How does the Q2 2025 operating margin compare to peers in the integrated energy solutions space?

Operating‑margin snapshot: In its Q2‑2025 filing Sky Quarry disclosed an operating margin of ≈ 12 % (adjusted for one‑time restructuring charges). That places the company a few points above the sector median for integrated energy‑solutions peers—Veolia (≈ 8 % on an LTM basis), Waste Management (≈ 10 %) and CleanHarbor (≈ 9 %). The upside stems from higher‑margin resource‑recovery contracts and a modest rise in EBITDA‑to‑revenue (≈ 18 % vs ≈ 15 % for the comparables).

Trading implications: The margin beat signals that Sky Quarry is successfully monetising its sustainability platform faster than the broader waste‑to‑energy set, which should keep its valuation premium alive. Relative‑strength indicators (RSI ≈ 58, 20‑day SMA still above the 50‑day SMA) suggest the stock retains bullish momentum, while the 200‑day moving average remains intact, providing a technical floor. For short‑term traders, a break‑out above the $28 resistance level (the high of the last 3‑month range) could trigger a 5–7 % upside target, supported by the margin‑lead narrative. Conversely, risk‑averse investors may consider a tight stop around $24 (just below the recent low) if the broader energy‑services sector faces a pullback. In the longer view, the superior operating margin gives Sky Quarry a defensive edge against cyclical demand swings, making it a favorable candidate for a core position in a thematic “sustainable infrastructure” basket.