Green Plains Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income turned to a profit: The company reported net income attributable to Green Plains of $67.1 million, or $0.83 per diluted share, against a net loss of $72.2 million, or $(1.09) per diluted share, a year earlier. Source
• Adjusted EBITDA reached $93.3 million: Adjusted EBITDA was $93.3 million, compared with $16.4 million a year earlier. It included $34.6 million from the base business and $58.7 million of 45Z production tax credit value, net of discounts and other costs. Source
• Ethanol volumes fell on maintenance: Ethanol sold by the production segment was 160.7 million gallons, down from 193.6 million. Utilization across the eight operating ethanol plants was 88%, which management linked to maintenance. Source
• SG&A fell 21% year on year: SG&A was $21.7 million, down $5.9 million or 21% from $27.6 million in the second quarter of 2025, which included $2.5 million of restructuring costs. Source
• Crush margin reached $95.1 million: The consolidated ethanol crush margin was $95.1 million, against $26.3 million a year earlier. The company defines it as the ethanol segment's operating income before depreciation and amortization, including intercompany fees. Source
• 45Z credits netted into costs: Ethanol production includes $60.4 million of 45Z credits netted against cost of goods sold, and $58.7 million after discounts, other costs and SG&A, which feeds adjusted EBITDA. Source
• Operating cash flow was $86.3 million: Cash flow from operating activities was $86.3 million for the quarter. Six-month operating cash flow was $46.8 million, after a $105.9 million working capital outflow. Source
• Cash on hand reached $243.1 million: Total cash, cash equivalents and restricted cash was $243.1 million at June 30, against $183.1 million at March 31. Source

“The second quarter demonstrated the earnings capability of the Green Plains platform,”

Chris Osowski, President and Chief Executive Officer

Guidance

What changed from last quarter

• New: A second plant, Superior, Iowa, joined Central City, Nebraska in achieving Highly Protected Status from its property insurer, FM. Source
• New: Adjusted EBITDA now also adjusts for loss on asset sales, impairment of assets held for sale and loss on sale of an equity method investment. The first-quarter definition covered restructuring and the equity-investee share only. Source

Results and earnings drivers

• Net income turned to a profit: The company reported net income attributable to Green Plains of $67.1 million, or $0.83 per diluted share, against a net loss of $72.2 million, or $(1.09) per diluted share, a year earlier. Source
• Adjusted EBITDA reached $93.3 million: Adjusted EBITDA was $93.3 million, compared with $16.4 million a year earlier. It included $34.6 million from the base business and $58.7 million of 45Z production tax credit value, net of discounts and other costs. Source
• Revenue fell on lower volumes: Revenues were $446.2 million, down from $552.8 million, mainly from lower ethanol production segment revenue on lower volumes sold. Source
• Net income gain tied to credits: Net income attributable to Green Plains rose $139.4 million. The company attributed the increase mainly to $58.7 million of 45Z credits, higher ethanol and agribusiness margins, and lower SG&A, which had included prior-year restructuring costs. Source
• Tax line swung to a benefit: Income tax was a $5.5 million benefit, against $2.3 million of expense a year earlier. The company cited changes in the valuation allowance on deferred tax assets, partly offset by higher pre-tax income from non-taxable 45Z credits. Source

Segments and operating performance

• Ethanol operating income turned positive: Ethanol production revenue was $410.8 million, down 22.1%. Its operating income was $71.0 million, against an operating loss of $12.2 million, and its gross margin was $104.2 million against $33.5 million. Source
• Agribusiness revenue grew: Agribusiness and energy services revenue was $39.5 million, up 25.4%. Its gross margin was $8.8 million, up 8.9%, and its operating income was $6.7 million. Source
• Segment adjusted EBITDA by unit: Agribusiness and energy services adjusted EBITDA was $6.9 million, up from $5.0 million. Ethanol production adjusted EBITDA was $94.5 million, and corporate activities were an $8.1 million cost. Source

“Stronger earnings from our plants and continued discipline on SG&A are generating meaningful cash flow, which we intend to direct toward reducing debt and building a more resilient balance sheet that is positioned for growth.”

Ann Reis, Chief Financial Officer

Plants, volumes and co-products

• Ethanol volumes fell on maintenance: Ethanol sold by the production segment was 160.7 million gallons, down from 193.6 million. Utilization across the eight operating ethanol plants was 88%, which management linked to maintenance. Source
• Co-product volumes declined: Distillers grains, Ultra-High Protein and renewable corn oil volumes were each below the prior-year quarter. Source
• Agribusiness gallons sold were lower: Ethanol sold through the agribusiness segment, including production-segment gallons, was lower than a year earlier. Source

Costs and interest

• SG&A fell 21% year on year: SG&A was $21.7 million, down $5.9 million or 21% from $27.6 million in the second quarter of 2025, which included $2.5 million of restructuring costs. Source
• SG&A rose from first-quarter level: SG&A was $21.7 million in the second quarter, up from $19.5 million reported for the first quarter of 2026.
• Interest expense down on prior fees: Interest expense was $8.1 million, down $5.8 million, mainly from prior-year loan fees on warrants and a Junior Notes amendment that did not recur. Source

Margins and 45Z credits

• Crush margin reached $95.1 million: The consolidated ethanol crush margin was $95.1 million, against $26.3 million a year earlier. The company defines it as the ethanol segment's operating income before depreciation and amortization, including intercompany fees. Source
• 45Z credits netted into costs: Ethanol production includes $60.4 million of 45Z credits netted against cost of goods sold, and $58.7 million after discounts, other costs and SG&A, which feeds adjusted EBITDA. Source
• Prior-year margins included one-time RIN sale: Prior-year ethanol margins included a one-time sale of accumulated RINs of $22.6 million and a $2.3 million inventory adjustment, neither of which appears in the quarter. Source

Cash flow and capital spending

• Operating cash flow was $86.3 million: Cash flow from operating activities was $86.3 million for the quarter. Six-month operating cash flow was $46.8 million, after a $105.9 million working capital outflow. Source
• Production tax credits balance rose: The production tax credits balance was $133.2 million at June 30, up from $105.9 million at March 31 and $40.3 million at December 31. Source
• Six-month capital spending was lower: Net purchases of property and equipment were $17.1 million for the six months, against $27.9 million a year earlier. Proceeds from asset sales were $2.0 million. Source

Liquidity, debt and balance sheet

• Cash on hand reached $243.1 million: Total cash, cash equivalents and restricted cash was $243.1 million at June 30, against $183.1 million at March 31. Source
• Total debt eased to $483.7 million: Total debt outstanding was $483.7 million at June 30, against $492.2 million at March 31, including $27.0 million under working capital revolvers and other short-term arrangements. Source
• Carbon equipment liability fell: Carbon equipment liabilities were $12.4 million at June 30, against $104.2 million at December 31, while current maturities of long-term debt rose to $69.5 million from $3.9 million. Source

Strategy and scope

• Segment includes carbon sequestration operations: The ethanol production segment covers ethanol, distillers grains, Ultra-High Protein and renewable corn oil, plus carbon sequestration operations at the three Nebraska plants. Source
• Management credits operations and low-carbon platform: Management attributed the quarter's results to operational excellence, safety milestones, ethanol economics, commercial execution and the low-carbon platform. Source

Coming up, as management said on 6 August 2026

• Revolver termination date and limit: The revolving credit facility's termination date is September 25, 2027, and its borrowing limit is $300 million, following the April 17, 2026 amendment. Source

Figures management reported

Risks management discussed

• Operational: Lower utilization from plant maintenance reduced output in the quarter. Source
• Operational: Volumes sold were lower, mainly because of the Obion, Tennessee plant disposition. Source
• Financial: Committed revolver availability is subject to restrictions and other lending conditions. Source

Earlier plans management reported on

• Not stated: Management said the financial profile continues to improve as it executes on its operating and capital allocation priorities. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 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.