Clean Energy Fuels (NASDAQ:CLNE) executives highlighted stronger-than-expected full-year performance, major milestones in renewable natural gas (RNG) production, and a 2026 outlook calling for improving results and higher RNG volumes during the company’s fourth-quarter 2025 earnings call.
2025 results and balance sheet actions
President and CEO Andrew Littlefair said the company finished the fourth quarter and full year with “strong results,” citing continued strength in fueling operations and progress in its upstream RNG production platform. He noted that Clean Energy exceeded the high end of its 2025 guidance range for the full year.
On the balance sheet, management emphasized a notable deleveraging step in the quarter. Littlefair said Clean Energy repaid $65 million of debt during the fourth quarter, and Vreeland said the company ended 2025 with $156.1 million in cash and investments after that repayment. Vreeland added that the company does not currently plan additional debt paydowns in 2026.
Vreeland also reminded investors that results no longer include Alternative Fuel Tax Credit benefits, which expired at the end of 2024. He contrasted 2025 with 2024, when adjusted EBITDA included $24 million of Alternative Fuel Tax Credit income.
RNG volumes and upstream project milestones
Vreeland said Clean Energy delivered 237.4 million gallons of RNG in 2025, about 97% of its target. He attributed the shortfall to first-quarter extreme weather that hampered RNG supply, which the company was able to partially—but not fully—recover over the remainder of the year. In the fourth quarter, Clean Energy delivered 64.1 million gallons of RNG, up about 5% from the third quarter and about 3% from the year-ago quarter. Later in the Q&A, management characterized Q4 RNG volumes as a record quarter.
Littlefair highlighted two major upstream RNG developments:
- South Fork Dairy (Texas): Construction was completed and the project entered service in the fourth quarter. Littlefair called it the largest operating RNG project in the company’s portfolio at the time it came online and one of the largest dairy digesters in the country. He also said the project is fully consolidated because it is not part of a joint venture, and added that the dairy partner has increased herd count and the company is considering expanding production facilities.
- East Valley Dairy (Idaho): The company has begun injecting gas at the site, which management described as the largest RNG project in Clean Energy’s portfolio. The project is part of a joint venture with BP and processes manure from over 37,000 milking cows, with final completion “on track” for spring.
Littlefair said these additions bring the company to eight operating projects, with three more in construction through its partnership with Maas Energy Works. He emphasized that new sites typically take time to ramp and optimize production, but said the company now has scale and “clear line of sight” to growing volumes in 2026 and beyond.
Policy and credit market commentary
Management described the regulatory backdrop as encouraging to start 2026. Littlefair pointed to California Air Resources Board (CARB) data showing a net LCFS deficit in Q3 2025 for the first time since 2021, which he said was driven by CARB program changes and was constructive for LCFS fundamentals. He also said the company expects EPA to continue recognizing RNG production growth in setting federal renewable fuel targets.
On the federal 45Z Clean Fuel Production Credit, Littlefair said rulemaking is progressing and the industry is awaiting an updated 45Z GREET model. He said the company remains optimistic Treasury and the Department of Energy will recognize avoided methane emissions and the negative lifecycle emissions potential of dairy RNG.
In response to analyst questions, Vreeland said the company is including 45Z credit values in its 2026 results for RNG production volumes in its joint ventures and the fully consolidated South Fork project. He also indicated the company is accruing 45Z as volumes are produced, and noted the company expects to pursue a “routine monetization” strategy for credits, similar to prior activity monetizing investment tax credits, and said there is appetite from third parties for 45Z credits.
Downstream demand, customers, and heavy-duty trucking adoption
Littlefair said volumes across transit, refuse, and trucking customers grew during the quarter. He highlighted recent agreements and awards, including an extension with WM to provide services for 85 stations supporting a fleet of 8,000 refuse trucks fueled with RNG. He also listed municipal wins in multiple cities to “flip” CNG to RNG, build or maintain stations, or provide RNG for airport shuttle operations.
On heavy-duty trucking, Littlefair said adoption of Cummins’ X15N natural gas engine was slower in 2025 than the company anticipated, which he attributed to challenging freight market dynamics that delayed fleet decisions and truck purchases. However, he said headwinds have begun to ease and that the X15N has demonstrated strong performance in power, torque, drivability, and improved mileage versus prior 12-liter natural gas engines.
During Q&A, management said it is working with large fleets that are demoing trucks or beginning to place small initial orders, and described interest in lower-carbon trucking as continuing despite shifting policy discussions. Littlefair also addressed concerns about narrowing diesel-to-natural-gas spreads, saying the company is “cautious” on spreads but not seeing conditions that would significantly elongate payback periods today, while noting the company can price fuel aggressively to support roughly a two-year payback in some cases.
On the broader supply picture, Littlefair said the company sources RNG from about 90 suppliers and said there is “no shortage” of RNG supply currently, adding that the industry needs more adoption in transportation markets.
2026 outlook: higher volumes, cost reductions, and improving profitability metrics
For 2026, management forecast improving results and volume growth. Vreeland guided to:
- RNG delivered: about 250 million gallons
- Total fuel volumes: around 324 million gallons
- Upstream RNG production: 7–9 million gallons from 8 operating dairies
- Revenue: $420 million to $440 million
- GAAP net loss: $71 million to $66 million
- Adjusted EBITDA: $70 million to $75 million
Vreeland said the company expects significant improvements in the RNG upstream business, including lower GAAP losses and positive adjusted EBITDA for 2026. He also said the fuel distribution business is expected to improve its GAAP net loss, though adjusted EBITDA is expected to come down from a “robust” 2025 due to lower anticipated fuel margins and the impacts of contract renewals and how much environmental credit value the company retains.
Cost and cash flow were also key themes. Vreeland said the company expects SG&A to decline about 10% (over $10 million) in 2026, after Q4 SG&A ran about $4 million above normal due to one-off personnel and station exit costs. He guided to approximately $25 million per quarter of SG&A run rate in 2026 (including stock compensation).
On capital allocation, Vreeland said Clean Energy expects about $25 million of fuel distribution capex in 2026 and about $40 million of investments into RNG upstream, tied to the continued construction and completion of three Maas Energy Works dairy projects. He said the company plans to fund these investments with balance sheet cash and operating cash flow, with no borrowings contemplated for 2026. Vreeland also said the company expects roughly $50 million of operating cash flow in 2026 and noted interest payments should fall by about $6 million due to the $65 million debt repayment.
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.
