Stonegate Capital Partners Updates Coverage On Aemetis, Inc. (AMTX) Q1 2025

Rhea-AI Summary

Stonegate Capital Partners has updated its coverage on Aemetis (NASDAQ: AMTX) for Q1 2025. The company reported revenues of $42.9M, down from $72.6M in Q1 2024, primarily due to timing shifts in Indian government biodiesel contracts. Net loss remained relatively stable at $24.5M compared to $24.2M in Q1 2024. While cash position decreased to $0.5M from $0.9M, the company secured $19.0M from tax credit sales. Aemetis' RNG segment showed strong growth with a 140% year-over-year revenue increase, with 19 dairy digesters operational and 26 expected by year-end. The company benefits from favorable federal and state policies, including nationwide E15 ethanol adoption and low-carbon fuel standards. The India Biofuels segment grew 27% in Q1 and is preparing for a potential IPO, while ethanol operations are improving through solar microgrid upgrades.

Positive

• RNG segment revenue increased 140% year-over-year in Q1 2025
• Secured $19.0M in cash proceeds from sale of transferable investment tax credits
• India Biofuels segment grew 27% in Q1
• Favorable policy developments including nationwide E15 adoption and low-carbon fuel standards
• Operational improvements with 19 dairy digesters and expansion to 26 expected by year-end

Negative

• Total revenues declined to $42.9M from $72.6M year-over-year
• Net loss of $24.5M in Q1 2025
• Cash position decreased to $0.5M from $0.9M at year-end
• Higher interest expenses impacting bottom line
• Short-term pricing pressures in ethanol and India biofuels segments

Insights

Financial Analyst

Aemetis reported declining Q1 revenue and continued losses while expanding RNG operations amid favorable policy developments.

Aemetis reported Q1 2025 revenues of $42.9 million, representing a substantial 41% year-over-year decline from $72.6 million in Q1 2024. This drop was primarily attributed to timing shifts in securing new government biodiesel contracts in India rather than fundamental business deterioration. Despite the revenue decrease, the company maintained a relatively stable net loss position of $24.5 million compared to $24.2 million in the prior year period.

The company's liquidity position appears precarious with only $0.5 million in cash at quarter-end, down from $0.9 million at 2024 year-end. However, this was offset by $19 million in cash proceeds from selling transferable investment tax credits, with additional tax credit sales expected later in 2025, particularly under the Section 45Z program.

Aemetis's renewable natural gas (RNG) segment shows promising growth with a 140% year-over-year revenue increase in Q1. The company now has 19 dairy digesters operational with plans to reach 26 by year-end, indicating expanding production capacity in this high-growth segment.

The ethanol segment is benefiting from completed solar microgrid upgrades and MVR system development, while the India Biofuels segment grew 27% in Q1 and is preparing for a potential IPO, which could unlock additional value and capital.

Supporting these operations are favorable policy developments, including the nationwide shift from E10 to year-round E15 ethanol blends, expanding low-carbon fuel standards, IRS establishment of provisional emissions rates for dairy RNG and 45Z production tax credits, and a 20-year mandate to increase low-carbon fuel usage—all creating a supportive regulatory environment for Aemetis's business model.

Dallas, Texas--(Newsfile Corp. - June 16, 2025) - Stonegate Capital Partners updates coverage on Aemetis, Inc. (Nasdaq: AMTX). In the first quarter of 2025, Aemetis reported total revenues of $42.9M, compared to $72.6M in the same period last year, with the year-over-year decline primarily driven by shifts in timing in receiving new government biodiesel contracts in India. Net loss for the quarter was $24.5M, relatively flat versus a net loss of $24.2M in 1Q24, reflecting ongoing investment in growth initiatives and higher interest expenses. The Company ended the quarter with $0.5M in cash, down from $0.9M at year-end, though liquidity was bolstered by $19.0M in cash proceeds from the sale of transferable investment tax credits. Additional tax credit sales, including those under the Section 45Z program, are expected later in 2025.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Federal and state-level policy developments, including (1) nationwide move from E10 to year-round E15 ethanol blends; (2) expanding state and federal low-carbon fuel standards that incentivize investment and reward low-CI production; (3) IRS establishment of provisional emissions rate for dairy RNG and 45Z production tax credits; and (4) a 20-year mandate to increase low-carbon fuel usage.

• Aemetis RNG is starting to gain traction with its production facilities in place and operating. Revenue increased 140% year-over-year in Q1 2025. 19 dairy digesters are operational and 26 expected online by year-end.

• Ethanol and India Biofuels segments continue to perform through long-term infrastructure upgrades and favorable policy support, despite short-term pricing pressures. Ethanol operations are benefiting from completed solar microgrid upgrades and the development of the MVR system, while India Biofuels grew 27% in Q1 and is preparing for a potential IPO.

Click image above to view full announcement.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com
Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/255754

FAQ

What were Aemetis (AMTX) Q1 2025 financial results?

Aemetis reported Q1 2025 revenues of $42.9M (down from $72.6M in Q1 2024) and a net loss of $24.5M. The company ended the quarter with $0.5M in cash but received $19.0M from tax credit sales.

How is Aemetis' RNG (Renewable Natural Gas) business performing?

Aemetis' RNG segment showed strong performance with 140% year-over-year revenue growth in Q1 2025, operating 19 dairy digesters with plans to have 26 online by year-end.

What caused the revenue decline for AMTX in Q1 2025?

The year-over-year revenue decline was primarily driven by shifts in timing in receiving new government biodiesel contracts in India.

What are the key policy developments supporting Aemetis' growth?

Key policies include nationwide adoption of E15 ethanol blends, expanding state and federal low-carbon fuel standards, IRS establishment of dairy RNG emissions rates and 45Z tax credits, and a 20-year mandate for increased low-carbon fuel usage.

How is Aemetis' India Biofuels segment performing?

The India Biofuels segment grew 27% in Q1 2025 and is preparing for a potential IPO, though experiencing some short-term pricing pressures.