Green Plains (GPRE) Q3 2024 earnings summary

Executive summary

• Net income rose to $48.6 million ($0.69 per diluted share), up from $22.3 million year-over-year, driven by a $30.7 million gain from the Birmingham terminal sale and improved margins.

• EBITDA reached $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.

• Revenues for Q3 2024 were $658.7 million, down 26% year-over-year due to lower ethanol, DDG, and corn oil prices and volumes.

• Achieved record ethanol and Ultra-High Protein yields, with 220.3 million gallons of ethanol produced at 96.8%–97% plant utilization.

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

Financial highlights

• Q3 2024 adjusted EBITDA was $53.3 million, up from $42.9 million in Q3 2023.

• SG&A costs fell by $8.6 million year-over-year to $26.7 million.

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

• Cash and cash equivalents at quarter-end were $252.0 million, with $228.5 million available under a revolving credit facility.

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

Outlook and guidance

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

• CapEx for 2024 projected at $90–$100 million, excluding $110 million for carbon capture projects, which are financed separately.

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

• Nebraska facilities positioned to benefit from state and federal incentives, including 45Z and 45Q credits.

• Exports expected to remain strong, with ethanol export volumes on pace for a record year.