ENGLEWOOD, Colo., Dec. 15, 2025 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO), a leader in renewable fuel and chemicals, and carbon management, today announced a strategic leadership transition designed to position the company for continued growth and innovation. Effective December 9, 2025, Dr. Paul Bloom has been appointed President of Gevo, Inc. and a director on Gevo’s Board of Directors. Gevo’s long-standing Chief Executive Officer and board member, Dr. Patrick Gruber, has assumed the role of Executive ...

Core Viewpoint - Gevo Inc. is recognized as a rapidly growing penny stock, with a Buy rating and a $14 price target reaffirmed by H.C. Wainwright following strong Q3 results that highlight robust revenue and a strategic focus on carbon monetization [1][2]. Financial Performance - Gevo reported Q3 revenue of $43.71 million, surpassing consensus estimates of $37.03 million [3]. - The company experienced a net loss of $0.03 per share, which was an improvement compared to the expected loss of $0.04 per share [3]. - Gevo achieved a second consecutive quarter of positive adjusted EBITDA, attributed to strong performance at its North Dakota facility and renewable natural gas operations [3]. Operational Improvements - Loss from operations decreased by $20.3 million year-over-year, driven by increased revenues from the North Dakota facility and reduced production costs [4]. Strategic Initiatives - Gevo's CEO, Dr. Patrick Gruber, emphasized the company's ability to generate positive adjusted EBITDA and plans to enhance profitability, while also remaining committed to developing the jet fuel business, which is expected to contribute significantly to adjusted EBITDA [5]. - The company secured a multi-year off-take agreement projected to generate $26 million in Carbon Dioxide Removal credit sales revenue over the next five years [5]. Company Overview - Gevo, Inc. specializes in renewable chemicals and advanced biofuels, converting renewable energy and bio-based feedstocks into low-carbon products, including sustainable aviation fuel, renewable gasoline, diesel, and chemicals [6].

Core Insights - Gevo, Inc. (NASDAQ:GEVO) is recognized as a fast-growing small-cap stock, with a maintained Buy rating and a price target of $14 following its fiscal Q3 2025 results that exceeded expectations [1][3] Financial Performance - The company reported a revenue growth of 2,073.54% to $42.71 million, surpassing estimates by $11.34 million, with an EPS of negative $0.03, exceeding expectations by $0.03 [2] - Revenue contributions included $38.2 million from Gevo North Dakota, a $2 million increase in RNG and environmental attribute revenue, and $0.5 million from isooctane sales [2] - The quarter marked the second consecutive quarter of positive adjusted EBITDA, reaching $6.7 million, driven by strong performance at the Gevo North Dakota and RNG facilities [2] Strategic Developments - Analyst Amit Dayal emphasized the company's robust revenue stream and focus on effective carbon monetization [3] - The extension of the Department of Energy's $1.6 billion Conditional Commitment is viewed as a positive development, allowing the company to explore various paths to market its aviation fuel capacity [3] Company Overview - Gevo, Inc. is a diversified energy company focused on carbon abatement through three main segments: Gevo, GevoFuels, and GevoRNG [4]

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Financial Data and Key Metrics Changes - The company ended the quarter with $108 million in cash and cash equivalents, with combined operating revenue, interest, and investment income of $43.6 million, compared to approximately $2 million in the same quarter last year, marking an increase of approximately $41 million [11][12] - The loss from operations was $3.7 million, while non-GAAP adjusted EBITDA was a positive $6.6 million, an increase of approximately $23 million from last year's adjusted EBITDA of negative $16.7 million [11][12] - Gevo North Dakota generated income from operations of $12.3 million and a positive non-GAAP adjusted EBITDA of $17.8 million [11] Business Line Data and Key Metrics Changes - Gevo North Dakota is now a core earnings engine, demonstrating reliable energy production, efficient carbon capture, and consistent monetization of clean fuel production credits [13] - Gevo R&G generated income from operations of $0.5 million and positive non-GAAP adjusted EBITDA of $2.7 million [11] Market Data and Key Metrics Changes - The company successfully sold all of its 2025 Section 45(z) clean fuel production credits for a total of $52 million, with net proceeds of approximately $29 million received so far [13][14] - The company expects to grow its carbon dioxide removal (CDR) sales from $1 million in Q2 to $3-$5 million by the end of 2025 [17] Company Strategy and Development Direction - The company aims to maximize adjusted EBITDA from existing assets and plans to build a jet fuel plant at Gevo North Dakota, which could add an additional adjusted EBITDA uplift of about $150 million [9][10] - The company is focusing on monetizing carbon value through various methods, including selling carbon credits and production tax credits, as part of its business model [6][7] - The company is also working on expanding its carbon capture and sequestration capabilities and optimizing energy use at its facilities [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment in North Dakota, highlighting its pro-agriculture and pro-energy stance, which aligns well with the company's operations [6] - The management believes that the integration of ethanol production and carbon sequestration is crucial for achieving the best economics and carbon scores for jet fuel [30] - The company anticipates that its operating cash flows will normalize and trend towards break-even or better in the coming quarters [15] Other Important Information - The company has implemented Verity, a digital carbon tracking and verification platform, at its Gevo North Dakota facility, which is expected to enhance transparency and trust in carbon accounting [21][22] - The company has partnered with Frontier Infrastructure Holdings to offer integrated carbon management solutions for ethanol producers [22] Q&A Session Summary Question: Can you elaborate on the incremental capital and steps required to optimize your operation and a reasonable timeline to achieve $110 million of EBITDA? - Management indicated that incremental capital is estimated to be around $15 million, focusing on debottlenecking the ethanol plant and optimizing energy use [34][35] Question: Can you elaborate on the DOE loan extension and how it increases the likelihood of DOE financing? - Management noted that the shift of the DOE loan guarantee to North Dakota is favorable due to the existing profitable operations and infrastructure [38][39] Question: Can you provide insight into the EBITDA drivers for next year? - Management highlighted that growth will primarily come from carbon sequestration capacity expansion and debottlenecking efforts [43][44] Question: How should we project the incremental CI improvement over the next number of quarters? - Management explained that the CI score is expected to drop due to the One Big Beautiful Bill, which will increase 45Z generation [75][76]

Financial Data and Key Metrics Changes - The company ended the quarter with $108 million in cash and cash equivalents, with combined operating revenue, interest, and investment income of $43.6 million, compared to approximately $2 million in the same quarter last year, marking an increase of approximately $41 million [11][12] - The loss from operations was $3.7 million, while non-GAAP adjusted EBITDA was a positive $6.6 million, an improvement of approximately $23 million from last year's negative $16.7 million [12][13] - Gevo North Dakota generated income from operations of $12.3 million and a positive non-GAAP adjusted EBITDA of $17.8 million [11][13] Business Line Data and Key Metrics Changes - Gevo North Dakota is now a core earnings engine, demonstrating reliable energy production and efficient carbon capture, contributing significantly to the company's financial performance [13][14] - Gevo R&G generated income from operations of $0.5 million and positive non-GAAP adjusted EBITDA of $2.7 million [11] Market Data and Key Metrics Changes - The company successfully sold all of its 2025 Section 45Z clean fuel production credits for a total of $52 million, with net proceeds of approximately $29 million received so far [13][14] - The company is expanding its carbon value derived from carbon capture and sequestration (CCS) and anticipates growth in carbon dioxide removal (CDR) credit sales from $1 million in Q2 to $3 million-$5 million by the end of 2025 [17][18] Company Strategy and Development Direction - The company aims to maximize adjusted EBITDA from existing assets and plans to build an ATJ-30 jet fuel plant at Gevo North Dakota, which is expected to add an additional adjusted EBITDA uplift of about $150 million [9][28] - The company is focusing on monetizing carbon value through various methods, including selling carbon credits and production tax credits, which are seen as key initiatives for growth [6][7][13] - The company is also working on expanding its carbon sequestration capacity and exploring partnerships for additional CO2 storage [66][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment in North Dakota, highlighting its pro-agriculture and pro-energy stance, which aligns well with the company's operations [6] - The management team believes that the integration of ethanol production and carbon sequestration is crucial for achieving the best economics and carbon scores for jet fuel [30] - The company expects to normalize operating cash flows and trend towards break-even or better in the coming quarters, supported by recurring monetization of tax credits and positive adjusted EBITDA generation [15] Other Important Information - The company has received a conditional commitment from the Department of Energy for financing, which is expected to be more favorable due to the existing operational assets in North Dakota [39][40] - The company is implementing Verity, a digital carbon tracking and verification platform, to enhance transparency and efficiency in carbon accounting [21][22] Q&A Session Summary Question: Can you elaborate on the incremental capital and steps required to optimize your operation and a reasonable timeline to achieve $110 million of EBITDA? - Management indicated that incremental capital is estimated to be around $15 million, focusing on debottlenecking the ethanol plant and optimizing energy use [34][35] Question: Can you elaborate on the DOE loan extension and how it increases the likelihood of financing? - Management noted that the shift of the loan guarantee to North Dakota is seen as a positive development, as the existing operational assets reduce the need for external financing [38][39] Question: Can you provide insight into the EBITDA drivers for next year? - Management highlighted that growth will primarily come from carbon sequestration capacity expansion and debottlenecking efforts, with a focus on maximizing carbon value [42][44] Question: How should we project the incremental CI improvement over the next quarters? - Management explained that the CI score is expected to drop due to the One Big Beautiful Bill, which will increase 45Z generation, and they are exploring additional decarbonization measures [71][74]

Financial Data and Key Metrics Changes - The company ended the quarter with $108 million in cash and cash equivalents, with combined operating revenue, interest, and investment income of $43.6 million, marking a significant increase from approximately $2 million in the same quarter last year [11][12] - The loss from operations was $3.7 million, while non-GAAP adjusted EBITDA was a positive $6.6 million, an improvement of approximately $23 million from last year's negative $16.7 million [11][12] - Gevo North Dakota generated income from operations of $12.3 million and a positive non-GAAP adjusted EBITDA of $17.8 million [11] Business Line Data and Key Metrics Changes - Gevo North Dakota has become a core earnings engine, demonstrating reliable energy production and efficient carbon capture, contributing significantly to the company's financial performance [12] - Gevo R&G generated income from operations of $0.5 million and positive non-GAAP adjusted EBITDA of $2.7 million [11] Market Data and Key Metrics Changes - The company successfully sold all of its 2025 Section 45(z) clean fuel production credits for a total of $52 million, with net proceeds of approximately $29 million received so far [12][13] - The company is expanding its carbon dioxide removal (CDR) credit sales, with expectations to grow from $1 million in Q2 to $3-$5 million by the end of 2025 [17] Company Strategy and Development Direction - The company aims to monetize carbon as a key initiative, viewing it as an important co-product that can unlock economics for growth products like jet fuel [5][8] - Plans to build a 30 million-gallon jet fuel plant (ATJ30) at Gevo North Dakota are underway, with expected adjusted EBITDA uplift of about $150 million from this addition [9][27] - The company is focusing on incremental expansions and optimizing existing operations before pursuing larger capital projects [8][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business environment in North Dakota, highlighting its pro-agriculture and pro-energy stance, which aligns well with the company's operations [5] - The management team believes that the integration of ethanol production and carbon sequestration will lead to better economics and carbon scores for jet fuel production [29] - The company anticipates steady improvement in cash generation and financial flexibility, with a credible pathway to break-even operating cash flow [15] Other Important Information - The company has implemented Verity, a digital carbon tracking and verification platform, at its Gevo North Dakota facility, which is expected to enhance transparency and efficiency in carbon accounting [20][22] - A strategic partnership with Frontier Infrastructure Holdings aims to offer integrated carbon management solutions for ethanol producers [22] Q&A Session Summary Question: Can you elaborate on the incremental capital and steps required to optimize your operation and a reasonable timeline to achieve $110 million of EBITDA? - Management indicated that incremental capital is estimated at around $15 million, focusing on debottlenecking the ethanol plant and optimizing energy use [33][34] Question: Can you elaborate on the DOE loan extension and how it increases the likelihood of DOE financing? - Management noted that the shift of the loan guarantee to North Dakota reflects the project's attractiveness due to existing profitable operations and reduced financing needs [36][38] Question: What are the EBITDA drivers for next year? - Management highlighted that improvements in carbon intensity scores and operational efficiencies will be key drivers, with a focus on maximizing carbon value [40][43] Question: How should we project the incremental CI improvement over the next quarters? - Management explained that the CI score is expected to drop due to provisions in the One Big Beautiful Bill, which will enhance credit generation [71][74] Question: Can you update on conversations with potential customers for carbon sequestration services? - Management confirmed ongoing discussions with companies interested in co-locating to utilize the sequestration capacity, which could enhance profitability [65][66]

Acquisition and Financing - Gevo acquired substantially all assets of Red Trail Energy for $210 million, funded by cash and a $105 million senior secured term loan[212]. - The company completed the acquisition of Red Trail Energy for $198.5 million during the nine months ended September 30, 2025[282]. - The company entered into a credit agreement for $105 million, partially funding the acquisition of Red Trail Energy, with an additional equity investment of $5 million in Gevo Intermediate HoldCo, LLC[286]. - Gevo expects to finance ATJ plants using a combination of company equity and project-level equity and debt financing[218]. - The company expects to finance the construction of the ATJ-60 project using a combination of equity and third-party capital, with projected costs between $90.0 million and $125.0 million[283]. - The company expects to finance the construction of ATJ using a combination of its own, third-party, and debt capital, while retaining an equity interest in the project[287]. Production and Capacity - The ATJ-60 facility is designed to produce approximately 65 MMGPY of total hydrocarbon volumes, including 60 MMGPY of sustainable aviation fuel (SAF) and 1.3 billion pounds of high-value protein products annually[216]. - The construction of the ATJ-60 facility is projected to provide a temporary $184 million economic boost and support 1,266 jobs during the construction phase[216]. - The ATJ-30 design is expected to be deployed at GevoND, upgrading low-carbon ethanol to jet fuel, with engineering and development continuing through 2025 and into 2026[215]. - Gevo's processes are designed to produce jet fuel with a zero or even negative carbon footprint across the entire life cycle[207]. - The RNG business in Northwest Iowa achieved stable production levels in 2023, surpassing the annual production target of 310,000 MMBtu and expanding expected output from 355,000 MMBtu to 400,000 MMBtu in 2024[221][224]. Revenue and Financial Performance - Total operating revenues for the three months ended September 30, 2025, reached $3,964,000, a 103% increase from $1,952,000 in the same period of 2024[241]. - Renewable natural gas (RNG) revenues increased by 40% to $243,000 from $173,000 year-over-year[241]. - Environmental attributes revenue from Renewable Identification Numbers (RINs) surged by 121% to $1,979,000 compared to $896,000 in the prior year[241]. - Total operating revenues for the nine months ended September 30, 2025, were $13,918,000, a 36% increase from $10,265,000 in 2024[242]. - Operating revenue from GevoND contributed $98.2 million during the nine months ended September 30, 2025[259]. - Total operating revenues for GevoND segment in the three months ended September 30, 2025, amounted to $38,470,000, a significant increase from $1,965,000 in the same period of 2024[248]. Costs and Expenses - Cost of production for the three months ended September 30, 2025, increased by $19.7 million primarily due to GevoND operations[249]. - The cost of production increased by $52.4 million to $61.0 million for the nine months ended September 30, 2025, primarily due to net production costs associated with GevoND[260]. - Operating expenses for RNG decreased by 27% to $3,499,000 from $4,784,000 year-over-year[241]. - Project development costs decreased by $10.6 million to $9.1 million for the nine months ended September 30, 2025, a 54% reduction compared to $19.6 million in 2024[257]. - Research and development expenses increased by $0.2 million during the three months ended September 30, 2025, primarily due to increased consulting expenses[251]. Net Income and Loss - Net income attributable to Gevo, Inc. for the three months ended September 30, 2025, was $(7,954,000), improving by $13,202,000 compared to $(21,156,000) in 2024[248]. - The loss from operations decreased by $53.1 million to $(18.0) million for the nine months ended September 30, 2025, compared to $(71.2) million in 2024, primarily due to increased revenues from GevoND and lower production costs[266]. Market and Risk Factors - The company is exposed to market risks including environmental attribute pricing, increased project costs, commodity pricing, interest rate, credit risk, and equity price risks[291]. Strategic Partnerships and Developments - Gevo entered into a joint development agreement with LG Chem to develop bio-propylene using Ethanol-to-Olefins technology, with a market size for low-carbon solutions estimated at $400.0 – $500.0 billion[236]. - The agreement with LG Chem includes $5.0 million upon commercialization and a 1% royalty on net sales for production facilities, with $2.1 million received to date under the agreement[237]. - Verity Holdings, LLC is developing a data and software platform for traceability and compliance reporting, onboarding customers across multiple segments of the renewable fuels supply chain in 2025[225][227]. - Eight customers are currently contracted with Verity, including ethanol producers and soybean processors, with additional customers in the pipeline[232]. - The acquisition of CultivateAI enhances Verity's capabilities in agricultural data and carbon abatement solutions, integrating real-time analytics for improved decision-making[234]. Other Financial Activities - A stock repurchase program was authorized for up to $25 million, allowing the company to opportunistically repurchase shares while funding development projects[289]. - The company repurchased 1.1 million shares for $0.6 million and 7.2 million shares for $4.7 million during the three and nine months ended September 30, 2024, respectively[290]. - As of September 30, 2025, approximately $20.3 million remained available under the stock repurchase program[290]. - Interest expense increased by $10.1 million to $12.8 million for the nine months ended September 30, 2025, compared to $2.8 million in 2024, primarily due to debt from the acquisition of GevoND[267]. - Interest and investment income decreased by $8.5 million to $4.1 million for the nine months ended September 30, 2025, compared to $12.6 million in 2024[268].

Financial Performance - Gevo reported a loss from operations of $3.7 million for Q3 2025, but achieved positive Adjusted EBITDA of approximately $6.7 million, marking the second consecutive quarter of positive Adjusted EBITDA [2][5]. - The net loss for Q3 2025 was $7.95 million, compared to a net loss of $21.16 million in Q3 2024, indicating an improvement of about 62% [29]. - For the three months ended September 30, 2025, Gevo reported a Non-GAAP adjusted EBITDA loss of $6,713,000, compared to a loss of $16,728,000 for the same period in 2024, representing a 60% improvement [32]. - The total loss from operations for the nine months ended September 30, 2025, was $18,033,000, a decrease from $71,178,000 in the same period of 2024, indicating a significant reduction of approximately 75% [32]. - Gevo's overall consolidated loss from operations for the three months ended September 30, 2025, was $3,690,000, compared to a loss of $24,008,000 in the same period of 2024, reflecting a 85% improvement [33]. Revenue and Sales - Operating revenue for Q3 2025 increased by $40.7 million compared to Q3 2024, primarily due to $38.2 million in revenue from Gevo North Dakota [9]. - Total operating revenues for Q3 2025 reached $42.71 million, a significant increase from $1.97 million in Q3 2024, representing a growth of approximately 2,067% [29]. - The company sold all $30 million of its remaining 2025 Clean Fuel Production Credits, bringing the total for the year to $52 million [5]. - The company signed a multi-year offtake agreement expected to generate approximately $26 million in Carbon Dioxide Removal credit sales revenues over five years, with a target to grow carbon co-product sales from $1 million in Q2 to $3-5 million by the end of 2025 [5]. Costs and Expenses - Cost of production increased by $19.7 million in Q3 2025, primarily due to production costs related to Gevo North Dakota, partially offset by $11.8 million in 45Z tax credits [10]. - The company reported a total of $60.99 million in cost of production for the nine months ended September 30, 2025, compared to $8.55 million in the same period of 2024, reflecting a significant increase [29]. - Depreciation and amortization expenses for the three months ended September 30, 2025, were $7,404,000, up from $3,494,000 in the same period of 2024, reflecting a 112% increase [32]. - Stock-based compensation for the nine months ended September 30, 2025, totaled $6,504,000, down from $12,485,000 in the same period of 2024, showing a decrease of about 48% [32]. Assets and Liabilities - Total assets increased to $685.21 million as of September 30, 2025, compared to $583.94 million at the end of 2024, marking a growth of about 17% [28]. - Total liabilities rose to $210.38 million as of September 30, 2025, up from $94.45 million at the end of 2024, representing an increase of approximately 123% [28]. - Gevo's total stockholders' equity decreased to $468.87 million as of September 30, 2025, down from $489.49 million at the end of 2024, indicating a decline of about 4% [28]. Strategic Initiatives - The company is targeting a Final Investment Decision for its ATJ-30 jet fuel facility in mid-2026, which is expected to add approximately $150 million of Adjusted EBITDA once operational [7][8]. - The company plans to continue its focus on expanding its renewable natural gas (RNG) business and developing new projects to enhance future cash flow generation [26]. - Gevo's Carbon Capture and Sequestration operation has sequestered over 560,000 metric tons of carbon since its startup in June 2022 [5]. Segment Performance - Gevo North Dakota generated income from operations of $12.3 million and non-GAAP Adjusted EBITDA of $17.8 million for Q3 2025 [7][9]. - Gevo's GevoFuels segment reported a loss from operations of $547,000 for the three months ended September 30, 2025, compared to a loss of $1,572,000 in the same period of 2024, marking a 65% improvement [33]. - The total Non-GAAP adjusted EBITDA loss for GevoRNG for the three months ended September 30, 2025, was $2,831,000, compared to a loss of $2,111,000 in the same period of 2024, indicating a decline of 34% [33]. - For the nine months ended September 30, 2025, GevoRNG reported a Non-GAAP adjusted EBITDA of $7,883,000, a significant increase from $1,791,000 in the same period of 2024, representing a growth of approximately 339% [33]. Cash Position - Gevo ended Q3 2025 with cash, cash equivalents, and restricted cash of $108.4 million [7]. - Cash and cash equivalents decreased to $70.14 million as of September 30, 2025, down from $189.39 million at the end of 2024, reflecting a decrease of approximately 63% [28]. - The sale of Gevo's subsidiary, Agri-Energy, for $2 million plus $5 million in future payments is expected to eliminate approximately $3 million per annum in facility idling costs [7].

Core Insights - Gevo, Inc. reported a loss from operations of $3.7 million for Q3 2025, but achieved positive Adjusted EBITDA of approximately $6.7 million, marking the second consecutive quarter of positive Adjusted EBITDA [1][2][5] Financial Performance - The company generated total operating revenues of $42.7 million for Q3 2025, a significant increase of $40.7 million compared to Q3 2024, primarily driven by $38.2 million in revenue from Gevo North Dakota [8][27] - The cost of production increased by $19.7 million during Q3 2025 compared to the same period in 2024, largely due to production costs at Gevo North Dakota, although offset by $11.8 million in tax credits [9][27] - The net loss attributable to Gevo for Q3 2025 was $7.95 million, with a net loss per share of $0.03 [27][36] Operational Highlights - Gevo produced approximately 17 million gallons of low-carbon ethanol, 46 thousand tons of protein and corn oil co-products, 42 thousand tons of sequestered carbon, and 92 thousand MMBtu of renewable natural gas (RNG) during Q3 2025 [2][5] - The company signed a multi-year offtake agreement expected to generate approximately $26 million in Carbon Dioxide Removal (CDR) credit sales revenues over five years [2][5] Strategic Developments - Gevo is targeting a Final Investment Decision (FID) in mid-2026 for its planned ATJ-30 facility to produce jet fuel from existing low-carbon ethanol production [2][5] - The company received an extension on a $1.46 billion loan guarantee from the U.S. Department of Energy until April 16, 2026, allowing for potential modifications to the project scope [2][5] Asset Management - Gevo completed the sale of its subsidiary, Agri-Energy, LLC, for $2 million in cash, which is expected to eliminate approximately $3 million in annual facility idling costs [3][5] - The company ended Q3 2025 with cash, cash equivalents, and restricted cash totaling $108.4 million [6][8]