Gevo(US:GEVO)2025-11-10 21:14Financial 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].