OPAL Fuels Inc. (Nasdaq: OPAL) is a leading vertically integrated renewable fuels company headquartered in White Plains, New York, founded in 1998. The company focuses on capturing methane emissions from landfills and dairy farms to produce Renewable Natural Gas (RNG) and convert it into clean vehicle fuel, primarily serving heavy ...OPAL Fuels Inc. (Nasdaq: OPAL) is a leading vertically integrated renewable fuels company headquartered in White Plains, New York, founded in 1998. The company focuses on capturing methane emissions from landfills and dairy farms to produce Renewable Natural Gas (RNG) and convert it into clean vehicle fuel, primarily serving heavy and medium-duty commercial trucking fleets. Beyond fuelling services, OPAL Fuels offers comprehensive infrastructure solutions, including the design, construction, and operation of natural gas fueling stations, as well as expertise in hydrogen fueling station planning. Additionally, the company generates and sells renewable electricity to utility providers, diversifying its revenue streams. As of May 2022, OPAL Fuels operated a portfolio of 24 biogas production facilities, reflecting its significant scale in the RNG market. The company is led by co-CEOs Adam Comora and Jonathan Maurer, who bring extensive experience in renewable energy and finance. OPAL Fuels has approximately 330 employees and continues to expand its operations, with recent growth driven by new RNG facilities and owned dispensing stations. The company's financial outlook shows a positive return on equity of 1.97 and a price-to-sales ratio of 0.204, indicating a potentially undervalued stock relative to its revenue. With a strong commitment to sustainability and reducing greenhouse gas emissions, OPAL Fuels plays a crucial role in helping fleets transition away from diesel, contributing to a cleaner transportation sector. The company's business model is vertically integrated, from feedstock sourcing to fuel production and distribution, enabling it to capture value across the entire value chain. Looking ahead, OPAL Fuels aims to continue expanding its RNG capacity, capitalizing on regulatory incentives and the growing demand for low-carbon transportation fuels.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$349.0M
+16.3%
+12.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$14.8M
+33.7%
-58.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+30.4%
-8.8%
-15.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+1.4%
-58.9%
+127.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+4.2%
+15.0%
-63.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-34.2M
+63.7%
-53.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-9.8%
+68.8%
-36.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-2826.2%
-1250.9%
-69.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.18x
+4.1%
-17.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, thank you for standing by. Welcome to OPAL Fuels' Second Quarter 2020 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Todd Firestone, Vice President of Investor Relations. Please go ahead.
Todd Firestone: Thank you, and good morning, everyone. Welcome to the OPAL Fuels Second Quarter 26 Earnings Conference Call. With me today are Co-CEOs, Adam Comora and Jonathan Maurer, as well as Kazi Hasan, OPAL's Chief financial officer. Opel Fuels released financial and operating results for the second quarter 2020 this morning. And those results are available on the Investor Relations section of our website at opalfuels.com. A presentation and access to the webcast for this call are also available on our website. After completion of today's call, a replay will be available for 90 days. Before we begin, I would like to remind you that our remarks including answers to your questions, contain forward looking statements. Which involve risks, uncertainties and assumptions, Forward looking statements are not a guarantee of performance and actual results could differ materially from what is contained in such statements. Several factors that could cause or contribute to such differences are described on slides 2 and 3 of our presentation. These forward looking statements reflect our views as of the date of this call and OPAL Fuels does not undertake any obligation to update forward looking statements to reflect events or circumstances after the date of this call. Additionally, this call will contain discussion of certain non-GAAP measures. A definition of non-GAAP measures used, and a reconciliation of these measures to the nearest GAAP measure, is included in the appendix of the release and presentation. Adam will begin today's call by providing an overview of the quarter's results and recent highlights. John will then give a commercial business development update. Afterwards, Kazi will review financial results. We will then open the call for questions. So now I will turn the call over to Adam J. Comora, Co-CEO of OPAL Fuels.
Adam J. Comora: Thank you, Todd. Good morning, everyone, and thank you for participating in OPAL Fuels' second quarter 26 earnings call. We delivered solid second quarter financial results with adjusted EBITDA of $23.1 million increasing 40% from the second quarter of 25. With flat RIN pricing in the second quarter versus last year, growth was driven by 45z production tax credits, our Fuel Station Services segment and G and A cost savings. We are maintaining our annual guidance. …