Clean Energy Fuels Q2 2025 Earnings Call Highlights

Clean Energy Fuels ((CLNE)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for Clean Energy Fuels revealed a generally positive outlook for the company, underscored by strong revenue growth and promising developments in renewable natural gas (RNG) production. Despite these positive indicators, the company faces challenges such as an increased net loss and difficulties in the heavy-duty truck market, as well as lower-than-expected RNG revenue from dairy projects.

Strong Revenue and RNG Sales

Clean Energy Fuels reported an impressive $102 million in revenue for the second quarter of 2025, with over 61 million gallons of renewable natural gas sold. This robust performance highlights the company’s ability to navigate market uncertainties effectively.

Cash and Investments Growth

The company ended the quarter with $241 million in cash and investments, an increase from $217 million at the start of the year. This growth indicates a strong financial position, providing a solid foundation for future investments and operations.

Positive Outlook on Transit and Waste Markets

Clean Energy Fuels secured multiple deals with transit agencies and waste companies, underscoring the reliability and environmental benefits of natural gas fleets. These partnerships are expected to bolster the company’s market presence and revenue streams.

RNG Development Progress

Significant strides were made in RNG production, with six dairy projects currently operational and two large projects in Texas and Idaho expected to begin production by the end of the year. These developments are crucial for the company’s growth strategy.

Guidance Increase for 2025

Reflecting confidence in ongoing business trends, Clean Energy Fuels raised its 2025 guidance for both GAAP earnings and non-GAAP adjusted EBITDA. This increase signals the company’s optimistic outlook for the future.

Increased Net Loss

The company reported a GAAP net loss of $20.2 million for Q2 2025, up from $16.3 million in the previous year. This increase was partly due to the expiration of a $6 million alternative fuel tax credit, highlighting areas for potential improvement.

Challenges in Heavy-Duty Truck Market

Sales of trucks equipped with the new X15N engine fell below expectations, with regulatory uncertainties in California affecting overall truck sales. This challenge represents a significant hurdle for the company’s expansion in this market segment.

Dairy RNG Project Delays

Five out of six operating dairy projects are still in ramp-up mode, resulting in lower-than-expected RNG revenue. This has led to a tempered outlook for these projects in 2025.

Lower LCFS Revenue

A 20% drop in LCFS prices since Q1 2025 impacted revenue, although this was partially offset by a 77% increase in RIN revenue. This fluctuation in revenue streams highlights the volatility in the market.

Forward-Looking Guidance

Clean Energy Fuels provided updated guidance during the earnings call, projecting an improved outlook for the full year. Despite a GAAP net loss of $20.2 million for the quarter, the company raised its 2025 guidance, expecting a net loss between $217 million and $212 million and adjusted EBITDA between $60 million and $65 million. Key drivers for this revised outlook include strong RNG volume growth, favorable pricing trends, and improved construction and service margins.

In conclusion, Clean Energy Fuels’ earnings call presented a mixed yet optimistic picture. While the company faces challenges such as increased net loss and market uncertainties, strong revenue growth and strategic investments in RNG production provide a solid foundation for future success. Investors and stakeholders will be keenly watching how the company navigates these challenges and leverages its strengths in the coming quarters.