Gevo (GEVO) Q2 2024 earnings summary

Executive summary

• Progressing toward financial close of Net-Zero 1 (NZ-1) project by end of 2024, with DOE loan guarantee diligence ongoing and expected to be a transformative milestone.

• RNG business achieved 22% year-over-year production growth and is cash flow positive, supporting corporate costs.

• Verity carbon accounting platform expanded collaborations, integrated AI with Google, and increased grower program acreage by 17% to 76,000 acres, maintaining 100% farmer retention.

• Collaboration with LG Chem on ETO technology met scale-up milestones, with $0.8 million milestone payment received in Q2 2024.

• Net loss widened to $21.0 million in Q2 2024 from $14.4 million in Q2 2023, mainly due to higher project development and administrative costs.

Financial highlights

• Q2 2024 combined revenue and interest income totaled $9.4 million, with operating revenue at $5.3 million, up 24% year-over-year.

• RNG revenue was $4.3 million in Q2 2024, with $4.2 million from environmental attribute sales.

• SG&A spend was $7 million, excluding $4.5 million in non-cash stock-based compensation, up $0.4 million year-over-year due to higher personnel costs.

• Liquidity at quarter-end was $315.3 million, including $69.6 million in restricted cash.

• Cash used in operations was $27.5 million in H1 2024; $26.7 million invested in capital projects, mainly for NZ-1 and RNG.

Outlook and guidance

• Targeting NZ-1 project financing close by year-end 2024, with all development capital expected to be recovered at close.

• RNG business aiming for 500,000 MMBtu annual capacity through further debottlenecking with minimal capital expense.

• Verity expects first revenue in 2024 and plans to expand field-level tracking beyond 100,000 acres next year.

• Non-GAAP adjusted EBITDA for RNG business in 2024 expected to fall below previous $7–$16 million range due to delayed CARB approval and lower LCFS carbon credit prices.

• Plant start-up for NZ-1 targeted 24–30 months after financial close.