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Jun 30
Gevo Q2 2025 Earnings Report
Gevo reported positive net income and adjusted EBITDA in the second quarter of 2025, driven by increased revenues from GevoND and the recognition of 45Z tax credits.
Key Takeaways
Gevo achieved a landmark quarter with positive net income of $2.1 million and positive Adjusted EBITDA of $17.3 million, primarily due to successful operations at Gevo North Dakota, the commencement of Carbon Dioxide Removal (CDR) credit sales, and Clean Fuel Production Credit (CFPC) sales.
Gevo reported a positive net income attributable to Gevo of $2.1 million for the second quarter of 2025.
The company achieved positive Adjusted EBITDA of $17.3 million in the second quarter, a significant improvement.
Revenues increased by $14 million quarter-over-quarter, reaching $44.7 million in combined operating revenue, interest, and investment income.
Results were driven by the successful execution of low-carbon ethanol and carbon capture acquisition, and the first sales of Clean Fuel Production Credits.
Gevo
Gevo
Gevo Revenue by Segment
Revenue by Segment
Gevo North Dakota Revenue
CapyFin.comIsooctane and Others Revenue
CapyFin.com Forward Guidance
Gevo anticipates continued growth in CDR credit sales, expecting to reach $3-5 million by year-end, and projects CFPC sales to exceed $10 million per quarter through 2029. The company is also positioning itself for future growth in Sustainable Aviation Fuel (SAF) production.
Positive Outlook
- Anticipate growing CDR credit sales to $3-5 million by the end of 2025.
- Estimate long-term sales of CDR credits could exceed $30 million per year from the GevoND site.
- Expect Clean Fuel Production Credit (CFPC) to exceed $10 million per quarter through the end of 2029.
- Cash from CFPC sales is expected to help reinvest in site improvements for GevoND and fund pre-construction development costs for SAF projects.
- Exploring growth options to bring third-party CO2 volumes to their CCS site, with rights to an estimated 1 million tons per year of pore space.
Challenges Ahead
- The sale of Agri-Energy, LLC for $7 million is subject to the procurement of financing by A.E. and other customary closing conditions, expected by end of 2025.
- The ATJ-60 facility construction is dependent on closing the $1.63 billion loan guarantee from the Department of Energy’s Loan Program Office.
- The Clean Fuel Production Credit (CFPC) is set to expire at the end of 2029, unless further extended by legislation.
- Interest and investment income decreased due to the acquisition of GevoND and funding of capital projects and operating costs.
- The company's long-term growth strategy for SAF production relies on demonstrating business systems of ATJ-30 and ATJ-60, which are still in development.