Question-and-Answer SessionI want to start a little bit with the big picture. So again, the management team has seen a big turnover. I think other members like General Counsel, et cetera. So now that you're this seat, what has changed in the way Green Plains is managed versus, say, the past 1, 2, 3 years?Chris OsowskiCEO & Director It's a great question, Sal. And first, thanks for inviting us and giving us the opportunity to talk about what we're doing here at Green Plains. And if I think back what has chan ...

PresentationPeter BosekChairman of the Management Board, CEO & Chief Retail Officer Good morning and hi, everyone. Thanks for coming. You're all running on a tight schedule. So we really appreciate it that you are here with us today. So now when we look back to 2025, there are 2 important dimensions to remember. So let's start with dimension #1, the acquisition in Poland. So that meant a lot of work for us, of course. And we've reached a fantastic result in the end. And the second dimension to remember and ...

Summary of Green Plains Conference Call Company Overview - **Company**: Green Plains (NasdaqGS: GPRE) - **Date**: February 26, 2026 - **New Management Team**: CEO Chris Osowski and CFO Anne Reese have recently joined, indicating a significant turnover in management [1][2] Key Industry Insights - **Ethanol Industry**: The ethanol sector is experiencing exciting opportunities, with Green Plains positioned for growth under the new management [6] - **Carbon Credits and 45Z**: The company expects to generate over $180 million in EBITDA from carbon credits this year, a significant increase from previous estimates [7][11] Core Points and Arguments - **Management Changes**: New directors and committees focused on risk management and strategic planning have been established [2] - **Operational Improvements**: New processing models and a sales and operations planning process have been implemented to enhance data-driven decision-making [3] - **Carbon Capture Projects**: The Advantage Nebraska project is operational, capturing carbon at high recovery rates, which has positively impacted financial projections [9] - **Efficiency Gains**: Improved operational efficiency and ethanol yields are critical for monetizing carbon credits [10] - **Future Projections**: The company is optimistic about increasing EBITDA from carbon credits, contingent on operational performance and energy input reductions [11][12] Regulatory and Legislative Context - **USDA Guidance**: The USDA is finalizing a calculator for farmer practices that could impact carbon intensity (CI) scores, which Green Plains is preparing to leverage [13][14] - **Legislative Challenges**: Proposed legislation regarding CO2 pipelines could significantly affect the Summit pipeline project, which is crucial for carbon capture initiatives [20] Market Dynamics - **Ethanol Margins**: Current crush margins are favorable due to record corn yields and strong domestic ethanol market performance [37] - **Export Opportunities**: The export market is growing, particularly to Canada and the EU, with expectations for continued demand [44] - **Global Supply Considerations**: Brazil's increasing ethanol production from sugarcane is a factor to monitor, as it could impact global supply dynamics [52] Strategic Focus - **Capital Allocation**: Green Plains aims to be a low-cost, low-carbon biofuel producer, focusing on maintaining high utilization rates and improving operational efficiency [79][80] - **Debt Management and Growth**: The company is considering options for debt repayment, shareholder returns, and potential M&A opportunities as it generates free cash flow [81] Additional Considerations - **Sustainable Aviation Fuel (SAF)**: The company is exploring opportunities in the SAF market, although current projects are on hold pending economic viability [62][63] - **E15 Legislation**: There is bipartisan support for year-round E15, but legislative hurdles remain, impacting market expansion [72][75] Conclusion Green Plains is navigating a transformative period with new leadership, focusing on operational excellence and capitalizing on carbon credit opportunities while addressing regulatory challenges and market dynamics in the ethanol industry. The company is well-positioned for future growth, contingent on effective execution of its strategic initiatives.

Production 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].

Core Insights - Green Plains Inc. reported significant profitability improvements in Q4 2025, driven by operational execution and tax credit benefits, despite revenue falling short of expectations [1][4] - The company is focusing on carbon capture and low-carbon initiatives, with a target of at least $188 million in adjusted EBITDA from carbon-related activities in 2026 [2][3] Financial Performance - Revenue for Q4 2025 was $428.8 million, down approximately 26.6% from $584.0 million in Q4 2024, partly due to the sale of the Obion plant and the end of third-party ethanol marketing [2][4] - Net income attributable to Green Plains was $11.9 million, or $0.17 per diluted share, exceeding analyst estimates [4] - Adjusted EBITDA improved to $49.1 million for the quarter, a significant turnaround from a negative $18.2 million in Q4 2024, aided by operational performance and tax credits [4] Valuation and Financial Ratios - The price-to-sales ratio is low at around 0.4, indicating the stock is trading at a discount relative to revenue [5] - The debt-to-equity ratio stands at a moderate 0.60, while the current ratio of 1.79 suggests solid liquidity [5]

Core Insights - The company has achieved significant operational improvements, resulting in a Q4 adjusted EBITDA of $49.1 million, an increase of over $67 million compared to the previous year [1][11] - The company is benefiting from the 45Z clean fuel production tax credit, generating $27.7 million in Q4, which is contributing to the overall financial performance [1][11] - The company has increased production capacities across several facilities, with a new total capacity of 730 million gallons per year, reflecting a 10% increase [2][3] Financial Performance - For Q4 2025, the company reported a net income of $11.9 million, compared to a net loss of $54.9 million in Q4 2024 [10] - Revenue for Q4 was $428.8 million, down 26.6% year-over-year, primarily due to the sale of the Obion plant and idling of the Fairmont facility [12] - SG&A expenses totaled $22.9 million, a decrease of $2.8 million from the previous year, indicating effective cost management [12] Production and Capacity - The company has increased production capacities at several facilities, with Central City and Wood River now at 120 million gallons per year each, and other plants adjusted accordingly [2] - The start-up of CO2 compression equipment at Nebraska plants has made carbon capture fully operational, contributing to lower carbon intensity scores [2][3] Strategic Initiatives - The company is focusing on five strategic priorities, including improving energy efficiency, evaluating carbon sequestration opportunities, and expanding grain storage capabilities [21][22] - The introduction of new leadership in finance and legal functions aims to enhance governance and strategic transactions [8] Market Outlook - The company anticipates that carbon-related opportunities could generate at least $188 million of adjusted EBITDA in 2026, subject to production volumes and carbon intensity factors [5][36] - Strong export demand for ethanol and a record corn crop are expected to support the company's market position [6][17] Regulatory Environment - The release of proposed 45C clean fuel production credit regulations is seen as a positive development for the industry, providing clarity and supporting decarbonization efforts [7] - The company is actively marketing its 2026 tax credits and expects to announce agreements soon, reflecting strong interest from counterparties [5][25]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net income of $11.9 million, or $0.17 per diluted share, compared to a net loss of $54.9 million, or -$0.86 per diluted share in Q4 2024 [12] - Adjusted EBITDA for Q4 2025 was $49.1 million, an improvement of over $67 million compared to Q4 2024's adjusted EBITDA of -$18.2 million [7][13] - Revenue for Q4 2025 was $428.8 million, down 26.6% year-over-year, primarily due to the sale of the Obion plant and idling of the Fairmont facility [14] Business Line Data and Key Metrics Changes - The production capacity for plants, excluding Fairmont, was increased to 730 million gallons per year, a 10% increase from the previous capacity [5] - The startup of CO2 compression equipment at three Nebraska plants was highlighted, with carbon capture now fully operational [7] Market Data and Key Metrics Changes - Ethanol margins remained resilient in Q4 2025, supported by strong domestic blending and export demand [20] - Ethanol exports set a record last year, and demand is expected to increase again in 2026 [21] Company Strategy and Development Direction - The company is focusing on five strategic priorities: improving energy efficiency, evaluating carbon sequestration opportunities, expanding facilities, increasing grain storage, and balancing capital structure [24] - The company aims to capitalize on carbon decarbonization programs and operational excellence while maintaining a disciplined hedging strategy [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational execution and the potential for carbon-related earnings, projecting at least $188 million of adjusted EBITDA from carbon initiatives in 2026 [8][9] - The company is optimistic about the ethanol market, citing strong bipartisan support for biofuels and favorable policy developments [9][10] Other Important Information - The company refinanced a majority of its 2027 convertible notes with a new $200 million convertible note due in 2030 [13] - The company has a federal net operating loss balance of $2,260.2 million, providing future tax efficiency [18] Q&A Session Questions and Answers Question: Interest in 2026 45Z credits - Management is actively marketing the 2026 45Z credits and is confident in the platform's ability to deliver credits going forward [28] Question: Cash flow from operations vs. EBITDA - The lower cash flow from operations was due to not fully receiving cash from carbon earnings, with a portion expected in Q1 [34] Question: Q1 ethanol EBITDA outlook - The company expects a better position compared to the previous year, with operational efficiency and favorable market fundamentals [36] Question: Clarification on carbon efficiency projects - The $5-$10 million efficiency projects are separate from the $15-$25 million in capital expenditures for maintenance [46] Question: CI score and on-farm practices - The company is optimistic about capturing value from on-farm practices, which could positively impact the CI score [54]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net income of $11.9 million, or $0.17 per diluted share, compared to a net loss of $54.9 million, or -$0.86 per diluted share in Q4 2024 [12] - Adjusted EBITDA for Q4 2025 was $49.1 million, an improvement of over $67 million compared to Q4 2024's adjusted EBITDA of -$18.2 million [7][13] - Revenue for Q4 2025 was $428.8 million, down 26.6% year-over-year due to the sale of the Obion plant and idling of the Fairmont facility [14] Business Line Data and Key Metrics Changes - The production capacity for plants, excluding Fairmont, was increased to 730 million gallons per year, a 10% increase from the previous capacity [5] - The startup of CO2 compression equipment at three Nebraska plants is now fully operational, contributing to cash flow and lowering carbon intensity (CI) scores [7] Market Data and Key Metrics Changes - Ethanol margins remained resilient in Q4 2025, supported by strong domestic blending and export demand, with a record corn crop helping to keep feedstock prices in check [20] - Ethanol exports set a record last year, and demand is expected to increase again in 2026 [21] Company Strategy and Development Direction - The company is focusing on five strategic priorities: improving energy efficiency, evaluating carbon sequestration opportunities, debottlenecking or expanding facilities, increasing on-site grain storage, and balancing capital structure [24] - The company aims to be a low-cost, low-carbon biofuels producer, with ongoing projects to reduce energy consumption and operational costs [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational execution and the potential for carbon monetization, expecting at least $188 million of adjusted EBITDA from carbon-related activities in 2026 [8][9] - The company is optimistic about the ethanol market, citing strong bipartisan support for biofuels and favorable policy developments [9][10] Other Important Information - The company refinanced a majority of its 2027 convertible notes through a new $200 million convertible note due in 2030, using part of the proceeds to repurchase shares [13] - The company has a federal net operating loss balance of $2,260.2 million, providing future tax efficiency [18] Q&A Session Summary Question: Interest in 2026 45Z credits - Management is actively marketing the credits and is confident in their ability to deliver credits going forward [28] Question: Upside potential for carbon opportunities - Management mentioned numerous efficiency projects with fast returns, focusing on reducing energy consumption and operational costs [29][31] Question: Q4 cash flow from operations - The lower cash flow was attributed to not fully receiving cash from carbon earnings and accelerated receivables and inventory [34][35] Question: Q1 ethanol EBITDA outlook - Management indicated that while Q1 is typically a low point, the company is in a better position compared to the previous year due to operational efficiency [36][37] Question: $188 million carbon expectation - The increase from previous estimates is due to expanded capacity and operational changes, with a focus on maintaining yields and energy efficiency [40][41] Question: CI score and on-farm practices - Management is optimistic about the potential impact of on-farm practices on CI scores and will provide further calculations in the next quarter [53][54] Question: Capital allocation and debt reduction - Management is evaluating opportunities for free cash flow and considering debt reduction and share repurchases as options [66][67]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net income of $11.9 million, or $0.17 per diluted share, compared to a net loss of $54.9 million, or -$0.86 per diluted share in Q4 2024 [12] - Adjusted EBITDA for Q4 2025 was $49.1 million, an improvement of over $67 million compared to Q4 2024's adjusted EBITDA of -$18.2 million [6][13] - Revenue for Q4 2025 was $428.8 million, down 26.6% year-over-year due to the impact of the Obion plant sale and idling of the Fairmont facility [14] Business Line Data and Key Metrics Changes - The company increased its maximum production capacity to 730 million gallons per year, a 10% increase from the previous capacity [5] - Four plants reached historical production volumes, and seven plants achieved record ethanol yields [4] - The startup of CO2 compression equipment at three Nebraska plants is now fully operational, contributing to cash flow and lowering carbon intensity (CI) scores [6] Market Data and Key Metrics Changes - Ethanol margins remained resilient in Q4 2025 due to strong domestic blending and export demand, supported by a record corn crop [20] - Ethanol exports set a record last year, with expectations for increased demand in 2026 [21] - Corn oil markets remained steady, contributing positively to gross margins, while protein pricing faced pressure [21] Company Strategy and Development Direction - The company is focusing on five strategic priorities: improving energy efficiency, evaluating carbon sequestration opportunities, debottlenecking or expanding facilities, increasing on-site grain storage, and balancing capital structure [23][24] - The company aims to be a low-cost, low-carbon biofuels producer, with ongoing projects to reduce energy consumption and operational costs [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational execution and the potential for carbon monetization, with expectations of at least $188 million of adjusted EBITDA from carbon-related activities in 2026 [8][9] - The company is optimistic about the regulatory environment supporting biofuels and the potential for year-round E15 adoption [9][62] Other Important Information - The company refinanced a majority of its 2027 convertible notes through a new $200 million convertible note due in 2030 [13] - Consolidated liquidity at the end of the quarter included $230.1 million in cash equivalents and restricted cash, with $325 million in working capital revolver availability [18] Q&A Session Summary Question: Interest in 2026 45Z credits - Management confirmed active marketing of 2026 45Z credits and expressed confidence in the platform's ability to deliver credits [28] Question: Upside potential for carbon opportunities - Management indicated numerous plant efficiency projects with fast returns and potential for additional investments to lower energy consumption [29][30] Question: Q4 cash flow from operations - Management explained that Q4 cash flow was lower than EBITDA due to timing of cash receipts from carbon earnings and accelerated receivables [33] Question: Q1 ethanol EBITDA outlook - Management noted that while Q1 is typically a low point, the company is in a better position compared to the previous year, with strong operational efficiency [35] Question: CI score and potential improvements - Management discussed the potential for further reductions in CI scores due to new guidance and ongoing projects [51][52]

分组1 - Green Plains Renewable Energy (GPRE) reported quarterly earnings of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, compared to a loss of $0.86 per share a year ago [1] - The earnings surprise for the quarter was +121.64%, and the company had a previous surprise of +250% when it reported earnings of $0.07 per share against an expectation of $0.02 [2] - The company posted revenues of $428.85 million for the quarter, missing the Zacks Consensus Estimate by 21.91%, and this is a decline from year-ago revenues of $584.02 million [3] 分组2 - Green Plains shares have increased by approximately 28.6% since the beginning of the year, while the S&P 500 has gained only 0.5% [4] - The current consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $555.8 million, and for the current fiscal year, it is $0.27 on revenues of $2.31 billion [8] - The Zacks Industry Rank for Chemical - Specialty is currently in the bottom 25% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [9]