Montauk's Second-Quarter Revenue Growth Accelerates
Revenue reached $54.0 million, up 19.7% from a year earlier, as Adjusted EBITDA rose 144.5% to $12.3 million.
Montauk Renewables, Inc. (MNTK), a renewable energy company that converts biogas into renewable natural gas, reported second-quarter revenue of $54.0 million, up 19.7% from a year earlier.
That year-over-year gain was faster than the 9.0% increase recorded in the first quarter, when revenue was $46.4 million. Non-GAAP Adjusted EBITDA was $12.3 million, up 144.5% from a year earlier, after a 22.8% year-over-year rise to $10.8 million in the first quarter. Net income was $0.2 million.
The revenue increase was primarily related to environmental-attribute revenues from RINs sold tied to distributions from its GreenWave joint venture, which had no RINs distributed and sold in the year-ago second quarter. RINs from operations sold were 14.3 million, up 29.1% from a year earlier. RNG production was 1.5 million MMBtu, up 3% from a year earlier.
RNG volumes sold under fixed/floor-price contracts decreased approximately 80.0% versus the year-ago second quarter, attributed to the expiration of fixed-price pathway contracts. RNG commodity revenue decreased approximately 63.7%. RINs generated and unseparated decreased approximately 95.4% as a result of the transition to the Biogas Regulatory Reform Rule in 2025.
Operating and maintenance expenses for RNG facilities in the second quarter were $15.6 million, down 8.2% from a year earlier. McCarty facility O&M expenses decreased approximately $0.9 million primarily due to the timing of maintenance of gas processing equipment, and Apex facility O&M expenses decreased approximately $0.5 million primarily due to the timing of gas processing preventative maintenance. Renewable Electricity Generation operating and maintenance expenses were $5.1 million. The increase was primarily driven by an increase in non-capitalizable costs of $1.2 million for its Montauk Ag Renewables project. Bowerman facility operating and maintenance expenses decreased approximately $0.7 million, primarily driven by decreased wellfield operational costs and the timing of gas processing preventative maintenance.
In July 2026 the company began generating power for sale from its Turkey, North Carolina facility, and the company said it expected production to be eligible to generate both swine RECs and enhanced RECs in subsequent months. It identified specific programming modifications to installed electrical switchgear to increase production volumes and enhance protection of processing equipment and electrical transformers, and expected to have all programming completed by mid-August and consistently generate power and RECs from all available collected feedstock volumes.
The company continued to progress with installation of feedstock collection at its targeted 400 thousand to 450 thousand hog spaces. As of the end of July it had entered into long-term agreements with over fifty separate farming locations providing access to at least 350 thousand hog spaces, and was currently able to collect from more than 250 thousand hog spaces. The company said it would continue farm-site collection equipment installations during the second half of 2026.
For the six months ended 30 June 2026, revenue was $100.4 million, up 14% from $87.7 million a year earlier. EBITDA was $21.1 million. Headline earnings were $1.1 million, compared with a headline loss of $4.0 million a year earlier. Headline earnings per common share were $0.01. Net asset value per common share was $1.85. The directors resolved not to declare a final dividend to focus financial resources on continued development of the operations portfolio.
In March 2026 the company entered into a new five-year senior credit facility with a wholly owned subsidiary of Hannon Armstrong Capital LLC consisting of up to $200 million in senior indebtedness. It used the facility to refinance existing outstanding debt and had $45 million available to borrow subject to terms of the agreement. It also successfully negotiated a five-year gas rights extension at its Raeger facility, securing access to biogas feedstock at the site through 2031. The EPA finalized RFS standards for 2026 and 2027, as well as a partial waiver of the 2025 cellulosic biofuel volume requirement. Final cellulosic biofuel volume requirements for 2026 and 2027 were established at 1,360 million and 1,430 million D3 RINs, respectively. In its first-quarter update, the company said it had commissioned its Montauk Ag Renewables project in North Carolina and expected production and revenue generation activities to commence in May 2026, with a ramp-up in production volumes throughout 2026 directly related to additional feedstock collection.