Greenlane Renewables (TSE:GRN) reported a return to positive adjusted EBITDA in the second quarter of 2026 while continuing to invest in the development and commercialization of its Cascade LF landfill gas upgrading technology.
Chief Executive Officer Brad Douville said the quarter marked progress toward the company’s targeted production readiness for Cascade LF by the end of 2026. The company also highlighted growth in its parts and service and biogas desulfurization businesses, which it identified as its most profitable operating areas.
Cascade LF Development and Brazil Manufacturing
Panasonic’s initial investment is expected to range from BRL 8 million to BRL 10 million, or approximately CAD 2 million to CAD 3 million, according to Douville. The investment will support facility modifications, tooling and production equipment. Panasonic will also provide working capital and advance-payment assurances intended to meet customer requirements.
Greenlane will retain responsibility for product design, supply-chain management, supplier selection and quality assurance, marketing and sales, as well as commissioning and servicing.
“The partnership with Panasonic not only brings their manufacturing expertise, but also the strength of their balance sheet to support sales growth,” Douville said.
The company also completed testing of its proprietary Linear NRU, or nitrogen rejection unit, technology, which is a component of the Cascade LF system. Douville said testing results exceeded the company’s expectations for methane recovery performance.
Methane recovery is a key metric in gas-upgrading systems because improved recovery can increase project revenue, Douville said. The separation of nitrogen from methane presents a particular challenge in landfill gas applications.
During the question-and-answer portion of the call, Douville said Greenlane remains focused on reaching production readiness by the end of 2026. He also cited customer outreach and industry engagement in Brazil, including participation in the Fórum do Biogás conference.
Second-Quarter Financial Position
Chief Financial Officer Stephanie Mason said second-quarter revenue and adjusted EBITDA were lower than in the same period of 2025 because last year’s results included royalty revenue and a large parts order. Excluding those items, she said the company’s results improved year over year, driven largely by a CAD 0.9 million increase in system sales revenue from biogas desulfurization sales.
Greenlane generated positive adjusted EBITDA during the quarter and reported a gross margin before amortization of 41%.
Mason attributed the margin performance to the company’s focus on higher-profit business lines, disciplined project execution and operational efficiency. She said Greenlane continued to close out legacy biogas upgrading system supply contracts during the quarter.
The company increased research and development spending to CAD 0.8 million, double the level reported in the prior-year period. Mason said the investment was consistent with first-quarter R&D spending and supported final development work and production preparation for Cascade LF.
As of the end of the quarter, Greenlane had CAD 12.1 million in cash and cash equivalents, no debt and a sales order backlog of CAD 25.6 million.
Mason noted that the reported backlog does not include service and spare-parts business, meaning growth in those areas would not necessarily be reflected in the sales-order backlog figure.
Market Opportunity and Margin Outlook
Management said Cascade LF and Cascade MS address an estimated total addressable market of CAD 600 million annually across Brazil, the United States and Canada. Douville said the estimate covers the two new product lines and is based on International Energy Agency data alongside Greenlane’s internal estimates of the number of upgrading systems needed to support projected biomethane growth through 2035.
Douville characterized the estimated market opportunity as roughly 14 times Greenlane’s revenue from the prior year, describing it as an incremental opportunity for the company.
Regarding future margins, Mason said the Panasonic agreements include a technology licensing arrangement expected to generate royalty-based revenue. She said Greenlane’s historical royalty revenue margins have been “significantly higher” than margins generated by its historical systems business.
Greenlane did not provide a timeline for when Cascade LF-related financial results would begin to appear beyond stating that production readiness is targeted for the end of 2026 and that results from the product would come afterward.
Industry Context
Douville pointed to continued growth in landfill-based renewable natural gas, or RNG, production. Citing American Biogas Council data, he said landfill facilities accounted for 64% of U.S. RNG production from just under 600 landfill gas capture systems. Developers brought 20 landfill projects online in 2025, adding 40 billion cubic feet of new biogas capture capacity, according to the data cited on the call.
He also said approximately 700 additional U.S. landfills remain suitable for landfill gas development under U.S. Environmental Protection Agency classifications.
In Europe, installed biomethane production capacity reached 8.2 billion cubic meters annually by the end of the second quarter of 2026, up 17% from 2025, Douville said, citing the European Biomethane Map. He added that reported investment commitments had reached EUR 36 billion and, if realized, could add 9 billion cubic meters of annual production capacity by 2030.
About Greenlane Renewables (TSE:GRN)
Greenlane is driving change: accelerating the energy transition. We are cleaning up two of the largest and most difficult to decarbonize sectors of the global energy system: the natural gas grid and commercial transportation. As a pioneer and leading global specialist in biogas desulfurization and upgrading, we have been actively contributing to the decarbonization of our planet for over 35 years with more than 355 systems supplied into 28 countries. We transform biogas generated from organic waste into high-value grid-ready renewable natural gas (‘RNG’) from a wide range of sources such as landfills, sugar mills, dairy farms, wastewater, and food waste.
