Green Plains 2025 Q2 Earnings Record Loss Widens by 200.5%

Green Plains (GPRE) reported its fiscal 2025 Q2 earnings on Aug 11th, 2025, delivering a disappointing performance marked by a sharp increase in net losses and a decline in revenue. The company missed expectations with a significant deterioration in profitability, raising concerns about operational sustainability. Green Plains did not provide forward-looking guidance for Q2, but it expressed optimism about Q3 and Q4 EBITDA recovery driven by cost reductions, favorable market conditions, and carbon monetization.

Green Plains’ total revenue for the second quarter of 2025 fell by 10.7% to $552.83 million, compared to $618.83 million in the same period in 2024, as several key revenue segments saw a decline. Ethanol production remained the primary revenue driver, with $527.15 million in sales, of which $526.95 million came from external customers and a negligible $199,000 from intersegment transactions. Agribusiness and energy services generated $31.53 million in total, with $25.88 million from external customers and $5.66 million in intersegment revenues, partially offset by $5.86 million in intersegment eliminations. Taken together, the company’s performance in the quarter was marked by a significant drop in top-line growth across its primary segments.

Green Plains’ losses worsened significantly in the second quarter, with a net loss of $72.23 million, representing a 200.5% increase from the $24.04 million loss in Q2 2024. On a per-share basis, the company’s loss expanded to $1.09 per share from $0.38 per share a year ago. This represents a substantial deterioration in earnings performance and highlights the company’s struggles to maintain profitability in a challenging market environment. The significant drop in net income indicates a poor earnings result.

The stock price of Green Plains has experienced a strong rebound in the wake of the earnings report, with an 8.87% jump on the latest trading day and a 17.18% surge during the most recent full trading week. Over the past month, the stock has risen 15.34%, suggesting renewed investor optimism. However, the performance of a strategy to buy GPRE shares on earnings release dates and hold for 30 days has been inconsistent over the past three years. In Q2 2024, the stock declined from $21.16 to $20.12, a 3.44% drop, while in Q2 2023 it rose by 4.61%. The worst-performing quarter was Q2 2022, when the stock fell 7.47%. Although Q2 2023 marked a positive anomaly, the overall trend has shown volatility and mixed returns.

Jim Anderson, Green Plains’ Chairman, highlighted the company’s active efforts to optimize its asset base, reduce SG&A expenses, and implement a culture of safety, data-driven decision-making, and transparency. He acknowledged the leadership team’s progress and emphasized the company’s strategic direction. Anderson also noted that the Board is in the final stages of selecting a new CEO and expects an announcement soon. The company has made measurable progress on critical operational metrics and remains confident in its ability to deliver on its strategic objectives.

Green Plains expects to see improved EBITDA in the third and fourth quarters of 2025, driven by favorable market fundamentals and ongoing cost-saving initiatives. The company anticipates that decarbonization efforts will generate more than $150 million in annualized EBITDA contributions by 2026, with all nine plants eligible for 45Z tax credits. SG&A expenses are projected to remain in the low $40 million range for the remainder of the fiscal year, with consolidated expenses expected to reach $93 million. Capital expenditures are anticipated to remain relatively modest at around $10 million for the rest of 2025, excluding carbon capture equipment. The company is also strengthening its liquidity position through asset sales and extended debt maturities.

Additional News
Recent Nigerian news covered by Punch Newspapers highlights broader economic and political developments across the country. Notably, the Federal Government warned 3,598 workers of potential dismissal and initiated a fresh verification process. The government also reported generating N5.21 trillion in revenue from oil sales during the first half of 2025. In the business sector, marketers criticized the Nigerian National Petroleum Corporation (NNPC) for its failure to rehabilitate refineries and for neglecting critical infrastructure. The Customs Service made a major seizure of N10 billion worth of arms and expired drugs, underscoring ongoing security challenges. Political activity remained active, with the Sokoto branch of the People’s Democratic Party (PDP) condemning the arrest of former governor Aminu Tambuwal as politically motivated.