Green Plains (NASDAQ:GPRE) reported second-quarter adjusted EBITDA of $93.3 million, up from $71.5 million in the first quarter and $16.4 million in the prior-year period, as its carbon platform expanded and operating conditions for ethanol and co-products remained favorable.
The company posted net income attributable to Green Plains of $67.1 million, or $0.83 per diluted share, compared with $0.42 per diluted share in the first quarter. Gross margin reached $113 million, compared with $41.6 million in the second quarter of 2025.
Utilization was affected by scheduled maintenance outages and a molecular sieve bed replacement at the Madison, Illinois, plant. Osowski said the replacement is typically required every eight to 10 years. Green Plains continues to target roughly 95% capacity utilization for the full year and expects utilization to return above 90% in the periods ahead.
Carbon Platform Generates $59 Million of EBITDA
The company’s carbon platform contributed nearly $59 million of EBITDA in the second quarter, compared with $55.2 million in the first quarter. First-half carbon EBITDA totaled approximately $114 million.
Osowski said capture performance was at or near expected long-term levels, while lower carbon-intensity scores and operational improvements supported the value of 45Z tax credits. The company is earning credits as it produces qualifying low-carbon ethanol but has not monetized any portion of its 2026 credits.
Chief Financial Officer Ann Reis said the $59 million represented net carbon EBITDA after discounts, incremental plant electricity expense, and CO2 transportation and sequestration costs. Green Plains also received a final $41 million cash payment related to its 2025 45Z credits during the quarter, separate from the 45Z EBITDA recognized in the second quarter.
Reis said the company is continuing to work toward a credit monetization arrangement that can provide sustainable and predictable cash flows. While no partner has been announced, she said the company is pleased with the progress of its compliance, verification and documentation efforts.
Cash Flow, Balance Sheet and Spending Outlook
Green Plains generated nearly $87 million of operating cash flow during the quarter and ended June with more than $243 million in cash and cash equivalents. Total debt stood at approximately $484 million.
SG&A expense was about $21 million, down 21% from the second quarter of 2025. The company continues to expect approximately $90 million of SG&A expense for the full year, about $35 million of interest expense and sustaining capital expenditures near the top of its range at roughly $25 million.
Management said capital allocation priorities include maintaining safe and reliable operations, strengthening the balance sheet, funding targeted operating improvements and pursuing larger growth opportunities that exceed the company’s cost-of-capital thresholds.
Osowski said Green Plains has developed a debt-reduction strategy intended to use carbon-supported cash flow to increase financial flexibility and reduce leverage beyond 2029. He added that the company is also evaluating investments in grain storage, low-energy distillation and corn oil yield improvements.
- At Wood River, Green Plains is advancing a grain storage expansion intended to improve procurement flexibility, reduce basis exposure and support lower-carbon grain sourcing.
- At York, the company is continuing engineering work on a low-energy distillation project designed to reduce energy consumption, operating costs and carbon intensity.
- Across its network, Green Plains is pursuing smaller corn oil projects intended to increase yields.
Asked about possible share repurchases, Reis said the company is evaluating buybacks alongside debt reduction and sustaining projects but has not announced any repurchase plans.
Constructive Commercial Environment
Senior Vice President and Head of Trading and Commercial Operations Imre Havasi said the commercial environment remained strong in the second quarter, supported by historically high crush margins, favorable corn values, solid ethanol demand and firm co-product pricing.
Havasi said third-quarter margins were only slightly below second-quarter levels and that the broader setup for the second half remained constructive. Corn oil prices benefited from demand from the renewable diesel industry, while protein markets remained stable. Natural gas costs declined from the first quarter, providing an additional margin benefit.
The company expects the current margin structure to extend into the third quarter and potentially the early portion of the fourth quarter, although Havasi cited normal seasonal reductions in driving demand and volatility in commodity markets.
On exports, Havasi said U.S. ethanol exports were 2.4 billion gallons last year and that 2.5 billion gallons could be possible this year and next year. He cited overseas blending mandates, energy-security considerations and developing opportunities in maritime fuels and sustainable aviation fuel as longer-term demand drivers.
Green Plains said potential demand catalysts, including permanent year-round E15, low-carbon fuel markets, maritime fuel applications and sustainable aviation fuel, are not required for its current outlook but could provide additional upside over time.
About Green Plains (NASDAQ:GPRE)
Green Plains Inc is a leading producer of fuel-grade ethanol and related co-products in the United States. Headquartered in Omaha, Nebraska, the company operates an integrated network of biorefineries that convert corn and other grains into renewable fuels. Through its production facilities, Green Plains supplies ethanol to domestic fuel markets and export channels, supporting efforts to reduce greenhouse gas emissions and promote cleaner-burning transportation options.
Beyond ethanol, Green Plains manufactures a range of co-products that add value throughout the agricultural supply chain.
