Montauk Renewables (NASDAQ:MNTK) executives detailed higher renewable natural gas (RNG) production, a major debt refinancing, and development progress in North Carolina while reviewing full-year 2025 results and outlining a 2026 outlook during the company’s earnings call.
Operational updates: Pico, Apex, and GreenWave
CEO Sean McClain said Montauk grew RNG production in 2025 despite having sold one RNG facility in 2024. At the company’s Pico project, Montauk received the final tranche of increased contractual feedstock during 2025, and inlet feedstock averaged about 458,000 gallons per day—about 17% above the contractual minimum. McClain said the company is evaluating additional development expansion opportunities to process available feedstock volumes. He added that 2025 RNG production from the expanded, redesigned Pico facility was approximately 31.8% higher than the prior year.
At the Apex landfill, McClain said Montauk completed construction and commissioning of a second RNG processing facility during 2025. While the site still has excess available capacity as the landfill host increases waste intake, Montauk produced about 7.8% more RNG in 2025 compared to 2024.
Management also discussed the GreenWave Energy Partners joint venture, which is designed to address limited RNG utilization capacity for transportation by providing third-party RNG volumes access to “exclusive, unique, and proprietary transportation pathways.” McClain said that during 2025, GreenWave matched available dispensing capacity with third-party RNG volumes, separated RINs, and distributed RINs to the partners. Through Montauk’s ownership percentage, the company received 706,000 RINs and recorded $1.5 million of income in 2025.
North Carolina policy developments and Turkey facility commissioning
McClain described regulatory developments in North Carolina related to swine renewable energy credits (RECs). In September 2025, a joint motion was filed with the North Carolina Utilities Commission (NCUC) seeking to modify and delay certain clean energy and energy portfolio standards, including those relating to swine RECs. Montauk filed response comments in October 2025, requesting that modifications or delays be granted only to individual power suppliers demonstrating need, that any cumulatively acquired swine RECs be applied to unsatisfied 2025 obligations for suppliers not at 100% compliance, and that the swine REC set-aside from 2026 onward be modified to match the requirement originally set by the state in 2018.
McClain said the NCUC denied requests for waivers in January 2026, determining that parties must use banked RECs to meet 2025 compliance targets, with the ability to use solar RECs to fill any shortage. He added that compliance obligations for utilities that filed the September 2025 joint motion continue to increase through 2029.
On development, McClain said Montauk has begun commissioning its Turkey, North Carolina facility. At first-phase capacity, the company anticipates being able to process feedstock from about 400,000 to 450,000 hog spaces, equating to about 35,000 tons of annual waste collection. Montauk has entered long-term agreements with more than 40 farming locations for feedstock and continues installing collection equipment, with plans to contract with additional farms for future expansion.
McClain said the company expects first-phase capital investment of approximately $200 million and expects production and revenue generation to commence in April 2026. Feedstock collection has begun ahead of commercial operations, with transportation to the facility for pelletization and storage.
2025 financial results: flat revenue, lower profits, and RIN price pressure
Van Asdalan said Montauk’s profitability remains highly dependent on the market price of environmental attributes, including RINs. He noted that because the company self-markets a significant portion of its RINs, decisions about whether to commit transfers during a period can impact reported revenue and operating profit.
Total revenue in 2025 was $176.4 million, essentially flat versus $175.7 million in 2024. Van Asdalan attributed part of the year-over-year dynamics to an increase in RINs self-marketed during 2025, driven by a decision not to commit 6.8 million RINs in the fourth quarter of 2024. The average realized RIN price in 2025 was $2.33, down about 29% from $3.28 in 2024. Management also noted that the natural gas index price rose about 51.1% to $3.43 in 2025 from $2.27 in 2024.
General and administrative expense totaled $31.7 million in 2025, down $4.6 million year over year. Employee-related costs, including stock-based compensation, fell to $18.4 million from $23.1 million, primarily due to accelerated vesting tied to 2024 terminations and other vesting timelines. Corporate insurance fees were also lower.
For the RNG segment, Montauk produced about 5.6 million MMBtu in both 2025 and 2024, even after considering the fourth-quarter 2024 sale of the Southern facility, which produced 85,000 MMBtu in 2024. Rumpke production increased by 218,000 MMBtu due to higher feedstock gas volumes, while McCarty production declined by 76,000 MMBtu related to well field changes.
RNG segment revenue was $155.7 million, down 1.4% from $158.0 million in 2024. Montauk self-marketed about 44.1 million RINs in 2025, up 20.5% from 36.6 million in 2024. At year-end 2025, the company had about 354,000 MMBtu available for RIN generation, 190,000 RINs generated and unseparated, and no RINs generated and unsold, compared with 6.8 million RINs generated and unsold at year-end 2024.
Operating and maintenance (O&M) expense for RNG facilities rose to $59.1 million from $53.4 million, reflecting higher costs across multiple facilities, including utilities, gas processing maintenance, media change outs and disposal, and well field operational enhancement programs. The company also recorded about $3.4 million in environmental attribute expense related to RINs distributed from GreenWave and dispensing costs tied to exclusive transportation pathways; it said there were no such expenses included in 2024 O&M.
Renewable electricity production decreased to 177,000 MWh from 186,000 MWh, with lower output at the Security facility after Montauk ceased operations following the first-quarter 2024 sale of gas rights back to the landfill host. Electricity segment revenue declined to $17.2 million from $17.8 million, while electricity O&M expense increased to $14.7 million from $12.8 million, driven primarily by higher non-capitalizable development costs tied to the Montauk Ag Renewables project.
Montauk recorded $3.2 million of impairment losses in 2025, up from $1.6 million in 2024. The 2025 impairments primarily related to the Blue Granite development project, where the local utility is no longer accepting RNG into its distribution system; Montauk said it has paused development while reviewing alternatives. Van Asdalan said the company did not record impairments related to its assessment of future cash flows.
Operating profit was $0.9 million in 2025, down from $16.1 million in 2024. RNG operating profit declined to $38.2 million from $56.0 million, while the renewable electricity operating loss widened to $4.8 million from $2.8 million.
Adjusted EBITDA was $35.6 million, down 16.5% from $42.6 million, and EBITDA was $32.3 million, down from $41.0 million. Net income fell to $1.7 million from $9.7 million.
Balance sheet, refinancing, and capital spending
As of December 31, 2025, Montauk had $44 million outstanding under a term loan and $85 million under a revolving credit facility. Van Asdalan said the company refinanced its existing debt with a new lender on March 9, 2026, and classified $2.7 million as current debt and $126 million as non-current debt at year-end 2025 due to the ability and intent to refinance.
The new senior credit facility provides up to $200 million, with $155 million outstanding as of March 11, 2026. Proceeds were used to repay all outstanding debt at closing. The facility includes a total net leverage ratio covenant of 4-to-1, up from 3-to-1 under the prior syndication, and features a 24-month availability period with quarterly interest-only payments. After that period, Montauk expects quarterly principal payments equal to 1.25% of total outstanding principal. The facility carries a fixed interest rate of 10.25% and matures in 2031.
For capital expenditures, Montauk spent about $116.5 million in 2025, including $81 million for Montauk Ag Renewables, $8.7 million for the Rumpke RNG relocation project, and $7.7 million for the second Apex facility. In 2024, capex totaled about $62.3 million.
Looking ahead, management said non-development 2026 capex is expected to range from $20 million to $25 million, driven by original equipment manufacturer lifecycle expenditures on engines at the Bowerman electric facility, with these lifecycle expenditures expected to continue through 2027. Development capex for 2026 is currently estimated at $100 million to $150 million.
2026 outlook: higher volumes and Turkey revenue contribution
McClain said the company does not provide guidance on market prices for environmental attributes, including D3 RINs, but provided a 2026 outlook that includes internal assumptions that may or may not align with market trends.
- RNG production: 5.8 million to 6.1 million MMBtu
- RNG revenue: $175 million to $190 million
- Renewable electricity production: 195,000 to 207,000 MWh
- Renewable electricity revenue: $35 million to $41 million
Management said the renewable electricity segment outlook includes expected production and revenue related to the Turkey, North Carolina development project. In response to analyst questions, the company said it expects portfolio-wide RNG gains tied to landfill improvements and existing well field automation initiatives, with growth reflecting the full-year benefits of projects and commissioning work completed in 2025. Executives also discussed that 2025 EBITDA was pressured by non-capitalizable Turkey development costs without corresponding production and revenue, and noted certain 2025 non-cash stock-based compensation adjustments were not expected to repeat in 2026.
About Montauk Renewables (NASDAQ:MNTK)
Montauk Renewables Holdings, Inc is a renewable energy company headquartered in Irving, Texas, specializing in the capture and conversion of landfill gas into clean energy products. The company’s core operations focus on the design, development and operation of landfill gas collection systems that extract methane and other biogases generated by municipal solid waste. Montauk processes this gas into renewable natural gas (RNG) suitable for pipeline injection and also generates electricity for sale to utilities and commercial consumers.
Through its subsidiaries, Montauk provides a suite of environmental and waste‐management services across the United States and Canada.
