Gevo soars as company turns profitable on carbon credit sales

Published 11/08/2025, 21:58
Gevo soars as company turns profitable on carbon credit sales

Investing.com -- Gevo , Inc. (NASDAQ:GEVO) shares surged 47.2% after the renewable fuels company reported its first-ever quarterly profit, beating analyst expectations with strong revenue growth driven by carbon dioxide removal (CDR) credit sales and clean fuel production credits.

The company reported second quarter earnings per share of $0.01, significantly outperforming analyst estimates of -$0.07. Revenue reached $43.41 million, exceeding the consensus forecast of $39.55 million. This marks a dramatic improvement from the same period last year, with operating revenue increasing by $38.2 million compared to Q2 2024.

"This was a landmark quarter for us," said Dr. Patrick Gruber, Gevo’s Chief Executive Officer. "Our results are delivering on the targets we said we would achieve this year, even sooner than we expected. We said we would grow recurring Adjusted EBITDA, and it has begun—real cash flow, not one-time, not speculative."

The company’s transformation was driven by several key factors, including the introduction of carbon dioxide removal credit sales, which contributed over $1 million in the second quarter, and Clean Fuel Production Credit sales that added approximately $21 million to net income during the first half of 2025. Gevo’s low-carbon ethanol and co-product operations contributed about $18 million to income from operations in the first six months of 2025.

Gevo ended the quarter with $126.9 million in cash, cash equivalents, and restricted cash. The company reported income from operations of $5.8 million and Adjusted EBITDA of $17.3 million for the quarter.

Looking ahead, Gevo expects CDR credit sales to grow to $3-5 million by year-end, with potential long-term sales exceeding $30 million annually from its North Dakota site. The company is also positioning itself for future growth in the sustainable aviation fuel (SAF) market, with standardized plant designs to convert low-carbon ethanol to SAF.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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