Overview
Montauk Q3 revenue fell 31.3% yr/yr but beat analyst expectations
Adjusted EBITDA for Q3 decreased 56.4% yr/yr but beat estimates
RNG production increased 3.8% yr/yr, despite fewer RINs sold
Outlook
Montauk expects 2025 RNG revenues between $150 mln and $170 mln
Company anticipates RNG production volumes between 5.8 mln and 6.0 mln MMBtu
Montauk sees REG revenues between $17 mln and $18 mln for 2025
Result Drivers
FIXED-PRICE ARRANGEMENTS - Co's decision to sell more production under fixed/floor-price arrangements led to fewer RINs available for sale
RIN PRICE DECLINE - Average D3 RIN index price dropped 34.8%, affecting revenue and operating profit
INCREASED OPERATING EXPENSES - Higher operating expenses due to maintenance and enhancements at Rumpke, Atascocita, and Apex facilities
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $45.30 mln | $44.69 mln (3 Analysts) |
Q3 Net Income | $5.20 mln | ||
Q3 Adjusted EBITDA | Beat | $12.80 mln | $11.08 mln (4 Analysts) |
Q3 Operating income | $4.40 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy."
Wall Street's median 12-month price target for Montauk Renewables Inc is $3.00, about 39.3% above its November 4 closing price of $1.82
The stock recently traded at 58 times the next 12-month earnings vs. a P/E of 89 three months ago
Press Release: ID:nGNXcXBNl
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)