Aemetis, Inc. Q1 FY2026 earnings call

First, Q1 was a financial inflection point. We grew consolidated revenue 27% year-over-year, posted positive gross profit, and improved operating loss by more than $9 million. Second, we benefited from the California Air Resources Board approval of seven new Low Carbon Fuel Standard pathways for our renewable natural gas business at an average carbon intensity score of negative 380 compared with a negative 150 default. Six additional biogas digester pathways are nearing approval. Third, our capital projects are advancing. We received the initial deliveries of dairy biogas pretreatment skids in April under our $27 million fabrication contract. Major equipment for the $40 million mechanical vapor compression project at our Keyes, California ethanol plant has arrived on-site and construction has begun. In dairy RNG, we sold 110 thousand MMBtus in Q1, a 55% increase over the same quarter last year. With H2S cleanup and biogas compression equipment contracted for 15 additional digesters, and four of the equipment units already delivered by the vendor, we are on track to double our operating dairy network with construction into 2027. At our ethanol plant, the MBR project is on track for completion later this year. We expect MBR commissioning later this year to add approximately $32 million in annual cash flow from operations. In India, biodiesel revenue rebounded to $10.5 million in Q1 with the resumption of Oil Marketing Company shipments under new contracts. Our focus for 2026 is scaling production, monetizing the stacked credit value of our renewable fuels platform, completing the India IPO, and the refinancing of existing debt into long-term financing.

For 2026, revenue grew 27% to $54.6 million compared with $42.9 million in 2025. Gross profit was $2.8 million in the quarter, a year-over-year improvement from the gross loss of $5.1 million in 2025. Operating loss improved approximately 60% to $6.3 million compared with $15.6 million in the prior period. Net loss improved to $21.7 million compared to $24.5 million in 2025. Production tax credits under 45C contributed $4 million of operating income during the quarter, $1.4 million in dairy RNG and $2.6 million in California ethanol. Adjusted EBITDA for the quarter was negative $1.3 million. Cash and cash equivalents at the end of the quarter were $4.8 million. Capital investments in carbon intensity reduction and dairy digester construction totaled $6.5 million during the quarter. All three reportable operating segments contributed to this result.

Our focus for 2026 is scaling production, monetizing the stacked credit value of our renewable fuels platform, completing the India IPO, and the refinancing of existing debt into long-term financing. The principal catalysts we are tracking through the year include the publication of the updated 45z GREET model by the Department of Energy to significantly increase revenues and margins, commissioning the MVR at the Keyes Ethanol Plant, rising LCFS credit prices caused by continued quarterly credit deficits, and progress on the India IPO.

During the call, we will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risk and uncertainty that could cause actual results to differ materially from those expressed or implied. Please refer to our earnings release and SEC filings for a discussion of these risks. For example, uncertainty in the 45z update model release time impacts financing; policy changes in India, market condition changes, etc. may affect the business; LCFS price is affected by factors like the Iranian war and renewable diesel credit generation uncertainty.

Q: Matthew Blair asked about the RD and SAF plant and India biodiesel operations in Q2.

A: Eric McAfee responded on the RD and SAF plant's capacity, financing progress, market conditions favoring it, and on India biodiesel operations discussing India's policy situation, expected pricing, and IPO connection.

Q: Nate Pendleton asked about financing and Keyes and dairy RNG refunding.

A: Eric McAfee talked about refinancing opportunities, municipal bond refinancing, USDA program, and LCFS price expectations.

Q: Sameer Joshi asked about MBR certifications, India OMC pricing, and LCFS pathway approvals.

A: Andy Foster answered on MBR certifications, Eric McAfee on India OMC premium pricing and LCFS pathway approval timeline.

Q: David Joseph Storms asked about dairy digesters' investment tax credits and monetization, and new digesters' qualification.

A: Eric McAfee and Andy Foster responded on tax credits upon in-service date, tax credit sales, and new digesters' qualification process.

Q: Edward Moon Woo asked about India IPO capital allocation.

A: Eric McAfee discussed India IPO's purpose, diversification, and market conditions favoring it.