GREEN PLAINS INC (NASDAQ:GPRE) delivered a mixed second-quarter report, beating consensus EPS by a wide margin while revenue came in well below analyst estimates; shares were indicated about 1.2% lower in premarket trading. The company reported net income of $67.1 million, or $0.83 per diluted share, compared with a net loss of $72.2 million, or $1.09 per share, in the same period of 2025.
Results versus consensus
- Revenue: $446.2 million, down 19.3% year over year and about 16% below the analyst consensus of $530.3 million.
- EPS: $0.83 per share, versus the consensus estimate of $0.52, a roughly 60% beat.
- Market reaction: shares were indicated about 1.2% lower in premarket action, with the stock down about 7.2% over the past two weeks and 0.8% over the past month.
The revenue miss appears to be primarily a scale story. The company sold its Obion, Tennessee plant, and the ethanol production segment sold 160.7 million gallons of ethanol in the quarter, down from 193.6 million gallons a year earlier. Corn consumption also fell to 54.6 million bushels from 65.3 million bushels. Despite the smaller volume base, profitability improved sharply. Consolidated ethanol crush margin rose to $95.1 million from $26.3 million, and segment gross margin for ethanol production increased to $104.2 million from $33.5 million, helped by $58.7 million of Section 45Z production tax credits recognized net of discounts and other costs.
Segment drivers
- Ethanol production revenue: $410.8 million, down from $527.2 million, with operating income swinging to $71.0 million from a loss of $12.2 million.
- Agribusiness and energy services: revenue rose to $39.5 million from $31.5 million, and segment adjusted EBITDA increased to $6.9 million from $5.0 million.
- Adjusted EBITDA: $93.3 million versus $16.4 million in the prior-year quarter.
The profit swing also benefited from lower selling, general and administrative costs, including a comparison against $2.5 million of restructuring costs in the prior-year quarter. Interest expense declined by $5.8 million, and the company recorded an income tax benefit of $5.5 million. Investors should note that the bottom-line result includes a substantial contribution from clean fuel production tax credits, which are recorded as a reduction of cost of goods sold and may vary with policy, production volumes, and market prices.
The press release did not include updated quantitative guidance for the third quarter or the full year. Management indicated that cash flow from stronger plant earnings and disciplined SG&A will be directed toward debt reduction and balance sheet resilience. The company ended the quarter with $243.1 million in cash and restricted cash, $290.0 million available under its revolving credit facility, and total debt of $483.7 million.
For a fuller look at past earnings reports and the year-over-year progression, review historical earnings information. To see the latest consensus estimates and projections for upcoming quarters, view the current forecast data.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »
View the Zacks #1 Rank List
Green Plains (NASDAQ:GPRE) Beats Q2 EPS but Revenue Misses; Shares Dip
GREEN PLAINS INC (NASDAQ:GPRE) delivered a mixed second-quarter report, beating consensus EPS by a wide margin while revenue came in well below analyst estimates; shares were indicated about 1.2% lower in premarket trading. The company reported net income of $67.1 million, or $0.83 per diluted share, compared with a net loss of $72.2 million, or $1.09 per share, in the same period of 2025.
Results versus consensus
The revenue miss appears to be primarily a scale story. The company sold its Obion, Tennessee plant, and the ethanol production segment sold 160.7 million gallons of ethanol in the quarter, down from 193.6 million gallons a year earlier. Corn consumption also fell to 54.6 million bushels from 65.3 million bushels. Despite the smaller volume base, profitability improved sharply. Consolidated ethanol crush margin rose to $95.1 million from $26.3 million, and segment gross margin for ethanol production increased to $104.2 million from $33.5 million, helped by $58.7 million of Section 45Z production tax credits recognized net of discounts and other costs.
Segment drivers
The profit swing also benefited from lower selling, general and administrative costs, including a comparison against $2.5 million of restructuring costs in the prior-year quarter. Interest expense declined by $5.8 million, and the company recorded an income tax benefit of $5.5 million. Investors should note that the bottom-line result includes a substantial contribution from clean fuel production tax credits, which are recorded as a reduction of cost of goods sold and may vary with policy, production volumes, and market prices.
The press release did not include updated quantitative guidance for the third quarter or the full year. Management indicated that cash flow from stronger plant earnings and disciplined SG&A will be directed toward debt reduction and balance sheet resilience. The company ended the quarter with $243.1 million in cash and restricted cash, $290.0 million available under its revolving credit facility, and total debt of $483.7 million.
For a fuller look at past earnings reports and the year-over-year progression, review historical earnings information. To see the latest consensus estimates and projections for upcoming quarters, view the current forecast data.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »