Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Market Performance - U.S. stocks traded higher, with the S&P 500 gaining around 1% on Tuesday, closing at 6,439.10 [1] - The Dow rose 1.04% to 44,431.01, and the NASDAQ increased by 1.26% to 21,654.94 [1] - Communication services shares jumped by 1.8%, while consumer staples stocks fell by 0.8% [1] Inflation Data - The U.S. annual inflation rate remained steady at 2.7% in July, down from market estimates of 2.8% [2][8] - Core inflation rose to a five-month high of 3.1%, up from 2.9% in June [2][8] Commodity Prices - Oil traded down 1.2% to $63.20, while gold decreased by 0.2% to $3,399.00 [5] - Silver rose by 0.5% to $37.965, and copper increased by 1.9% to $4.5240 [5] European Market Performance - European shares were mostly higher, with the eurozone's STOXX 600 rising 0.21% [6] - Spain's IBEX 35 Index rose 0.02%, London's FTSE 100 increased by 0.20%, while Germany's DAX 40 declined by 0.23% [6] Asian Market Performance - Asian markets closed mostly higher, with Japan's Nikkei 225 gaining 2.15% and Hong Kong's Hang Seng rising 0.25% [7] - China's Shanghai Composite increased by 0.50%, while India's BSE Sensex fell by 0.46% [7] Company-Specific Movements - 180 Life Sciences Corp. shares surged 259% to $11.99 after completing a $156 million private offering [9] - Gevo, Inc. shares rose 52% to $1.9000 following better-than-expected Q2 EPS results [9] - WideOpenWest, Inc. shares gained 49% to $5.04 after agreeing to be acquired for $5.20 per share [9] - Spirit Aviation Holdings, Inc. shares dropped 40% to $2.1500 after the acquisition announcement [9] - Myomo, Inc. shares fell 40% to $1.0550 after reporting Q2 results and issuing lower Q3 sales guidance [9] - BigBear.ai Holdings, Inc. shares decreased by 18% to $5.82 after reporting worse-than-expected Q2 results and cutting FY25 sales guidance [9]

Company Performance - Gevo, Inc. reported quarterly earnings of $0.01 per share, surpassing the Zacks Consensus Estimate of a loss of $0.06 per share, and improved from a loss of $0.09 per share a year ago, representing an earnings surprise of +116.67% [1] - The company posted revenues of $43.41 million for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 0.62%, but showed significant growth from year-ago revenues of $5.26 million [2] - Over the last four quarters, Gevo has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Outlook - Gevo shares have declined approximately 43.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.05 on revenues of $45.03 million, and for the current fiscal year, it is -$0.26 on revenues of $163.37 million [7] Industry Context - The Alternative Energy - Other industry, to which Gevo belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Gevo's stock performance [5][6]

Core Viewpoint - Gevo, Inc. held its second quarter 2025 earnings conference call to discuss financial results and future projects, emphasizing the company's focus on alcohol-to-jet projects and carbon credit sales [1][4]. Financial Results - The company released its second quarter 2025 results, which are detailed in a press release available on its website [4]. - Key executives present during the call included the CEO, CFO, President, and Chief Business Officer, indicating a comprehensive leadership approach to discussing financial performance [3]. Future Projects - Gevo is focused on the development, engineering, financing, and construction of its alcohol-to-jet projects, which are expected to play a significant role in the company's growth strategy [4]. - The company also highlighted its future carbon credit sales as a critical component of its business model [4].

Financial Data and Key Metrics Changes - The company ended the quarter with $127 million in cash, cash equivalents, and restricted cash [12] - Combined operating revenue, interest, and investment income for the second quarter was $44.7 million, with income from operations at $5.8 million and non-GAAP adjusted EBITDA at $17.3 million [12][14] - For the first six months of 2025, net income grew by $20 million and non-GAAP adjusted EBITDA increased by $32 million compared to the same period last year [14] Business Line Data and Key Metrics Changes - Gevo North Dakota generated income from operations of $17.1 million and non-GAAP adjusted EBITDA of $24.2 million [13] - Gevo RNG generated income from operations of $1.5 million and non-GAAP adjusted EBITDA of $2.6 million [13] - The company sold $22 million worth of clean fuel production credits in the second quarter, contributing to the financial results [14][20] Market Data and Key Metrics Changes - U.S. jet fuel demand is projected to increase by 2.3 billion gallons per year over the next decade, while new refinery construction is not occurring [8][28] - The marketplace for carbon dioxide removal credits has exceeded $10 billion in recent years, reflecting nearly 40 million tons of CO2 removals [19] Company Strategy and Development Direction - The company is focused on deploying renewable resource-based jet fuel plants while improving profitability through existing operations [6][11] - The strategy includes leveraging current assets to enhance carbon credit sales and tax credit sales [11] - The company is translating its ATJ 60 plant design to a more cost-effective ATJ 30 design for deployment at the North Dakota site [9][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's progress and the potential for significant growth in the renewable jet fuel market [6][28] - The company aims to achieve a low carbon footprint while maintaining competitive production costs [8][11] - Management highlighted the importance of carbon credit sales as a co-product to enhance overall profitability [11][18] Other Important Information - The company has developed a software platform, Verity, for traceability and compliance reporting in the agriculture and renewable fuels sector [21][22] - The GIVO North Dakota facility has a total estimated sequestration capacity of up to 1 million metric tons of CO2 per year [19] Q&A Session Summary Question: What is holding back the monetization of biogas credits? - Management explained that the monetization of clean fuel production tax credits for ethanol has been successful, and they expect similar success for biogas credits in the future [34][36] Question: Can we expect a similar cadence for the RNG business? - Management confirmed that the transaction structure for monetizing tax credits for the RNG facility is similar to that of the ethanol facility [37] Question: Is the $10 million benefit per quarter from CFPC a base case? - Management indicated that the $10 million figure is conservative, and they expect to exceed this amount based on production levels [40][42] Question: How will the company achieve $30 million in CDR sales? - Management stated that growth in CDR sales will come from increased capacity utilization and market development [43][45] Question: How does the 45Z tax credit affect capital allocation in North Dakota? - Management noted that while the 45Z tax credit is beneficial, it does not significantly influence their capital allocation strategy for ATJ projects [58][60] Question: How many customers does Verity currently have? - Management reported that Verity has agreements with five ethanol customers and expects significant growth in this area [66][68] Question: What is the market opportunity for accommodating third-party volumes in CCS? - Management highlighted the potential for third-party CO2 volumes and the flexibility of their North Dakota site to accommodate additional capacity [90][92]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis of financial condition and operations, market risk disclosures, and internal controls and procedures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The financial statements reflect a significant transformation from the Red Trail Energy acquisition, impacting assets, liabilities, and shifting Q2 2025 to net income [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$702.1 million** by June 30, 2025, primarily due to the Red Trail Energy acquisition, while cash decreased by **$132.1 million** and total liabilities rose to **$222.3 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $57,257 | $189,389 | | Total current assets | $170,441 | $203,711 | | Property, plant and equipment, net | $344,914 | $221,642 | | Intangible assets, net | $70,327 | $8,129 | | Goodwill | $43,558 | $3,740 | | **Total assets** | **$702,117** | **$583,941** | | **Liabilities & Equity** | | | | Total current liabilities | $73,233 | $24,361 | | Loans payable | $99,966 | $0 | | **Total liabilities** | **$222,349** | **$94,453** | | **Total stockholders' equity** | **$474,104** | **$489,488** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a **$2.7 million** net income in Q2 2025, a significant improvement from a **$21.0 million** net loss in Q2 2024, driven by a surge in operating revenues to **$43.4 million** Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $43,413 | $5,260 | $72,522 | $9,250 | | Income (loss) from operations | $5,796 | $(24,029) | $(14,343) | $(47,170) | | Net income (loss) | $2,729 | $(21,002) | $(19,044) | $(39,877) | | Net income (loss) per share - diluted | $0.01 | $(0.09) | $(0.08) | $(0.17) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in investing activities totaled **$209.5 million** for the six months ended June 30, 2025, primarily for the Red Trail Energy acquisition, resulting in a **$132.1 million** net decrease in cash Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,570) | $(27,520) | | Net cash used in investing activities | $(209,538) | $(26,708) | | Net cash provided by (used in) financing activities | $103,976 | $(6,049) | | **Net decrease in cash and cash equivalents** | **$(132,132)** | **$(60,277)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the **$210.3 million** Red Trail Energy acquisition, the recognition of **$21.5 million** in Section 45Z tax credits, the establishment of four reportable segments, and new **$105 million** debt facilities - On January 31, 2025, Gevo completed the acquisition of Red Trail Energy for a purchase price of **$210.3 million**, funded by cash, a **$105 million** term loan, and **$5 million** in equity from OIC[35](index=35&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk) - The company recognized **$21.5 million** in Section 45Z federal tax credits for the first six months of 2025, recorded as a reduction to Cost of Goods Sold (COGS)[76](index=76&type=chunk) - The company now has four reportable segments: Gevo, GevoFuels, GevoRNG, and GevoND, with the new GevoND segment generating **$59.9 million** in revenue for the first six months of 2025[179](index=179&type=chunk)[188](index=188&type=chunk) - A new **$105 million** senior secured term loan was obtained in January 2025 to partially fund the Red Trail Energy acquisition, with an initial interest rate of **11.50%** per annum[124](index=124&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic impact of the Red Trail Energy acquisition on revenue growth, operational improvements, and liquidity, emphasizing carbon abatement and SAF initiatives [Company Overview](index=47&type=section&id=Company%20Overview) Gevo is a carbon abatement company focused on producing renewable hydrocarbon fuels, particularly Sustainable Aviation Fuel (SAF), with the Red Trail Energy acquisition strengthening its operational and carbon capture capabilities - Gevo's primary market focus is on carbon-abated hydrocarbon fuels, particularly **Sustainable Aviation Fuel (SAF)**, produced via a carbohydrate-to-alcohol process[199](index=199&type=chunk) - The acquisition of Red Trail Energy (now GevoND) on January 31, 2025, for **$210 million** added an operational ethanol plant and carbon capture and sequestration (CCS) assets, strengthening Gevo's growth and SAF strategy[206](index=206&type=chunk)[207](index=207&type=chunk) - The company is developing modular Alcohol-to-Jet (ATJ) projects, including ATJ-60 in Lake Preston, SD, which has received a conditional commitment for a **~$1.6 billion** DOE loan guarantee, and an ATJ-30 project planned for the GevoND site[205](index=205&type=chunk)[209](index=209&type=chunk)[212](index=212&type=chunk) - The Verity subsidiary is developing a platform for carbon accounting and monetization, and has signed agreements with five external ethanol producers[218](index=218&type=chunk)[225](index=225&type=chunk) [Results of Operations](index=63&type=section&id=Results%20of%20Operations) Q2 2025 saw a **725%** increase in total operating revenues to **$43.4 million** and a shift to **$5.8 million** operating income, primarily driven by **$37.2 million** from GevoND operations and Section 45Z tax credits Comparison of Three Months Ended June 30, 2025 and 2024 (in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $43,413 | $5,260 | $38,153 | 725% | | Cost of production | $17,265 | $3,423 | $13,842 | 404% | | Income (loss) from operations | $5,796 | $(24,029) | $29,825 | (124)% | | Net income (loss) attributable to Gevo, Inc. | $2,144 | $(21,002) | $23,146 | (110)% | Comparison of Six Months Ended June 30, 2025 and 2024 (in thousands) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $72,522 | $9,250 | $63,272 | 684% | | Loss from operations | $(14,343) | $(47,170) | $32,827 | (70)% | | Net loss attributable to Gevo, Inc. | $(19,584) | $(39,877) | $20,293 | (51)% | - The increase in revenue was primarily due to **$37.2 million** from the GevoND operations in Q2 2025[244](index=244&type=chunk) - Cost of production in Q2 2025 was partially offset by a **$20.8 million** benefit from the 45Z tax credit[245](index=245&type=chunk) [Liquidity and Capital Resources](index=68&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held **$126.9 million** in cash and restricted cash, with **$198.5 million** used for the Red Trail Energy acquisition, partially offset by **$105 million** in new loan proceeds - As of June 30, 2025, the company had cash and cash equivalents of **$57.3 million** and current restricted cash of **$69.6 million**, totaling **$126.9 million**[269](index=269&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,570) | $(27,520) | | Net cash used in investing activities | $(209,538) | $(26,708) | | Net cash provided by (used in) financing activities | $103,976 | $(6,049) | - The company did not repurchase any shares in H1 2025, with approximately **$20.3 million** remaining available under the stock repurchase program[284](index=284&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Gevo is not required to provide detailed market risk disclosures, noting no material changes to its primary risks including environmental attribute and commodity pricing, interest rates, and credit risk - The company is a smaller reporting company and is not required to provide detailed information for this item[285](index=285&type=chunk) - Key market risks include environmental attribute pricing, commodity pricing, interest rates, and credit risk, with no material changes reported since the 2024 Annual Report[285](index=285&type=chunk) [Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) Management identified material weaknesses in internal control over financial reporting, including insufficient technical accounting expertise and inadequate controls at the newly acquired GevoND operations, with remediation efforts ongoing through 2025 - A material weakness was identified due to an insufficient complement of personnel with the necessary technical accounting expertise for complex transactions[287](index=287&type=chunk) - Post-acquisition, additional material weaknesses were discovered at GevoND related to a failure to design effective segregation of duties and inadequate user access controls[288](index=288&type=chunk) - Remediation efforts are underway, including hiring additional personnel, providing training, and improving system access controls, with completion expected through 2025[290](index=290&type=chunk)[294](index=294&type=chunk) [PART II. OTHER INFORMATION](index=74&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides disclosures on legal proceedings, risk factors, equity security sales, and a list of exhibits filed with the report [Legal Proceedings](index=74&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business, financial condition, or operations - The company is not presently a party to any litigation that it believes could have a material adverse effect on its business[142](index=142&type=chunk)[296](index=296&type=chunk) [Risk Factors](index=74&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the company's risk factors since the filing of its 2024 Annual Report - No material changes have occurred in the company's risk factors since the filing of its 2024 Annual Report[297](index=297&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company reported no unregistered sales of equity securities during the period [Exhibits](index=75&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act, and interactive data files (XBRL)

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) [Q2 2025 Financial Milestones](index=1&type=section&id=Q2%202025%20Financial%20Milestones) Gevo achieved positive net income and adjusted EBITDA in Q2 2025, marking a significant improvement in financial performance and exceeding targets - The company achieved **positive net income** and **positive adjusted EBITDA** in Q2 2025, reaching its targets ahead of schedule[2](index=2&type=chunk)[12](index=12&type=chunk) Key Financial Metrics for Q2 2025 | Metric | Amount (Million USD) | | :----------------------------------- | :---------- | | Net Income Attributable to Gevo | $2.1 | | Adjusted EBITDA | $17 | | Revenue QoQ Growth | $14 | | EPS Attributable to Gevo | $0.01 | | Net Income Attributable to Gevo YoY Growth (Six Months) | $20 | | Adjusted EBITDA YoY Growth (Six Months) | $32 | [Key Growth Drivers & New Revenue Streams](index=1&type=section&id=Key%20Growth%20Drivers%20%26%20New%20Revenue%20Streams) Performance growth is primarily driven by successful low-carbon ethanol and carbon capture operations, alongside the launch of Clean Fuel Production Credits (CFPC) and Carbon Dioxide Removal (CDR) credit sales, which significantly contribute to new revenue streams - Performance growth is driven by the successful execution of low-carbon ethanol and carbon capture acquisitions, and the initial sales of Clean Fuel Production Credits (CFPC)[5](index=5&type=chunk) - Carbon Dioxide Removal (CDR) credit sales have commenced, adding new co-products and revenue streams, projected to grow to **$3-5 million by year-end** and potentially exceeding **$30 million per year** in long-term sales[6](index=6&type=chunk) - Clean Fuel Production Credits (CFPC) sales have begun, contributing approximately **$21 million** combined to net income and adjusted EBITDA for the six months ended June 30, 2025[8](index=8&type=chunk) [Strategic Initiatives & Management Outlook](index=5&type=section&id=Strategic%20Initiatives%20%26%20Management%20Outlook) Management highlights this quarter as a milestone, achieving real cash flow growth and laying the groundwork for future Sustainable Aviation Fuel (SAF) production expansion, while creating value through carbon credit sales and efficient operations - CEO Dr. Patrick Gruber stated this quarter is a milestone, with the company achieving its goals and generating real cash flow, laying the foundation for SAF production growth[12](index=12&type=chunk) - CFO Leke Agiri commented that the company achieved **positive net income** and **positive adjusted EBITDA**, a significant financial milestone reflecting the real value created by GevoND and GevoRNG business units and CFPC monetization[15](index=15&type=chunk) - The company is committed to achieving rural economic growth, increased protein and feed production, and enhanced farmer profits through carbon reduction and cost-competitive renewable liquid fuels[14](index=14&type=chunk) [Operational Review](index=3&type=section&id=Operational%20Review) [Carbon Dioxide Removal (CDR) Credits](index=1&type=section&id=Carbon%20Dioxide%20Removal%20(CDR)%20Credits) Gevo has initiated CDR credit sales, leveraging its bio-sourced CO2 removal capabilities from Carbon Capture and Sequestration (CCS) assets, opening new global revenue streams, and plans to expand its CCS sites by introducing third-party CO2 volumes - CDR credit sales have commenced, adding new co-products and revenue streams for the company[6](index=6&type=chunk) - CDR credit sales are projected to grow to **$3-5 million by the end of 2025**, with long-term sales potentially exceeding **$30 million per year**[6](index=6&type=chunk) - Over **$1 million** in CDR credits were sold in Q2, and growth options are being explored to expand CCS sites by introducing third-party CO2 volumes[8](index=8&type=chunk) [Clean Fuel Production Credits (CFPC)](index=3&type=section&id=Clean%20Fuel%20Production%20Credits%20(CFPC)) CFPC sales, derived from low-carbon ethanol with CCS and Renewable Natural Gas (RNG) production, contributed approximately $21 million to revenue and adjusted EBITDA in H1 2025, expected to exceed $10 million quarterly, supporting GevoND optimization and SAF project development - CFPC sales contributed approximately **$21 million** combined to net income and adjusted EBITDA for the six months ended June 30, 2025[8](index=8&type=chunk) - This credit is expected to exceed **$10 million per quarter** through the end of 2029, unless legislation is further extended[8](index=8&type=chunk) - Cash proceeds from CFPC sales will be reinvested in GevoND site improvements and fund upfront construction development costs for SAF projects[8](index=8&type=chunk) - The company has initially sold **$22 million** of generated credits to a bank and expects to sell its full capacity annually, with market demand for similar investment and production tax credits estimated at approximately **$30 billion**[16](index=16&type=chunk) [Low-Carbon Ethanol & Co-products Operations (GevoND)](index=3&type=section&id=Low-Carbon%20Ethanol%20%26%20Co-products%20Operations%20(GevoND)) GevoND's low-carbon ethanol and co-products business significantly contributed to operating income and adjusted EBITDA in H1 2025, boasting an industry-leading carbon intensity score and producing cellulosic D3 RIN-eligible corn fiber ethanol - Low-carbon ethanol and co-products operations contributed approximately **$18 million** to operating income and **$7 million** to adjusted EBITDA (totaling **$26 million** including CFPC sales) for the six months ended June 30, 2025 (excluding January)[8](index=8&type=chunk) - **28 million gallons** of low-carbon ethanol, **93,000 tons** of feed, and **8 million pounds** of distiller's corn oil co-products were produced[8](index=8&type=chunk) - The company's on-site CCS provides an industry-leading carbon intensity score for low-carbon ethanol, giving it an advantage in the LCFS market[8](index=8&type=chunk) - Approximately **2 million gallons** of corn fiber ethanol are produced annually, qualifying for cellulosic D3 RINs with near-zero carbon intensity[8](index=8&type=chunk) [Renewable Natural Gas (RNG) Operations (GevoRNG)](index=5&type=section&id=Renewable%20Natural%20Gas%20(RNG)%20Operations%20(GevoRNG)) GevoRNG operations positively contributed to operating income and adjusted EBITDA in H1 2025, and subsequently released approximately $30 million in restricted cash through refinancing after Q2 - GevoRNG contributed approximately **$2 million** to operating income and **$3 million** to adjusted EBITDA (totaling **$5 million** including CFPC sales) for the six months ended June 30, 2025[8](index=8&type=chunk) - Approximately **172 thousand MMBtu** of renewable natural gas were produced[8](index=8&type=chunk) - Post-Q2, GevoRNG's refinancing released approximately **$30 million** in restricted cash from the balance sheet[9](index=9&type=chunk) [Other Recent Transactions](index=3&type=section&id=Other%20Recent%20Transactions) Gevo has entered into an agreement to sell its subsidiary Agri-Energy, LLC for $7 million, with the transaction expected to close by the end of 2025 - The company has entered into a definitive agreement to sell its subsidiary Agri-Energy, LLC to A.E. Innovation, LLC for **$7 million**[7](index=7&type=chunk) - The transaction includes Agri's **18 million gallon** per year ethanol production facility located in Luverne, Minnesota[7](index=7&type=chunk) - The transaction is expected to close by the end of 2025, subject to A.E. securing financing and other customary closing conditions[7](index=7&type=chunk) [Renewable Jet Fuel Platform & Long-Term Strategy](index=5&type=section&id=Renewable%20Jet%20Fuel%20Platform%20%26%20Long-Term%20Strategy) [Market Opportunity & Plant Designs](index=5&type=section&id=Market%20Opportunity%20%26%20Plant%20Designs) Gevo is strategically positioning itself with standardized plant designs (ATJ-30 and ATJ-60) to meet the projected demand for over 2 billion gallons of jet fuel growth in the US over the next decade, planning to deploy dozens of ATJ SAF facilities - According to the U.S. Energy Information Administration (EIA), U.S. jet fuel consumption is projected to grow by over **2 billion gallons annually** over the next decade[13](index=13&type=chunk) - To meet growing jet fuel demand, dozens of ATJ SAF facilities will need to be deployed in the U.S. alone over the next decade, utilizing **3.5 billion gallons of ethanol** to produce over **2 billion gallons of cost-competitive domestic jet fuel**[13](index=13&type=chunk) - The company has developed standardized plant designs, including ATJ-30 and ATJ-60, for converting low-carbon ethanol into SAF[13](index=13&type=chunk) - GevoND is considered a potential site for ATJ-30, while the ATJ-60 facility is in communication with the Department of Energy Loan Programs Office regarding a **$1.63 billion** loan guarantee[13](index=13&type=chunk) [Growth Strategy & Intellectual Property](index=5&type=section&id=Growth%20Strategy%20%26%20Intellectual%20Property) Gevo's long-term growth strategy involves developing its SAF platform and proprietary systems through various models (build-own-operate, joint ventures, or licensing), supported by an extensive intellectual property portfolio around its SAF platform, Ethanol-to-Olefins (ETO) technology, and Verity carbon tracking software - The company anticipates further growth by developing its SAF platform and proprietary systems through various models such as build-own-operate, joint ventures, or licensing[13](index=13&type=chunk) - Given the **180 existing brownfield ethanol production sites** in the U.S. and other greenfield locations domestically and internationally, the company recognizes significant market opportunities for its plant designs, systems, and technologies[13](index=13&type=chunk) - The company has developed an extensive intellectual property portfolio around its SAF platform, Ethanol-to-Olefins (ETO) technology, and Verity carbon tracking software, including **over 300 patents**[13](index=13&type=chunk) [Financial Performance Analysis](index=5&type=section&id=Financial%20Performance%20Analysis) [Summary of Q2 2025 Financial Results](index=5&type=section&id=Summary%20of%20Q2%202025%20Financial%20Results) Gevo achieved strong financial performance in Q2 2025, with positive operating income and adjusted EBITDA, primarily driven by revenue growth and improved cost efficiency Key Financial Data for Q2 2025 | Metric | Amount (Million USD) | | :----------------------------------- | :-------------- | | Cash, Cash Equivalents, and Restricted Cash (End of Period) | $126.9 | | Consolidated Operating, Interest, and Investment Income | $44.7 | | Operating Income | $5.8 | | Non-GAAP Adjusted EBITDA | $17.3 | | GevoND Operating Income | $17.1 | | GevoND Non-GAAP Adjusted EBITDA | $24.2 | | GevoRNG Operating Income | $1.5 | | GevoRNG Non-GAAP Adjusted EBITDA | $2.6 | | Net Income Per Share | $0.01 | [Detailed Income Statement Analysis (QoQ Changes)](index=6&type=section&id=Detailed%20Income%20Statement%20Analysis%20(QoQ%20Changes)) In Q2 2025, the company saw a significant increase in operating income and a substantial reduction in operating loss, primarily due to the GevoND acquisition and the positive impact of 45Z tax credits on production costs Q2 2025 Operating Income Change (YoY) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | Change (Thousand USD) | Change (%) | | :------------------- | :--------------------- | :--------------------- | :-------------------- | :--------- | | Total Operating Income | $43,413 | $5,260 | $38,153 | 725.3% | | *Primary Drivers:* | | | | | | GevoND Revenue | $37,200 | N/A | N/A | N/A | | Isobutanol and Other Sales | $900 | N/A | N/A | N/A | Q2 2025 Production Cost Change (YoY) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | Change (Thousand USD) | | :-------------------- | :--------------------- | :--------------------- | :-------------------- | | Cost of Production | $17,265 | $3,423 | $13,842 | | *Partially Offset By:* | | | | | 45Z Tax Credit | ($20,800) | N/A | N/A | - Depreciation and amortization expenses increased by **$2.9 million**, primarily due to a **$4.8 million** increase from GevoND depreciation, partially offset by a **$2.5 million** decrease in depreciation of Luverne facility assets[19](index=19&type=chunk) - Research and development expenses decreased by **$0.7 million**, primarily due to reduced consulting fees[20](index=20&type=chunk) - General and administrative expenses decreased by **$0.7 million**, primarily due to a **$1.9 million** reduction in stock-based compensation, partially offset by a **$1.2 million** increase in insurance, professional consulting services, and computer software costs[20](index=20&type=chunk)[21](index=21&type=chunk) - Project development costs decreased by **$6.9 million**, primarily due to a **$3.3 million** reduction in consulting and professional services fees, and a **$3.5 million** reimbursement from a USDA project received in Q2[22](index=22&type=chunk) - Operating income (loss) improved by **$29.8 million**, primarily driven by increased GevoND revenue, lower production costs due to 45Z tax credits, reduced project development expenses, and decreased general and administrative expenses[23](index=23&type=chunk) - Interest expense increased by **$3.2 million**, primarily due to debt incurred for the GevoND acquisition and higher interest rates on remarketed RNG bonds[24](index=24&type=chunk) - Interest and investment income decreased by **$2.8 million**, primarily due to a reduction in cash equivalent investment balances resulting from the GevoND acquisition and funding for capital projects and operating costs[25](index=25&type=chunk) [Balance Sheet Highlights](index=10&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, Gevo's total assets significantly increased, primarily driven by acquisition activities, while liabilities also rose due to new loans Consolidated Balance Sheet Key Data | Metric | June 30, 2025 (Thousand USD) | Dec 31, 2024 (Thousand USD) | Change (Thousand USD) | | :-------------------------- | :----------------------------- | :------------------------------- | :-------------------- | | Total Assets | $702,117 | $583,941 | $118,176 | | Cash and Cash Equivalents | $57,257 | $189,389 | ($132,132) | | Restricted Cash | $69,644 | $1,489 | $68,155 | | Property, Plant, and Equipment, Net | $344,914 | $221,642 | $123,272 | | Intangible Assets, Net | $70,327 | $8,129 | $62,198 | | Goodwill | $43,558 | $3,740 | $39,818 | | Total Liabilities | $222,349 | $94,453 | $127,896 | | Loans Payable | $99,966 | $0 | $99,966 | [Cash Flow Statement Highlights](index=13&type=section&id=Cash%20Flow%20Statement%20Highlights) For the six months ended June 30, 2025, Gevo's operating and investing activities resulted in net cash outflows, primarily due to the Red Trail Energy acquisition, partially offset by significant loan proceeds from financing activities Consolidated Cash Flow Statement Key Data | Metric | Six Months Ended June 30, 2025 (Thousand USD) | Six Months Ended June 30, 2024 (Thousand USD) | | :---------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net Cash Outflow from Operating Activities | $(26,570) | $(27,520) | | Net Cash Outflow from Investing Activities | $(209,538) | $(26,708) | | *Acquisition of Red Trail Energy* | $(198,461) | N/A | | Net Cash Inflow (Outflow) from Financing Activities | $103,976 | $(6,049) | | *Loan Proceeds* | $105,000 | N/A | | Net Decrease in Cash and Cash Equivalents | $(132,132) | $(60,277) | | Cash, Cash Equivalents, and Restricted Cash (End of Period) | $126,901 | $315,320 | [Non-GAAP Financial Measures (Adjusted EBITDA)](index=14&type=section&id=Non-GAAP%20Financial%20Measures%20(Adjusted%20EBITDA)) Gevo achieved positive consolidated adjusted EBITDA in Q2 2025 and for the six months ended June 30, 2025, a significant improvement from the prior year, with GevoND being the primary contributor Consolidated Adjusted EBITDA (Non-GAAP) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | Six Months Ended June 30, 2025 (Thousand USD) | Six Months Ended June 30, 2024 (Thousand USD) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------------- | :--------------------------- | | Non-GAAP Adjusted EBITDA (Loss) | $17,333 | $(15,286) | $1,982 | $(29,743) | Q2 2025 Adjusted EBITDA by Segment | Segment | Adjusted EBITDA (Thousand USD) | | :-------- | :----------------------------- | | GevoND | $24,224 | | GevoRNG | $2,583 | | Gevo | $(9,098) | | GevoFuels | $(376) | Adjusted EBITDA by Segment for Six Months Ended June 30, 2025 | Segment | Adjusted EBITDA (Thousand USD) | | :-------- | :----------------------------- | | GevoND | $26,064 | | GevoRNG | $5,306 | | Gevo | $(28,288) | | GevoFuels | $(1,100) | [Company Overview & Additional Information](index=8&type=section&id=Company%20Overview%20%26%20Additional%20Information) [About Gevo](index=8&type=section&id=About%20Gevo) Gevo is a next-generation diversified energy company dedicated to providing cost-effective renewable fuels and chemicals to ensure U.S. energy security, reduce carbon emissions, and foster economic growth in rural communities - Gevo is a next-generation diversified energy company committed to providing cost-effective, alternative fuels to promote energy security, reduce carbon emissions, and strengthen rural community economic growth[29](index=29&type=chunk) - The company's innovative technologies can be used to produce SAF, automotive fuels, chemicals, and other U.S.-made solutions[29](index=29&type=chunk) - Gevo owns and operates one of the largest dairy RNG facilities in the U.S., an ethanol plant with an adjacent CCS facility, and the world's first specialty ATJ fuel and chemical production facility[29](index=29&type=chunk) - Through its Verity subsidiary, Gevo provides transparency, accountability, and efficiency in attribute tracking, measurement, and verification across the entire supply chain[29](index=29&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future CDR sales, CFPC generation, jet fuel market growth, ATJ-60 project financing, and timing, which are based on management's current beliefs and expectations but are subject to significant risks and uncertainties, with actual results potentially differing materially - Forward-looking statements cover future CDR sales and growth, the CDR market, CCS capacity, future CFPC credit generation and sales, jet fuel market growth, ATJ-60 project financing, and timing[31](index=31&type=chunk) - These statements are based on management's current beliefs, expectations, and assumptions, and are subject to significant risks and uncertainties[31](index=31&type=chunk) - Investors should not place undue reliance on any such forward-looking statements, and Gevo undertakes no obligation to update or revise these statements[31](index=31&type=chunk) [Non-GAAP Financial Information Disclosure](index=9&type=section&id=Non-GAAP%20Financial%20Information%20Disclosure) This press release includes non-GAAP adjusted EBITDA, calculated by adding back depreciation and amortization, allocated intercompany expenses, non-cash stock-based compensation, and changes in fair value of derivatives to GAAP operating loss, which management believes aids internal planning and comparison and provides greater transparency to investors - Non-GAAP adjusted EBITDA is calculated by adding back depreciation and amortization, allocated intercompany expenses, non-cash stock-based compensation, and changes in fair value of derivatives to GAAP operating loss[32](index=32&type=chunk) - Management believes this metric aids internal operations, budgeting, and financial planning, and facilitates comparisons with historical performance and other companies[32](index=32&type=chunk) - Non-GAAP information should be read in conjunction with U.S. GAAP financial information for a complete understanding of Gevo's operating performance[32](index=32&type=chunk) [Webcast & Contact Information](index=8&type=section&id=Webcast%20%26%20Contact%20Information) Gevo provides details for its Q2 2025 financial results webcast and conference call, along with media and investor contact information - A conference call to discuss financial results and provide company updates will be held on August 11, 2025, at 4:30 PM ET[26](index=26&type=chunk) - A webcast replay will be available in the investor relations section of Gevo's website within two hours following the call[28](index=28&type=chunk) - Email addresses for media contact Heather Manuel and investor contact Dr. Eric Frey are provided[40](index=40&type=chunk)

Core Insights - Gevo, Inc. achieved positive net income of $2.1 million and positive Adjusted EBITDA of $17 million for the second quarter of 2025, marking a significant financial milestone [3][12][16] - The company reported a revenue increase of $14 million quarter-over-quarter, driven by successful operations in low-carbon ethanol and carbon capture [3][17] - Gevo anticipates growing Carbon Dioxide Removal (CDR) credit sales to $3-5 million by the end of 2025, with long-term sales potentially exceeding $30 million annually from its North Dakota site [4][12] Financial Performance - For the six months ended June 30, 2025, net income attributable to Gevo grew by $20 million, and Adjusted EBITDA increased by $32 million compared to the same period last year [2] - Total operating revenues for the second quarter were $43.4 million, a significant increase from $5.3 million in the same quarter of 2024 [35] - The company ended the second quarter with cash, cash equivalents, and restricted cash totaling $126.9 million [16] Revenue Streams - CDR credit sales and Clean Fuel Production Credit (CFPC) sales contributed approximately $21 million combined to net income and Adjusted EBITDA during the six months ended June 30, 2025 [4][12] - Low-carbon ethanol and co-product operations contributed approximately $26 million to income from operations and Adjusted EBITDA during the same period [4][10] Market Opportunities - U.S. jet fuel consumption is projected to grow by over 2 billion gallons per year in the next decade, creating a significant market opportunity for Gevo's renewable jet fuel [11] - The company is developing standardized plant designs for converting low-carbon ethanol to sustainable aviation fuel (SAF), positioning itself for long-term growth [11][12] Strategic Initiatives - Gevo is exploring options to increase third-party CO2 volumes at its carbon capture and sequestration site, which has the capacity to sequester carbon for over a thousand years [4][12] - The company has developed an extensive intellectual property portfolio around its SAF platform, with over 300 patents to support its growth strategy [11][12]

Company Overview - Gevo, Inc. (GEVO) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended June 2025, with a consensus outlook indicating a quarterly loss of $0.06 per share, representing a 33.3% improvement from the previous year [1][3] - Revenues are anticipated to reach $43.69 million, reflecting a significant increase of 730.6% compared to the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on August 11, and if the results exceed expectations, the stock may experience upward movement; conversely, a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 11.11% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that a positive Earnings ESP reading indicates a likely earnings beat, particularly when combined with a strong Zacks Rank [10] - For Gevo, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +27.27%, although the stock currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12] Historical Performance - Gevo has beaten consensus EPS estimates in three out of the last four quarters, with a recent surprise of +10.00% when it reported a loss of -$0.09 per share against an expected loss of -$0.10 [13][14] Industry Context - Ormat Technologies (ORA), another player in the alternative energy sector, is expected to report earnings of $0.37 per share for the same quarter, indicating a year-over-year decline of 7.5%, with revenues projected at $221.71 million, up 4.1% [18][19] - Ormat's consensus EPS estimate has been revised up by 1.9% over the last 30 days, but it currently has an Earnings ESP of -24.66%, making predictions of an earnings beat challenging [19][20]

Group 1 - Gevo, Inc. will host a conference call on August 11, 2025, at 4:30 p.m. ET to report its financial results for Q2 2025 [1] - Participants can register for the live call through a provided weblink and will receive a dial-in number and pin after registration [1] - A webcast replay of the conference call will be available two hours after it ends, accessible in the Investor Relations section of Gevo's website [2] Group 2 - Gevo is a diversified energy company focused on producing cost-effective, drop-in fuels that enhance energy security and support rural economic growth [3] - The company operates one of the largest dairy-based renewable natural gas facilities in the U.S. and an ethanol plant with a carbon capture and sequestration facility [3] - Gevo owns the world's first production facility for specialty alcohol-to-jet fuels and employs a market-driven approach to ensure value delivery to local economies [3]