Overview

* Montauk Q2 revenue grows 4.1% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 misses consensus, declining 27.7% yr/yr

* Co completes second RNG processing facility, enters joint venture for RNG transport

Outlook

* Montauk reaffirms 2025 RNG revenue guidance of $150-$170 mln

* Company maintains 2025 RNG production forecast at 5.8-6.0 mln MMBtu

* Montauk keeps 2025 REG revenue outlook at $17-$18 mln

* Company sees 2025 REG production between 178-186 thousand MWh

Result Drivers

* REVENUE TIMING - Increase in Q2 revenue attributed to timing of revenues recognized under a short-term fixed priced contract

* RIN SEPARATION DELAY - EPA actions impacted RIN separation, reducing available RINs for sale, affecting revenue

* MAINTENANCE COSTS - Operating expenses rose due to preventative maintenance and enhancements at multiple facilities

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $45.10 $43.50

Revenue mln mln (2

Analysts

)

Q2 Net -$5.50

Income mln

Q2 Miss $5 mln $9.96

Adjusted mln (4

EBITDA Analysts

)

Q2 -$2.40

Operatin mln

g income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "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 ( MNTK ) is $2.93, about 29.2% above its August 5 closing price of $2.07

* The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

(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.)