Clean Energy Fuels (CLNE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $105 million, up from $96 million in Q3 2023, driven by higher fuel sales, RIN revenue, and AFTC credits, partially offset by lower LCFS and natural gas prices.

• Adjusted EBITDA rose to $21.3 million from $14.2 million year-over-year, while net loss narrowed to $18.2 million from $25.8 million.

• Sold 59.6 million gallons of RNG in Q3 2024, a 5.1% increase year-over-year, setting a quarterly record.

• Ended the quarter with $243.5 million in cash and investments, maintaining strong liquidity.

• Expanded fueling network by almost 15% in the past year, with 583 U.S. and 24 Canadian stations, and significant investments in joint ventures and new projects, including a $132 million commitment to Maas Energy Works.

Financial highlights

• Q3 2024 revenue was $104.9 million, up 9.7% year-over-year, with product revenue at $89.9 million and service revenue at $15.0 million.

• Adjusted EBITDA reached $21.3 million, and cash flow from operations for Q3 2024 was $21.4 million, up from $7.7 million a year ago.

• Gross margin improved as product cost of sales fell to 60.9% of revenue in Q3 2024 from 68.5% a year earlier.

• RIN and LCFS revenues totaled $13.0 million, with RIN credit prices improving and LCFS prices declining.

• Total indebtedness was $303.3 million as of September 30, 2024, with interest expense rising to $8.4 million.

Outlook and guidance

• 2024 outlook for net GAAP earnings and Adjusted EBITDA remains unchanged, with net loss expected between $(91) million and $(81) million and Adjusted EBITDA between $62 million and $72 million.

• RNG production from equity joint ventures expected to be 4–6 million gallons in 2025, ramping up from 2.8 million annualized in Q3 2024.

• Alternative fuel tax credit revenue of $22 million in 2024 may not repeat in 2025 due to expiration.

• Anticipates increased fuel volumes in the second half of 2025 as X15N engine adoption grows.

• Management expects to fund $60 million in capital expenditures in 2024, with up to $65 million for ADG RNG facility development.