Green Plains Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 7 May 2026: press release. Guidance figures: 1 raised. The quarter’s numbers.

Read the filing

Key takeaways

• Net income positive against last year's loss: Net income attributable to Green Plains was $32.9 million, or $0.42 per diluted share, against a loss of $(72.9) million, or $(1.14) per share, a year earlier. Source
• Adjusted EBITDA split into two parts: Adjusted EBITDA of $71.5 million includes $16.3 million from the base business and $55.2 million of 45Z credit value, net of discounts and other costs. Source
• Ethanol crush margin turned positive: The consolidated ethanol crush margin was $64.6 million, against ($14.7) million a year earlier. Ethanol production operating income was $39.4 million, compared with an operating loss of $(39.6) million. Source
• 45Z credits added $55.2 million: EBITDA rose $113.0 million, primarily due to recognition of $55.2 million of 45Z credits net of discounts and other costs, along with higher segment margins. Source
• 45Z credits now netted in cost: Management elected early adoption of ASU 2025-10 and now recognizes 45Z credits as a reduction of cost of goods sold, with prior periods adjusted retrospectively. Source
• SG&A fell to $19.5 million: Selling, general and administrative expenses were $19.5 million, against $42.9 million a year earlier, which included $16.6 million of restructuring costs. Source
• Operating cash outflow of $39.5 million: Net cash used in operating activities was $39.5 million, compared with $55.0 million a year earlier, with a working capital change of $(101.6) million. Source

“The first quarter marked a meaningful inflection point compared to where the business stood a year ago.”

Chris Osowski, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: 45Z-related EBITDA guidance raised to $200 to $225 million, from at least $188 million previously. Source
• New: Company elected early adoption of ASU 2025-10 and changed its accounting for 45Z credits; prior periods were adjusted retrospectively. Source
• New: Revolving credit facility amended April 17, 2026: termination date extended to September 25, 2027 and borrowing limit reduced to $300 million. Source

Results and earnings drivers

• Net income positive against last year's loss: Net income attributable to Green Plains was $32.9 million, or $0.42 per diluted share, against a loss of $(72.9) million, or $(1.14) per share, a year earlier. Source
• EBITDA reached $71.5 million: EBITDA was $71.5 million, compared with ($41.5) million a year earlier. Revenues were $445.8 million, down from $601.5 million in the first quarter of 2025. Source
• Adjusted EBITDA split into two parts: Adjusted EBITDA of $71.5 million includes $16.3 million from the base business and $55.2 million of 45Z credit value, net of discounts and other costs. Source
• Revenue fell on lower volumes and prices: Revenue decreased $155.7 million, which the company attributed mainly to lower ethanol volumes, driven by the Obion, Tennessee disposition, and lower weighted average ethanol selling prices. Source

Segments and volumes

• Ethanol crush margin turned positive: The consolidated ethanol crush margin was $64.6 million, against ($14.7) million a year earlier. Ethanol production operating income was $39.4 million, compared with an operating loss of $(39.6) million. Source
• Agribusiness margin rose as revenue fell: Agribusiness and energy services gross margin was $16.2 million, up from $8.7 million, while its revenue fell to $58.6 million after the Tharaldson marketing agreement ceased. Source
• Ethanol volumes and corn use declined: Ethanol volumes sold were 174.2 million gallons, down 10.8% from 195.3 million, and corn consumed fell 11.3% to 58.8 million bushels. Source

“The financial foundation of the business is in a meaningfully better place than it was a year ago,”

Ann Reis, Chief Financial Officer

Operations and safety

• Plants ran at 97% utilization: Management said the eight operating ethanol plants ran at 97% utilization, and that its co-products performed well during the quarter. Source
• No recordable safety incidents: The company reported no recordable safety incidents during the first quarter of 2026. Source
• Carbon program with all three plants: Management said the carbon program contributed significantly to earnings in the first full quarter, with all three Nebraska facilities online. Source

45Z credits and accounting change

• 45Z credits added $55.2 million: EBITDA rose $113.0 million, primarily due to recognition of $55.2 million of 45Z credits net of discounts and other costs, along with higher segment margins. Source
• 45Z credits now netted in cost: Management elected early adoption of ASU 2025-10 and now recognizes 45Z credits as a reduction of cost of goods sold, with prior periods adjusted retrospectively. Source
• Income model judged preferable: The company said the income model better reflects the financial benefit of the credits, netted against the costs to produce low-carbon fuels, than the prior tax-based method. Source

“Based on our first quarter performance and updated outlook for the remainder of the year, we are raising our guidance to $200 to $225 million of EBITDA associated with the generation of production tax credits.”

Chris Osowski, President and Chief Executive Officer

Costs and margins

• SG&A fell to $19.5 million: Selling, general and administrative expenses were $19.5 million, against $42.9 million a year earlier, which included $16.6 million of restructuring costs. Source
• Cost of goods sold fell year on year: Cost of goods sold was $357.9 million, against $598.5 million a year earlier. The 45Z accounting change also reduces this line, according to the company. Source
• Interest expense rose on carbon debt: Interest expense rose $2.6 million to $11.5 million, mainly from higher debt balances tied to carbon sequestration equipment. Source

Cash flow and balance sheet

• Operating cash outflow of $39.5 million: Net cash used in operating activities was $39.5 million, compared with $55.0 million a year earlier, with a working capital change of $(101.6) million. Source
• Capital spending of $6.4 million: Purchases of property and equipment, net were $6.4 million, compared with $16.7 million in the first quarter of 2025. Source
• Cash balance fell to $183.1 million: Total cash, cash equivalents and restricted cash was $183.1 million at March 31, 2026, down from $230.1 million at December 31, 2025. Source
• Production tax credit balance rose: Production tax credits on the balance sheet were $105.9 million, up from $40.3 million at December 31, 2025. Source

Debt and liquidity

• Revolver amended in April: On April 17, 2026 the revolving facility was amended, extending termination to September 25, 2027 and reducing the borrowing limit from $350 million to $300 million. Source
• Revolver availability of $336.0 million: At March 31, 2026, $336.0 million was available under the committed revolving facility, subject to restrictions and other lending conditions. Source
• Total debt rose to $492.2 million: Total debt outstanding was $492.2 million at March 31, 2026, including $34.0 million under working capital revolvers and other short-term arrangements, up from $399.5 million at year-end. Source

Management view on cash flow

• Expected cash flow through remainder of year: Management said it believes the company is positioned for sustainable cash flow generation through the rest of the year, supported by operations and carbon earnings. Source
• Expenses trending lower, flexibility to invest: Management said expenses continue to trend lower and that the balance sheet gives flexibility to invest in the business. Source
• Operational focus combined with carbon earnings: Management cited its focus on operational excellence, combined with earnings from carbon, as the basis for its view on cash generation. Source

Figures management reported

Risks management discussed

• Financial: Availability under the revolving facility is subject to restrictions and lending conditions, according to management. Source

Earlier plans management reported on

• Not stated: The earlier guidance was superseded by the raised range of $200 to $225 million; the release gives no status word for the earlier figure.
• Met: Carbon capture at the three Nebraska plants is described as online, with contribution in the first full quarter. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.