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    CLNE
    Earnings call· Jun 2026(Q2 FY26)

    Clean Energy Fuels Q2 FY26 earnings call CLNE

    Aug 6, 2026 Source

    Executive summary

    Clean Energy Fuels Q2 FY26 — Solid Results and Strategic Expansion

    Clean Energy Fuels delivered Q2 FY26 results in line with expectations, maintaining its annual financial outlook despite regulatory uncertainty impacting new engine adoption. The company is leveraging existing infrastructure for new power generation opportunities and expanding its alternative fuel station network, while awaiting clarity on key tax credits to further boost its upstream RNG business.

    Highlights

    5

    • Reported solid Q2 results with $106 million in revenue, $63 million in RNG sold, and $16 million in adjusted EBITDA, aligning with expectations.

    • Strengthened balance sheet with cash and short-term investments increasing to $138 million at quarter-end, up from $126 million in Q1 FY26.

    • Upstream RNG production improved significantly in Q2, aided by better weather and the ramp-up of key projects like South Fork and East Valley.

    • Total fuel volumes grew 7% year-over-year to 81.8 million gallons, with RNG volumes specifically increasing 3% year-over-year to 63.2 million gallons.

    • Secured a $27 million contract with Orange County Transportation Authority for a new hydrogen fueling station, reinforcing leadership in alternative fuel infrastructure.

    Concerns

    3

    • Uncertainty surrounding final 2027 EPA emission standards led to a large prebuy of legacy diesel trucks, impacting the adoption rate of the new X15N engine.

    • Delay in Treasury's finalization of Section 45Z clean fuel production credit rules, now expected in Q4, could impact 2026 adjusted EBITDA by up to $5 million if delayed further or provides minimal benefit.

    • Revenue declined sequentially from Q1 FY26, primarily due to lower natural gas prices and reduced gas trading volatility, consistent with normal seasonal patterns.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year 2026 Adjusted EBITDA
    $70 million to $75 million
    high materiality
    High
    Incremental Adjusted EBITDA from 45Z credit
    up to $5 million
    medium materiality
    Medium
    Maas Energy Works JV projects online
    2 projects
    low materiality
    High
    Maas Energy Works JV projects online
    final project
    low materiality
    High

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    Upstream RNG Production
    Saw improvement in Q2 2026 compared to Q1 2026, helped by better weather and ramp-up of South Fork and East Valley projects. Volume was well above prior year period.
    RNG production volume: 2.1 million gallons
    		———noted improvement in operating results

    Operational metrics

    7
    Adjusted EBITDA
    $16 million
    Q2 FY26

    In line with expectations.

    Cash and short-term investments
    $138 millionup from $126 million at the end of March
    as of June 30, 2026

    Balance sheet remained strong.

    Total Fuel Volume
    81.8 millionincreased by 7% year-over-year
    Q2 FY26

    Growth driven by additional fueling locations for large fleet customers.

    RNG Fuel Volume
    63.2 millionincreased 3% year-over-year
    Q2 FY26

    Reflecting normal variations across customer sectors. Remained ahead of plan through June.

    RNG Production Volume
    2.1 millionwell above the prior year period
    Q2 FY26

    Upstream portfolio continues to ramp.

    Revenue Growth
    3.7%year-over-year
    Q2 FY26

    Higher station construction revenue and increased RIN and LCFS credit values more than offset lower commodity prices and customer pricing.

    Revenue Sequential Change
    declined sequentially
    Q2 FY26 vs Q1 FY26

    Primarily due to lower natural gas prices and reduced gas trading volatility, consistent with normal seasonal patterns.

    Deals & partnerships

    5
    Maas Energy WorksConstruction of 3 RNG production projects

    Clean Energy contributed $24 million through June and an additional $12 million in July to the JV. Less than $5 million remains to be contributed.

    Orange County Transportation Authority (OCTA)Design and build a new private hydrogen fueling station$27 million

    Largest hydrogen project to date for Clean Energy. Includes operation and maintenance agreement and hydrogen fuel supply.

    Global health care provider (pharmaceutical manufacturing facility)Provide energy security and resiliency for a pharmaceutical manufacturing facility in Puerto Rico

    One of two projects awarded in Puerto Rico for gas-to-power applications.

    Unnamed (6-megawatt power plant)Provide energy for a 6-megawatt power plant in Puerto Rico

    One of two projects awarded in Puerto Rico for gas-to-power applications.

    Large fulfillment centerSupply CNG for power generation as a bridge fuel solution

    Customer in California needs power generation while awaiting a utility connection indefinitely.

    Capital programs

    1
    Maas Energy Works Dairy JV Projectsunder construction
    Period spend: $24 million through June, $12 million in July
    Spent to date: $36 million

    Clean Energy contributed $24 million through June and an additional $12 million in July. Less than $5 million remains to be contributed before the projects are placed in service.

    Risks & headwinds

    3
    Uncertainty surrounding final 2027 EPA emission standardscurrent

    large prebuy of legacy diesel trucks

    Mitigation: Deep engagement with fleets, increased advertising emphasizing RNG's low stable price.

    Delay in finalization of Section 45Z clean fuel production credit rulesFY26

    now expected in the fourth quarter, could provide up to $5 million of incremental adjusted EBITDA (if positive), adjusted EBITDA would come in below our $70 million to $75 million range (if delayed or minimal benefit)

    Mitigation: Awaiting Treasury's finalization; believe updated GREET model will positively impact results.

    Lower natural gas prices and reduced gas trading volatilityQ2 FY26

    revenue declined sequentially from the first quarter

    Mitigation: Considered normal seasonal patterns and factored into outlook.

    What to watch in Q3 FY26

    4

    45Z Clean Fuel Production Credit Finalization

    Q4 FY26
    CurrentExpected in Q4 FY26
    TargetFinalized rules and updated GREET model

    Why it matters

    Finalization is expected to positively impact upstream RNG results and could provide up to $5 million of incremental adjusted EBITDA for FY26.

    We continue to await Treasury's finalization of the 45Z rules and credit values, which is now expected in the fourth quarter. We believe the finalized rule and updated GREET model, once released, will positively impact our upstream results in 2026 and the years ahead.

    Q&A highlights

    6

    Inquires about the incremental cost of the X15N engine and how it affects adoption, especially with the diesel prebuy and high diesel prices.

    Barclay Corbus explains that regulatory uncertainty has complicated the incremental cost picture for diesel engines, which would have reduced the X15N's incremental cost. While the actual price hasn't moved much, partners are collaborating to reduce the payback period. High and volatile diesel prices make RNG compelling, leading to increased advertising and customer discussions.

    “I don't think we've seen real movement in the sort of actual price. It's just movement around how each one of the different participants can chip in a little bit to help bring that price down so that the incremental payback period can get down to a reasonable level.”

    asked by Eric Stine · answered by Barclay Corbus

    2 min read6 chapters

    Detailed Narrative

    01

    RNG Production and 45Z Credit Outlook

    Upstream RNG production showed improvement in Q2 FY26, attributed to better weather conditions and the ramp-up of key projects like South Fork and East Valley. The company anticipates continued operational improvements in the second half of 2026. Awaiting Treasury's finalization of Section 45Z clean fuel production credit rules and an updated GREET model, expected in Q4, which is projected to positively impact upstream results in 2026 and beyond.

    02

    Heavy-Duty Trucking Market Dynamics

    RNG fuel volume in heavy-duty trucking remained steady, with some fleets adopting the X15N engine in small numbers. However, regulatory uncertainty🌐 surrounding 2027 EPA emission standards has led to a significant prebuy of legacy diesel trucks. Clean Energy is actively engaging with fleets and increasing advertising efforts to highlight the stable price advantage of RNG over volatile diesel, generating measurable interest and leads.

    03

    Canadian Market Expansion and Infrastructure

    Clean Energy Fuels has expanded its presence in Canada, completing two additional natural gas fueling stations, including a critical node near Vancouver. This establishes a Western Canadian natural gas fueling network. The Canadian market presents a strong opportunity due to high diesel taxes, extensive truck mileage, and positive fleet responses to the Cummins X15N engine.

    04

    Hydrogen Fueling Infrastructure Leadership

    The company was awarded a $27 million contract by the Orange County Transportation Authority (OCTA) to design and build a new private hydrogen fueling station. This project, the largest hydrogen initiative to date for Clean Energy, will support OCTA's existing and planned fuel cell bus fleet. The company's strategy for hydrogen projects involves acting as a service provider, winning cost-plus contracts through RFPs, and avoiding capital or commodity risk.

    05

    Emerging Independent Power Solutions

    Clean Energy is identifying new opportunities in independent power solutions, leveraging its nationwide compression capabilities and existing assets. Examples include delivering LNG marine bunker fuel to Pasha at the Port of Long Beach, securing contracts for energy security in Puerto Rico for a pharmaceutical facility and a 6-megawatt power plant, and supplying CNG to a California fulfillment center awaiting utility connection. This segment utilizes underutilized assets like tube trailers and excess compression capacity, requiring minimal new investment.

    06

    Operational Leadership Appointment

    Bart Frabotta has been appointed Chief Operating Officer, with a mandate to enhance execution, operational performance, and technology integration across the company. This strategic hire underscores Clean Energy's commitment to optimizing internal processes and maximizing the efficiency of its extensive infrastructure.

    AI-generated summary of the company’s earnings call. Not investment advice.