ENGLEWOOD, Colo., June 03, 2025 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) announced today the promotion of Lindsay Fitzgerald to Chief Advocacy and Communications Officer, effective immediately. In this expanded leadership role, Ms. Fitzgerald will focus on advancing Gevo’s mission to strengthen American energy and food security by unlocking the full value of U.S. agriculture and rural communities. She continues to drive policy advocacy and public communications that support cost-effective, American-mad ...

Core Viewpoint - Gevo, Inc. has entered into a definitive agreement to sell its subsidiary Agri-Energy, LLC to A.E. Innovation, LLC for $7 million, which includes an ethanol production facility in Minnesota, while retaining certain isobutanol-related assets for future production [1][4]. Group 1: Transaction Details - The sale includes Agri's 18-million-gallon-per-year ethanol production facility located in Luverne, Minnesota [1]. - Gevo will receive $2 million in cash upon closing and an additional $5 million in future cash under the purchase agreement [4]. - The transaction is expected to close by the end of 2025, subject to financing and customary closing conditions [5]. Group 2: Future Operations and Innovations - A.E. Innovation plans to restart ethanol production at the facility, which has been idled since 2022, and aims to use the site as an innovation hub for new technologies [2][3]. - The Luverne plant has been a demonstration site for regenerative agriculture and biofuel production, including synthetic aviation fuel, isobutanol, and ethanol [3]. - Gevo anticipates potential future benefits from isobutanol fermentation through a side-by-side operational model with the ethanol assets [4]. Group 3: Strategic Importance - The sale is expected to provide annual savings of approximately $3 million from current facility idling costs [4]. - The transaction is seen as a way to support local farmers and strengthen the regional economy in Luverne [4]. - Gevo emphasizes the importance of Minnesota's farming communities in developing sustainable agricultural practices as a foundation for innovative energy solutions [4].

Company Overview - Gevo, Inc. is a leader in sustainable aviation fuel and renewable chemicals, focusing on cost-effective, drop-in fuels that enhance energy security and support rural economic growth [1][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] Leadership Appointment - James J. Barber, Ph.D., has been appointed to Gevo's Board of Directors, bringing extensive executive leadership and board experience in various sectors including fuels and chemicals [1][2] - Dr. Barber holds a Ph.D. in Organic Chemistry from MIT and has received the American Chemical Society's Henry F. Whalen, Jr. Award for Business Development [2] Strategic Importance - The CEO of Gevo, Dr. Patrick R. Gruber, emphasized that Dr. Barber's technical expertise and strategic insight will be crucial for the company's growth [3] - Gevo's business model aims to revitalize rural communities by developing and operating production facilities that create jobs [3]

Core Viewpoint - Gevo, Inc. has appointed Oluwagbemileke (Leke) Agiri as Chief Financial Officer, effective May 21, 2025, succeeding L. Lynn Smull, who will take on a new role as Executive Vice President and Senior Advisor to the CEO [1][2][3] Group 1: Leadership Transition - Leke Agiri has extensive experience in corporate finance and capital markets, having served in key leadership roles at Gevo since August 2022, most recently as Executive Vice President, Finance [2] - Lynn Smull expressed confidence in Agiri's capabilities and emphasized the importance of a smooth transition as he approaches retirement [3] - Patrick Gruber, CEO of Gevo, highlighted Agiri's integral role in the finance team and the company's commitment to long-term succession planning [4] Group 2: Company Overview - Gevo is a diversified energy company focused on producing cost-effective, renewable fuels that enhance energy security and support rural economic growth [5] - The company operates one of the largest dairy-based renewable natural gas facilities in the U.S. and an ethanol plant with carbon capture and sequestration capabilities [5] - Gevo is also known for its innovative technology in producing synthetic aviation fuel and specialty alcohol-to-jet fuels, contributing to the U.S.'s leadership in energy innovation [5]

分组1 - Gevo, Inc. reported a quarterly loss of $0.09 per share, which was better than the Zacks Consensus Estimate of a loss of $0.10, and compared to a loss of $0.08 per share a year ago, indicating an earnings surprise of 10% [1] - The company posted revenues of $29.11 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 10.47%, and showing significant growth from year-ago revenues of $3.99 million [2] - Gevo has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] 分组2 - The stock has underperformed the market, losing about 43.1% since the beginning of the year, while the S&P 500 has only declined by 0.6% [3] - The current consensus EPS estimate for the coming quarter is -$0.05 on revenues of $45.19 million, and -$0.23 on revenues of $166.86 million for the current fiscal year [7] - The Zacks Industry Rank for Alternative Energy - Other is currently in the bottom 45% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

Gevo (GEVO) Q1 2025 Earnings Call May 13, 2025 04:30 PM ET Company Participants Eric Frey - VP of Finance & StrategyPatrick Gruber - CEO & DirectorLynn Smull - Chief Financial OfficerChris Ryan - President, Chief Operating OfficerPaul Bloom - Chief Business OfficerWhitney Mutalemwa - Equity Research Senior AssociateDerrick Whitfield - Managing Director Conference Call Participants Amit Dayal - Managing Director & Senior Technology AnalystPeter Gastreich - Managing Director - Energy and Sustainability Analys ...

Financial Data and Key Metrics Changes - The company generated $29 million in revenue for the first quarter of 2025, with only two months of operations at Chivo, North Dakota [6][21] - Combined operating revenue and other net income was $30.9 million for the first quarter [21] - The company ended the quarter with $135 million in cash, cash equivalents, and restricted cash [21] Business Line Data and Key Metrics Changes - The RNG subsidiary generated $5.7 million in revenue during the quarter, reflecting a $1.7 million increase compared to the previous year, driven by increased LCFS credit generation [21][22] - At Gevo North Dakota, income from operations was $500,000, and adjusted EBITDA was $1.8 million for February and March [22] - Gevo RNG reported income from operations of $1.1 million and adjusted EBITDA of $2.7 million last quarter [22] Market Data and Key Metrics Changes - The carbon intensity score for the company's ethanol is approximately 20, with expectations to improve further [10][21] - The company captured and sequestered 29,000 metric tons of carbon dioxide at the North Dakota site, avoiding 7,000 metric tons of carbon emissions [26] Company Strategy and Development Direction - The company aims to become EBITDA positive this year, leveraging the acquisition of the North Dakota plant and the monetization of the 45Z tax credit [7][21] - Plans to develop an alcohol-to-jet (ATJ) plant in North Dakota, with expectations for faster construction and lower capital costs [12][13] - The company is pursuing opportunities to develop and deploy ATJ plant designs globally, focusing on partnerships rather than full ownership [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business despite market noise, indicating a strong growth trajectory [20] - The company anticipates monetizing the 45Z tax credits soon, which could significantly enhance EBITDA [8][56] - Management highlighted the importance of domestic energy production, job creation, and supporting agriculture as part of their mission [33] Other Important Information - The company is actively negotiating its first 45Z tax credit sales and expanding its market position for durable carbon dioxide removal credits [28][30] - The ATJ project is expected to be economically advantageous compared to traditional jet fuel production methods [17][18] Q&A Session Summary Question: How should we think about the cash cadence for the year? - The company plans to spend less than $40 million on the ATJ-sixty project and is refinancing its RNG plant to free up cash [40][41] Question: Is there an established market for carbon abatement products? - There is a growing market for durable carbon dioxide removals, and the company is expanding its presence in this area [51][52] Question: Are you potentially going to start monetizing the 45Z credits in Q2? - The company expects to monetize the 45Z credits soon and aims to be EBITDA positive for the year [56][57] Question: Could you speak to the amount you expect to receive for ethanol and dairy RNG molecules? - The expected value is proportional to the carbon intensity scores, with potential earnings of about $2 per CI point [68][70] Question: Can you provide a range for the value of Scope 1 and Scope 3 emission credits? - The values are well north of the types of carbon value seen in LCFS markets, potentially in the hundreds of dollars per ton [88][90]

Project Development and Economic Impact - Gevo's initial Alcohol-to-Jet Project (ATJ-60) is designed to produce approximately 65 million gallons per year of total hydrocarbon volumes, including 60 million gallons per year of sustainable aviation fuel (SAF) with a "net zero" greenhouse gas footprint [198]. - The ATJ-60 facility is projected to contribute approximately $116 million annually to the local economy, generating 100 direct jobs and creating an additional 736 local jobs [199]. - The construction phase of the ATJ-60 facility is expected to provide a temporary $184 million economic boost and support 1,266 jobs [199]. - Gevo expects to finance the construction of ATJ-60 using a combination of company equity and project-level equity and debt financing, with projected spending between $90 million and $125 million until financial close [202]. - The Department of Energy has provided a conditional commitment for a loan guarantee facility of approximately $1.6 billion for the ATJ-60 project, validating its integrity [203]. Acquisitions and Strategic Partnerships - Gevo acquired the majority of the assets of Red Trail Energy for $210 million, enhancing its capabilities in biofuels and carbon marketing [205][208]. - The acquisition of Red Trail Energy includes an ethanol production plant, carbon capture and storage assets, and is expected to strengthen Gevo's revenue stream through ethanol production and carbon dioxide removal credit sales [208]. - The company completed the acquisition of Red Trail Energy for $198.5 million, with an additional $10.0 million paid to an escrow account in 2024 [257]. - The company entered into a joint development agreement with LG Chem to develop bio-propylene using its Ethanol-to-Olefins technology, targeting a market size of $400.0 – $500.0 billion for low-carbon solutions [228]. Renewable Energy and Carbon Management - Gevo is developing commercial projects to convert renewable energy into energy-dense liquid hydrocarbons, addressing the global need for economically reducing greenhouse gas emissions [197]. - The company is pursuing additional Alcohol-to-Jet Projects and evaluating greenfield sites for future development, focusing on existing ethanol plants for decarbonization [204]. - The RNG Project in Northwest Iowa surpassed its annual production target of 310,000 MMBtu in 2023 and expanded its expected output from 355,000 MMBtu to 400,000 MMBtu in 2024 [215]. - The provisional pathway for the RNG Project has a Carbon Intensity score of approximately -339 MJ/eCO2, leading to an increase of about 70,000 carbon credits, significantly boosting revenue potential [218]. - Verity, a subsidiary, is focused on tracking and verifying carbon intensity across the supply chain, with five ethanol producers currently contracted and additional producers in the pipeline [221]. Financial Performance and Projections - Total operating revenues for the RNG segment increased by 42% to $5,671,000 in Q1 2025 from $3,990,000 in Q1 2024, driven by a 36% increase in RNG sales and a 236% increase in LCFS credits [233]. - Gevo North Dakota segment contributed $22,814,000 in total operating revenues for the three months ended March 31, 2025, with ethanol production reaching 11,136,584 gallons [235]. - Operating expenses rose by 82% to $49,248,000 in Q1 2025 compared to $27,131,000 in Q1 2024, primarily due to increased costs from the Gevo North Dakota acquisition [237]. - The net loss attributable to Gevo, Inc. was $21,728,000 for Q1 2025, a 15% increase from the net loss of $18,875,000 in Q1 2024 [237]. - Cash and cash equivalents as of March 31, 2025, totaled $134.9 million, which includes $65.3 million in cash and cash equivalents and $69.6 million in current restricted cash [250]. Research and Development - Research and development expenses decreased by 32% to $1,052,000 in Q1 2025 compared to $1,548,000 in Q1 2024 [240]. - The ETO pilot plant launched in early 2024 has successfully delivered results for further scale-up, with $2.1 million received to date under the joint development agreement with LG Chem [232]. Stock and Cash Management - The company authorized a stock repurchase program of up to $25 million, with approximately $20.3 million remaining available as of March 31, 2025 [264][265]. - The company expects to utilize cash reserves for the development of production facilities and potential investments in RNG projects [250]. - The accounts receivable balance increased by $4.5 million compared to the same period last year, reflecting higher revenue from the RNG plant [256]. - The company expects to finance the construction of ATJ-60 using a combination of equity and third-party capital, with projected spending below the previously estimated range of $90.0 – $125.0 million [258][262].

Revenue and Financial Performance - Total operating revenue increased by approximately $25 million in Q1 2025 compared to Q1 2024, primarily driven by $23 million from Gevo North Dakota following the acquisition of Red Trail Energy[4] - RNG total operating revenue rose by $1.7 million, or 42%, compared to Q1 2024, attributed to a carbon intensity score approval from CARB[4] - Total operating revenues for Q1 2025 were $29,109,000, a significant increase from $3,990,000 in Q1 2024, representing a growth of approximately 629%[33] - The net loss for Q1 2025 was $21,773,000, compared to a net loss of $18,875,000 in Q1 2024, indicating a deterioration in financial performance[33] - The company reported total operating expenses of $49,248,000 for Q1 2025, up from $27,131,000 in Q1 2024, which is an increase of approximately 81%[33] - The company incurred acquisition-related costs of $4,438,000 in Q1 2025, indicating ongoing investment in growth strategies[33] - The company reported a net cash used in operating activities of $24,048,000 for Q1 2025, compared to $16,078,000 in Q1 2024, indicating increased cash outflow[35] - Overall, Gevo's consolidated Non-GAAP adjusted EBITDA loss for Q1 2025 was $15,351,000, which is a marginal increase in loss compared to the previous year[37] Cash and Assets - The company ended Q1 2025 with cash, cash equivalents, and restricted cash totaling $134.9 million[8] - Cash and cash equivalents decreased to $65,288,000 as of March 31, 2025, down from $189,389,000 at the end of 2024, reflecting a decrease of approximately 65%[30] - Total assets increased to $677,800,000 as of March 31, 2025, compared to $583,941,000 at the end of 2024, marking an increase of about 16%[30] - The company’s total liabilities increased to $203,008,000 as of March 31, 2025, compared to $94,453,000 at the end of 2024, representing a growth of approximately 115%[30] - The company’s additional paid-in capital rose to $1,289,406,000 as of March 31, 2025, from $1,287,333,000 at the end of 2024, reflecting a slight increase[31] Operational Metrics - Gevo North Dakota produced approximately 11.1 million gallons of low-carbon ethanol, contributing around 47 thousand metric tons of carbon abatement in Q1 2025[4] - Gevo's carbon abatement efforts resulted in over 100 thousand metric tons of CO2 emissions sequestered, reduced, or avoided in Q1 2025[4] - Gevo signed an offtake agreement with Future Energy Global for emissions credits from 10 million gallons of fuel per year, aiding financing for ATJ projects[8] - The company is engaged with the U.S. Department of Energy to finance the ATJ-60 project, aiming to produce more domestic energy[7] Expenses and Losses - Non-GAAP Adjusted EBITDA loss was $15.4 million for Q1 2025, with a loss from operations of $20.1 million[8] - Research and development expenses decreased by $0.5 million in Q1 2025, primarily due to reduced consulting expenses[13] - For the three months ended March 31, 2025, Gevo reported a Non-GAAP adjusted EBITDA loss of $15,351,000, compared to a loss of $14,457,000 for the same period in 2024, indicating a slight deterioration in performance year-over-year[37] - The loss from operations for Gevo in Q1 2025 was $20,139,000, an improvement from a loss of $23,141,000 in Q1 2024, reflecting a reduction in operational losses[37] - Depreciation and amortization expenses increased to $5,622,000 in Q1 2025 from $4,451,000 in Q1 2024, highlighting increased asset utilization or investment[37] - Stock-based compensation decreased to $1,898,000 in Q1 2025 from $4,233,000 in Q1 2024, suggesting a reduction in equity-based incentives[37] - GevoFuels reported a loss from operations of $724,000 in Q1 2025, compared to a loss of $1,010,000 in Q1 2024, indicating improved performance in this segment[37] - GevoRNG achieved a positive income from operations of $469,000 in Q1 2025, a significant improvement from a loss of $2,005,000 in Q1 2024, demonstrating growth in this area[37] - The change in fair value of derivative instruments resulted in a loss of $2,732,000 in Q1 2025, with no comparable figure in Q1 2024, indicating increased volatility in financial instruments[37] - Allocated intercompany expenses for shared service functions remained consistent at a loss of $890,000 in both Q1 2025 and Q1 2024, reflecting stable internal cost allocations[37] Shareholder Information - The weighted-average number of common shares outstanding was 232,027,993 for Q1 2025, compared to 240,844,334 for Q1 2024, showing a decrease of about 4%[33] - The company continues to focus on improving operational efficiency and reducing losses across its segments, particularly in GevoFuels and GevoRNG[37]

Core Insights - Gevo, Inc. reported a quarterly revenue increase of approximately $25 million for Q1 2025 compared to Q1 2024, driven by strategic growth initiatives and the acquisition of Gevo North Dakota [4][8][9] - The company anticipates further revenue and adjusted EBITDA growth in 2025, supported by the monetization of tax credits and new offtake agreements [1][4][7] Financial Performance - Total operating revenue for Q1 2025 was $29.1 million, a significant increase from $3.99 million in Q1 2024, primarily due to $22.8 million from Gevo North Dakota and $1.7 million from the RNG project [4][29] - The adjusted EBITDA loss for Q1 2025 was $15.4 million, an improvement from a loss of $14.5 million in Q1 2024 [8][34] - The company ended Q1 2025 with cash, cash equivalents, and restricted cash totaling $134.9 million [8] Strategic Developments - Gevo signed a pioneering offtake agreement with Future Energy Global for emissions credits from 10 million gallons of fuel per year, alongside another agreement for an additional 5 million gallons of SAF [3][4] - The company is actively developing markets for voluntary carbon abatement, achieving over 100,000 metric tons of CO2 abatement in Q1 2025 [4][5] Operational Highlights - Gevo North Dakota produced approximately 11.1 million gallons of low-carbon ethanol in Q1 2025, contributing to significant carbon abatement [4][9] - The company is focused on advancing its alcohol-to-jet (ATJ) projects, with plans for an ATJ-30 plant capable of producing 30 million gallons of jet fuel per year [7][9] Cost and Expense Management - Cost of production increased by $18.9 million in Q1 2025, primarily due to the acquisition of Gevo North Dakota [10] - General and administrative expenses decreased by $1.1 million, attributed to a reduction in stock-based compensation [13] Market Position and Future Outlook - The CEO expressed confidence in achieving positive adjusted EBITDA in 2025, citing the operational assets and market opportunities available [7][9] - Gevo's innovative technology and strategic partnerships position the company favorably within the renewable fuels market, particularly in the SAF segment [7][22]