Operating margins have compressed to -2.5% as of 2026Q1, reflecting the difficulty in translating environmental credit premiums into consistent bottom-line growth.
| Revenue | 180.21M | 176.38M | 175.74M | 174.9M | 205.56M | 148.13M | 100.38M | 105.71M | 115.09M |
| Revenue Growth % | 0.36% | 0.37% | 0.48% | -14.91% | 38.77% | 47.56% | -5.04% | -8.14% | - |
| Cost of Revenue | 114.02M | 107.62M | 98.17M | 94.62M | 101.43M | 78.16M | 61.75M | 58.67M | 50.09M |
| Gross Profit | 66.19M | 68.76M | 77.57M | 80.28M | 104.13M | 69.97M | 38.64M | 47.04M | 65M |
| Gross Margin % | 36.73% | 38.99% | 44.14% | 45.9% | 50.66% | 47.23% | 38.49% | 44.5% | 56.48% |
| Gross Profit Growth % | - | -11.35% | -3.38% | -22.9% | 48.83% | 81.09% | -17.87% | -27.63% | - |
| Operating Expenses | 62.6M | 64.68M | 61.45M | 56.64M | 59.56M | 66.63M | 35.05M | 36.04M | 28.15M |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - |
| EBITDA | 32.61M | 34.54M | 39.64M | 45.2M | 65.27M | 26.2M | 25.7M | 30.77M | 52.02M |
| EBITDA Margin % | 18.1% | 19.58% | 22.56% | 25.85% | 31.75% | 17.69% | 25.6% | 29.1% | 45.2% |
| EBITDA Growth % | -15.31% | -12.86% | -12.31% | -30.74% | 149.07% | 1.97% | -16.47% | -40.86% | - |
| Depreciation & Amortization | 32.57M | 30.46M | 23.52M | 21.57M | 20.7M | 22.87M | 22.12M | 19.76M | 16.2M |
| D&A / Revenue % | 18.07% | 17.27% | 13.38% | 12.33% | 10.07% | 15.44% | 22.03% | 18.69% | 14.07% |
| Operating Income (EBIT) | 47K | 4.08M | 16.12M | 23.64M | 44.57M | 3.33M | 3.58M | 11.01M | 35.82M |
| Operating Margin % | 0.03% | 2.31% | 9.17% | 13.52% | 21.68% | 2.25% | 3.57% | 10.41% | 31.13% |
| Operating Income Growth % | - | -74.68% | -31.8% | -46.96% | 1236.31% | -6.87% | -67.46% | -69.28% | - |
| Interest Expense | 3.81M | 4.27M | 5.28M | 5.75M | 1.79M | 2.93M | 4.34M | 5.58M | 3.08M |
| Interest Coverage | - | 0.96x | 3.31x | 4.10x | 25.13x | 0.87x | 0.68x | 1.98x | 12.86x |
| Interest / Revenue % | 2.11% | 2.42% | 3% | 3.29% | 0.87% | 1.98% | 4.32% | 5.27% | 2.68% |
| Non-Operating Income | 298K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 740K |
| Pretax Income | 1.69M | -2.49M | 12.18M | 18.37M | 43.24M | -367K | -1.39M | 5.47M | 36.56M |
| Pretax Margin % | 0.94% | -1.41% | 6.93% | 10.5% | 21.04% | -0.25% | -1.39% | 5.17% | 31.77% |
| Income Tax | -526K | -4.24M | 2.44M | 3.42M | 8.05M | 4.16M | -6M | -354K | 7.8M |
| Effective Tax Rate % | -31.11% | 170.29% | 20.06% | 18.61% | 18.61% | -1133.79% | 430.44% | -6.48% | 21.32% |
| Net Income | 2.22M | 1.75M | 9.73M | 14.95M | 35.19M | -4.53M | 4.6M | 5.82M | 28.77M |
| Net Margin % | 1.23% | 0.99% | 5.54% | 8.55% | 17.12% | -3.06% | 4.59% | 5.51% | 25% |
| Net Income Growth % | -70.12% | -82.04% | -34.88% | -57.53% | 877.25% | -198.37% | -20.91% | -79.77% | - |
| EPS (Diluted) | 0.02 | 0.01 | 0.07 | 0.11 | 0.25 | -0.03 | 0.03 | 0.04 | 0.20 |
| EPS Growth % | -70.55% | -82.16% | -37.82% | -56% | 878.82% | -199.07% | -20.78% | -79.55% | - |
| EPS (Basic) | - | 0.01 | 0.07 | 0.11 | 0.25 | -0.03 | 0.03 | 0.04 | 0.20 |
| Diluted Shares Outstanding | 143.26M | 143.08M | 142.4M | 142.15M | 142.58M | 141.02M | 142.16M | 142.16M | 141.06M |
High exposure to environmental credit price volatility and regulatory policy shifts.
As reported in recent financial statements, MNTK's revenue growth has stalled at 0.37% year-over-year, reflecting a reliance on the timing of environmental credit monetization rather than consistent volumetric expansion, which complicates the assessment of the company's underlying growth trajectory in the current regulatory credit environment.
The revenue profile appears heavily influenced by the strategic banking and release of RINs and LCFS credits, which obscures the true operational output of the landfill gas assets. Investors should monitor whether the recent revenue stagnation indicates a structural plateau in credit pricing or merely a management decision to hold inventory for future price appreciation.
Based on the company's reported figures, the operating margin has compressed to 2.31%, suggesting that despite high gross margins, the firm struggles to translate environmental credit premiums into sustainable bottom-line growth as corporate overhead and non-cash charges continue to consume the majority of gross profits.
The thin operating margin warrants further investigation into whether the company is facing rising operational complexity as it scales its RNG conversion projects. The reliance on royalty payments to landfill owners provides a natural hedge, yet it appears insufficient to protect the operating margin from the volatility inherent in the environmental credit markets.
According to recent SEC filings, MNTK's net margin has compressed to 0.99%, indicating that reported earnings are highly sensitive to the timing of credit sales and may not reflect the sustainable, long-term regulated earnings power typically expected from a diversified utility-like infrastructure provider.
The ability to bank environmental credits allows for a degree of earnings management that may mask underlying operational inefficiencies or feedstock degradation. Analysts should adjust for changes in environmental credit inventory to better understand the true cash-generation capacity of the assets, as current EPS figures appear volatile and potentially non-recurring.
As indicated by the company's exceptionally low debt-to-equity ratio of 0.52, MNTK has maintained a conservative capital structure, though this focus on solvency may be limiting the firm's ability to aggressively expand its footprint in high-yield geographic clusters for future earnings growth.
While the low leverage provides a buffer against rising interest rates, the lack of significant debt-fueled expansion suggests a cautious approach to capital allocation. It remains unclear whether the current CAPEX cycle is sufficient to drive meaningful earnings growth or if it is primarily focused on maintaining existing, potentially degrading, landfill gas collection infrastructure.
Based on an analysis of the income statement, the market may be mispricing the risk of feedstock degradation and EPA administrative law shifts, which could render high-capex conversion plants stranded assets if the underlying methane content of older landfills declines faster than current depreciation schedules anticipate.
The income statement fails to capture the potential for future environmental remediation costs or the impact of a regulatory shift in the Renewable Fuel Standard. Investors should be skeptical of the current valuation, as it appears to treat the company as a stable utility rather than a regulatory credit hedge fund with significant exposure to policy-driven revenue streams.
Quick answers to the most common questions about buying MNTK stock.
For fiscal year 2025, Montauk Renewables, Inc. (MNTK) reported total revenue of $176.4M. This represents a 53.3% increase compared to $115.1M in 2018.
Montauk Renewables, Inc. (MNTK) is profitable, generating $1.7M in net income for the fiscal year ending 2025 with a net profit margin of 1.0%.
Montauk Renewables, Inc. (MNTK) reported an operating income of $4.1M, resulting in an operating profit margin of 2.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Montauk Renewables, Inc. (MNTK) generated $68.8M in gross profit for the year, representing a gross profit margin of 39.0%. This demonstrates the company's core pricing power and production efficiency.