revenue declineQ2 2026

    decreased approximately 63.7%

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

    Decrease in RINs generated and unseparatedQ2 2026

    decreased approximately 95.4%

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

    Turkey, NC facility initial production optimizationMid-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

    4

    Turkey, NC facility programming completion

    Next quarter
    CurrentUnderway, expected mid-August
    TargetCompleted, 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.

    Q&A highlights

    1

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.