Green Plains(US:GPRE)2026-02-10 21:18Production Capacity and Revenue - As of December 31, 2025, the top four ethanol producers accounted for approximately 39% of the domestic production capacity, with capacities ranging from 850 mmgy to 3,146 mmgy[99]. - Total segment revenues for ethanol production in 2025 were $1,901,858, a decrease of 8.5% from $2,067,089 in 2024[276]. - Agribusiness and energy services segment revenues fell to $213,343 in 2025, down 49.3% from $421,107 in 2024[276]. - Ethanol production segment revenues decreased by $165.2 million in 2025, attributed to lower sales volumes of ethanol, distillers grains, and renewable corn oil[292]. Financial Performance - The company reported a net loss of $121,000 for 2025, compared to a net loss of $81,189 in 2024[282]. - Net loss increased by $39.8 million in 2025, driven by $36.9 million in non-recurring interest expense and a $26.9 million loss on the sale of equity method investment, partially offset by $54.2 million of 45Z production tax credits[290]. - Adjusted EBITDA for 2025 was $94,011, significantly higher than $18,715 in 2024[284]. - Operating income for ethanol production was a loss of $55,482 in 2025, compared to a loss of $40,758 in 2024[277]. - Operating loss in the ethanol production segment increased by $14.7 million in 2025, influenced by asset impairment and increased depreciation expenses[294]. Strategic Actions and Restructuring - The company completed the sale of the ethanol plant in Rives, Tennessee in September 2025, resulting in a pretax gain of $35.8 million[265]. - The company recognized a pretax loss of $26.9 million on the sale of its 50% investment in GP Turnkey Tharaldson for the year ended December 31, 2025[267]. - The company sold an ethanol plant in Rives, Tennessee in September 2025 as part of its strategic restructuring[271]. - Restructuring costs amounted to $16.1 million in 2025 as part of cost reduction initiatives[285]. Commodity Price Sensitivity and Risks - The company is sensitive to commodity price fluctuations, particularly for corn, ethanol, renewable corn oil, and natural gas, which are influenced by external factors[248]. - The company utilizes various derivative financial instruments to manage commodity price risks, including corn, ethanol, and natural gas[251]. - The company anticipates inflationary impacts on labor costs and other inputs, which could adversely affect performance and financial statements[249]. Corporate Liquidity and Debt Management - Total corporate liquidity was $138.5 million as of December 31, 2025, including $182.3 million in cash and cash equivalents[300]. - Net cash provided by operating activities was $110.9 million in 2025, a significant improvement from $(30.0) million in 2024[301]. - The company executed a $200 million convertible note exchange, resulting in $170 million of 2.25% senior notes being extinguished and replaced with 5.25% convertible senior notes due in 2030[313]. - The Junior Notes, originally issued for $125.0 million, were fully retired using proceeds from the Obion Transaction on September 25, 2025[315]. - As of December 31, 2025, the outstanding principal balance on the Green Plains Shenandoah secured loan was $70.1 million with an interest rate of 6.52%[318]. - Green Plains York Capture Company LLC has a total estimated debt of $34.5 million related to carbon capture projects, with repayments commencing in January 2026[319]. - The company has total senior secured revolving commitments of $350.0 million, with an accordion feature allowing for an increase of up to $100.0 million, maturing in March 2027[322]. - As of December 31, 2025, the outstanding principal balance on the Green Plains Commodity Management credit facility was $8.6 million, with an interest rate of 5.46%[323]. Future Commitments and Investments - Future purchases of grain, ethanol, distillers grains, and natural gas are valued at approximately $202.2 million as of December 31, 2025[326]. - Future commitments for storage and transportation are valued at approximately $31.4 million as of December 31, 2025[326]. - Accumulated commitments related to carbon capture and sequestration equipment construction at three Nebraska plants total $104.2 million[326]. - The company began generating Section 45Z clean fuel production tax credits in January 2025[271]. - The company anticipates generating at least $188 million of adjusted EBITDA related to 45Z production tax credits for the year ended December 31, 2026[306]. Employee and Operational Metrics - The company had 642 employees as of December 31, 2025, including 71 at the corporate office in Omaha, Nebraska[105]. - The average utilization rate for 2025 was approximately 82%, down from 87% in the previous year[269].