Waga Energy has reported a 31 per cent year-on-year rise in renewable natural gas (RNG) production for the first half of 2026, producing 426 GWh from landfill gas and avoiding an estimated 173,000 tonnes of CO2 equivalent emissions over the period.
The French company, which produces RNG by upgrading landfill gas using its proprietary WAGABOX technology, posted consolidated revenues of €33.5 million for H1 2026, up 22 per cent year-on-year, driven by a 27 per cent rise in recurring revenue that more than offset a 78 per cent drop in equipment sales.
EBITDA reached €0.5 million, marking the company's second consecutive half-year of positive EBITDA and an improvement of €0.8 million on the same period last year.
Waga Energy now operates 38 RNG production units across France, Spain, Canada and the United States, delivering installed capacity of 2.1 TWh a year.
A further 21 units are under construction across the US, Spain, Italy, France, Canada and Brazil, including the company's first project in Brazil, a 3,000 scfm WAGABOX unit signed recently.
Once complete, the full 59-project portfolio will represent installed capacity of 4.4 TWh a year and estimated signed annual recurring revenues of around €264 million, up from €177 million a year earlier.
Units that have been operating for more than 12 months achieved average availability of 94 per cent during the period, which the company points to as evidence of the technology's operational reliability.
Commercial activity remained resilient despite softer market conditions, with five new contracts signed year to date.
The company's development pipeline now stands at 240 projects representing a potential 19.4 TWh of annual installed capacity, up 16 per cent year-on-year.
Within that pipeline, projects at contractual negotiation stage rose 70 per cent year-on-year to 2.6 TWh, while projects at feasibility study stage increased 48 per cent to 11.1 TWh.
The US market has presented particular challenges, with commissioning timelines for American units running longer than expected due to permitting delays and interconnection issues.
Waga Energy also flagged pricing pressure in the US RNG offtake market, alongside shorter contract maturities and offtake agreements increasingly being signed closer to a unit's commissioning date. The company said its proprietary technology keeps it well positioned despite these headwinds.
As a result of the US delays, Waga Energy has pushed back several of its targets. The company's goal of roughly €200 million in 2026 revenue, 4 TWh of installed capacity and around 660,000 tonnes of CO2 equivalent avoided emissions is now expected to be reached around mid-2028, an 18-month shift from the original timeline.
Separately, the target of exceeding €400 million in signed annual recurring revenues by the end of 2026 is now expected to shift by six to 12 months, to around the second half of 2027.
The delays also affect the company's ability to monetise US investment tax credits (ITCs) tied to an earn-out mechanism linked to a tender offer from EQT.
Waga Energy has signed 19 ITC-eligible US projects, representing 2.3 TWh of installed capacity, but says it will be difficult for all of these to be commissioned in time to monetise the corresponding credits before June 2028.
Any new US projects signed since the summer are unlikely to have their ITCs monetised before that deadline either.
Group capital expenditure reached €57 million in H1 2026, broadly flat on the prior year.
Free cashflow after interest stood at minus €67 million, and net result came in at minus €12.4 million, reflecting continued investment in expanding the WAGABOX unit portfolio.
The company reported total liquidity of €210 million as of 30 June 2026, comprising €46 million in cash and €164 million in available debt, ahead of a further €136 million in new financing signed in July, partly earmarked to refinance existing debt across a portfolio of around 20 operating WAGABOX units.
Mathieu Lefebvre, Chief Executive Officer of Waga Energy, said: "Waga Energy delivered strong growth in the first half of 2026, despite a continuing challenging US market environment. This performance highlights the industrial excellence of our teams and the superior competitiveness of our proprietary WAGABOX technology. By producing renewable natural gas from landfill gas, we continue to deliver a tangible positive environmental impact while staying true to our DNA of disciplined and profitable growth."
