Clean Energy(CLNE) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the full year 2025, the company reported a GAAP loss of $222 million, slightly higher than expected due to non-cash interest charges [18] - Adjusted EBITDA for 2025 was $67.6 million, exceeding the top end of guidance of $65 million [18] - In Q4 2025, the company delivered 64.1 million gallons of RNG, a 5% increase over Q3 2025 and approximately 3% higher than Q4 2024 [19] Business Line Data and Key Metrics Changes - The RNG upstream business showed improved financial performance in Q4 2025, with expectations for continued growth into 2026 [20] - The fuel distribution business maintained gross margins consistent with previous quarters, despite a $4 million increase in SG&A expenses due to one-off costs [20] Market Data and Key Metrics Changes - RNG delivered in 2025 was 237.4 million gallons, about 97% of the target, with a slight shortfall attributed to extreme weather in Q1 [19] - The company expects to deliver 250 million gallons of RNG in 2026, with total fuel volumes around 324 million gallons [21] Company Strategy and Development Direction - The company is focused on scaling its RNG production and optimizing operations while pursuing growth across its integrated RNG model [17] - The company plans to maintain a cautious view on natural gas spreads to oil for 2026, while being optimistic about RIN and LCFS credit prices [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current regulatory environment for RNG, highlighting its economic and environmental benefits [10] - The company anticipates significant improvements in its RNG upstream business for 2026, with lower GAAP losses and positive adjusted EBITDA [21] Other Important Information - The company ended 2025 with $156.1 million in cash and investments after paying down $65 million in debt [20] - Capital expenditures for 2026 are expected to remain steady at approximately $25 million for the fuel distribution business [25] Q&A Session Summary Question: What is the ramp trajectory for the 8 facilities now open and operating? - Management indicated a gradual ramp-up in production, with significant improvements expected in the second half of the year [30] Question: What is the interest in the 15-liter engine and truck market? - Management noted that while macro issues have affected the trucking industry, there is still strong interest from fleets in cleaner, sustainable trucks [32] Question: How is the company accounting for the 45Z credits in guidance? - Management confirmed that they are accruing for the credits as they produce volume, with expectations for improvement once final rules are established [39] Question: Are there any weather challenges anticipated this quarter? - Management acknowledged some weather challenges but not to the extent seen in the previous year [57] Question: What is the status of the company's JVs with BP and TotalEnergies? - Management stated that current upstream investments are focused on Maas Energy Works projects, with no immediate plans for additional investments [68]