Clean Energy 2025 Q1 Earnings Narrowed Losses with Net Income Improving 76.7%

Clean Energy Technologies (CETY) reported its fiscal 2025 Q1 earnings on May 20th, 2025. Clean Energy Technologies experienced a significant decline in total revenue, which fell 47.7% to $791,940 for Q1 2025 compared to the same quarter last year. Despite the revenue drop, the company managed to narrow its net loss considerably. The company's guidance reflects optimism for the remainder of the year, with expectations for revenue growth and improved earnings per share in upcoming quarters.

Revenue

Clean Energy Technologies generated $791,940 in total revenue for 2025 Q1, marking a 47.7% decrease from $1.51 million in the previous year's quarter. Segment revenues were as follows: Heat Recovery Solutions contributed $612,354, LNG Trading accounted for $3,481, and Waste to Energy brought in $176,105.

Earnings/Net Income

Clean Energy narrowed its losses to $0.01 per share in 2025 Q1 from a loss of $0.04 per share in 2024 Q1, marking a 75.0% improvement. The company reduced its net loss by 76.7%, reporting a net loss of $331,231 compared to $1.42 million in the prior year. Despite ongoing losses, this represents a positive shift in earnings.

Price Action

The stock price of Clean Energy has climbed 3.78% during the latest trading day, has dropped 7.36% during the most recent full trading week, and has edged down 0.08% month-to-date.

Post Earnings Price Action Review

The post-earnings strategy of investing in Clean Energy (CETY) shares after an increase in revenue quarter-over-quarter has not been profitable. Over the past three years, this approach has resulted in a substantial loss, with a return of -90.95% compared to a benchmark return of 42.76%. The strategy underperformed the benchmark significantly, with an excess return of -133.72% and a compound annual growth rate (CAGR) of -67.42%. Furthermore, the maximum drawdown reached -91.56%, and the Sharpe ratio was -0.60, indicating high risk and negative returns. This backtest suggests that despite the occasional positive price action, the strategy of holding shares for 30 days following earnings announcements has been detrimental to investors’ portfolios.

CEO Commentary

Kam Mahdi, CEO of Clean Energy Technologies, highlighted the company's robust performance in the first quarter of 2025, emphasizing a revenue of approximately $791,940, which reflects strong demand for their innovative clean energy solutions. He acknowledged the ongoing challenges in the market, particularly regarding cost pressures and competition, but remains optimistic about the strategic initiatives aimed at enhancing operational efficiency and expanding market reach. Mahdi reiterated the commitment to investing in advanced technologies that will position the company favorably in the evolving clean energy landscape, aiming to capitalize on growing market opportunities while navigating current obstacles.

Guidance

The company anticipates continued growth in revenue for the remainder of 2025, with a target to achieve positive net income by the end of the fiscal year. Kam Mahdi indicated that Clean Energy Technologies expects to maintain a focus on strategic partnerships and innovation, aiming for revenue growth to outpace industry averages. Moreover, the company is guiding towards improving its earnings per share, with an explicit target of minimizing the losses, projecting an EPS of approximately -$0.01 in the upcoming quarters.

Additional News

In recent weeks, Clean Energy Technologies (CETY) has engaged in significant strategic activities. On April 23, 2025, CETY announced a $400K sale in its Heat Recovery System and enhancements to its 350 kW ORC System, targeting larger-scale applications. Additionally, the company signed a memorandum of understanding with Qymera Canada, securing a $500K order for Monobore Geothermal Technology on March 10, 2025. These moves indicate CETY's efforts to expand its technological offerings and strengthen its market position. Furthermore, on April 18, 2024, CETY entered a strategic partnership with an international private equity fund, underscoring its commitment to advancing clean energy solutions globally.