Gevo posts record $83 million in third-quarter revenue and raises outlook
Key Facts
Gevo reported on November 10 results for the third quarter ended September 30, 2026, with record revenue of $83 million and net income of $23 million. The company said adjusted earnings before interest, taxes, depreciation and amortization were $44 million, and cash flow from operations reached $41 million. Chief Executive Paul Bloom described the quarter as "our strongest financial performance to date," citing record revenue, net income, adjusted earnings and operating cash flow. The year-over-year comparison showed improved revenue and profitability, with revenue rising to about twice its level a year earlier. The company also raised its annual adjusted earnings outlook, while acknowledging that some of the quarter's revenue came from previously generated and deposited carbon credits.
Revenue rose to $83 million in the third quarter from $43 million in the same period of 2025, while gross profit increased to $48 million from $13 million. Net income attributable to Gevo was $23 million, or $0.09 per diluted share, compared with a net loss of $8 million a year earlier. On a non-GAAP adjusted basis, the company recorded net income of $29 million, or $0.12 per share. The adjusted net loss in the year-earlier quarter was $5 million, or $0.02 per share. The figures highlight the company's shift from losses to profitability on both reported and adjusted bases over the year.
Adjusted earnings before interest, taxes, depreciation and amortization were $44 million, compared with $7 million in the third quarter of 2025, while Gevo ended the period with $68 million in cash and cash equivalents. The company said about $29.4 million of quarterly revenue came from the sale of credits under Canada's Clean Fuel Regulations. Most of those credits had been generated in 2025 and the first half of 2026, linking part of the quarter's performance to previously accumulated credits. In its new outlook, Gevo said about $20 million of expected adjusted earnings for 2026 comes from nonrecurring revenue from previously deposited Canadian credits, recognized in the third quarter. This detail places credit revenue among the factors affecting current results and the annual outlook.
Gevo raised its outlook for adjusted earnings before interest, taxes, depreciation and amortization to more than $90 million for 2026 and more than $70 million for 2027. In its second-quarter results statement, issued on August 6, 2026, the company had forecast adjusted earnings of more than $60 million for the current year. The new outlook marks an increase from that previous level, alongside the third-quarter results and carbon-credit sales. The company also said it expects carbon business revenue to exceed $50 million in 2026. In October, Gevo announced a contracted sale of $70 million in tax credits under Section 45Z, representing most of the credits expected from ethanol and renewable natural gas production during the year.
Operationally, Gevo produced about 19 million gallons of low-carbon ethanol in the third quarter, compared with 17 million gallons in the same period of 2025. By contrast, renewable natural gas production was 91,729 million British thermal units, versus 92,396 in the year-earlier quarter. The company said its debottlenecking project in North Dakota is nearing completion and aims to raise nameplate low-carbon ethanol production capacity to about 75 million gallons annually. Gevo is targeting completion of the project by the end of 2026. In August, the company said the debottlenecking work would increase low-carbon ethanol and coproduct volumes, carbon capture and related incentives by about 10% to 15% starting in 2027.