Clean Energy Fuels Reports. has announced its operating results for the fourth quarter
Clean Energy Fuels Reports. has announced its operating results for the fourth quarter and full year of 2024, highlighting steady revenue, increased renewable natural gas (RNG) sales, and financial improvements in certain key areas.
Financial Performance
Clean Energy reported revenue of $109.3 million in the fourth quarter of 2024, marking a slight increase compared to $106.9 million in the same quarter of 2023. Annual revenue, however, saw a modest decline, totaling $415.9 million for the full year 2024 versus $425.2 million in 2023.
Despite the revenue performance, the company recorded a GAAP net loss of $30.2 million in Q4 2024, translating to a loss of $0.13 per share. This compares to a net loss of $18.7 million, or $0.08 per share, in Q4 2023. On a full-year basis, the company’s net loss improved slightly, decreasing to $83.1 million ($0.37 per share) in 2024 from $99.5 million ($0.45 per share) in 2023.
Clean Energy’s Adjusted EBITDA—a key metric that excludes certain non-cash and non-recurring items—was $23.6 million for Q4 2024, an increase from $21.2 million in Q4 2023. For the full year, Adjusted EBITDA rose significantly to $76.6 million in 2024, compared to $43.6 million in 2023, indicating operational improvements and better cost management.
As of December 31, 2024, the company reported cash, cash equivalents, and short-term investments (excluding restricted cash) totaling $217.5 million, reflecting a strong financial position heading into 2025.
2025 Outlook
Looking ahead, Clean Energy expects to report a GAAP net loss between $155 million and $160 million for 2025. This includes up to $55 million in accelerated depreciation expenses related to the potential abandonment of certain liquefied natural gas (LNG) station assets at 55 Pilot Flying J locations. The company also notes that the expiration of the alternative fuel excise tax credit (AFTC) in 2024, which contributed approximately $24 million to revenue in 2024, will impact financial results in 2025.
Despite these challenges, Clean Energy projects Adjusted EBITDA in the range of $50 million to $55 million for 2025, excluding the AFTC revenue impact. This forecast suggests that the company anticipates stable operational performance even as it navigates industry shifts and regulatory changes.
Operational and Strategic Developments
Clean Energy achieved notable operational growth in the fourth quarter, selling 62.0 million gallons of RNG, an 8.8% increase compared to Q4 2023. On an annual basis, the company sold 236.7 million gallons of RNG in 2024, up from 225.7 million gallons in 2023, representing a 4.9% year-over-year increase.
A key milestone in Q4 2024 was the expansion of a significant RNG fueling station owned by the Los Angeles County Sanitation District. This facility now dispenses 1 million gallons of RNG per year, leveraging both the district’s own RNG generated from wastewater and organic waste, as well as RNG sourced from Clean Energy.
The company also secured several new RNG supply agreements with prominent customers, including DHL, Food Express, LA Metro, and Estes Express Lines, further solidifying its position in the transportation and logistics sectors.
Additionally, Clean Energy was awarded a contract to design and construct a new hydrogen fueling station for Riverside Transit, demonstrating its ongoing commitment to diversifying its clean energy portfolio beyond RNG.
CEO Commentary
Andrew J. Littlefair, President and Chief Executive Officer of Clean Energy, expressed optimism about the company’s performance and future trajectory, stating:
“Hats off to the Clean Energy team for finishing the year strong with a 9% year-over-year increase in quarterly RNG delivered and ending 2024 at the low end of our GAAP loss guidance range while exceeding the high end of our Adjusted EBITDA guidance range. Our growing fuel volumes of RNG are contributing positively to our financial results even before the anticipated impact of additional volumes driven by trucks hitting the road with the new Cummins X15N engine, which should occur later in 2025 and beyond.
Furthermore, we have already begun working with the new administration as it prioritizes solutions over mandates in addressing transportation energy needs. RNG has broad bipartisan support due to its environmental and economic benefits to both urban and rural communities, making it a crucial component of discussions surrounding the heavy-duty transportation sector in the U.S. and Canada.”
Financial Details and Analysis
Revenue for Q4 2024 was impacted by $18.0 million in non-cash stock-based sales incentive contra-revenue charges (“Amazon warrant charges”) related to the warrant issued to Amazon.com NV Investment Holdings LLC. This compares to $16.1 million in Amazon warrant charges in Q4 2023.
The company also recorded $6.1 million in revenue from the AFTC program in Q4 2024, slightly up from $5.9 million in Q4 2023. Station construction revenues in Q4 2024 totaled $6.1 million, compared to $8.9 million in Q4 2023, reflecting some variability in infrastructure development projects.
Clean Energy also reported an unrealized loss of $0.4 million on commodity swap and customer fueling contracts tied to its Zero Now truck financing program in Q4 2024, compared to an unrealized loss of $1.7 million in Q4 2023. Additionally, Q4 2023 benefited from an unrealized gain of $1.8 million from commodity swaps related to Zero Now, which did not recur in Q4 2024.
Revenues from renewable identification numbers (RINs) and low carbon fuel standards (LCFS) credits increased to $13.5 million in Q4 2024 from $11.5 million in Q4 2023. This growth was driven by higher volumes of RNG fuel sold, an increased mix of lower-carbon-intensity dairy RNG, and higher LCFS credit prices, partially offset by lower RIN credit prices compared to the prior year.
The company recorded an $8.1 million impairment charge related to investments in equity securities in Q4 2024, which was absent in Q4 2023. Additionally, higher Amazon warrant charges contributed to the increased net loss for the quarter.
On a positive note, non-operating net interest expenses were lower in Q4 2024 compared to Q4 2023, largely due to debt extinguishment costs incurred in the prior year. However, losses from equity method investments increased in Q4 2024 due to the ramp-up of operations at Clean Energy’s dairy RNG projects. Selling, general, and administrative expenses rose by approximately $3.8 million year-over-year, primarily due to increased wages, salaries, and business insurance costs, though partially offset by lower stock compensation expenses.
