Green Plains Inc. Reports 25.9% Revenue Decline but Achieves Net Income Recovery in Q1 2026

Green Plains Inc. reported a significant decline in revenue for the first quarter of 2026, with total revenues of $445.8 million, down 25.9% from $601.5 million in the same period of 2025. The decrease was primarily attributed to lower sales volumes and prices in the ethanol production segment, as well as the cessation of a third-party marketing agreement. Despite the drop in revenue, the company achieved a net income of $33.5 million, a substantial recovery from a net loss of $72.6 million in the prior year, driven by improved margins and the recognition of $65.6 million in Section 45Z production tax credits.

The company's cost of goods sold also decreased significantly, falling to $357.9 million from $598.5 million year-over-year. This reduction was largely due to the aforementioned production tax credits, which were recorded as a reduction in costs, alongside lower freight and corn prices. Operating income for the quarter was reported at $44.8 million, a stark contrast to the operating loss of $62.3 million in the previous year. The earnings per share for the quarter were $0.48, compared to a loss of $1.14 per share in the same quarter of 2025.

In terms of operational developments, Green Plains maintained an average utilization rate of approximately 97% across its plants, producing 174.2 million gallons of ethanol during the quarter. The company operates nine plants capable of processing 287 million bushels of corn annually. The strategic focus on carbon capture and storage (CCS) initiatives continues, with all eight operating plants expected to qualify for the Section 45Z Clean Fuel Production Credit in 2026. The company has also engaged in agreements with Tallgrass High Plains Carbon Storage for the construction and operation of carbon capture facilities.

Looking ahead, Green Plains anticipates generating between $200 million and $225 million in EBITDA from Section 45Z production tax credits for the full year 2026, contingent on production volumes and carbon intensity factors. The company is also focused on maintaining compliance with its debt covenants, with total liquidity of $148.3 million as of March 31, 2026. The recent amendment to its revolving credit facility, reducing the commitment from $350 million to $300 million, reflects ongoing adjustments to its financial strategy in response to market conditions.