Green Plains Reports Fourth Quarter 2025 Results and Outlines Growth Outlook
Green Plains Inc. (NASDAQ: GPRE) today announced its financial results for the fourth quarter and full year ended December 31, 2025, highlighting a return to profitability, strong operating performance, and meaningful progress on its carbon reduction and tax credit strategy.
The company reported net income attributable to Green Plains of $11.9 million, or $0.17 per diluted share, for the fourth quarter of 2025. This compares with a net loss of $54.9 million, or $(0.86) per diluted share, in the same quarter of 2024. Adjusted EBITDA for the quarter totaled $49.1 million, a substantial improvement from $(18.2) million a year earlier.
Fourth-quarter results benefited from improved ethanol margins, disciplined risk management, and the contribution of 45Z production tax credits, reflecting Green Plains’ continued operational focus and financial transformation.
Fourth Quarter Financial Performance
Revenues for the fourth quarter of 2025 were $428.8 million, compared with $584.0 million in the prior-year period. The decrease was primarily driven by lower ethanol volumes sold and the company’s decision to exit a third-party ethanol marketing agreement effective April 1, 2025.
Adjusted EBITDA included $23.4 million of 45Z production tax credit value, net of discounts and other costs. In total, $27.7 million of 45Z-related benefits were recorded as an income tax benefit during the quarter in accordance with U.S. GAAP.
Despite lower revenues, Green Plains achieved strong profitability due to higher ethanol crush margins and improved operational efficiency across its production network.
Operational Highlights and Utilization
Green Plains operated eight ethanol plants during the quarter and achieved a strong 97% utilization rate, calculated using revised stated capacity. This high utilization underscores the company’s operational discipline and effective risk management strategy.
The ethanol production segment sold 178.8 million gallons of ethanol during the fourth quarter of 2025, compared with 209.5 million gallons in the same period last year. While volumes declined, profitability improved significantly.
The consolidated ethanol crush margin was $44.4 million for the quarter, compared with $(15.5) million in the fourth quarter of 2024. This metric reflects operating income before depreciation and amortization and includes contributions from renewable corn oil, Ultra-High Protein, marketing and agribusiness fees, non-ethanol activities, and 45Z production tax credits.
Carbon Capture and Sustainability Progress
A major milestone in 2025 was the startup of carbon capture systems at Green Plains’ Central City, Wood River, and York, Nebraska facilities during the fourth quarter. These projects are now fully operational and have significantly reduced the carbon intensity of these sites.
The operational status of these carbon capture facilities positions Green Plains to maximize the value of 45Z production tax credits while reinforcing its long-term sustainability strategy and commitment to lower-carbon ethanol production.
Management Commentary
“Another quarter of strong operating cash flow shows the impact of the actions we have taken to strengthen the business,” said Chris Osowski, President and Chief Executive Officer of Green Plains. “Our continued focus on operational excellence is translating directly into improved financial performance across the company.”
Osowski added, “Our high-performing, disciplined operations are continuing to deliver strong results. Maintaining that focus will support sustainable performance and drive long-term value for our shareholders.”
45Z Production Tax Credits and 2026 Outlook
For the full year ended December 31, 2025, Green Plains recorded $54.2 million of 45Z production tax credits as a benefit to income tax, net of a valuation allowance, in accordance with ASC 740. These credits were added back to Adjusted EBITDA to reflect their operating benefit.
Based on current production expectations and eligible volumes, the company anticipates generating at least $188 million of 45Z-related Adjusted EBITDA in 2026, net of discounts and applicable operating expenses. Final results will depend on actual production levels and carbon intensity scores at eligible facilities.
Green Plains is actively marketing its 2026 45Z production tax credits and is evaluating the early adoption of ASU 2025-10, which addresses accounting for government grants received by business entities. The company expects to complete its assessment of the standard’s impact on its financial statements, including the presentation of 45Z credits, in early 2026.
Full-Year 2025 Strategic and Financial Highlights
During 2025, Green Plains executed several strategic actions to enhance liquidity, streamline operations, and strengthen its balance sheet:
- Successfully completed $200 million in privately negotiated convertible note exchange and subscription transactions on October 27, 2025
- Completed the sale of the Obion, Tennessee ethanol plant on September 25, 2025, for $170 million plus working capital, using proceeds to eliminate $130.7 million of junior mezzanine debt
- Executed a tax credit monetization agreement for Advantage Nebraska sites on September 17, 2025, later expanded to three additional facilities
- Completed the sale of its 50% interest in GP Turnkey Tharaldson LLC for $24.3 million as of June 30, 2025
- Appointed Eco-Energy, LLC as exclusive ethanol marketer effective April 22, 2025
- Entered into a Cooperation Agreement with Ancora Holdings Group, LLC, refreshing the Board with three new independent directors
Results of Operations and Cost Trends
Net income attributable to Green Plains increased by $66.9 million year over year for the fourth quarter, while Adjusted EBITDA improved by $67.3 million, driven primarily by stronger ethanol margins and the benefit of 45Z production tax credits.
Interest expense declined $1.6 million compared with the prior-year period due to lower outstanding debt balances. Income tax results swung to a $28.5 million benefit in the fourth quarter of 2025, compared with a $(7.0) million expense in the fourth quarter of 2024, largely reflecting the recognition of 45Z credits.
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