Gevo reported a net loss attributable to Gevo of $(177) million, or $(0.75) per share, for the second quarter ended June 30, 2026. The loss was primarily driven by a one-time, non-cash impairment charge of $176 million associated with capitalized development costs for the ATJ-60 project in South Dakota and other non-core activities. Revenue for the quarter stood at $47 million, affected by planned maintenance downtime completed in April. Despite the GAAP loss, Gevo raised its full-year 2026 non-GAAP Adjusted EBITDA outlook to more than $60 million, more than double the prior target of $30 million, signaling improved operational momentum from its North Dakota facility and new regulatory approvals.

The financial results reflect a strategic pivot by management to exit low-carbon ethanol and sustainable aviation fuel production in Lake Preston, South Dakota. This decision allows Gevo to focus capital on its Gevo North Dakota site, including debottlenecking activities and potential capacity expansion. The impairment charge consisted of $136 million in long-lived asset impairment and $40 million in allowance for credit losses on refundable deposits. Excluding these items, non-GAAP adjusted net loss was $(1) million, or $(0.01) per share, while non-GAAP Adjusted EBITDA reached $11 million for the quarter.

Key Financial Metrics

Note: Q2 2025 revenue is not explicitly stated in the text highlights, though H1 data is provided. Gross profit figures are provided for the six months ended June 30.

Operational Highlights

Gevo produced 16.3 million gallons of low-carbon ethanol during the second quarter, down from 16.8 million gallons in the same period last year due to planned maintenance. Renewable natural gas (RNG) production increased to 95,939 MMBtu from 92,138 MMBtu year-over-year. The company confirmed no further operational downtime is expected for the remainder of 2026.

What the Numbers Show

The divergence between GAAP and non-GAAP metrics highlights the impact of Gevo’s portfolio rationalization. While the $176 million impairment charge significantly widened the GAAP net loss, the underlying operational performance remains positive, as evidenced by the $11 million Adjusted EBITDA. The doubling of the full-year EBITDA guidance to over $60 million suggests that management expects substantial cash flow generation in the third and fourth quarters, supported by the newly approved Canada Clean Fuel Regulation (CFR) pathway and targeted monetization of more than $70 million in Section 45Z tax credits.

Strategic Outlook

The improved outlook is anchored by three key factors:

• Canada CFR Pathway: Approval in Q2 creates a large compliance market opportunity for low-carbon ethanol, with sales expected to begin appearing in Q3 2026 results.
• Section 45Z Credits: Gevo targets monetizing more than $70 million in tax credits during 2026, up from $52 million in 2025, driven by improved carbon intensity of its products.
• Debottlenecking: Site improvements at Gevo North Dakota are on track to deliver a 10–15% increase in low-carbon ethanol, coproduct, and carbon capture volumes starting in 2027, including 75 million gallons per year of low-carbon ethanol.

Gevo continues to advance growth projects, including a planned expansion at Gevo North Dakota that would double production to about 150 million gallons per year, targeting startup in 2028.

Gevo will report its financial results for the second quarter ended June 30 on August 6. The company will host a conference call at 4:30 p.m. ET to discuss the quarterly performance. The announcement provides investors with an opportunity to review the company's operational and financial progress during the period.

Conference Call Details

Participants can join the live call by registering through the event weblink provided by the company. For those wishing to listen without participating, an audio-only registration link is also available. The webcast replay will be accessible immediately after the call concludes on August 6.

Access to Replay

The archived webcast will be available in the Investor Relations section of Gevo's website. Investors can access the replay at investors.gevo.com to review the discussion at their convenience.

About Gevo

Gevo is a diversified energy company focused on producing renewable fuels and chemicals. The company develops sustainable aviation fuel (SAF), motor fuels, and other materials. Gevo operates production facilities, including an ethanol plant with carbon capture and storage (CCS) capabilities and a dairy-based renewable natural gas (RNG) facility. The company is also developing a large-scale alcohol-to-jet (ATJ) facility in North Dakota.