Verbio (VBK) investor relations material

Executive summary

• Strong Q3 and nine-month performance driven by robust GHG quota demand, improved market conditions, and record biomethane and bioethanol production.

• Ramp-up of the Nevada plant and improved uptime at South Bend Ethanol contributed to higher production and earnings.

• Regulatory support, including RED III in Germany and increased GHG quotas, strengthened sector outlook.

• Positive free cash flow and reduced net financial debt, with equity ratio improving to 59.3%.

• Net result for the period reached €22.3 million, reversing a prior year loss.

Financial highlights

• Revenue for the first nine months rose 17% year-over-year to €1,340.7 million, driven by higher production, sales volumes, and GHG quota demand.

• EBITDA for the nine months surged to €164.0 million from €105.7 million year-over-year; Q3 EBITDA reached €60.2 million.

• Operating cash flow for nine months was €96.4 million, with free cash flow at €33.0 million.

• Net debt reduced to €22.4 million from €126.8 million, with equity ratio stable at 59.3%.

• EBIT for the nine months was €58.3 million, compared to a loss of €24.2 million year-over-year.

Outlook and guidance

• EBITDA guidance for FY 2025/26 raised to the upper end of €100–140 million, reflecting strong business performance and regulatory tailwinds.

• Net financial debt expected to be less than €140 million by year-end, with net debt/EBITDA targeted below 1x.

• Production capacity utilization expected to increase year-over-year across all segments.

• Forecast range remains wide due to ongoing geopolitical uncertainties.

• Market expects continued strong demand for biofuels due to regulatory and geopolitical factors.