Green Plains Inc. (NASDAQ:GPRE) reported a net loss of $72.2 million, or $(1.09) per diluted share, for the second quarter of 2025, compared to a net loss of $24.4 million, or ($0.38) per diluted share, in the same period last year. The results included $44.9 million in non-cash charges related to asset sales, impairments, and restructuring costs. Adjusted EBITDA improved to $16.4 million from $5.0 million in Q2 2024, reflecting cost-cutting efforts and operational efficiency gains.
Key Financial Metrics vs. Estimates
- Revenue: $552.8 million, down 10.7% year-over-year and 12.9% below analyst estimates of $634.7 million.
- EPS: Reported $(1.09) per share, worse than the estimated $(0.31).
- Ethanol Production: Declined to 193.6 million gallons from 208.5 million gallons in Q2 2024.
The revenue miss was primarily driven by weaker performance in the agribusiness and energy services segment, which saw a 68.8% drop in revenue due to the termination of a third-party ethanol marketing agreement.
Market Reaction
Despite the earnings miss, Green Plains’ stock rose 2.16% in pre-market trading, suggesting investors may be focusing on the improved adjusted EBITDA and cost-reduction progress. Over the past month, shares have declined 7.6%, reflecting broader market skepticism ahead of earnings.
Operational Highlights
- Cost Reductions: The company is on track to exceed its $50 million annualized savings target.
- Carbon Capture Project: Nearing completion, with sequestration expected to begin in Q4 2025.
- Asset Sales: Completed the sale of a 50% stake in GP Turnkey Tharaldson LLC for $25 million.
Outlook vs. Analyst Expectations
Management highlighted strong demand for low-carbon corn oil and favorable federal policy support, including the extension of the 45Z Clean Fuel Production Credit. However, analysts remain cautious, with full-year 2025 revenue estimates at $2.503 billion and EPS projections still negative.
For more detailed earnings estimates and historical performance, visit Green Plains’ earnings page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
