Biorefining firm Green Plains' Q2 revenue falls, EPS misses estimates

Overview

• Green Plains Q2 2025 rev declines to $552.8 mln, missing analyst expectations

• Adjusted EPS for Q2 misses consensus, reflecting non-cash charges and restructuring costs

• Co reports progress on carbon capture project, on track for Q4 start-up

Outlook

• Green Plains expects carbon sequestration to start early in Q4 2025

• Company anticipates exceeding prior guidance on decarbonization strategy

• Green Plains executing risk management strategy for favorable Q3 margins

• Company sees stronger earnings leverage from improved cost efficiency

Result Drivers

• ETHANOL UTILIZATION - Achieved 99% utilization across nine operating ethanol plants, demonstrating operational improvements

• ETHANOL MARKETING TRANSITION - Transition to Eco-Energy, LLC improved working capital by over $50 mln, optimizing value and supply chain efficiencies

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the renewable fuels peer group is "hold"

• Wall Street's median 12-month price target for Green Plains Inc is $7.00, about 5.7% below its August 8 closing price of $7.40

Press Release: ID:nBwb9s54Ta