Montauk Renewables — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues were $54.0 million for the quarter, a 19.7% year-over-year increase from $45.1 million in Q2 2025.
• Net income was $0.2 million for the quarter, compared to a net loss of $5.5 million in Q2 2025.
• Non-GAAP Adjusted EBITDA was $12.3 million for the quarter, a 144.5% year-over-year increase from $5.0 million in Q2 2025.
• Operating and maintenance expenses for RNG facilities were $15.6 million, down 8.2% year-over-year from $17.0 million.
• Renewable Electricity Generation operating and maintenance expenses were $5.1 million, up 5.3% year-over-year from $4.8 million.
• General and administrative expenses were $7.7 million, a 15.2% decrease from $9.1 million in Q2 2025, driven by one-time accelerated vesting of $1.6 million in restricted share awards in the prior year.
• Total operating expenses were $54.1 million for the quarter, resulting in an operating loss of $0.1 million compared to a $2.4 million loss in Q2 2025.
• Income from the GreenWave joint venture was $3.8 million in Q2 2026, compared to zero in Q2 2025.
• RNG commodity revenue decreased approximately 63.7% year-over-year, while RINs sold increased 29.1%.
• RNG volumes sold under fixed/floor-price contracts decreased approximately 80.0% year-over-year due to the expiration of fixed price pathway contracts.
• RINs generated and unseparated decreased approximately 95.4% year-over-year due to the transition to the Biogas Regulatory Reform Rule in 2025.
• Cash and cash equivalents were $15.8 million as of June 30, 2026, down from $23.8 million as of December 31, 2025.
• Total debt increased to $149.6 million long-term plus current portions, compared to $128.7 million total debt as of December 31, 2025.
• Net cash provided by operating activities was $30.4 million for the six months ended June 30, 2026, compared to $17.3 million in the same period in 2025.
• Capital expenditures were $55.6 million for the six months ended June 30, 2026, compared to $45.3 million in the same period in 2025.

Guidance and Future Outlook

• Full-year 2026 RNG revenues are expected to range between $175 million and $190 million.
• Full-year 2026 RNG production volumes are expected to range between 5.8 million and 6.0 million MMBtu.
• Full-year 2026 Renewable Electricity Generation (REG) revenues are expected to range between $23 million and $26 million.
• Full-year 2026 REG production volumes are expected to range between 185,000 and 195,000 MWh.
• The reduction in REG revenue and volume outlook relates to expectations regarding the commencement of revenue and REG generation at the Montauk Ag Renewables facility.

Business Segments and Product Lines

• RNG production was 1.5 million MMBtu for the quarter, a 3.0% increase year-over-year.
• RINs from operations sold were 14.3 million, a 29.1% increase year-over-year.
• Renewable Electricity production was 44,000 MWh for the quarter, a 4.8% increase year-over-year.
• The Turkey, North Carolina facility began generating power for sale in July 2026, expected to generate swine RECs and enhanced RECs.
• Programming modifications to electrical switchgear at the Turkey facility are expected to be completed by mid-August to increase production volumes and enhance equipment protection.
• Feedstock collection agreements have been entered with over 50 farming locations providing access to at least 350,000 hog spaces, with collection currently active from more than 250,000 hog spaces.
• Facility-specific production changes included increases at McCarty (+53,000 MMBtu) and Apex (+39,000 MMBtu), and decreases at Galveston (-26,000 MMBtu) and Atascocita (-37,000 MMBtu) due to host operational changes and maintenance timing.
• Bowerman facility produced 3,000 MWh more in Q2 2026 compared to Q2 2025 due to increased gas flows from wellfield improvements.

Market and Competitive Landscape

• The company operates 13 current projects and ongoing development projects across California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina, South Carolina, and Texas.
• Revenue growth was primarily driven by environmental attribute revenues from RINs sold related to the GreenWave joint venture, which had no RINs distributed in Q2 2025.
• The transition to the Biogas Regulatory Reform Rule in 2025 impacted RIN generation and unseparated volumes.

Risks and Challenges

• Risks include the ability to develop and operate new renewable energy projects, including livestock farms, and challenges in achieving anticipated energy output levels.
• Potential reduction or elimination of government loans, subsidies, and economic incentives to the renewable energy market.
• Dependence on third parties for feedstock volumes, landfill operations, and interconnections with utility distribution and gas pipelines.
• Regulatory changes in federal, state, and international environmental attribute programs and the need to maintain permits.
• Risks related to the expiration of fuel supply agreements, power purchase agreement milestone requirements, and the ability to renew pathway provider sharing arrangements.
• Potential liabilities from contamination, environmental conditions, and extensive environmental, health, and safety laws.
• Market volatility in commodity prices and environmental attribute prices, and the impact of hedging activity.
• Concentration of revenues from a small number of customers and projects.

Management Commentary and Tone

• Management highlighted progress in feedstock collection, noting the entry into long-term agreements with over 50 farming locations.
• Management noted specific programming modifications at the Turkey facility to resolve production volume constraints and enhance equipment protection.
• The tone reflects confidence in the transition of RNG volumes from fixed-price contracts to RIN-driven revenue, despite the decrease in commodity revenue.
• Management indicated that operating expense decreases were driven by the timing of maintenance at the McCarty, Apex, and Bowerman facilities.

Other Key Points

• The GreenWave joint venture contributed $3.8 million in income to the quarter.
• The company recorded $8.3 million in expenses related to the cost of RINs distributed from GreenWave and pathway dispensing costs.
• A loss on extinguishment of debt of $944,000 was recognized in the six-month period.
• Stock-based compensation was $1.2 million for the six months ended June 30, 2026, compared to $3.6 million in the same period in 2025.
• The company has 143.2 million shares outstanding as of June 30, 2026.
• A conference call is scheduled for August 6, 2026, at 8:30 a.m. Eastern time.