Mechanical Vapor Recompression Project Expected to Increase Cash Flow from Operations by $32 Million Per Year Starting Mid-2026CUPERTINO, Calif., Dec. 02, 2025 (GLOBE NEWSWIRE) -- Aemetis, Inc. (NASDAQ: AMTX), a renewable natural gas and biofuels company, announced today that the Authority To Construct air permits have been issued by the San Joaquin Valley Air Pollution Control District for the mechanical vapor recompression (MVR) energy efficiency project at the Aemetis 65 million gallon per year ethanol p ...

Core Insights - Aemetis, Inc. reported a strong third-quarter performance, driven by a robust Dairy RNG platform and favorable policy developments [1][3] - Revenue for Q3 2025 reached $59.2 million, an increase of $7 million from the previous quarter, supported by higher California ethanol pricing and India biodiesel sales [1][6] - The company is advancing its MVR project, which is expected to enhance long-term plant economics and generate significant annual cash flow [1][6] Revenue and Financial Performance - Total revenue was $59.2 million in Q3 2025, up $7 million from Q2 2025, bolstered by stronger California ethanol margins and $14.5 million from India biodiesel sales [1][6] - Dairy RNG operations generated approximately $4 million in revenue from 114,000 MMBtu produced by 12 operating digesters, with fully monetized CARB LCFS pathways [1][6] - Cash reserves increased to $5.6 million at the end of the quarter, as Aemetis progressed on a $30 million MVR project expected to add around $32 million in annual cash flow [1][6] Operational Developments - Aemetis signed equipment and installation contracts totaling $57 million year-to-date across its Dairy RNG and MVR projects [1][3] - The company anticipates its capacity to reach 550,000 MMBtus by year-end, with further growth expected to 1.0 million MMBtus by FY27 [1][3] - Monetization strategies for energy production now include the sale of RNG molecules, D3 RINs, and Section 45Z production tax credits, providing multiple avenues for recurring cash generation [1][3]

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Revenue Performance - For the three months ended September 30, 2025, total revenues decreased by 27.3% to $59.19 million from $81.44 million in the same period of 2024[128]. - For the nine months ended September 30, 2025, total revenue decreased by 30.1% to $154.3 million from $220.6 million in the same period in 2024[143]. - The India Biodiesel segment's revenue fell by 55.1% to $14.47 million from $32.26 million, with biodiesel sales volume dropping from 26.0 thousand metric tons to 12.5 thousand metric tons[128][130]. - India Biodiesel segment revenue fell by 67.6% to $29.1 million compared to $89.8 million in the prior year, primarily due to delays in issuing tenders and a shift to fixed price contracts[145]. - The California Ethanol segment generated $40.73 million in revenue, a 9.4% decrease from $44.93 million in 2024, with ethanol sales volume down by 5%[128]. Profitability - Gross profit for the California Ethanol segment turned negative at $(1.43) million, a significant decline from a profit of $0.085 million in 2024[138]. - The California Dairy Renewable Natural Gas segment's gross profit decreased by 31.5% to $1.30 million due to increased costs associated with additional digesters[138]. - Gross profit for the India Biodiesel segment turned negative at $(777,000) for the nine months ended September 30, 2025, compared to a profit of $6.98 million in 2024, reflecting reduced sales and a 51% increase in feedstock costs[151]. Costs and Expenses - Cost of goods sold for the California Ethanol segment decreased by 6.0% to $42.16 million, primarily due to a planned reduction in corn ground[135]. - Total cost of goods sold decreased by 25.7% to $162.8 million for the nine months ended September 30, 2025, from $219.2 million in 2024, driven by reduced sales volumes[146]. - Selling, general and administrative (SG&A) expenses as a percentage of revenue increased to 17% in the nine months ended September 30, 2025, from 13% in the same period in 2024[152]. - Interest expense increased by 17.4% to $34.1 million in the nine months ended September 30, 2025, compared to $29.1 million in 2024, due to higher variable interest rates and debt balances[152]. Cash Flow and Financing - Cash and cash equivalents rose to $5.6 million as of September 30, 2025, compared to $0.9 million at the end of 2024[155]. - Cash used in operating activities was $2.5 million, derived from a net loss of $71.7 million and changes in operating assets and liabilities of $45.8 million[163]. - Cash provided by financing activities was $16.4 million, primarily from $29.2 million in borrowings and $25.7 million from sales of common stock[165]. - During the nine months ended September 30, 2025, the company sold 13 million shares of common stock for net proceeds of $25.5 million[166]. - The outstanding balance of senior secured debt as of September 30, 2025, totaled $236.6 million, with future amendments to debt facilities subject to lender discretion[159]. - Total increases to debt amounted to $67.362 million, while total decreases to debt were $51.920 million, resulting in a net change in total debt of $15.442 million[160]. Operational Developments - The company is developing a SAF/RD production plant with a capacity of 90 million gallons per year, with significant progress in obtaining necessary permits[123]. - Planned CCUS projects aim to capture and sequester over two million metric tons of CO₂ per year, generating revenue from California LCFS credits and federal tax credits[124]. - The company is actively expanding its biogas collection pipeline, with 36 miles constructed and environmental approval for an additional 24 miles[119]. - The California Dairy Renewable Natural Gas segment sold 291.3 thousand MMBtu of RNG at an average price of $3.24 per MMBtu, up from $2.88 per MMBtu in the prior year[144]. Stock and Market Activity - The company has ongoing at-the-market stock sales registration allowing for continuous share sales into the market[166]. - There were no off-balance sheet arrangements reported[169].

Financial Data and Key Metrics Changes - Revenues for the third quarter of 2025 were $59.2 million, an increase of approximately $7 million from the second quarter, driven by biodiesel orders in India and improved ethanol production pricing [3][4] - Operating loss improved sequentially due to higher volumes and lower selling, general and administrative expenses [4] - Cash at the end of the quarter was $5.6 million after $4.1 million in investments for carbon intensity reduction and dairy renewable natural gas production expansion [4] Business Line Data and Key Metrics Changes - California Dairy Natural Gas generated $4 million in revenue from 12 operating digesters, with seven digesters using the CARB-approved LCFS pathway [4][6] - India Biofuels reported $14.5 million in revenues, with a new CFO appointed to target a public listing in 2026 [4][11] - The dairy RNG business increased biogas production capacity by over 30% with a new multi-dairy digester coming online [6][7] Market Data and Key Metrics Changes - LCFS credit revenue increased by 160% for approved dairy digesters starting in Q3 compared to those with pending approvals [7] - Ethanol pricing improved due to lower corn prices, with legislative approval for 15% ethanol blending in California expected to increase demand by over 600 million gallons per year [10][16] - The California Low Carbon Fuel Standard saw credit prices rise by more than 25% since summer, with expectations for further increases [14] Company Strategy and Development Direction - The company aims to diversify income streams from India, LCFS credits, and federal tax incentives, positioning for a strong exit to 2025 and increased income streams in 2026 [5][17] - Aemetis is targeting an IPO for its India subsidiary in early 2026, with plans to expand into biogas and ethanol production supported by government policies [11][17] - Future projects include a sustainable aviation fuel facility and a carbon capture project at the Riverbank site, with significant potential for revenue generation starting in 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of federal and state policies on the biofuels and biogas industries, anticipating strong growth in revenues and cash flow through 2026 [17][18] - The company is focused on refinancing expensive debt, supported by anticipated revenues from 45(z) production tax credits [29][45] - Management highlighted the importance of regulatory clarity and the potential for increased demand for biofuels due to legislative changes [16][38] Other Important Information - The company has completed initial site work for a carbon capture project, which is expected to sequester up to 1.4 million tons of CO2 per year [12][13] - Aemetis has received $20 million in grants and federal tax credits to fund its mechanical vapor recompression system, expected to significantly reduce natural gas use [9][10] - The company is negotiating agreements to utilize the Riverbank site for lower emissions and cost-effective power solutions [13] Q&A Session Summary Question: Ethanol segment performance and corn costs - Management noted that lower corn costs benefited the ethanol industry, but corn basis issues affected pricing [19][20] - The operational strategy has shifted to reduce reliance on petroleum and natural gas, leveraging low-carbon intensity electricity [21][22] Question: Impact of E15 approval in California - Management expects rapid adoption of E15 by retailers due to competitive pricing advantages [24][25] Question: India IPO and EBITDA profile - The company plans to sell 20%-25% of its India subsidiary, with a valuation range of $100 million to $300 million anticipated [43][44] Question: Refinancing timeline and debt management - Management is in the process of refinancing expensive debt, with expectations for improved cash flow from 45(z) credits to support this [29][45] Question: Dairy digesters and production capacity - The recent increase in production capacity is expected to positively impact future run rates, with additional digesters under construction [47][48] Question: Use of IPO proceeds - A portion of the IPO proceeds will be used for refinancing in the U.S., while also funding growth in India [52][53]

Core Insights - Aemetis reported a quarterly loss of $0.37 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.25, marking an earnings surprise of -48.00% [1] - The company generated revenues of $59.19 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 35.56% and down from $81.44 million a year ago [2] - Aemetis shares have declined approximately 23.4% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of Aemetis stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.25 on revenues of $103.1 million, and for the current fiscal year, it is -$1.36 on revenues of $300.3 million [7] Industry Context - The Biofuels industry, to which Aemetis belongs, is currently ranked in the top 2% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Revenue Performance - Revenue for Q3 2025 was $59.2 million, an increase of $7 million from Q2 2025, driven by orders from India Oil Marketing Companies and stronger ethanol prices[2]. - Total revenues for the first nine months of 2025 were $154.3 million, down from $220.6 million in the same period of 2024, primarily due to reductions in biodiesel contracts in India[8]. Profit and Loss - Gross loss for Q3 2025 was $58 thousand, compared to a gross profit of $3.9 million in Q3 2024[5]. - Net loss for Q3 2025 was $23.7 million, compared to a net loss of $17.9 million in Q3 2024[7]. - Operating loss for the first nine months of 2025 was $34.7 million, compared to $26.9 million for the same period in 2024[9]. - Net loss for the three months ended September 30, 2025, was $23,747 thousand, compared to a net loss of $17,935 thousand for the same period in 2024, representing an increase in loss of 32.5%[23]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(21,469) thousand, compared to $(9,197) thousand for the same period in 2024, indicating a worsening performance[23]. Cash and Assets - Cash increased to $5.6 million at the end of Q3 2025, up from $900 thousand at the end of 2024, supporting project execution in India[7]. - Total current assets decreased from $44,696 million in December 2024 to $15,554 million in September 2025, a decline of approximately 65.2%[21]. - Total current liabilities surged from $143,968 million in December 2024 to $343,365 million in September 2025, an increase of approximately 138%[21]. - The total stockholders' deficit increased from $(263,928) million in December 2024 to $(304,852) million in September 2025, reflecting a deterioration of approximately 15.5%[21]. Production and Sales - The Dairy Renewable Natural Gas segment produced 114,000 MMBtu from twelve operating digesters, generating $4 million in revenue[4]. - Ethanol gallons sold decreased from 15.5 million in Q3 2024 to 14.7 million in Q3 2025, a decline of 5.2%[25]. - Renewable Natural Gas MMBtu sold increased from 86.0 thousand in Q3 2024 to 114.0 thousand in Q3 2025, an increase of 32.6%[25]. - RINs sold increased from 935.3 thousand in Q3 2024 to 1,020.4 thousand in Q3 2025, an increase of 9.1%[25]. Costs and Pricing - Average sales price per gallon of ethanol increased from $2.12 in Q3 2024 to $2.13 in Q3 2025, a slight increase of 0.5%[25]. - The average delivered cost per bushel of corn decreased from $6.07 in Q3 2024 to $5.95 in Q3 2025, a reduction of 1.97%[25]. Future Plans - Aemetis plans to sell $20 million of Section 45Z and Section 48 tax credits following the completion of a multi-dairy biogas digester in September 2025[2]. - Aemetis is developing a sustainable aviation fuel and renewable diesel fuel biorefinery in California to produce low carbon intensity renewable jet and diesel fuel[12]. Interest Expense - Interest expense for the first nine months of 2025 was $39 million, up from $34 million in the same period of 2024[10].

Core Insights - Aemetis, Inc. reported a revenue of $59.2 million for Q3 2025, an increase of $7 million compared to Q2 2025, driven by orders from India Oil Marketing Companies and improved ethanol prices and volumes [2][4][6]. Financial Performance - Total revenues for Q3 2025 were $59.2 million, down from $81.4 million in Q3 2024, with the Keyes plant operating at a lower grind rate to maximize margins [7]. - The company experienced a gross loss of $58 thousand in Q3 2025, compared to a gross profit of $3.9 million in Q3 2024 [8]. - Operating loss for Q3 2025 was $8.5 million, worsening from an operating loss of $3.9 million in the same period last year [8]. - Net loss for Q3 2025 was $23.7 million, compared to a net loss of $17.9 million in Q3 2024 [10]. Segment Performance - The Dairy Natural Gas segment produced 114,000 MMBtu from twelve operating digesters, generating $4 million in revenue [6][7]. - The India Biodiesel business reported $14.5 million in revenue, primarily from new allocations converting into sales to India Oil Marketing Companies [7]. Cash Flow and Investments - Cash increased to $5.6 million at the end of Q3 2025, up from $1.6 million in Q2 2025, supporting project execution in India [6]. - The company signed contracts worth $57 million for new equipment purchase and installation for the Mechanical Vapor Recompression (MVR) and dairy RNG projects [4]. Future Outlook - Aemetis plans to sell $20 million of tax credits following the completion of a multi-dairy biogas digester in September 2025 [4]. - The company is targeting an IPO for its India subsidiary in 2026 [6].

Core Viewpoint - Aemetis, Inc. will host a conference call on November 6, 2025, to discuss its third quarter 2025 earnings report [1] Group 1: Conference Call Details - The conference call is scheduled for 11 am Pacific Time (PT) on November 6, 2025 [1] - Participants can join the call using a toll-free number or an international dial-in option [1] - A webcast of the call will be available on the company's website, along with a presentation and recent announcements [2] Group 2: Company Overview - Aemetis is a renewable natural gas and renewable fuel company based in Cupertino, California, founded in 2006 [3] - The company operates a biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas [3] - Aemetis owns a 65 million gallon per year ethanol production facility in California and an 80 million gallon per year biodiesel production facility in India [3] - The company is also developing sustainable aviation fuel, renewable diesel fuel biorefinery, renewable hydrogen, and hydroelectric power projects [3]

Company Overview - Aemetis (NASDAQ: AMTX) is a producer of renewable fuels, primarily focusing on ethanol production in California and India, as well as renewable gas generated from cow manure digesters in California [1] Industry Focus - The company is also in the process of constructing a sustainable aviation fuel facility in California, indicating a strategic move towards diversifying its renewable fuel offerings [1]