Green Plains Inc. (NASDAQ: GPRE) has released its financial results for the fourth quarter and full year of 2025, showcasing a significant turnaround in performance compared to the previous year. The company reported a net income of $11.9 million, or $0.17 per diluted share, for the fourth quarter, a remarkable recovery from the net loss of $54.9 million, or $(0.86) per diluted share, experienced in the same period of 2024. The adjusted EBITDA for the quarter stood at $49.1 million, a dramatic increase from the $(18.2) million recorded in the fourth quarter of 2024.

The results were positively influenced by the recognition of $27.7 million in production tax credits related to the 45Z tax incentive, which was recorded as an income tax benefit. Total revenues for the quarter amounted to $428.8 million, a decrease from $584 million in the fourth quarter of 2024, primarily due to lower ethanol sales volumes.

2. Leadership Insights

Chris Osowski, President and CEO of Green Plains, expressed optimism about the company's ongoing recovery: “Another quarter of strong operating cash flow shows the impact of the actions we have taken to strengthen the business. Our continued focus on operational excellence is translating directly into improved financial performance across the company.”

Osowski emphasized the importance of maintaining operational discipline to ensure sustainable performance and long-term value for shareholders, stating, "Our high-performing, disciplined operations are continuing to deliver strong results."

3. Tax Credit Impact and Future Outlook

For the full year 2025, Green Plains recognized a total of $54.2 million in 45Z production tax credits, which were added back to adjusted EBITDA to reflect their operating benefit. Looking ahead, the company anticipates generating at least $188 million of 45Z-related adjusted EBITDA in 2026, contingent upon actual production volumes and carbon intensity factors at eligible plants. Green Plains is also considering early adoption of ASU 2025-10, *Accounting for Government Grants Received by Business Entities*, starting in the first quarter of 2026.

4. Full-Year Highlights

Several key developments marked 2025 for Green Plains:

The startup of carbon capture facilities in Central City, Wood River, and York, Nebraska, significantly reduced the carbon intensity of these sites.

The successful completion of a $200 million convertible note exchange and subscription transaction on October 27, enhancing financial flexibility.

The sale of the Obion, Tennessee plant for $170 million, which allowed the company to eliminate $130.7 million in junior mezzanine debt and strengthen liquidity.

The execution of a tax credit monetization agreement for Advantage Nebraska sites, expanding the program to three additional facilities.

The sale of a 50% investment in GP Turnkey Tharaldson LLC for $24.3 million.

The announcement of Eco-Energy, LLC as the exclusive ethanol marketer on April 22, 2025, and a Cooperation Agreement with Ancora Holdings Group, LLC, refreshing the Board of Directors with three new independent members.

5. Operational Performance

In the fourth quarter of 2025, Green Plains sold 178.8 million gallons of ethanol, down from 209.5 million gallons in the same period in 2024. However, the consolidated ethanol crush margin improved significantly to $44.4 million, compared to a loss of $(15.5) million in the previous year. This margin encompasses various factors including renewable corn oil and Ultra-High Protein, along with marketing and agribusiness fees.

Total revenues for the fourth quarter decreased by $155.2 million compared to 2024, primarily due to lower ethanol sales volumes and the termination of a third-party ethanol marketing agreement with Tharaldson Ethanol Plant I LLC.

6. Segment Insights

Green Plains reports on two primary segments: ethanol production, which includes the production and sale of ethanol and related products, and agribusiness and energy services, which encompasses grain handling and marketing.

For the fourth quarter:

Ethanol production revenues were $403.0 million, representing a 14.5% decrease from $471.3 million in the same period of 2024.

Agribusiness and energy services revenues plummeted by 73.9%, from $119.3 million in 2024 to $31.2 million in 2025.

Despite the decline in revenues, the gross margin for the ethanol production segment turned positive, reaching $27.2 million after a loss of $(10.4) million in the previous year.

7. Financial Position

As of December 31, 2025, Green Plains had $230.1 million in cash and cash equivalents, with an additional $325.0 million available under its revolving credit facility. The total debt outstanding was $399.5 million, which reflects a stable financial position as the company navigates its growth trajectory.

8. Conclusion

Green Plains Inc. has demonstrated resilience and a strong recovery in its financial performance for 2025, with key tax credits and operational improvements playing a significant role. The company is well-positioned for 2026, with ambitious plans for growth amid a challenging market landscape. Investors and stakeholders will be keenly watching the developments as Green Plains continues to execute its strategic initiatives and enhance long-term shareholder value.

Original press release