Third Quarter 2026
Filed Nov 5, 2026Green Plains reported third-quarter net income attributable to Green Plains of $85.4 million, or $1.03 per diluted share, and record adjusted EBITDA of $118.0 million, while updating 2026 guidance for 45Z tax credit value net of discounts and other costs to $230 million to $250 million.
Record adjusted EBITDA, sharply higher ethanol production profitability, a substantial increase in Section 45Z production tax credit value, and materially improved net income outweighed a 2.5% decline in consolidated revenue and lower ethanol volumes.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 revenueGAAP | $496.0M | – | (2.5)% |
| Nine months ended September 30, 2026 revenueGAAP | $1.39B | – | (16.5)% |
| Three months ended September 30, 2026 cost of goods sold excluding depreciation and amortizationGAAP | 353.2M | – | – |
| Nine months ended September 30, 2026 cost of goods sold excluding depreciation and amortizationGAAP | 1.04B | – | – |
| Three months ended September 30, 2026 consolidated gross marginGAAP | $142.8M | – | 81.5% |
| Nine months ended September 30, 2026 consolidated gross marginGAAP | $343.8M | – | 178.8% |
| Three months ended September 30, 2026 selling, general and administrative expensesGAAP | 26.64M | – | – |
| Nine months ended September 30, 2026 selling, general and administrative expensesGAAP | 67.89M | – | – |
| Three months ended September 30, 2026 depreciation and amortization expensesGAAP | 23.57M | – | – |
| Nine months ended September 30, 2026 depreciation and amortization expensesGAAP | 70.66M | – | – |
| Three months ended September 30, 2026 operating incomeGAAP | $92.59M | – | 53.3% |
| Nine months ended September 30, 2026 operating income (loss)GAAP | $205.2M | – | * |
| Three months ended September 30, 2026 interest expenseGAAP | −8.09M | – | – |
| Nine months ended September 30, 2026 interest expenseGAAP | −27.70M | – | – |
| Three months ended September 30, 2026 net incomeGAAP | $85.57M | – | – |
| Nine months ended September 30, 2026 net income (loss)GAAP | $186.2M | – | – |
| Three months ended September 30, 2026 net income attributable to Green PlainsGAAP | $85.44M | – | – |
| Nine months ended September 30, 2026 net income (loss) attributable to Green PlainsGAAP | $185.5M | – | – |
| Three months ended September 30, 2026 basic EPSGAAP | $ 1.23 | – | – |
| Three months ended September 30, 2026 diluted EPSGAAP | $ 1.03 | – | – |
| Nine months ended September 30, 2026 basic EPSGAAP | $ 2.68 | – | – |
| Nine months ended September 30, 2026 diluted EPSGAAP | $ 2.27 | – | – |
| Three months ended September 30, 2026 EBITDAnon-GAAP | 117.9M | – | 39.4% |
| Nine months ended September 30, 2026 EBITDAnon-GAAP | 282.7M | – | * |
| Three months ended September 30, 2026 adjusted EBITDAnon-GAAP | $118.0M | – | 124.4% |
| Nine months ended September 30, 2026 adjusted EBITDAnon-GAAP | $282.9M | – | * |
| Three months ended September 30, 2026 consolidated ethanol crush marginnon-GAAP | $122.8M | – | – |
| Three months ended September 30, 2026 ethanol producedother | 174.9M | – | (11.3)% |
| Nine months ended September 30, 2026 ethanol producedother | 509.8M | – | (13.0)% |
| Three months ended September 30, 2026 distillers grainsother | 357K | – | (14.4) |
| Three months ended September 30, 2026 Ultra-High Proteinother | 49K | – | (31.0) |
| Three months ended September 30, 2026 renewable corn oilother | £64.17M | – | (11.3) |
| Three months ended September 30, 2026 corn consumedother | 58.62M | – | (12.0) |
| Three months ended September 30, 2026 ethanol sold by agribusiness and energy servicesother | 190.8M | – | (9.3) |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Ethanol productionLower volumes sold driven by the disposition of the Obion, Tennessee plant were partly offset by higher volumes sold and weighted average selling prices on ethanol and renewable corn oil. | $454.4M | – | (4.1)% |
| Agribusiness and energy servicesIncludes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party commodities. | 46.71M | – | 14.5 |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 full-year outlook
- Note$230 million to $250 million of adjusted EBITDA contribution from 45Z tax credit value net of discounts and other costs
- NoteOn October 29, 2026, executed agreement to monetize $250 million to $325 million of 2026 45Z production tax credits
What drove it
- The company reported 95% utilization across eight operating ethanol plants, with record quarterly ethanol and corn oil yields supporting improved crush margins.
- Section 45Z production tax credits recorded net of discounts, other costs and selling, general and administrative expenses were $65.4 million in the third quarter of 2026, compared with $25.0 million in the third quarter of 2025.
- The ethanol production segment generated gross margin of $ 133,907 (in thousands), up 93.9%, and operating income of $ 99,027 (in thousands), up 220.5%.
- Selling, general and administrative expenses were $2.7 million lower during the three months ended September 30, 2026.
- Interest expense decreased $39.7 million during the three months ended September 30, 2026, primarily due to prior-year loan fees related to the refinancing and extinguishment of the junior mezzanine notes, partially offset by higher debt balances associated with carbon sequestration equipment.
- The company early adopted ASU 2025-10 during the first quarter of 2026 and changed its accounting policy for Section 45Z production tax credits, recognizing credits as a reduction of cost of goods sold under the income model of ASU 2025-10.
Concerns
- Third-quarter consolidated revenue declined 2.5% and ethanol production revenue declined 4.1% from the same period in 2025.
- Third-quarter ethanol production volume was down 11.3%, ethanol sold by agribusiness and energy services was down 9.3%, and renewable corn oil output was down 11.3%.
- Net change in working capital was (215,272) (in thousands) for the nine months ended September 30, 2026.
- Total debt outstanding was $477.7 million as of September 30, 2026.
- The company retrospectively adjusted prior-period financials for its accounting-policy change, including $26.5 million of 45Z production tax credits recorded as a reduction of cost of goods sold during the three and nine months ended September 30, 2025.
What to watch
- Execution and cash conversion under the agreement to monetize $250 million to $325 million of 2026 45Z production tax credits.
- Delivery against updated 2026 full-year guidance of $230 million to $250 million of adjusted EBITDA contribution from 45Z tax credit value net of discounts and other costs.
- Ethanol production volumes following the disposition of the Obion, Tennessee plant.
- Sustainability of ethanol crush margins, ethanol and renewable corn oil pricing, and operating utilization.
- Use of cash flow and financial flexibility as management evaluates capital-deployment opportunities.
Balance sheet and cash flow
- Cash and cash equivalents were $ 159,987 (in thousands) as of September 30, 2026, compared with $ 182,319 (in thousands) as of December 31, 2025.
- Restricted cash was 65,078 (in thousands) as of September 30, 2026, compared with 47,813 (in thousands) as of December 31, 2025.
- Total cash and cash equivalents, and restricted cash was $ 225,065 (in thousands) as of September 30, 2026, compared with $ 211,625 (in thousands) as of September 30, 2025.
- Total debt outstanding at September 30, 2026 was $477.7 million, including $22.7 million outstanding debt under working capital revolvers and other short-term borrowing arrangements.
- $290.0 million was available under a committed revolving credit facility, subject to restrictions and other lending conditions.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was 47,350 (in thousands), compared with 43,523 (in thousands).
- Purchases of property and equipment, net were (29,043) (in thousands) for the nine months ended September 30, 2026, compared with (31,864) (in thousands).
- Net cash used in financing activities was (25,374) (in thousands) for the nine months ended September 30, 2026, compared with (212,269) (in thousands).
Analysis
Green Plains delivered a materially stronger third quarter despite lower sales. Revenue was $ 495,990 (in thousands), down 2.5% from $ 508,487 (in thousands), as the disposition of the Obion, Tennessee plant reduced ethanol production volumes. Ethanol production was 174,881 thousand gallons, down 11.3%, but management cited 95% utilization across eight operating plants, record quarterly ethanol and corn oil yields, and higher ethanol and renewable corn oil selling prices as support for improved profitability.
The earnings improvement was concentrated in ethanol production and 45Z tax credits. Consolidated gross margin rose 81.5% to $ 142,808 (in thousands), while ethanol production gross margin rose 93.9% to $ 133,907 (in thousands). Consolidated ethanol crush margin increased to $ 122,819 (in thousands) from $ 59,608 (in thousands). Section 45Z production tax credits recorded net of discounts, other costs and selling, general and administrative expenses contributed $65.4 million in the quarter, compared with $25.0 million in the prior-year quarter.
GAAP operating income increased to $ 92,593 (in thousands) from $ 60,390 (in thousands), and net income attributable to Green Plains rose to $ 85,436 (in thousands) from $ 11,926 (in thousands). Diluted EPS was $ 1.03, compared with $ 0.17. Adjusted EBITDA reached a record $ 117,981 (in thousands), compared with $ 52,568 (in thousands). The improvement also reflected $2.7 million lower selling, general and administrative expenses and substantially lower interest expense, which fell to (8,090) (in thousands) from (47,763) (in thousands).
Liquidity included $ 225,065 (in thousands) of cash and cash equivalents, and restricted cash, $290.0 million of revolver availability, and $477.7 million of total debt outstanding. Nine-month operating cash flow was 47,350 (in thousands), while the cash-flow statement showed a (215,272) (in thousands) net change in working capital. The company also executed an October 29 agreement to monetize $250 million to $325 million of 2026 45Z production tax credits, a key cash-conversion milestone.
The 2026 guide is narrowly focused on 45Z value, with full-year adjusted EBITDA contribution from 45Z tax credit value net of discounts and other costs updated to $230 million to $250 million. The principal reported execution items are the realization and monetization of those credits, maintenance of operating utilization and crush margins, and the effect of lower production volumes following the Obion disposition. Comparability with 2025 also reflects the retrospective accounting-policy change for Section 45Z production tax credits.
Management, verbatim
Green Plains delivered record operating performance across the platform in the third quarter, demonstrating the earnings power we’ve built across the business.
Chris Osowski, President and Chief Executive Officer of Green Plains
Following quarter-end, the execution of our 45Z monetization agreement marked another important milestone by providing greater visibility into converting that value into cash.
Chris Osowski, President and Chief Executive Officer of Green Plains
Every opportunity will be evaluated against risk-adjusted returns, strategic fit, and its ability to create long-term value.
Ann Reis, Chief Financial Officer of Green Plains
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Quarterly operating cash flow was not reported.
- Free cash flow was not reported.
- Gross-margin percentage was not reported.
- Non-GAAP EPS was not reported.
- Revenue, gross margin, operating expenses and tax-rate guidance were not reported.
- Dividend and share-repurchase activity were not reported.
- Nine-month segment operating-data metrics for distillers grains, Ultra-High Protein, renewable corn oil, corn consumed and ethanol sold by agribusiness and energy services are not included in key_metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.