Skip to content
    GPRE
    Earnings call· Jun 2026(Q2 FY26)

    Green Plains Q2 FY26 earnings call GPRE

    Aug 6, 2026 Source

    Executive summary

    Green Plains Inc. Q2 FY26 — Strong Operational Execution and Carbon Platform Growth

    Green Plains delivered strong Q2 FY26 results, driven by robust operational execution, a growing carbon platform, and favorable market fundamentals. The company is focused on disciplined capital allocation, prioritizing asset reliability, balance sheet strengthening, and high-return reinvestments, while also evaluating larger growth opportunities. This strategy aims to build a more durable and higher-quality earnings stream over time.

    Highlights

    5

    • Adjusted EBITDA reached $93.3 million, a significant improvement from $16.4 million in Q2 FY25 and up from $71.5 million in Q1 FY26.

    • The carbon platform contributed $59 million of EBITDA in Q2, an increase from $55.2 million in Q1, bringing first-half carbon EBITDA to $114 million.

    • The company generated nearly $87 million of operating cash flow in Q2, ending June with over $243 million in cash and cash equivalents.

    • SG&A totaled approximately $21 million for the quarter, a 21% reduction compared to Q2 FY25, and is on track for $90 million full-year.

    • Capacity utilization averaged nearly 90% in Q2, reflecting strong operating rates despite planned maintenance, and is on track for roughly 95% for the full year.

    Concerns

    3

    • Capacity utilization was impacted by planned spring maintenance, including a molecular sieve change out at the Madison, Illinois facility, a normal course item occurring every 8-10 years.

    • The company recorded mark-to-market losses on hedging contracts at quarter end as prices moved lower in June, though prices have since recovered.

    • Distillers grains (DDG) values are trending lower in Q3 due to normal seasonal factors.

    Guidance & targets

    5
    CategoryTargetConfidence
    Full-year capacity utilization
    roughly 95%
    high materiality
    High
    Full-year SG&A expense
    approximately $90 million
    medium materiality
    High
    Full-year interest expense
    approximately $35 million
    medium materiality
    High
    Sustaining CapEx
    approximately $25 million annually
    medium materiality
    High
    Debt reduction strategy
    reduce the leverage ratio
    high materiality
    High

    Operational metrics

    16
    Adjusted EBITDA
    $93.3 millionup from $71.5 million in Q1 FY26 and $16.4 million in Q2 FY25
    Q2 FY26

    Achieved despite downtime for spring maintenance.

    Net income attributable to Green Plains
    $67.1 million
    Q2 FY26

    Reflects strong execution across the business and continued growth from the carbon platform.

    Diluted EPS
    $0.83compared with $0.42 per diluted share in Q1 FY26
    Q2 FY26

    Reflects strong execution across the business and continued growth from the carbon platform.

    Gross margin
    $113 millioncompared with $41.6 million in Q2 FY25
    Q2 FY26

    Reflects strong execution across the business and continued growth from the carbon platform.

    Carbon platform EBITDA contribution
    $59 millionup from $55.2 million in Q1 FY26
    Q2 FY26

    Net contribution after discounts, incremental electrical expense, transportation, and sequestration of CO2. First half carbon EBITDA approximately $114 million.

    Cash and cash equivalents
    over $243 million
    end of June

    Balance at the end of the second quarter.

    Total debt
    approximately $484 million
    Q2 FY26

    Total debt for the quarter.

    2025 45Z credits final cash payment
    $41 million
    Q2 FY26

    Relates to prior year credits and is separate from Q2 FY26 45Z EBITDA.

    SG&A
    around $21 millionreduction of 21% when compared to Q2 FY25
    Q2 FY26

    On track for approximately $90 million for the full year.

    Interest expense
    $8 million
    Q2 FY26

    Expected full year interest expense of approximately $35 million.

    Depreciation and amortization
    $23 million
    Q2 FY26

    For the second quarter.

    Capital expenditures
    around $11 million
    Q2 FY26

    Sustaining CapEx expected near the top of the range, about $25 million for the year.

    Corn ground
    over 54 million
    Q2 FY26

    Reflects operational activity during the quarter.

    Capacity utilization
    nearly 90%
    Q2 FY26

    Reflecting planned outages and molecular sieve change out at Madison, Illinois. On track for roughly 95% for the full year.

    Ethanol exports
    2.4 billion
    last year

    Forecast for this year is 2.5 billion gallons.

    Ethanol exports
    2.5 billion
    this year

    Possible forecast for this year.

    Industry KPIs

    1
    MetricValueDetails
    Basin level production volumenearly 161 milliongallons

    Capital programs

    4
    Wood River grain storage expansion projectunderway

    Benefit: improved procurement flexibility, reduced basis exposure, supporting lower carbon grain source

    Continuing to advance this project. Evaluating additional storage projects across the platform.

    Additional grain storage projectsevaluating

    Benefit: additional infrastructure

    Expect to make investments in additional infrastructure over the next 12 months.

    York low energy distillation projectadvancing engineering

    Benefit: reduce energy consumption, lower operating costs, further reduce carbon intensity

    Continuing engineering work on this project.

    Corn oil projects across networkadvancing

    Benefit: enhance yields

    Advancing these projects to enhance yields.

    Risks & headwinds

    4
    Planned maintenance downtimeQ2 FY26

    Capacity utilization averaged nearly 90% in Q2 FY26

    Mitigation: Necessary for asset health and running low CI scores; expected utilization to be higher in Q3 FY26, back up to 95% target.

    Commodity price volatility (corn)Q2 FY26 and Q3 FY26

    Corn prices fluctuated during the quarter, and that volatility has continued into Q3 FY26

    Mitigation: Hot and dry weather raised uncertainty around yield potential, bringing weather back into focus as the key variable. Overall outlook remains favorable.

    Mark-to-market losses on hedging contractsQ2 FY26

    Recorded mark-to-market losses at quarter end as contracts move lower late in June

    Mitigation: Prices have since recovered; company continues to manage commodity exposure through a disciplined and consistent hedging approach.

    DDG values trending lowerQ3 FY26

    DDG's values are trending lower in Q3 FY26

    Mitigation: Due to normal seasonal factors.

    What to watch in Q3 FY26

    5

    Full-year capacity utilization

    Full year FY26, Q3 FY26
    Currentnearly 90% in Q2, on track for 95% full year
    Target95%

    Why it matters

    Indicates operational efficiency and ability to meet production targets, directly impacting earnings.

    We remain on track for roughly 95% capacity utilization for the full year.

    Q&A highlights

    5

    Clarification on Q2 utilization impact from spring maintenance, especially the 8-10 year maintenance at Madison, and if similar maintenance is expected at other facilities.

    Chris Osowski explained that spring outages are necessary for equipment maintenance, particularly for low CI scores. The Madison molecular sieve change out is a technical, 8-10 year event causing more downtime than usual but is crucial for asset health. He emphasized the company's commitment to maintaining assets and expects utilization to return to 95% in Q3.

    “I tell the team, we're going to be a company that doesn't skip leg day. So we're going to take care of our assets, and we fully expect that utilization to be higher in Q3 back up to that 95% type target number.”

    asked by Pooran Sharma · answered by Chris Osowski

    2 min read5 chapters

    Detailed Narrative

    01

    Operational Excellence & Safety Focus

    Green Plains emphasized safety as a foundational element, noting the Superior Iowa facility achieved 'highly protected status' and surpassed three years without a recordable accident. The company produced nearly 161 million gallons of ethanol and ground over 54 million bushels of corn in Q2. Capacity utilization averaged nearly 90%, reflecting planned spring maintenance and a molecular sieve change out at Madison, Illinois, which is a normal 8-10 year event. The company remains committed to asset health and expects 95% utilization for the full year.

    02

    Growing Carbon Platform Contribution

    The carbon platform continues to be a significant earnings driver, contributing $59 million of EBITDA in Q2, up from $55.2 million in Q1, bringing the first-half total to $114 million. The company is earning 45C credits for qualifying low-carbon ethanol. While no 2026 credits have been monetized yet, management is patiently negotiating a deal to generate stable, predictable cash flows and is pleased with the progress made towards securing a partner.

    03

    Favorable Market Fundamentals and Demand Outlook

    The commercial environment in Q2 was strong, characterized by historically high cash margins and firm coproduct prices. Ethanol demand remains healthy domestically and in export markets, supported by policy, energy security, and emerging applications like maritime fuel and sustainable aviation fuel. Corn oil prices increased due to renewable diesel demand, and protein markets remained stable. While corn prices fluctuated, the overall outlook for feedstock economics remains favorable, and the commercial environment is expected to remain constructive through the balance of the year.

    04

    Disciplined Capital Allocation Framework

    Green Plains outlined a clear four-pronged capital allocation framework. Priorities include investing in safe and reliable operations (with sustaining CapEx expected at approximately $25 million annually), strengthening the balance sheet through debt reduction using carbon-supported cash flow beyond 2029, reinvesting in the business for yield improvements and carbon intensity reduction, and pursuing larger growth opportunities that meet strict return thresholds. This approach aims to compound value and build a more durable earnings floor.

    05

    Strategic Investments for Future Growth

    The company is actively pursuing targeted investments to enhance operational performance and returns. This includes advancing a grain storage expansion project at Wood River to improve procurement flexibility and reduce basis exposure, with additional storage projects expected over the next 12 months. Engineering work is underway at York for a low-energy distillation project to reduce energy consumption and carbon intensity. Additionally, corn oil projects are being advanced across the network to further enhance yields.

    AI-generated summary of the company’s earnings call. Not investment advice.