Clean Energy Fuels (CLNE) Q3 2026 Earnings Call Transcript

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DATE

Thursday, Nov. 5, 2026

CALL PARTICIPANTS

• President and Chief Executive Officer – Barclay Corbus
• Chief Financial Officer – Jason Armstrong
• Chief Operating Officer – Bart Frabotta
• Chief Revenue Officer – Sean Wine
• Senior Vice President, Strategy – Thomas Driscoll

TAKEAWAYS

• Revenue — $112.2 million, including $10.6 million in non-cash stock-based sales incentive charges related to the Amazon warrant.
• Adjusted EBITDA — $27.2 million, significantly improved from $17.3 million due to the recognition of Section 45Z production tax credits.
• 2026 Adjusted EBITDA Guidance — $75 million to $80 million, representing a $5 million increase to the previous outlook driven by improved tax credit values.
• RNG Volume Sold — 66.8 million gallons, growing 9% year over year as customer adoption increases.
• Total Fuel Volume — 85.1 million gallons, comprising 66.8 million gallons of RNG and 18.3 million gallons of conventional natural gas.
• RNG Production Volume — 2.2 million gallons, representing a nearly fivefold increase year over year due to improved operations at dairy projects.
• Net Loss — $5.7 million or $0.03 per share, which improved from a loss of $23.8 million or $0.11 per share in the prior-year period.
• Cash and Investments — $140.2 million as of Sept. 30, 2026, which includes proceeds from the sale of environmental tax credits.
• Tax Credit Sales — $30.7 million, including a $26 million investment tax credit for the South Fork Dairy project and $5 million of Section 45Z credits.
• Section 45Z Catch-up — $8.3 million, resulting from applying updated GREET model values to RNG production from the first half of 2026.
• RIN and LCFS Revenue — $16 million, up from $11.4 million due to higher RNG volumes and increased pricing for both credit types.
• Station Construction Revenue — $6.2 million, compared to $9.9 million in the third quarter of 2025.
• Operating Cash Flow — $36.2 million, reflecting $23.3 million in net proceeds from the sale of tax credits.
• Debt Balance — $235 million in long-term Stonepeak debt, following a $15 million paydown during the quarter.
• Capital Expenditures — $5.5 million for the third quarter.
• Maas Dairy JV Investment — $12.1 million, excluding capitalized interest, with less than $10 million in additional spending expected for the remainder of 2026.
• Upstream Adjusted EBITDA — $10.9 million, compared to a loss of $3.3 million reflecting increased production and tax credit contributions.
• Fuel Distribution Adjusted EBITDA — $16.2 million, compared to $20.6 million in the prior-year quarter.
• Orange County Contract — $27.5 million, awarded for the design, construction, and maintenance of a hydrogen fueling station expected to be completed in 2028.
• Full-Year GAAP Net Loss Guidance — $55 million to $50 million, inclusive of approximately $44 million in estimated Amazon warrant charges.

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RISKS

• Corbus stated, “A few items we’re working through could also result in onetime charges in the fourth quarter,” during a discussion about organizational optimization and management restructuring.
• Corbus noted that for the heavy-duty trucking market, “change is hard, the regulatory picture has been unsettled and many fleets don’t yet fully understand how RNG lowers their costs,” potentially affecting the pace of adoption.

SUMMARY

Clean Energy Fuels Corp. (CLNE +20.86%) reported improved third-quarter financial results and raised its full-year earnings outlook following the implementation of favorable federal tax credit valuations. Management stated that the updated Department of Energy GREET model recognizes the ultra-low carbon intensity of dairy-sourced renewable natural gas, providing a higher recurring value for production. The company is executing an organizational optimization plan that concentrates sales efforts on heavy-duty trucking fleets where the total cost of ownership is most competitive compared to diesel. This strategic focus is supported by a new leadership structure, including the appointment of a Chief Revenue Officer to unify commercial operations across the company’s fueling and production segments.

• The company secured a fuel agreement with Penske to offer RNG at discounted prices to heavy-duty truck fleets through Penske’s national sales force.
• CEO Corbus stated, “The Cummins X15N engine is now performing extremely well,” following the resolution of early technical issues, which is driving renewed interest from large fleets for both public and private fueling stations.
• The company is targeting growth in non-vehicle natural gas markets, including providing bridge energy solutions for industrial users and LNG for ship bunkering.
• Management noted that they are realistically assessing the pace of market adoption rather than waiting for a step change that they do not control.
• CFO Armstrong indicated that third-quarter SG&A expenses were influenced by variable costs and organizational optimization efforts, noting these figures are not indicative of a go-forward run rate.
• The company expects to sell investment tax credits for four additional projects in 2027 and 2028 to provide additional cash for operations.

INDUSTRY GLOSSARY

• 45Z: A federal production tax credit for low-carbon transportation fuels.
• CNG: Compressed natural gas, used as a cleaner-burning alternative to gasoline and diesel.
• GREET: The Greenhouse gases, Regulated Emissions, and Energy use in Transportation model used to determine the carbon intensity of fuels.
• ITC: Investment Tax Credit, a federal tax incentive for investment in renewable energy projects.
• LCFS: Low Carbon Fuel Standard, a state-level program that generates credits based on the carbon intensity of transportation fuels.
• LNG: Liquefied natural gas, natural gas that has been cooled to a liquid state for transport and storage.
• RIN: Renewable Identification Number, a credit used for compliance with the federal Renewable Fuel Standard.
• RNG: Renewable natural gas, a sustainable fuel produced from organic waste sources like dairy farms and landfills.
• TCO: Total cost of ownership, a financial estimate intended to help buyers determine the direct and indirect costs of a product or system.
• X15N: A 15-liter natural gas engine produced by Cummins designed for heavy-duty trucking applications.

Full Conference Call Transcript

Operator: Hello, and welcome everyone joining today’s Clean Energy Fuels Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this call is being recorded. [Operator Instructions] It is now my pleasure to turn the meeting over to Tom Driscoll, Senior Vice President, Strategy. Please go ahead.

Thomas Driscoll: Thank yo

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