Anaergia Inc. (ANRG-T) saw a near doubling of its Q2 revenue from the year prior – $63.9 million in 2026 compared to $32.3 million in 2025 – which it attributed to projects in Europe and North America.

On Monday afternoon, the Burlington, Ont.-based renewable natural gas (RNG) producer reported its financial results for the second quarter ended June 30. Along with revenue jumping 98.1 per cent year-over-year (YoY), its gross profit increased by 38.2 per cent from $10.5 million to $14.5 million.

The company’s revenue backlog increased to $274.9 million, up 3.8 per cent from Q1, which was the second highest backlog since Q4 2024. Additionally, new contract awards of approximately $66 million were secured across Europe and North America in Q2.

Anaergia’s net loss was $2.1 million in the quarter, compared to $9.5 million the year prior.

“The trajectory that I described three months ago continues,” Assaf Onn, CEO of Anaergia, said on a conference call held Tuesday morning. “Every pillar of the business is delivering.”

Sustainable Biz Canada has reached out to Anaergia for comment, but did not receive a reply by the time of publication.

Project successes drive revenue

The YoY revenue increase was attributed to increased capital sales and project executions in Italy and North America, Anaergia’s CFO Greg Wolf said on the call.

Year-to-date (YTD) revenue as of Q2 was $119.1 million compared to $57.1 million in Q2 2025, an increase of 109 per cent, which Wolf said reflected a sustained ramp-up of capital sale project execution.

Anaergia’s YTD gross profit went from $15.9 million in Q2 2025 to $27.2 million in Q2 2026, which Wolf said was led by capital sales-led revenue growth.

The company’s gross margin of 22.7 per cent in Q2 2026 dropped from 32.5 per cent in Q2 2025. The story was similar on a YTD basis, going from 27.8 per cent in H1 2025 to 22.8 per cent in H1 2026.

The decline was due to Anaergia’s Rhode Island bioenergy facility, Wolf said, which is having its RNG production steadily increased. The company is exploring other opportunities for the facility, he said, given its chronic underperformance.

Anaergia’s milestones in Q2, Onn said, include being the first company to deliver RNG to Southwest Gas Corporation’s distribution system under a program established by the SB 1440 bill, and signing a $58-million contract with Neogenyx Fuels.

In Q2, Anaergia secured a $20-million revolving credit line from the National Bank of Canada. The financing provides “enhanced liquidity and financial flexibility to help support our continued growth plans and project execution,” Wolf said. The credit line can be raised by another $10 million as well.

Government demand pushes Anaergia's growth

After a positive quarter, Onn said Anaergia will continue to convert its revenue backlog into revenue, ramp up its platform assets to their full potential, and run Anaergia with operational discipline.

In Anaergia’s largest markets, governments are driving demand for its business. The company is helped by a supportive regulatory environment which drives project investment from its customers, Onn said, naming Italy, the U.K,, Canada and California as examples. This creates structural, multi-year demand for its infrastructure, he said.

Yaniv Scherson, COO of Anaergia, said Italy is the company’s strongest market and growth engine. Revenue from the country, which was $29.8 million in Q2, grew 373 per cent from Q2 2025, he said on the call.

“This quarter underscores a key trend: sustained capability to execute disciplined, quarter-over-quarter, and trajectory of increasingly large integrated technology capital sales,” Scherson said.

Answering an analyst’s question about the possibility of Anaergia joining a trend of mergers and acquisitions activity in the biomethane industry, Onn replied the company is always scanning the market and looking at the possibilities.

Anaergia, Scherson said, sees an opportunity for more projects like wastewater treatment sites in California that can be retrofitted for organic waste using its technology and know-how, in response to another analyst’s question.