second quarter of 2026
Filed Aug 6, 2026Gevo Reports Second Quarter Results and Raises Financial Expectations for Full-Year 2026
Gevo reported $11 million of non-GAAP Adjusted EBITDA and raised its full-year 2026 outlook to greater than $60 million, but recorded a $(177) million GAAP net loss driven by a $176 million non-cash impairment tied to exiting the ATJ-60 project and other non-core activities.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $47 million | – | – |
| Gross profit, six months ended June 30, 2026GAAP | $36 million | – | – |
| Net loss attributable to GevoGAAP | $(177) million | – | – |
| Net loss per shareGAAP | $(0.75) per share | – | – |
| Adjusted net loss attributable to Gevonon-GAAP | $(1) million | – | – |
| Adjusted net loss per sharenon-GAAP | $(0.01) per share | – | – |
| Adjusted EBITDAnon-GAAP | $11 million | – | – |
| Impairment chargeGAAP | $176 million | – | – |
| Low-carbon ethanol productionother | 16.3 million gallons | – | – |
| RNG productionother | 95,939 MMBtu | – | – |
full year 2026 outlook
- NoteNon-GAAP Adjusted EBITDA of greater than $60 million
- NoteMonetization of more than $70 million in Section 45Z tax credits during 2026
- NoteSubstantial operating cash flow in the third and fourth quarters of 2026
- Note$20 million in sales closed subsequent to the second quarter of 2026
- NoteThe remaining $50 million in sales and associated cash proceeds are targeted by year end
- NoteDebottlenecking activities expected to deliver increased low-carbon ethanol, coproduct, carbon capture and associated incentive volumes by approximately 10–15%, including 75 million gallons per year of low-carbon ethanol, starting in 2027
- NotePlanned expansion of Gevo North Dakota would double production to about 150 million gallons per year of low-carbon ethanol and associated carbon capture and sequestration, targeting startup of operations in 2028
What drove it
- Second-quarter revenue was affected by annual planned downtime for maintenance completed in April.
- Gross profit for the six months ended June 30, 2026 reflected six full months of benefit from the acquired Red Trail Energy, LLC assets and strengthening of the Company's core businesses.
- Approval of the new Canada Clean Fuel Regulation pathway in the second quarter of 2026 creates an additional compliance market opportunity for Gevo's low-carbon ethanol.
- The Company expects sales under the new Canada CFR pathway to be included beginning in third-quarter 2026 financial results.
- The increased Adjusted EBITDA outlook is supported by continued low-carbon ethanol and RNG production, improvements in carbon intensity, expected sales growth from low-carbon racing fuel blendstock and demonstration-scale SAF, and cost-management initiatives.
Concerns
- The second-quarter GAAP net loss included a one-time, non-cash impairment charge of $176 million related to capitalized development costs associated with the ATJ-60 project and other non-core business activities.
- Gevo is exiting all activities related to low-carbon ethanol and SAF production in Lake Preston, South Dakota.
- Low-carbon ethanol production declined to 16.3 million gallons from 16.8 million gallons in the same quarter last year, primarily due to planned maintenance downtime.
- The improved outlook and anticipated cash flow depend on expected Canada CFR revenue recognition and targeted Section 45Z tax-credit monetizations.
What to watch
- Inclusion of sales under the new Canada CFR pathway in third-quarter 2026 results.
- Progress toward monetizing more than $70 million in Section 45Z tax credits during 2026.
- Whether substantial operating cash flow materializes in the third and fourth quarters of 2026.
- Delivery of the Gevo North Dakota debottlenecking program and its expected approximately 10–15% increase in volumes starting in 2027.
- Development of the planned Gevo North Dakota expansion targeting startup of operations in 2028.
Balance sheet and cash flow
- The Company expects substantial operating cash flow in the third and fourth quarters of 2026.
- $20 million in sales closed subsequent to the second quarter of 2026.
- The remaining $50 million in sales and associated cash proceeds are targeted by year end.
Analysis
Gevo reported $47 million of second-quarter revenue, which the company said was affected by annual planned maintenance downtime completed in April. Management said it does not expect further operational downtime during the year. Low-carbon ethanol production was 16.3 million gallons, compared with 16.8 million gallons in the same quarter last year, while RNG production was 95,939 MMBtu, compared with 92,138 MMBtu.
Profitability was sharply affected by a portfolio decision. Gevo reported a GAAP net loss attributable to Gevo of $(177) million, or $(0.75) per share, including a $176 million one-time, non-cash impairment charge. The charge relates to capitalized development costs for the ATJ-60 project and other non-core business activities as the company exits Lake Preston, South Dakota activities and focuses capital projects at Gevo North Dakota. On a non-GAAP basis, adjusted net loss attributable to Gevo was $(1) million, or $(0.01) per share, and Adjusted EBITDA was $11 million.
The reported six-month gross-profit comparison indicates a stronger underlying contribution from acquired operations and core businesses. Gross profit was $36 million for the six months ended June 30, 2026, compared with $21 million in the same period last year. The company attributed the improvement to six full months of benefit from the acquired Red Trail Energy, LLC assets and strengthening core businesses.
Management raised full-year 2026 non-GAAP Adjusted EBITDA expectations to greater than $60 million from a prior target of $30 million. The company cites approval of a new Canada CFR pathway, with sales expected to begin in third-quarter results, along with Section 45Z tax-credit monetization, operating performance, targeted fuel sales growth and cost management. It is targeting monetization of more than $70 million in Section 45Z tax credits during 2026, compared with $52 million last year.
Capital allocation is being concentrated on Gevo North Dakota. The company said debottlenecking remains on track to increase low-carbon ethanol, coproduct, carbon capture and associated incentive volumes by approximately 10–15%, including 75 million gallons per year of low-carbon ethanol, starting in 2027. It is also advancing a planned expansion that would double production to about 150 million gallons per year and is targeting startup in 2028, while it expects substantial operating cash flow in the third and fourth quarters of 2026.
Management, verbatim
Gevo delivered strong second quarter operational results and unlocked significant carbon business revenue that is expected to begin in the third quarter, which supports increased expectations of full-year non-GAAP Adjusted EBITDA 1 outlook of more than $60 million.
Paul Bloom, Chief Executive Officer
We have a strong, returns-focused business. Our carbon business strategy is working and Gevo North Dakota is a strategic asset for profitable growth.
Paul Bloom, Chief Executive Officer
Gevo has a powerful growth platform centered on commodities, carbon and incentives.
Paul Bloom, Chief Executive Officer
Not in the filing
stated, not guessed- Revenue prior-year comparison, prior-quarter comparison, year-over-year change and sequential change
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- GAAP and non-GAAP diluted weighted-average shares
- Adjusted EBITDA prior-year comparison, prior-quarter comparison, year-over-year change and sequential change
- Operating cash flow reported for the quarter or six-month period
- Free cash flow reported for the quarter or six-month period
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AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.