Green Plains(GPRE) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial Highlights and Outlook Executive Summary of Q2 2025 Results Green Plains Inc. reported a net loss of $72.2 million for Q2 2025, widening significantly due to non-cash charges, despite increased Adjusted EBITDA | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | | :----------------------- | :------------------- | :------------------- | :----- | | Net Loss Attributable to Company | $(72.2) | $(24.4) | $(47.8) | | Diluted EPS | $(1.09) | $(0.38) | $(0.71) | | Revenues | $552.8 | $618.8 | $(66.0) | | Adjusted EBITDA | $16.4 | $5.0 | $11.4 | - Q2 2025 results include $44.9 million in non-cash charges, primarily from the sale of non-core assets and an equity method investment, and asset impairments, plus $2.5 million in restructuring costs[2] Management Commentary and Strategic Initiatives Management highlighted successful operational efficiency, non-core asset exits, and cost reductions, on track for over $50 million in annualized savings - Achieved 99% utilization across the operating platform, demonstrating successful operational excellence initiatives[3] - On pace to exceed $50 million in annualized savings target due to cost reductions implemented in the first half of the year[3] - Carbon capture project nearing completion, with sequestration expected to begin early in Q4, supported by favorable federal government policies like the 45Z Clean Fuel Production Credit extension[3] - Improved financial position by reducing working capital through the Eco-Energy marketing arrangement, monetizing non-core assets, lowering expenses, and extending near-term debt maturity[3] Key Highlights and Recent Developments Recent developments include carbon capture progress, Eco-Energy marketing benefits, strong plant utilization, and strategic financial moves - Carbon capture infrastructure equipment delivered and construction progressing, on track for start-up early in Q4 2025[4] - Delivered greater than $50 million improvement in working capital from the transition of ethanol marketing to Eco-Energy, LLC[4] - Achieved strong utilization of 99% across the nine operating ethanol plants[4] - Extended the maturity of its $127.5 million Mezzanine note facility to September 15, 2026[4][5] - Completed the sale of a 50% investment in GP Turnkey Tharaldson LLC for $25 million as of June 30, 2025[5] Consolidated Results of Operations Overall Financial Performance Analysis Consolidated revenues decreased due to a marketing agreement cessation, while net loss widened from asset sales and impairments, though Adjusted EBITDA improved - Consolidated revenues decreased by $66.0 million for Q2 2025 compared to Q2 2024, mainly due to the agribusiness and energy services segment ceasing a third-party ethanol marketing agreement[7] - Net loss attributable to Green Plains increased by $47.9 million, primarily due to a $31.0 million loss on sale of assets and equity method investment and a $10.7 million impairment of assets held for sale[8] - Adjusted EBITDA increased by $11.4 million for Q2 2025, driven by a change in operating strategy and the sale of accumulated RINs, partially offset by weaker margins in the ethanol production segment[8] - Interest expense increased by $6.4 million, mainly due to amortization of loan fees related to warrant issuance/modification and decreased capitalized interest[8] Segment Overview Green Plains operates two segments: Ethanol Production, focusing on ethanol and by-products, and Agribusiness and Energy Services, handling commodity marketing and trading - The Ethanol Production segment focuses on the production, storage, and transportation of ethanol, distillers grains, Ultra-High Protein, and renewable corn oil[9] - The Agribusiness and Energy Services segment includes grain handling and storage, commodity marketing, and merchant trading for various products, including company-produced and third-party ethanol, distillers grains, Ultra-High Protein, renewable corn oil, and natural gas[9] Detailed Segment Performance and Operating Metrics Segment Operations Financials The Ethanol Production segment saw slight revenue growth and improved gross margin despite a higher operating loss, while Agribusiness revenues declined but gross margin increased Segment Revenues (Three Months Ended June 30, in thousands) | Segment | 2025 | 2024 | % Var. | | :----------------------- | :--------------- | :--------------- | :----- | | Ethanol production | $527,153 | $525,443 | 0.3% | | Agribusiness and energy services | $31,531 | $100,949 | (68.8)% | | Intersegment eliminations | $(5,855) | $(7,567) | (22.6)% | | Total Revenues | $552,829 | $618,825 | (10.7)% | Segment Gross Margin (Three Months Ended June 30, in thousands) | Segment | 2025 | 2024 | % Var. | | :----------------------- | :--------------- | :--------------- | :----- | | Ethanol production | $33,490 | $30,390 | 10.2% | | Agribusiness and energy services | $8,080 | $7,433 | 8.7% | | Total Gross Margin | $41,570 | $37,823 | 9.9% | Segment Operating Income (Loss) (Three Months Ended June 30, in thousands) | Segment | 2025 | 2024 | % Var. | | :----------------------- | :--------------- | :--------------- | :----- | | Ethanol production | $(12,218) | $(2,213) | * | | Agribusiness and energy services | $849 | $2,166 | (60.8)% | | Corporate activities | $(16,994) | $(17,664) | (3.8)% | | Total Operating Loss | $(28,363) | $(17,711) | 60.1% | Segment Adjusted EBITDA (Three Months Ended June 30, in thousands) | Segment | 2025 | 2024 | % Var. | | :----------------------- | :--------------- | :--------------- | :----- | | Ethanol production | $8,992 | $17,952 | (49.9)% | | Agribusiness and energy services | $5,028 | $3,045 | 65.1% | | Corporate activities | $(42,903) | $(16,230) | 164.3% | | Total Adjusted EBITDA | $16,442 | $5,038 | * | Selected Operating Data Ethanol production, distillers grains, renewable corn oil, and corn consumed all decreased in Q2 2025, while Ultra-High Protein production slightly increased Selected Operating Data (Three Months Ended June 30) | Metric | 2025 | 2024 | % Var. | | :-------------------------- | :----- | :----- | :----- | | Ethanol (gallons) | 193,571 | 208,483 | (7.2)% | | Distillers grains (tons) | 413 | 463 | (10.8)% | | Ultra-High Protein (tons) | 66 | 65 | 1.5% | | Renewable corn oil (pounds) | 65,231 | 73,630 | (11.4)% | | Corn consumed (bushels) | 65,312 | 71,819 | (9.1)% | | Agribusiness and energy services Ethanol (gallons) | 225,703 | 261,461 | (13.7)% | Consolidated Ethanol Crush Margin The consolidated ethanol crush margin increased to $26.3 million in Q2 2025, significantly boosted by a one-time sale of accumulated RINs Consolidated Ethanol Crush Margin (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :------------------------------------------ | :--------------- | :--------------- | | Ethanol production operating loss | $(12,218) | $(2,213) | | Depreciation and amortization | $22,918 | $20,544 | | Impairment of assets held for sale | $10,7