Clean Energy Fuels Q3 2025 Earnings Call Highlights

Clean Energy Fuels’ recent earnings call conveyed a positive sentiment, highlighting significant financial growth and strategic advancements in renewable natural gas (RNG) production and downstream fueling segments. Despite challenges such as net losses and slow adoption in the heavy-duty trucking sector, the company demonstrated resilience and optimism for future developments. Strong Financial Performance Clean Energy Fuels reported a robust financial performance for the third quarter of 2025, with revenues reaching $106 million, marking an 8% increase over the previous year when excluding alternative fuel tax credits. The company’s adjusted EBITDA stood at $17.3 million, reflecting its strong operational capabilities and financial management. RNG Production Expansion The company made significant strides in expanding its RNG production capabilities by initiating operations at its two largest dairy RNG projects located in Texas and Idaho. This expansion brings the total number of projects in operation to eight, underscoring Clean Energy Fuels’ commitment to scaling its renewable energy initiatives. Transit and Refuse Business Growth Clean Energy Fuels’ downstream fueling business continues to thrive, with steady contributions from the transit and refuse segments. The company’s success in this area is bolstered by its long-standing relationships with key customers, ensuring a reliable revenue stream. Hydrogen Fueling Station Contracts In a strategic move to diversify its offerings, Clean Energy Fuels secured contracts to design, build, and maintain hydrogen fueling stations for Foothill Transit and the cities of Riverside and Ventura. This development positions the company as a leader in the growing hydrogen fuel market. Pioneer Clean Fleet Solutions Launch Partnering with Cummins and Hexagon Agility, Clean Energy Fuels launched Pioneer Clean Fleet Solutions, focusing on low-carbon heavy-duty vehicles. This initiative aims to promote the adoption of next-generation compressed natural gas (CNG) trucks, aligning with the company’s sustainability goals. GAAP Net Loss Despite its successes, Clean Energy Fuels reported a GAAP net loss of $23.8 million for Q3 2025, compared to a $18.2 million loss in 2024. This was largely due to the absence of $6.4 million in alternative fuel tax credits and $3 million in net incremental costs. Challenges with LCFS Credit Prices The company continues to face challenges with Low Carbon Fuel Standard (LCFS) credit prices, which have impacted segment profitability. However, Clean Energy Fuels remains optimistic about improvements in credit prices by 2026, which could enhance future profitability. Slow Adoption of X15N Engine The adoption of the Cummins X15N engine has been slower than anticipated, hindered by challenging freight rates and uncertain policy regulations in the heavy-duty trucking sector. This has posed a challenge for Clean Energy Fuels in expanding its market share in this segment. Forward-Looking Guidance Looking ahead, Clean Energy Fuels remains optimistic about its financial trajectory, with a strong balance sheet boasting $232 million in cash and short-term investments. The company has raised its guidance for 2025, driven by the sale of 61 million gallons of RNG and the competitive advantages of RNG, such as low NOx and greenhouse gas emissions. Additionally, the company anticipates positive impacts from the 45Z Clean Fuel Production Credit and ongoing projects with Maas Energy Works. In conclusion, Clean Energy Fuels’ earnings call reflected a positive outlook, with the company achieving significant financial growth and strategic advancements in RNG production and downstream fueling. Despite facing challenges, the company’s forward-looking guidance and strategic initiatives position it well for future success.