Gevo shares jump as Q3 results top estimates, posts positive EBITDA

Investing.com -- Gevo Inc (NASDAQ:GEVO) reported better-than-expected third quarter results on Monday, as the renewable fuels company posted its second consecutive quarter of positive adjusted EBITDA while beating analyst expectations for both earnings and revenue. The stock jumped 8.5% in after-hours trading following the announcement.

The renewable fuels developer reported a third-quarter loss of -$0.03 per share, beating analyst estimates of -$0.04 per share. Revenue surged to $42.71 million, significantly exceeding the consensus estimate of $37.03 million. The company achieved positive adjusted EBITDA of $6.7 million for the quarter.

"In large part we are a different company than a year ago," said Dr. Patrick Gruber, Gevo ’s Chief Executive Officer. "Our consecutive quarter of positive Adjusted EBITDA shows that our baseline business model works. The team is executing, our assets are performing, and we’re creating real value by treating carbon as a co-product."

During the quarter, Gevo produced approximately 17 million gallons of low-carbon ethanol, 46,000 tons of protein and corn oil co-products, 42,000 tons of sequestered carbon, and 92,000 MMBtu of renewable natural gas (RNG). The company’s North Dakota facility generated income from operations of $12.3 million and adjusted EBITDA of $17.8 million.

Gevo also announced a multi-year carbon dioxide removal (CDR) credit sales agreement expected to generate approximately $26 million in revenue over five years. The company ended the quarter with $108.4 million in cash, cash equivalents, and restricted cash.

The company is targeting a Final Investment Decision in mid-2026 for its planned ATJ-30 facility, which would produce jet fuel from existing low-carbon ethanol production at its North Dakota site. In October, Gevo received an extension from the U.S. Department of Energy on a $1.46 billion loan guarantee until April 2026.

"We are generating positive Adjusted EBITDA, and we have plans to make it even stronger," added Gruber. "Our profitability as a company doesn’t depend on deploying jet fuel."

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