Inquiring if demand fundamentals support continued chunky step-ups in ethanol exports, or if increases will moderate, considering competition with Brazil.

Imre Havasi stated that exports have been strong (2.4B gallons last year, 2.5B possible this year) driven by policy, energy security, and emerging maritime/SAF opportunities. He acknowledged competition with Brazil but sees continued growth opportunities at a 1% to 5% annual rate, with overall demand fundamentals remaining friendly. “in general, we continue to see growth opportunities at least at a 1% to 2% maybe 5% rate going forward annually. And then we have all those other opportunities.”

Asking about the sustainability of high corn oil yields and related investments, and whether share repurchases are expected in H2 2026 or 2027.

Chris Osowski attributed corn oil yield improvements to operational excellence, small CapEx, and process chemistry, expecting continued incremental improvements through additional technologies. Ann Reis confirmed that share repurchases are considered as part of the capital allocation framework, alongside other priorities like sustaining CapEx, debt reduction, and reinvestment, but nothing has been announced yet. “From your capital allocation question, as we've kind of stated in the prepared remarks, everything, we're looking at everything to determine what's the best return for the investors. So whether that be sustainable projects within our facilities or debt reduction or share repurchases, all of those things we are looking at, and we'll definitely consider as we're deciding where to allocate the cash that we have coming in.”

Seeking understanding of the base ethanol business cadence for H2, considering turnarounds and market volatility, and an update on the monetization of 2026 45C credits.

Imre Havasi expects solid fundamentals (high corn oil, stable corn crop) to support Q3 and early Q4 margins, with normal seasonality later in the year. Ann Reis stated that monetizing 2026 credits is a priority, aiming for a good partner and sustainable, predictable cash flows, with progress going very well, but no announcement is ready yet. “So while we're not ready to announce anything yet, things are going very well, and we're very pleased.”

GPRE

Green Plains (GPRE) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Materials· Aug 6, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full-year capacity utilization	roughly 95% high materiality	FY26	High
Full-year SG&A expense	approximately $90 million medium materiality	FY26	High
Full-year interest expense	approximately $35 million medium materiality	FY26	High
Sustaining CapEx	approximately $25 million annually medium materiality	Annually	High
Debt reduction strategy	reduce the leverage ratio high materiality	Beyond 2029	High

Capital programs

Wood River grain storage expansion project underway

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 projects evaluating

Benefit:additional infrastructure

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

York low energy distillation project advancing engineering

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

Continuing engineering work on this project.

Corn oil projects across network advancing

Benefit:enhance yields

Advancing these projects to enhance yields.

Risks & headwinds

Planned maintenance downtime Q2 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 contracts Q2 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 lower Q3 FY26

DDG's values are trending lower in Q3 FY26

Mitigation:Due to normal seasonal factors.

What to watch in Q3 FY26

Full-year capacity utilization

Full year FY26, Q3 FY26

Current nearly 90% in Q2, on track for 95% full year

Target 95%

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.

Find out whether GPRE delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.