Montauk Renewables (NASDAQ:MNTK) reported higher second-quarter revenue and a return to net income, supported by renewable identification number, or RIN, sales associated with its GreenWave Energy Partners joint venture and pathway dispensing activities. The company also reaffirmed its full-year production and revenue outlook while advancing its agricultural renewable electricity project in Turkey, North Carolina.
Total revenue for the second quarter of 2026 rose 19.7% to $54.0 million from $45.1 million a year earlier. Chief Financial Officer Kevin Van Asdalan said the increase was primarily driven by approximately $8.4 million in environmental-attribute revenue from RINs sold through GreenWave Energy Partners and RINs related to pathway dispensing.
GreenWave RIN Activity Supports Results
Montauk received approximately $1.5 million in separated RINs distributed by its GreenWave Energy Partners joint venture during the quarter. It sold about 1.9 million RINs from the venture, recording roughly $4.8 million of related revenue, according to Van Asdalan. The company also recorded approximately $3.8 million of income from its joint-venture investment in GreenWave during the period.
GreenWave seeks to address limited renewable natural gas, or RNG, transportation utilization capacity by matching third-party RNG volumes with available dispensing capacity, then separating and distributing the resulting RINs to its partners, President and CEO Sean McClain said.
Montauk self-marketed 14.3 million RINs in the second quarter, up 29.1% from 11.1 million a year earlier. Average realized RIN pricing was $2.45, up from $2.42 in the prior-year quarter, though below the average D3 RIN index price of $2.54 during the 2026 second quarter.
For the third quarter, the company has entered commitments to transfer the majority of RINs expected to be generated and available for sale from its RNG production at an average price of $2.66. That compares with an average D3 index price of $2.64 in July.
During the call, Van Asdalan said RIN prices appeared to have shown less volatility in 2026 following completion of the 2025 vintage settlement period and after obligated parties moved into their 2026 compliance purchases. McClain added that Montauk focuses its self-marketing efforts on obligated parties that intend to retire RINs for compliance purposes.
RNG Production Rises as Commodity Revenue Declines
RNG production rose 3% year over year to 1.5 million MMBtu in the second quarter. Production increased at the McCarty and Apex facilities, reflecting landfill host wellfield operations and collection-system enhancements. Those gains were partly offset by lower output at the Galveston and Atascocita facilities.
RNG segment revenue totaled $40.9 million, essentially unchanged from $40.8 million a year ago. Montauk said natural-gas commodity pricing averaged 15.7% lower than the prior-year quarter. Meanwhile, RNG volume sold under fixed, lower-priced contracts declined about 80% after the contracts expired, and RNG commodity revenue fell 63.7%. Higher RIN sales offset those declines.
RNG operating income increased 4.5% to $9.6 million. Operating and maintenance expense for RNG facilities declined 8.2% to $15.6 million, largely due to maintenance timing at the McCarty and Apex facilities.
Renewable electricity production rose 4.8% to approximately 44,000 MWh, while renewable electricity revenue increased 4.8% to $4.5 million. Electricity-generation operating loss narrowed to $2.1 million from $2.3 million, despite higher non-capitalizable costs at the company’s Montauk Ag Renewables project in Turkey, North Carolina.
Turkey Project Begins Power Generation
McClain said Montauk began generating power for sale at its Turkey, North Carolina facility in July. The power is expected to become eligible for both swine renewable energy certificates, or RECs, and enhanced RECs in subsequent months.
The company identified programming modifications needed for installed electrical switchgear to increase production volumes and strengthen protection for processing equipment and transformers. Montauk expects the work to be completed by mid-August and to then consistently generate power and RECs from all available collected feedstock volumes.
Montauk continued REC-purchase negotiations with entities obligated under North Carolina’s Renewable Energy and Energy Efficiency Portfolio Standard, in addition to its existing REC contract with Duke Energy.
As of the end of July, the company had long-term agreements with more than 50 farming locations, giving it access to more than 350,000 of the 400,000 to 450,000 hog spaces targeted to fully supply the project’s first development phase. It can currently collect feedstock from more than 250,000 hog spaces and expects continued collection-equipment installations during the second half of 2026.
The company maintained its $200 million capital-investment expectation for the first phase of the Turkey project and expects production to ramp through 2026 as additional feedstock collection comes online.
Outlook and Balance Sheet
Montauk reaffirmed its full-year 2026 outlook, calling for RNG production of 5.8 million to 6.0 million MMBtu and corresponding RNG revenue of $175 million to $190 million. Van Asdalan said the revenue outlook includes expected RIN revenue from GreenWave Energy Partners.
- Renewable electricity production outlook: 185,000 to 195,000 MWh
- Renewable electricity revenue outlook: $23 million to $26 million
- First-half 2026 capital expenditures: $61.3 million
- Capital spending for Montauk Ag Renewables: $49.8 million
- Cash and cash equivalents, net of restricted cash, at June 30: approximately $15.8 million
- Outstanding borrowings under HASI senior credit facility: $155 million
Montauk said it was in compliance with all applicable financial covenants under its HASI senior credit facility as of June 30. The company said it expects wellfield enhancement investments during the second half to support its RNG production outlook.
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.
