Clean Energy Fuels (NASDAQ:CLNE) raised its 2026 adjusted EBITDA outlook after a stronger-than-expected clean fuel tax credit value helped lift third-quarter results.
The renewable natural gas supplier reported revenue of $112 million and adjusted EBITDA of $27.2 million for the quarter ended September 30. It increased its full-year adjusted EBITDA guidance by $5 million to a range of $75 million to $80 million.
Clean Energy reported a GAAP net loss of $5.7 million, compared with a loss of $23.8 million a year earlier. Adjusted EBITDA rose from $17.3 million in the third quarter of 2025. CFO JJ Armstrong attributed the improvement primarily to the 45Z credit and higher revenue from renewable identification number, or RIN, and low-carbon fuel standard, or LCFS, credits.
Tax credits boost results
Corbus said an updated Department of Energy model for calculating 45Z credits assigned a higher value to the company’s dairy RNG than Clean Energy had assumed in its original guidance. The updated model applies to fuel produced beginning January 1, 2026.
The third-quarter results included an $8.3 million catch-up from applying the new values to first-half production, Armstrong said. Excluding that catch-up, the company recognized $3.5 million from third-quarter production at its South Fork, Texas, dairy project and $4.3 million from production at joint venture dairy projects with BP and TotalEnergies.
Clean Energy also recognized $5.8 million associated with its share of credits generated by third-party RNG suppliers’ 2025 production. Armstrong said the company expects to recognize supplier credits annually in the third quarter, generally coinciding with the suppliers’ tax return filings.
RIN and LCFS revenue rose $4.6 million from a year earlier, driven by higher RNG volumes and higher prices for both credits, Armstrong said. RNG distributed increased 9% to 66.8 million gallons, while production at the company’s dairy projects rose nearly fivefold to 2.2 million gallons.
Cash and project spending
Clean Energy sold approximately $31 million of tax credits in September, including a $26 million investment tax credit for South Fork and $5 million of 45Z credits generated by 2025 production at seven projects. It used proceeds from credit sales to repay $15 million on its term loan and ended the quarter with $140 million in cash and investments, Corbus said.
Operating cash flow was $36.2 million, including $23.3 million in net proceeds from investment and production tax credit sales. Capital spending totaled $5.5 million, while investments in the Maas Dairy RNG joint venture were $12 million, excluding capitalized interest. Long-term subordinated debt stood at $235 million at the end of September.
Corbus said one of three Maas Energy Works projects was in commissioning, another planned to begin commissioning in December, and the last was expected online in mid-2027. Armstrong said the company expects to spend less than $10 million during the rest of 2026 to complete the projects.
Clean Energy expects to sell investment tax credits from four more projects in 2027 and 2028. Corbus declined to estimate their potential value, citing the rules governing the credits.
Focus on fleets and other gas markets
Corbus said Clean Energy will focus its trucking sales efforts on fleets where RNG offers the strongest case for lower total ownership costs and emissions. He said the company intends to plan around a realistic pace of adoption rather than depend on a sudden marketwide shift.
The company recently signed a contract to build multiple private stations for a regional carrier that has ordered trucks equipped with Cummins’ X15N natural gas engine. The carrier will use Clean Energy’s existing network until its stations are completed in 2027, Corbus said. Clean Energy also signed a fuel agreement with truck leasing company Penske, whose demonstration trucks are being tested by fleets.
Corbus said fleet feedback indicates that early issues with the X15N have been resolved, and that high and volatile diesel prices have increased interest. He cautioned, however, that station construction and truck deployment involve long sales cycles.
Outside vehicle fueling, Corbus identified potential opportunities to supply natural gas as temporary power for facilities awaiting utility or pipeline connections and to serve ships using liquefied natural gas. The company plans to use existing assets, though he said its LNG plants need repairs.
Clean Energy is also reorganizing management around its refined focus. Corbus said work under way could result in one-time charges in the fourth quarter, although nothing had been finalized. The company plans to provide more detail and its 2027 outlook when it reports fourth-quarter results in February.
About Clean Energy Fuels (NASDAQ:CLNE)
Clean Energy Fuels Corp. (NASDAQ: CLNE) provides fueling solutions for medium- and heavy-duty vehicle fleets in North America. The company develops, owns and operates natural gas fueling stations and supplies transportation fuel to customers such as refuse and recycling companies, transit agencies, trucking operators, airports and other commercial fleets.
Its offerings include compressed natural gas (CNG), liquefied natural gas (LNG) and renewable natural gas (RNG). Clean Energy also provides station construction, operation and maintenance services, fleet fueling support, and related infrastructure solutions.
