Gevo Q3 revenue beats expectations on strong CFR credit sales

Overview

• US renewable fuels provider's Q3 revenue rose sharply, beating analyst expectations

• Company posted net income of $23 mln, reversing a loss from a year ago

• Q3 results boosted by CFR credit sales and carbon business growth

Outlook

• Gevo expects 2026 adj EBITDA to exceed $90 mln and 2027 adj EBITDA to exceed $70 mln

• Company expects carbon business to generate over $50 mln revenue in 2026

• Gevo expects Section 45Z tax credit sales to grow in 2027 with increased production

Result Drivers

• CFR CREDIT SALES - Q3 revenue included $29.4 mln from sales of Canadian Clean Fuel Regulation credits, most generated in prior periods

• CARBON BUSINESS - Revenue and cash flow benefited from carbon capture and storage sales into compliance and voluntary markets

• ETHANOL PRODUCTION - Low-carbon ethanol output rose to 19 mln gallons, up from 17 mln a year ago, due to timing of scheduled maintenance

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the renewable fuels peer group is "buy"

• Wall Street's median 12-month price target for Gevo, Inc. is $2.50, about 70.1% above its November 9 closing price of $1.47

Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)