Aemetis (NASDAQ:AMTX) executives highlighted improved fourth-quarter profitability, a milestone year for its dairy renewable natural gas (RNG) platform, and major expected cash flow uplift from an efficiency upgrade at its California ethanol plant during the company’s fourth quarter and full-year 2025 earnings call.
Fourth-quarter results show sharp improvement
Chief Financial Officer Todd Waltz said fourth-quarter 2025 revenue plus tax credits rose to $53.7 million from $47.0 million in the prior-year quarter. Gross profit improved to $7.7 million versus a gross loss of $2.0 million a year earlier.
Waltz also pointed to the growing role of federal clean fuel incentives, noting that ethanol and RNG operations generated $10.3 million of production tax credits during the fourth quarter.
Full-year 2025: lower revenue, narrower losses
For the full year 2025, Waltz reported revenue plus tax credits of $208.0 million, down from $268.0 million in 2024. Despite the decline, he said profitability metrics improved year over year: operating loss narrowed to $37.2 million, and net loss improved to $77.0 million from $87.5 million in 2024.
Biogas segment reaches positive profitability milestone
Chairman and CEO Eric McAfee said the company’s dairy RNG platform reached “an important milestone” in 2025 by achieving positive segment net income and EBITDA, alongside a 61% year-over-year production increase in the fourth quarter.
McAfee said Aemetis generated $12.2 million of net income in its biogas segment in the fourth quarter of 2025. Looking ahead, he said the company expects “strong annual growth in cash flow and profitability from the biogas segment for the next 4 years as 45Z is implemented and we continue to expand production.”
Operationally, McAfee said the dairy RNG business produced approximately 405,000 MMBtus of renewable natural gas during 2025 and expanded to 12 operating digesters. He said the company expects RNG production growth in 2026 as additional dairy digesters come online, with equipment fabrication contracted for hydrogen sulfide (H2S) cleanup and biogas compression units for 15 digesters—an expansion he said would double the number of operating dairies in Aemetis’ network.
Keyes ethanol plant: MVR upgrade expected to lift cash flow
McAfee said Aemetis continued advancing a mechanical vapor recompression (MVR) upgrade at its Keyes ethanol plant in California, which he said is expected to increase plant cash flow by approximately $32 million per year when completed in 2026. He added that the company began receiving equipment on site for installation, with completion “later this year.”
McAfee said the Keyes ethanol plant generated $158 million of revenue during 2025 and has approximately 65 million gallons of annual production capacity. He said the MVR system is expected to:
- Reduce natural gas consumption by 80%
- Lower the carbon intensity of ethanol produced by the plant
- Increase annual plant cash flow by approximately $32 million
In response to an analyst question about 2026 capital spending, McAfee said the total MVR investment is expected to be roughly $40 million. He also outlined biogas-related investments, including a $27 million contract with NPL for 15 contracted H2S units, and an additional roughly $70 million to build out those 15 digesters, with spending overlapping into 2027.
McAfee said the company is “fully financed” for completing the MVR system and for the $27 million H2S units, and that refinancing of existing debt is expected to include financing for the assets discussed. He also referenced prior 20-year financings completed for Aemetis Biogas One and Aemetis Biogas Two, and said the company is working on financing for Aemetis Three through Eight.
On project timing, McAfee told analysts that more than half of the $40 million MVR investment had already been made, with the remaining balance expected to occur over the next four months. He added that completion is targeted for the third quarter, with full impact in the fourth quarter, and said the company expects the contribution to affect “roughly half” of the year.
McAfee also discussed the role of environmental credits and federal incentives, emphasizing that revenue from dairy RNG and ethanol is generated through renewable fuel sales plus credit monetization, including LCFS credits, federal D3 RINs, and 45Z production tax credits. He cited a 60% increase in the price of California Low Carbon Fuel Standard (LCFS) credits over the past nine months following a 20-year extension of the program, and said recent Treasury guidance for the 45Z credit is an important contributor to growth.
India biodiesel business and IPO plans
McAfee said Aemetis’ India biodiesel facility generated $29.7 million of revenue during 2025 and has approximately 80 million gallons of biodiesel production capacity, plus about 8 million gallons of glycerin refining capacity. He characterized India as an attractive growth opportunity as the country seeks to expand domestic renewable fuel production.
McAfee said Aemetis is expanding its India business into biogas production and sustainable aviation fuel (SAF) as part of its work on an initial public offering of the India subsidiary “this year.” In Q&A, he also said the India subsidiary “will be making investments outside of India as part of the IPO,” and that the company expects to provide additional details through offering documents such as a red herring prospectus.
Looking to 2026, McAfee said the company’s focus includes scaling production, monetizing environmental credit values across its renewable fuels platform, completing the India IPO, and long-term refinancing of existing debt. He also cited policy-related items he expects to be important, including finalization of the 45Z emissions rate calculation by the Department of Energy, further strengthening of LCFS markets, expanded ethanol markets via E15 blending approval in California, and biodiesel blending mandates in India.
About Aemetis (NASDAQ:AMTX)
Aemetis, Inc, headquartered in Cupertino, California, is a renewable fuels and renewable natural gas producer dedicated to decarbonizing the transportation sector. The company operates two primary business segments: Aemetis Advanced Fuels, which manufactures ethanol, biodiesel and sustainable aviation fuel using patented carbon capture and separation technology; and Aemetis RNG, which develops dairy-based renewable natural gas projects in California for pipeline injection and transportation use.
Since its incorporation in 2006, Aemetis has expanded its production footprint through organic growth and strategic acquisitions.
