Green Plains (GPRE) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $48.2 million ($0.69 per diluted share), up from $22.3 million ($0.35 per share) year-over-year, driven by a $30.7 million gain from the sale of the Birmingham terminal and improved margins.

• EBITDA for Q3 2024 was $83.3 million, including the asset sale gain; adjusted EBITDA from normal operations was $53.3 million, up from $42.9 million year-over-year.

• Revenue for Q3 2024 was $658.7 million, down 26% year-over-year due to lower prices and volumes for ethanol, distillers grains, and corn oil.

• Achieved record plant utilization at 97% and record production of ethanol, Ultra-High Protein, and renewable corn oil.

• Clean Sugar Technology facility in Shenandoah, Iowa commenced commercial production and sent samples to customers.

Financial highlights

• Consolidated crush margin was $58.3 million, up from $52.9 million year-over-year.

• SG&A costs were $26.7 million, $8.6 million lower year-over-year due to reduced personnel costs and incentive accruals.

• Interest expense was $10.1 million, up $0.5 million due to loan fees from debt retirement.

• Liquidity at quarter-end: $252 million in cash and equivalents, $228.5 million available under revolver.

• Book value per share was $14.32 as of September 30, 2024.

Outlook and guidance

• Carbon capture and sequestration initiatives progressing, with construction of compression facilities starting Nov 2024 and monetization of carbon credits expected in H2 2025.

• Plant utilization expected to remain in the mid-90% range for Q4 barring unforeseen events.

• CapEx for 2024 projected at $90–$100 million, excluding $110 million for carbon capture (financed separately).

• Exports on pace for a record year (1.8–1.9 billion gallons), with strong demand from Canada and other countries.

• Margin environment expected to improve in 2025, supported by strong export demand and lower stocks.