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Business Wire
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Green Plains Reports Second Quarter 2025 Financial Results
OMAHA, Neb.--(BUSINESS WIRE)--Green Plains Inc. (NASDAQ:GPRE) ('Green Plains' or the 'company') today announced financial results for the second quarter of 2025. Net loss attributable to the company was $72.2 million, or $(1.09) per diluted share, compared to net loss attributable to the company of $24.4 million, or ($0.38) per diluted share, for the same period in 2024. The results for the quarter include $44.9 million in non-cash charges primarily related to the sale of non-core assets and an equity method investment, as well as impairments of equipment and assets held for sale. The company also incurred $2.5 million in restructuring costs related to its ongoing transformation initiatives. Revenues were $552.8 million for the second quarter of 2025 compared with $618.8 million for the same period last year. Adjusted EBITDA was $16.4 million compared with $5.0 million for the same period in the prior year. 'We executed several key initiatives this quarter to sustain reliable, safe operations, improve efficiencies and enhance our operating performance by rigorous management of our most critical metrics,' said Michelle Mapes, Interim Principal Executive Officer. 'By exiting non-core assets and activities and focusing on our platform, we've streamlined the business and sharpened execution. Our team delivered strong results with 99% utilization across the operating platform, demonstrating the success of the structural improvements made available by our operational excellence initiatives. With the cost reductions implemented during the first half of the year, we are on pace to exceed the $50 million in annualized savings target. This new expense base positions us to exit the year — and enter 2026 — as a leaner, more agile company. Our improved cost efficiency enables stronger earnings leverage from higher ethanol margins, firming corn oil prices, growing export demand, and a constructive corn crop outlook. With construction of our carbon capture project nearing completion, we're well positioned to drive more dollars to the bottom line in the second half and beyond." 'Recent favorable federal government policy decisions have reinforced our strategy to produce low-CI feedstocks and fuels,' added Mapes. 'Demand for our low-CI corn oil, a preferred feedstock into renewable diesel, remains strong. Construction of the carbon compression infrastructure at our Nebraska facilities is progressing on schedule and we remain on track to begin carbon sequestration early in the fourth quarter. The extension of the 45Z Clean Fuel Production Credit through 2029, the removal of the indirect land use change penalty, and the ring fencing of North American feedstocks provides critical policy support and long-term validation of our carbon reduction strategy, upgrading the consistent earnings power of our platform.' 'We took meaningful steps during the quarter to improve our financial position, including reducing working capital investments with our Eco-Energy marketing arrangement, monetizing non-core assets, lowering expenses, and finalizing financing agreements to align with our strategic goals,' added Phil Boggs, Chief Financial Officer. 'Extending the maturity of our near-term debt enhances flexibility as we work toward the execution of our decarbonization initiatives. We remain focused on operating safely, driving efficiency, managing costs, and strengthening our balance sheet to position the company for sustained financial performance.' Highlights and Recent Developments Completed the sale of our 50% investment in GP Turnkey Tharaldson LLC as of June 30, 2025, for $25 million On August 10, 2025, the company executed an amendment to extend the maturity of its $127.5 million Mezzanine note facility to September 15, 2026 Results of Operations Green Plains' ethanol production segment sold 193.6 million gallons of ethanol during the second quarter of 2025, compared with 208.5 million gallons for the same period in 2024. The consolidated ethanol crush margin was $26.3 million for the second quarter of 2025 inclusive of the sale of accumulated RINs of $22.6 million, compared with ethanol crush margin of $22.7 million for the same period in 2024. The consolidated ethanol crush margin is the ethanol production segment's operating income, which includes renewable corn oil and Ultra-High Protein, before depreciation and amortization, and impairment of assets held for sale, plus marketing and agribusiness fees, nonrecurring decommissioning costs, and nonethanol operating activities. Consolidated revenues decreased $66.0 million for the three months ended June 30, 2025, compared with the same period in 2024, primarily driven by our agribusiness and energy services segment as a result of the company ceasing a third-party ethanol marketing agreement with Tharaldson Ethanol Plant I LLC. Net loss attributable to Green Plains increased $47.9 million primarily due to a loss on sale of assets and equity method investment of $31.0 million and an impairment of assets held for sale of $10.7 million. Adjusted EBITDA increased $11.4 million for the three months ended June 30, 2025 compared with the same period last year due to a change in operating strategy and the sale of accumulated RINs partially offset by weaker margins in our ethanol production segment. Interest expense increased $6.4 million for the three months ended June 30, 2025 compared with the same period in 2024 primarily due to amortization of loan fees related to the issuance and modification of warrants in conjunction with access to a short-term line of credit and an amendment on our Junior Notes as well as decreased capitalized interest. Income tax expense was $2.3 million for the three months ended June 30, 2025 compared with income tax benefit of $0.3 million for the same period in 2024, primarily due to an increase in the valuation allowance recorded against certain deferred tax assets related to gains (losses) on derivatives. Segment Information The company reports the financial and operating performance for the following two operating segments: (1) ethanol production, which includes the production, storage and transportation of ethanol, distillers grains, Ultra-High Protein and renewable corn oil and (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, Ultra-High Protein, renewable corn oil, natural gas and other commodities. Expand GREEN PLAINS INC. CONSOLIDATED CRUSH MARGIN (unaudited, in thousands) 2025 2024 Ethanol production operating loss (1) $ (12,218 ) $ (2,213 ) Depreciation and amortization 22,918 20,544 Impairment of assets held for sale 10,724 — Adjusted ethanol production operating income 21,424 18,331 Intercompany fees and nonethanol operating activities, net (2) 4,862 4,327 Consolidated ethanol crush margin $ 26,286 $ 22,658 (1) Ethanol production includes margins from a one-time sale of accumulated RINs of $22.6 million and an inventory lower of cost or net realizable value adjustment of $2.3 million for the three months ended June 30, 2025. (2) Includes ($1.0) million and $1.9 million for the three months ended June 30, 2025 and 2024, respectively, for certain nonrecurring decommissioning costs and nonethanol operating activities. Expand Liquidity and Capital Resources As of June 30, 2025, Green Plains had $152.7 million in total cash and cash equivalents, and restricted cash, and $258.5 million available under our committed revolving credit agreement, subject to restrictions or other lending conditions based specifically on the availability of sufficient eligible collateral to support additional borrowings, in addition to $30.0 million available under our line of credit with Ancora, which expired on July 30, 2025. Total corporate liquidity consisting of unrestricted cash, distributable cash from subsidiaries and Ancora credit facility availability was $93.3 million as of June 30, 2025. Total debt outstanding at June 30, 2025 was $508.2 million, including $80.1 million outstanding debt under working capital revolvers and other short-term borrowing arrangements. Conference Call Information On August 11, 2025, Green Plains Inc. will host a conference call at 9 a.m. Eastern time (8 a.m. Central time) to discuss second quarter 2025 operating results. Domestic and international participants can access the conference call by dialing 888.210.4215 and 646.960.0269, respectively, and referencing conference ID 5027523. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call and presentation will be accessible on Green Plains' website Non-GAAP Financial Measures Management uses EBITDA, adjusted EBITDA, segment EBITDA and consolidated ethanol crush margins to measure the company's financial performance and to internally manage its businesses. EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization excluding the change in right-of-use assets and debt issuance costs. Adjusted EBITDA includes adjustments related to restructuring costs, loss on sale of assets, impairment of assets held for sale and equity method investment and our proportional share of EBITDA adjustments of our equity method investees. Management believes these measures provide useful information to investors for comparison with peer and other companies. These measures should not be considered alternatives to net income or segment operating income, which are determined in accordance with U.S. Generally Accepted Accounting Principles ('GAAP'). These non-GAAP calculations may vary from company to company. Accordingly, the company's computation of adjusted EBITDA, segment EBITDA and consolidated ethanol crush margins may not be comparable with similarly titled measures of another company. About Green Plains Inc. Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels and renewable feedstocks for advanced biofuels. Green Plains is an innovative producer of Sequence™ and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. For more information, visit Forward-Looking Statements All statements in this press release (and oral statements made regarding the subjects of this communication), including those that express a belief, expectation or intention, may be considered forward-looking statements (as defined in Section 21E of the Securities Exchange Act, as amended, and Section 27A of the Securities Act of 1933, as amended) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Without limiting the generality of the foregoing, forward-looking statements contained in this communication include statements relying on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of the company, which could cause actual results to differ materially from such statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking statements may include, but are not limited to the expected future growth, dividends and distributions; and plans and objectives of management for future operations. Forward-looking statements may be identified by words such as 'believe,' 'intend,' 'expect,' 'may,' 'should,' 'will,' 'anticipate,' 'could,' 'estimate,' 'plan,' 'predict,' 'project' and variations of these words or similar expressions (or the negative versions of such words or expressions). While the company believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: the failure to realize the anticipated results from the new products being developed; the failure to realize the anticipated costs savings or other benefits of the merger; local, regional and national economic conditions and the impact they may have on the company and its customers; disruption caused by health epidemics, such as the COVID-19 outbreak; conditions in the ethanol and biofuels industry, including a sustained decrease in the level of supply or demand for ethanol and biofuels or a sustained decrease in the price of ethanol or biofuels; competition in the ethanol industry and other industries in which we operate; commodity market risks, including those that may result from weather conditions; the financial condition of the company's customers; any non-performance by customers of their contractual obligations; changes in safety, health, environmental and other governmental policy and regulation, including changes to tax laws such as the One Big Beautiful Bill Act; risks related to acquisition and disposition activities and achieving anticipated results; risks associated with merchant trading; risks related to our equity method investees; the results of any reviews, investigations or other proceedings by government authorities; and the performance of the company. The foregoing list of factors is not exhaustive. The forward-looking statements in this press release speak only as of the date they are made and the company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities and other applicable laws. We have based these forward-looking statements on our current expectations and assumptions about future events. While the company's management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the company's control. These risks, contingencies and uncertainties relate to, among other matters, the risks and uncertainties set forth in the 'Risk Factors' section of the company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the 'SEC'), and any subsequent reports filed by the company with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. GREEN PLAINS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Costs and expenses Cost of goods sold (excluding depreciation and amortization expenses reflected below) 511,259 581,002 1,109,735 1,169,849 Selling, general and administrative expenses 27,605 33,950 70,517 65,719 Loss on sale of assets 4,044 — 4,044 — Depreciation and amortization expenses 27,560 21,584 49,947 43,071 Impairment of assets held for sale 10,724 — 10,724 — Total costs and expenses 581,192 636,536 1,244,967 1,278,639 Operating loss (28,363 ) (17,711 ) (90,623 ) (62,600 ) Other income (expense) Interest income 634 1,490 1,637 4,000 Interest expense (13,899 ) (7,494 ) (22,812 ) (15,280 ) Other, net (39 ) 345 (1,554 ) 794 Total other income (expense) (13,304 ) (5,659 ) (22,729 ) (10,486 ) Loss before income taxes and loss from equity method investees (41,667 ) (23,370 ) (113,352 ) (73,086 ) Income tax benefit (expense) (2,294 ) 273 (2,400 ) (56 ) Loss from equity method investees, net of income taxes (28,266 ) (941 ) (29,116 ) (2,018 ) Net loss (72,227 ) (24,038 ) (144,868 ) (75,160 ) Net income attributable to noncontrolling interests 11 312 276 602 Net loss attributable to Green Plains $ (72,238 ) $ (24,350 ) $ (145,144 ) $ (75,762 ) Earnings per share Net loss attributable to Green Plains - basic and diluted $ (1.09 ) $ (0.38 ) $ (2.22 ) $ (1.19 ) Weighted average shares outstanding Basic and diluted 66,491 63,933 65,287 63,637 Expand GREEN PLAINS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net loss $ (144,868 ) $ (75,160 ) Noncash operating adjustments Depreciation and amortization 49,947 43,071 Loss on sale of assets 4,044 — Impairment of assets held for sale 10,724 — Inventory lower of cost or net realizable value adjustment 2,255 — Stock-based compensation 11,123 6,591 Loss from equity method investees, net of income taxes 29,116 2,018 Other 8,830 2,627 Net change in working capital 32,583 (44,864 ) Net cash provided by (used in) operating activities 3,754 (65,717 ) Cash flows from investing activities Purchases of property and equipment, net (27,853 ) (39,484 ) Proceeds from the sale of assets 421 — Investment in equity method investees, net (4,909 ) (16,023 ) Net cash used in investing activities (32,341 ) (55,507 ) Cash flows from financing activities Net payments - long term debt (962 ) (7,849 ) Net proceeds (payments) - short-term borrowings (60,962 ) 18,199 Net proceeds from product financing arrangement 37,146 — Payments on extinguishment of non-controlling interest — (29,196 ) Payments of transaction costs — (5,951 ) Other (3,310 ) (7,647 ) Net cash used in financing activities (28,088 ) (32,444 ) Net change in cash and cash equivalents, and restricted cash (56,675 ) (153,668 ) Cash and cash equivalents, and restricted cash, beginning of period 209,395 378,762 Reconciliation of total cash and cash equivalents, and restricted cash Cash and cash equivalents $ 108,624 $ 195,554 Restricted cash 44,096 29,540 Total cash and cash equivalents, and restricted cash $ 152,720 $ 225,094 Expand GREEN PLAINS INC. RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES (unaudited, in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss $ (72,227 ) $ (24,038 ) $ (144,868 ) $ (75,160 ) Interest expense 13,899 7,494 22,812 15,280 Income tax expense (benefit), net of equity method income tax benefit 1,885 (273 ) 1,720 56 Depreciation and amortization (1) 27,560 21,584 49,947 43,071 EBITDA (28,883 ) 4,767 (70,389 ) (16,753 ) Restructuring costs 2,520 — 19,106 — Loss on sale of assets 4,044 — 4,044 — Impairment of assets held for sale 10,724 — 10,724 — Loss on sale of equity method investment 26,987 — 26,987 — Proportional share of EBITDA adjustments to equity method investees 1,050 271 1,828 316 Adjusted EBITDA $ 16,442 $ 5,038 $ (7,700 ) $ (16,437 ) (1) Excludes amortization of operating lease right-of-use assets and amortization of debt issuance costs. Expand
Business Wire
04-08-2025
- Business
- Business Wire
Green Plains to Host Second Quarter 2025 Earnings Conference Call on August 11, 2025
OMAHA, Neb.--(BUSINESS WIRE)--Green Plains Inc. (NASDAQ:GPRE) will release second quarter 2025 financial results prior to the market opening on August 11, 2025, and then host a conference call beginning at 9 a.m. Eastern time (8 a.m. Central time) to discuss second quarter 2025 performance and outlook. Domestic and international participants can access the conference call by dialing 888.210.4215 and 646.960.0269, respectively, and referencing conference ID 5027523. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call and presentation can be accessed on the Green Plains website at About Green Plains Inc. Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels and renewable feedstocks for advanced biofuels. Green Plains is an innovative producer of Sequence™ and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. For more information, visit
Business Wire
22-04-2025
- Business
- Business Wire
Green Plains Inc. Announces Eco-Energy LLC as Exclusive Ethanol Marketing Partner
OMAHA, Neb.--(BUSINESS WIRE)--Green Plains Inc. (NASDAQ:GPRE) ) ('Green Plains,' the 'Company,' 'we' or 'us') today announced that Eco-Energy LLC, a leader in biofuels marketing and logistics, has been selected as its exclusive ethanol marketer. Under this new agreement, Eco-Energy will assume responsibility for all ethanol marketing and logistics across Green Plains' platform, providing end-to-end support to optimize value, expand market access and improve supply chain efficiency. 'The agreement represents an important step forward as we continue to streamline our operations and focus on value creation across our platform,' said Imre Havasi, Senior Vice President – Head of Trading and Commercial Operations at Green Plains. 'Eco-Energy provides deep market expertise, a strong customer network, and proven logistics capabilities that we believe will allow us to maximize the value of our low-carbon ethanol, while expanding our scale and reach into new markets.' This strategic collaboration, which includes all ethanol volume produced at Green Plains' biorefineries, marks a significant step forward for both Green Plains and Eco-Energy, underscoring their commitment to delivering cleaner, more sustainable fuel solutions globally. 'It is exciting to welcome Green Plains to the Eco-Energy platform as their exclusive ethanol marketer,' added Craig Willis, CEO of Eco-Energy. 'The addition of Green Plains' ethanol footprint to Eco-Energy's platform will create one of the largest ethanol marketers in North America. This scale will lead to reduced costs and optimization throughout the supply chain, while expanding access to low-carbon markets.' The agreement is effective as of April 23, 2025, with no disruption to customers and existing sales expected. Green Plains and Eco-Energy are committed to a seamless handoff and continued excellent customer service and supply chain performance. About Green Plains Inc. Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low carbon biofuels and renewable feedstocks for advanced biofuels. Green Plains is an innovative producer of Sequence™ and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. For more information, visit Forward-Looking Statements All statements in this press release (and oral statements made regarding the subjects of this communication), including those that express a belief, expectation or intention, may be considered forward-looking statements (as defined in Section 21E of the Securities Exchange Act, as amended, and Section 27A of the Securities Act of 1933, as amended) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Without limiting the generality of the foregoing, forward-looking statements contained in this communication include statements relying on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of the company, which could cause actual results to differ materially from such statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking statements may include, but are not limited to the expected future growth, dividends and distributions; and plans and objectives of management for future operations. Forward-looking statements may be identified by words such as "believe," "intend," "expect," "may," "should," "will," "anticipate," "could," "estimate," "plan," "predict," "project" and variations of these words or similar expressions (or the negative versions of such words or expressions). While the company believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: the failure to realize the anticipated results from the new products being developed; the failure to realize the anticipated costs savings or other benefits of the merger; local, regional and national economic conditions and the impact they may have on the company and its customers; disruption caused by health epidemics, such as the COVID-19 outbreak; conditions in the ethanol and biofuels industry, including a sustained decrease in the level of supply or demand for ethanol and biofuels or a sustained decrease in the price of ethanol or biofuels; competition in the ethanol industry and other industries in which we operate; commodity market risks, including those that may result from weather conditions; the financial condition of the company's customers; any non-performance by customers of their contractual obligations; changes in safety, health, environmental and other governmental policy and regulation, including changes to tax laws; risks related to acquisition and disposition activities and achieving anticipated results; risks associated with merchant trading; risks related to our equity method investees; the results of any reviews, investigations or other proceedings by government authorities; and the performance of the company. The foregoing list of factors is not exhaustive. The forward-looking statements in this press release speak only as of the date they are made and the company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities and other applicable laws. We have based these forward-looking statements on our current expectations and assumptions about future events. While the company's management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the company's control. These risks, contingencies and uncertainties relate to, among other matters, the risks and uncertainties set forth in the "Risk Factors" section of the company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the "SEC"), and any subsequent reports filed by the company with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
Yahoo
09-04-2025
- Business
- Yahoo
Is Green Plains Inc. (GPRE) the Best Ethanol Stock to Buy According to Hedge Funds?
We recently published a list of . In this article, we are going to take a look at where Green Plains Inc. (NASDAQ:GPRE) stands against other best ethanol stocks to buy according to hedge funds. Ethanol stocks are from companies that manufacture, sell, or distribute ethanol, a biofuel derived from crops such as corn and sugarcane. The ethanol industry is booming. As per Precedence Research, the global fuel ethanol market stood at $106.20 billion in 2024, climbed to $111.64 billion in 2025, and is anticipated to exceed $174.98 billion by 2034, representing a 5.12% CAGR between 2024 and 2034. The North American ethanol market is estimated to be worth $60.53 billion in 2024, growing at a CAGR of 5.20% over the forecast period. Overall, the United States is the world's leading producer and exporter of fuel ethanol, and prices in the country stayed relatively low in 2024. Moreover, Brazil is the second-largest producer and exporter. Growth Energy, the nation's largest biofuel trade association, released data revealing that ethanol exports from the US set a new high in 2024. In total, the country exported 1.9 billion gallons of ethanol valued at $4.3 billion in 2024, breaking the previous record for volume set in 2018 and the prior record for value established in 2023. Growth Energy CEO Emily Skor commented: 'The numbers don't lie. The world is looking to the U.S. to meet its fuel needs and American producers are delivering in a way that supports economic growth abroad and at home in rural communities across the country,' 'As the new Administration puts its new trade priorities into action, we look forward to working with President Trump and his team to ensure that we build on this momentum in a way that continues to grow the American farm economy through sales of American ethanol abroad.' Recently, the U.S. Energy Information Administration reported on April 2 that the output of fuel ethanol in the US rose by 1% in the week ending March 28. Stocks of fuel ethanol were down 3%, whereas exports dropped 62%. Most importantly, the export market remains the most attractive opportunity for driving US ethanol demand in 2025. Looking ahead, according to Jacqui Fatka, a farm supply and biofuels economist at CoBank, ethanol usage in higher-level blends is anticipated to surge annually in the US, but it accounts for just a tiny fraction of total ethanol demand due to the market's size. Therefore, without large expenditures in infrastructure that allow retailers to adjust pumps or signage, nationwide E15 sales will not significantly increase in the time to come. Currently, the export market represents the best possibility to boost demand in 2025. According to the United States Department of Agriculture's most recent quarterly trade projection, announced on February 27, ethanol export volumes in the US would hit a record 1.85 billion gallons in the fiscal year 2025. The forecast is slightly higher than the previous quarter's outlook. We sifted through online rankings to form an initial list of 20 Ethanol stocks. From the resultant dataset, we chose the top 12 stocks most favored by hedge funds, using Insider Monkey's database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's Market Cap as of April 3, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of a distiller grains bag, highlighting the company's ethanol production process. Number of Hedge Fund Investors: 29 Green Plains Inc. (NASDAQ:GPRE) ranks fifth among the Best Ethanol Stocks on our list. It produces and markets ethanol and its byproducts in two functional segments. The majority of the company's revenue is produced by the ethanol production area, which also produces sustainable corn oil, distillers grains, ethanol, and Ultra-High Protein. The agriculture and energy services section encompasses grain handling and storage, commodity marketing, and merchant trading of company-produced and third-party ethanol, distillers grains, Ultra-High Protein, renewable corn oil, natural gas, and other commodities. Green Plains Inc. (NASDAQ:GPRE) decided to close its Fairmont, Minnesota operation in January 2025 as it deals with difficult market conditions. Furthermore, the firm announced on March 17, 2025, that it had decided to temporarily shut down its Clean Sugar Technology facility located in Shenandoah, Iowa. Green Plains' plan to improve profitability by improving its product mix includes this step. Green Plains Inc. (NASDAQ:GPRE) has already implemented $30 million of its $50 million annualized cost savings strategy, which includes organizational transformation and leadership cutbacks. Exports of ethanol are predicted to increase further in 2025 and are on course to hit a record 1.9 billion gallons. Initiatives for carbon capture have advanced drastically, and the Tallgrass Trailblazer Project is scheduled to start CO2 capture in the second half of this year. Moreover, the business increased its market share in the aquaculture market by securing its biggest sale to date, which could lead to further growth. The firm concluded the year with $200.7 million available under its working capital revolver and $209.4 million in cash, displaying its solid liquidity position. Overall, GPRE ranks 5th on our list of best ethanol stocks to buy according to hedge funds. While we acknowledge the potential of ethanol companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GPRE but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Is Green Plains Inc. (GPRE) the Undervalued Chemical Stock to Buy Now?
We recently published a list of . In this article, we are going to take a look at where Green Plains Inc. (NASDAQ:GPRE) stands against other undervalued chemical stocks to buy now. President Trump is looking to place 25% tariffs on goods from Canada and Mexico and this could negatively influence US industries and critical sectors beyond just autos. According to a report by CNBC in January 2025 by Lori Ann LaRocco, Canada is the largest partner with the US for critical chemicals. READ ALSO: 15 Best EV Stocks To Buy According to Billionaires and 10 Best Stocks Under $10 to Buy Now. The US chemicals industry also exports a huge amount of products to Canada. In 2023, US firms sold over $28 billion in chemicals to Canadian customers. On the other hand, Canadian partners export approximately $25 billion in chemicals to the US annually, as per the American Chemistry Council. Texas, California, Louisiana, North Carolina, Illinois, Ohio, Indiana, New York, Pennsylvania, and Iowa are the top chemical-producing states and they account for about 66% of total US chemical production while the rest of the chemicals are imported. According to the American Chemical Council, Canada is the leading source of chemical imports to the US and accounted for 18.1% of the total chemical imports in 2023. Canada is followed by China and South Korea. Eric Byer, CEO of the Alliance for Chemical Distribution, pointed out that if there is a trade war between Canada and the US, the price of critical chemicals could lead to inflationary pressures on US consumers and industries. According to Byer, Canada exports approximately 80% of the chlorine used in disinfecting drinking water for the West Coast states. He also pointed out that the US exports large amounts of phenol to Canada for use in the wood products industry. Some of that treated lumber is then also exported back into the US from Canada for domestic consumption and home construction purposes. The US-Canada chemical trade relationship supports other industries as well and disruption of this trade between the two countries could have far-reaching consequences. Our Methodology To compile our list of the 11 undervalued chemical stocks to buy now, we looked for the largest chemical companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best chemical stocks. To find undervalued chemical stocks, we narrowed down our selection by looking for stocks trading at under 20 times their forward earnings as of March 28, 2025. Next, we focused on the top 11 undervalued chemical stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey's Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 11 undervalued chemical stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024. Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A close-up of a distiller grains bag, highlighting the company's ethanol production process. Forward P/E: 9.52 Number of Hedge Fund Holders: 29 Green Plains Inc. (NASDAQ:GPRE) is an American chemical and biorefining company that specializes in the development and utilization of fermentation, agricultural, and biological technologies in the processing of annually renewable crops into value-added ingredients. The company is also one of the largest producers of ethanol in the US. It also produces high-protein ingredients for animal and aquaculture diets. Green Plains Inc. (NASDAQ:GPRE) ranks among the best chemical stocks to invest in. The company is taking steps to optimize operations and reduce costs. In its Q4 2024 earnings call, Green Plains Inc.'s (NASDAQ:GPRE) management pointed out that they have identified $50 million in annualized cost savings and the company has executed on the first $30 million of improvements already. As part of this strategy, in January 2025, Green Plains Inc. (NASDAQ:GPRE) decided to shut down its Fairmont, Minnesota facility as it navigates challenging market conditions. On March 17, 2025, the company also announced that it has decided to temporarily idle its Clean Sugar Technology facility in Shenandoah, Iowa. This move is part of Green Plains Inc.'s (NASDAQ:GPRE) strategy to optimize its product mix to maximize returns. The company believes this presents an opportunity to further refine the dextrose production process while continuing to build significant commercial interest. Overall, GPRE ranks 10th on our list of undervalued chemical stocks to buy now. While we acknowledge the potential of GPRE, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GPRE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
