Clean Energy Fuels Q1 Earnings Call Highlights

Key Points

• Clean Energy reported Q1 results broadly in line with expectations, delivering 67 million gallons of RNG, revenue of $117.6 million, Adjusted EBITDA of $16.6 million and a GAAP net loss narrowed to $12 million, while finishing the quarter with $126 million in cash (plus $46 million at JV dairy projects) and reiterating confidence in delivering >250 million gallons for the year.
• New CEO Clay Corbus is prioritizing growth, execution and a more technology-forward approach, arguing a recent sharp diesel price spike underscored RNG’s cost and emissions advantages, but he noted heavy‑duty trucking adoption (e.g., Cummins X15N) has been slower than expected due to higher upfront costs, regulatory uncertainty and long sales cycles.
• Upstream progress includes eight RNG projects operating and three under construction, and a regulatory win with CARB approving the Del Rio dairy pathway at roughly -300 carbon intensity, which roughly doubles LCFS credit generation and materially improves project economics as the company awaits an updated GREET model.

Clean Energy Fuels NASDAQ: CLNE reported first-quarter 2026 results that executives said were in line with expectations, while highlighting continued strength in renewable natural gas (RNG) volumes and the impact of commodity price volatility on fleet economics.

During the company’s earnings call, newly appointed President and CEO Clay Corbus said he plans to focus on growth, execution, and operating discipline, while also pushing the company to be “more technology forward” through data and software to improve efficiency across operations and customer service. Corbus noted he has spent 19 years at the company and has been involved in major strategic shifts including early investments in RNG and the development of an integrated platform.

Quarterly performance and RNG volumes

Corbus said Clean Energy delivered 67 million gallons of RNG in the quarter, generated $16.6 million of Adjusted EBITDA, and ended the period with $126 million of cash on the balance sheet. He described downstream performance across core markets as steady, with transit and refuse continuing to be consistent contributors supported by long-standing customer relationships.

CFO Bob Vreeland said revenue rose to $117.6 million for the first quarter of 2026 from $103.8 million in the prior-year period, attributing the increase to higher revenue associated with elevated commodity and retail fuel prices and higher fuel volumes that drive base fuel sales as well as Renewable Identification Number (RIN) and Low Carbon Fuel Standard (LCFS) revenues.

Vreeland said GAAP net loss was $12 million for the quarter, compared to a GAAP net loss of $135 million a year earlier, when results included “a couple large non-cash charges totaling $115 million.” Adjusted EBITDA of $16.6 million compared with $17.1 million in the first quarter of 2025.

He also said extreme cold weather affected upstream RNG production, but the company was able to monetize “a larger than expected amount of RIN and LCFS credits” from its East Valley dairy project in Idaho, which was placed into service in March. Vreeland added that Clean Energy optimized gas costs amid a volatile commodities market and benefited from higher retail fuel prices while natural gas commodity costs did not rise proportionally with oil and diesel.

Diesel volatility and the case for RNG

Corbus said geopolitical events early in March, including conflict involving Iran, led to a sharp rise in crude oil prices and a quick move higher in diesel prices across the U.S. He estimated diesel prices increased by roughly $1.50 to $2 per gallon or more, calling it about a 50% increase “almost overnight.” According to Corbus, the episode underscored why Clean Energy’s offering can matter for fleets given natural gas’s domestic sourcing and lower exposure to geopolitical risk, along with cost and emissions advantages.

He said nearly 100% of the fuel delivered through the company’s stations today is RNG.

Trucking opportunity and slower-than-expected adoption

Corbus described heavy-duty trucking as the company’s “largest growth opportunity,” pointing to Class 8 trucks using the Cummins X15N engine. However, he said adoption of the X15N has been slower than Clean Energy originally expected, citing a mix of factors including challenging freight fundamentals over the past two years, regulatory uncertainty “particularly in California,” and shifting corporate approaches to ESG. He also noted that natural gas tractors still carry a higher upfront cost than diesel, even if RNG can offer a lower total cost of ownership.

In response to an analyst question, Corbus said he does not expect diesel prices to remain elevated permanently, but argued that the recent spike highlighted diesel’s volatility and reopened conversations around total cost of ownership. He said fleets often begin with a small number of trucks to gain operational familiarity—“start out with 5 trucks” or “start out with 10 trucks”—before expanding adoption, while also emphasizing that truck purchasing and deployment involve a long sales cycle.

Vreeland added that the company’s comments on lower base fuel margins were intended as a full-year view consistent with guidance provided in February, and that Clean Energy has “numerous levers” that can offset margin pressure, including dynamics where retail pricing rises faster than natural gas costs.

RNG production progress and regulatory updates

On the upstream side, Corbus said Clean Energy has eight RNG production projects operating and three under construction. He said first-quarter results reflected continued ramp-up at the South Fork project in Texas and the East Valley project in Idaho, while extreme winter weather hurt production “particularly in the upper Midwest.” Corbus said the company expects production and financial results to improve as the year progresses.

Corbus also highlighted a regulatory milestone: In March, the California Air Resources Board (CARB) approved the pathway for the Del Rio dairy project in Texas with a carbon intensity of approximately negative 300. In response to an analyst, Corbus said the approval “almost doubles the value of the LCFS or doubles the number of LCFS credits we can generate,” comparing a carbon intensity of 150 versus 300 in terms of credit generation on the same fuel volumes.

Corbus said the company continues to await an upgraded GREET model from the U.S. Department of Energy for determining 45Z credit values, which he said is expected to better reflect the negative carbon intensity of dairy RNG.

He acknowledged that RNG projects have taken longer to develop and ramp than initially expected and that some sites have faced operational challenges. Corbus said Clean Energy has responded by taking a more hands-on approach, strengthening internal oversight, and replacing vendors where performance fell short.

Guidance context, third-party demand, and Amazon accounting

Vreeland said the company believes first-quarter RNG volumes could come down “by a few million gallons or so” in subsequent periods, but he said management remains confident in achieving annual guidance of delivering 250 million gallons or more. Executives cautioned against simply annualizing the first quarter, noting that some volumes were driven by unique opportunities and that comparisons were helped by an “easy comp” against the prior-year quarter.

Asked about demand from customers outside Clean Energy’s station network, Vreeland said there are instances where Clean Energy can flow its RNG supply into other CNG fueling stations depending on supply availability. He described it as “kind of the beauty of the distribution model,” while saying he could not necessarily detail end-customer demand at those third-party sites.

On Amazon-related questions, Corbus said the company does not comment specifically on Amazon, while noting generally that it works with existing customers to increase penetration of natural gas trucks over time. Vreeland addressed a financial reporting change related to the non-cash Amazon warrant charge, saying a portion of the charge is now recorded against O&M service revenue rather than being entirely within products revenue, and directed listeners to additional detail in the company’s 10-Q. He said the change was not arbitrary and reflected “the appropriate accounting based on the contract that we have.”

Vreeland also noted that, in addition to $126 million in cash and investments on the balance sheet, Clean Energy had another $46 million in cash off balance sheet at its dairy RNG joint ventures. He said the company contributed $12 million to its Maas Energy Works joint venture during the first quarter and another $12 million in April, and that the JV is making progress toward completing three dairy projects under construction.

Corbus closed the call by recognizing founder Andrew Littlefair, saying Littlefair built Clean Energy over three decades and remains involved through policy work in Washington and service on the board.

About Clean Energy Fuels NASDAQ: CLNE

Clean Energy Fuels Corp., founded in 1997 and headquartered in Newport Beach, California, is a leading provider of natural gas and renewable natural gas (RNG) fuel for the transportation sector. The company operates a network of more than 500 fueling stations across the United States and Canada, supplying compressed natural gas (CNG), liquefied natural gas (LNG) and RNG derived from organic waste streams. Clean Energy serves a diverse customer base that includes commercial trucking fleets, public transit agencies, refuse haulers and municipal vehicle operators.

In addition to fuel supply, Clean Energy offers turnkey station design, construction and ongoing maintenance services, as well as fueling hardware and project management.

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