Genie Energy (GNE) Q3 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 21, 2026 astatine 10:03 AM CDT 8 min read

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Monday, Nov. 3, 2025 astatine 8:30 a.m. ET

• Chief Executive Officer — Michael Stein

• Chief Financial Officer — Avi Goldin

Michael Stein: Thank you, operator. Genie Energy achieved different 4th of double-digit apical enactment growth, starring to grounds precocious 3rd 4th revenue. The gross summation was fueled by an summation successful per metre energy consumption, rising commodity prices and RCE-based maturation astatine GRE. However, the challenging marketplace conditions that impacted GRE's 2nd 4th results persisted successful the 3rd 4th and again weighed connected our bottommost enactment with diluted EPS decreasing to $0.26 per stock from $0.38 per share. Throughout 2023 and 2024, we were capable to make beardown margins, acknowledgment to favorable marketplace conditions and our quality to monetize a information of our guardant hedge positions.

So acold this year, the accelerated run-up successful vigor commodity prices has chopped against america and outstripped the extortion afforded by our commodity hedges. The fiscal interaction of this rapidly rising commodity terms situation has been somewhat amplified by the expanding percent of fixed terms contracts successful our retail book, astir notably the ample municipal aggregation woody that expires during Q4. These negotiated fixed complaint terms contracts typically make ample income volumes astatine importantly little margins than the idiosyncratic lawsuit and tiny concern accounts that comprise the equilibrium of our retail book. Previous aggregation deals we won were reasonably profitable. This 1 has been little palmy owed to the marketplace volatility.

However, borderline volatility is inherent successful our retail business, and we bash expect conditions to improve. In fact, we are seeing indications that, that process is underway present successful Q4, and we expect that margins volition proceed to fortify arsenic we get further into 2026. Our absorption squad has successfully operated this concern done a assortment of antithetic borderline cycles, and I'm assured that this 1 volition beryllium nary different. At GRE, we proceed to prioritize the acquisition of high-consumption electrical meters. In the 3rd quarter, we grew our energy lawsuit basal to astir 318,000 RCEs, representing a year-over-year summation of 5.4%.

While our state publication contracted connected a combined ground for some energy and gas, we accrued full RCEs by 4.2% to 396,000, portion full meters accrued 0.8% to 402,000. GRE's 3rd 4th adjusted EBITDA decreased from the twelvemonth agone level arsenic expanding commodity costs continued to unit margins. At Genie Renewables, GREW, we should beryllium conscionable days distant from turning connected Genie Solar's Lansing Community star project, and we expect it to statesman generating gross successful the 4th quarter. In addition, we made bully advancement connected the build-out of our Perry, New York array.