| Company | Aug 25 | Sep 25 | Oct 25 | Nov 25 | Dec 25 | Jan 26 | Feb 26 | Mar 26 | Apr 26 | May 26 | Jun 26 | Jul 26 | 12-Mo |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GPRE | +34% | -21% | +17% | +0% | -5% | +17% | +20% | +20% | +6% | -10% | -2% | +10% | +104% |
| GEVO | +33% | +13% | +19% | -9% | -7% | -2% | -7% | +50% | -30% | -3% | -19% | -1% | +14% |
| REX | +20% | -2% | +5% | +3% | -2% | +5% | +5% | +28% | +6% | -4% | -3% | -5% | +65% |
| AMTX | -7% | -11% | -5% | -19% | -20% | +10% | -7% | +125% | -1% | -19% | -36% | -8% | -44% |
| CLNE | +30% | -2% | +11% | -24% | -4% | +5% | +3% | +10% | -7% | -11% | +0% | -5% | -4% |
| CVI | +14% | +20% | -2% | -3% | -26% | -11% | +6% | +39% | -2% | +1% | -17% | +29% | +33% |
Source: Yahoo Finance monthly adjusted close.
Quick Thesis
- Rated hold because policy support is helping, but cash conversion is still thin.
- TTM EBITDA reached $204.1M, showing the core business is profitable again.
- Main risk: revenue fell 19.3% year over year to $1.8B, so the recovery is not broad-based.
- Valuation is mixed: 7.4x EV/EBITDA and a 2.9% FCF yield look fair, not cheap.
- I would turn more constructive if quarterly EBITDA stays above $90M and FCF margin moves above 3.0%.
Executive Summary
Rating: HOLD | GPRE
We’ll begin tracking this call’s performance since publication once sufficient adjusted-close data is available.
I would put my rating as a Hold because Green Plains has already re-rated on policy support and carbon-capture progress, but the operating base still looks too uneven to justify a more aggressive call. The stock is up 72.7% over the last 52 weeks, yet revenue still slipped from $552.8M in Q2 2025 to $446.2M in Q2 2026 while FCF yield stayed only 2.9% TTM, so the market is paying for an earnings recovery that has not fully shown up in cash.
I would raise my rating more towards a Buy if Green Plains can keep quarterly EBITDA above roughly $90M, which would mean the Q2 2026 level of $93.3M is not a one-off and would imply the business is finally converting 45Z support and CCS into repeatable cash generation. If that happens while FCF margin moves from 1.8% TTM toward the mid-single digits, the balance sheet would start to de-risk faster and the current 7.4x EV/EBITDA would look easier to own.
Company Profile
Green Plains Inc. is a renewable fuels and agricultural technology company that produces low-carbon ethanol and coproducts from corn. It also sells distillers grains, Ultra High Protein feed ingredients, renewable corn oil, and related products, while its marketing and energy services arm handles commodity trading and logistics tied to those outputs.
Founded in 2004 and incorporated in Iowa, the company owns nine plants across the Midwest with combined corn processing capacity of about 287 million bushels a year and ethanol capacity of about 850 million gallons a year when all plants are running. Its footprint is anchored in Nebraska, Iowa, and Minnesota, and three Nebraska facilities already operate carbon capture and storage, while additional sites are committed through Summit Carbon Solutions, which targets operations in 2028.
Economic Moat
Business Model
The moat case rests on a hard-to-replicate asset base rather than on brand. Green Plains combines a large Midwest plant network with carbon-reduction infrastructure, including CCS at three Nebraska facilities and FQT precision separation and processing technology at the Shenandoah, Iowa biorefinery, which gives it more ways to monetize each bushel of corn than a plain ethanol producer.
I feel that a well funded competitor would struggle to copy that combination quickly because it depends on physical plants, permitting, pipeline access, and process integration, not just capital. The July 2023 collaboration with Equilon Enterprises LLC adds another layer by linking fermentation, mechanical separation, and fiber conversion to higher oil, cellulosic sugar, and protein output, which supports the low-carbon positioning described above.
Business & Operating Risks
The biggest disclosed risk is policy dependence. Green Plains recognized a $54.2M tax benefit from 45Z in FY2025 and expects at least $188M of 45Z-related adjusted EBITDA in FY2026, so the earnings bridge is tied directly to a credit regime that can still change.
Commodity spread volatility is the second risk, and it is not abstract: the company says a 10% move in ethanol, corn, distillers grains, renewable corn oil, and natural gas would shift net income by $81.7M, $80.6M, $16.9M, $9.4M, and $4.4M, respectively, over the next 12 months. That sensitivity matters because FY2025 revenue fell to $1.8B and the ethanol production segment posted a $55.5M operating loss, so the business is still exposed to spread compression.
Leverage is the third pressure point. The company ended FY2025 with $374.5M of long-term debt, $33.6M of short-term borrowings, and $104.2M of carbon equipment liabilities that will be reclassified as debt in January 2026, while the revolver matures in March 2027 and the hedge line was cut from $40M to $20M in June 2025. That does not threaten the moat itself, but it does limit how much execution error the asset base can absorb before the balance sheet becomes the binding constraint.
Management Discussion & Analysis
Management is clearly trying to turn the disclosed risks into a more durable earnings model. The company expects all eight operational facilities to qualify for the Section 45Z Clean Fuel Production Credit beginning in 2026, up from six facilities in 2025, and that tells me the strategy is to convert carbon intensity reduction into a recurring earnings lever rather than rely on spot ethanol margins.
The Shenandoah, Iowa facility, which has a rated capacity of 60 million pounds of product a year, has been idled since the first quarter of 2025 as management optimizes product mix. I read that as a deliberate choice to protect returns, but it also shows the new operating model is still being tuned rather than fully proven.
Management also points to FQT MSC technology at four biorefineries, full-scale 60% protein production runs, and the Shell Fiber Conversion Technology collaboration with Equilon Enterprises LLC. Those initiatives support the moat thesis, yet the filing gives no current dollar contribution from them, so the story remains one of option value more than fully monetized advantage.
Recent Events
The January 5, 2026 CFO change was the most important leadership event. Ann Reis replaced Phil Boggs, who departed the same day, and Michelle Mapes stepped down as Chief Legal and Administration Officer on December 31, 2025. I see that as a governance and execution test rather than a strategic reset, because the company did not pair the personnel change with a change in direction.
The April 17, 2026 revolver amendment is the clearest financing event. Green Plains extended the facility’s maturity from March 25, 2027 to September 25, 2027 while cutting commitments from $350M to $300M, which buys time but also signals tighter lender appetite. That does not break the moat, but it does show the balance sheet is still being managed carefully.
The May 7, 2026 filing mainly changed how the company recognizes Section 45Z clean fuel production tax credits under ASU 2025-10. That improves reporting clarity, and it reinforces the idea that policy support is now embedded in the operating model rather than treated as a side benefit.
Financial Analysis
Growth
GPRE — Financial Growth (Quarterly, USD Mil)
| Metric | 2025-06-30 | 2025-09-30 | 2025-12-31 | 2026-03-31 | 2026-06-30 |
|---|---|---|---|---|---|
| REVENUE (USD Mil) | 552.8 | 508.5 | 428.8 | 445.8 | 446.2 |
| EBIT (USD Mil) | -27.8 | 32.3 | -8.9 | 47.8 | 69.8 |
| EBITDA (USD Mil) | -0.2 | 57.3 | 14.6 | 71.5 | 93.3 |
| NET INCOME (USD Mil) | -72.2 | 11.9 | 11.9 | 32.9 | 67.1 |
| DILUTED EPS | -1.1 | 0.2 | 0.2 | 0.5 | 0.8 |
Source: Yahoo Finance — Quarterly Financial Statements
Revenue fell from $552.8M in Q2 2025 to $446.2M in Q2 2026, a 19.3% decline, so the top line is still below its mid-2025 level. That is the key tension in the thesis: the business is not growing, but EBITDA improved from -$0.2M to $93.3M over the same span, which tells me margin recovery is doing the heavy lifting.
The Q4 2025 revenue dip is not explained in the MD&A context, so I would not overread it as a structural break. What matters more is that the company has moved from negative EBITDA to a $93.3M quarterly run rate, and that is the figure I would watch to see whether the recovery is becoming repeatable.
Profitability
GPRE — Profitability (TTM)
| Metric | TTM |
|---|---|
| Operating Margin (TTM) | 15.2% |
| Net Margin (TTM) | 6.8% |
| Return on Assets (TTM) | 4.1% |
| Return on Equity (TTM) | 15.5% |
| Gross Margin (TTM) | 16.0% |
| EBITDA Margin (TTM) | 11.2% |
Source: Yahoo Finance — Trailing Twelve Months (TTM)
TTM operating margin was 15.2%, gross margin was 16.0%, and EBITDA margin was 11.2%, which tells me the core production layer is already profitable. The spread between gross and operating margin is only 0.8 percentage points, so the remaining work is more about scale and overhead than about fixing plant economics.
Net margin was 6.8%, while ROA was 4.2% and ROE was 15.5%. That gap tells me leverage is helping returns, not just asset productivity, so I would want to see net margin keep moving closer to operating margin if the recovery is going to be durable.
Valuation
GPRE — Valuation Multiples
| Metric | Value |
|---|---|
| Market Cap (USD Mil) | 1,139 |
| Enterprise Value (USD Mil) | 1,502 |
| Trailing P/E | 9.7 |
| Forward P/E | 10.4 |
| Price/Sales (TTM) | 0.6 |
| Price/Book (mrq) | 1.3 |
| EV/Revenue | 0.8 |
| EV/EBITDA | 7.4 |
| FCF Yield % (TTM) | 2.9% |
| Forward EPS (USD) | 1.6 |
| Analyst Target Price – Low (USD) | 10 |
| Analyst Target Price – Mean (USD) | 17.9 |
| Analyst Target Price – High (USD) | 20 |
| # Analyst Opinions | 7 |
Source: Yahoo Finance
Green Plains screens as a value name first. FCF yield was 2.9% TTM, which is modest for a company with a $1.1B market cap and tells me the market is not paying up for cash generation. The stock trades at 0.8x EV/Revenue, 0.6x Price/Sales, and 7.4x EV/EBITDA, so investors are paying less than one turn of sales for a business that is still producing positive EBITDA.
The earnings multiples are not stretched: trailing P/E is 9.7x and forward P/E is 10.4x, while PEG is 1.2x. That combination says the market is pricing in moderate growth, not a premium rerating. Book value per share is $12.4 versus an implied share price of about 16.3, derived from the $1.1B market cap and 70.1M shares outstanding, so the stock trades at 1.3x book and is getting some credit for the asset base without being priced as a high-growth name.
On my read, fair value sits in a broad $10–$20 range, which lines up with the analyst target range of $10–$20 across seven opinions. I would not call that consensus especially bullish; rather, it confirms that the market is still debating whether the current earnings lift is durable. On earnings power, the company’s $1.56 forward EPS looks reasonable against the current multiple, and it is richer than the weaker peers on a quality-adjusted basis because Green Plains is already profitable, unlike several names in the peer set.
Leverage
GPRE — Leverage & Coverage (Quarterly)
| Metric | Value |
|---|---|
| Total Debt/Equity % (mrq) | 63.1 |
| Current Ratio (mrq) | 2 |
| Total Debt (mrq, USD Mil) | 548.6 |
| Levered Free Cash Flow (TTM, USD Mil) | 32.9 |
| Net Debt/EBITDA (TTM) | 1.8 |
| FCF Margin % (TTM) | 1.8% |
Source: Yahoo Finance — Quarterly Financial Statements
Total debt was $548.6M, current ratio was 2.0x, and debt/equity was 63.1%, so the balance sheet is levered but not stretched. Operating cash flow was $153.9M TTM and levered free cash flow was $32.9M TTM, which means EBITDA is converting to cash, but only modestly after capex and interest.
Net debt/EBITDA was 1.8x and FCF margin was 1.8%, both of which point to limited but usable financial flexibility rather than a cushion that can absorb a prolonged downturn. Total cash was $185.4M, which helps near-term liquidity and keeps refinancing risk contained for now, but the thin cash conversion means the company would feel stress quickly if margins weaken or debt needs to be refinanced at higher rates.
Insider Activity
The insider record here is limited but clear: director Patrick Francis Sweeney bought 6,383 shares on 2026-03-06 at $15.87. That is the only open-market transaction in the stated window, so insiders are net buyers, but the signal is concentrated in one purchase rather than broad-based accumulation.
Comparable Analysis
Growth
| Company | Revenue TTM (USD Mil) | Revenue Growth YoY % | Diluted EPS TTM |
|---|---|---|---|
| GPRE | 1,829.4 | -19.3% | 1.7 |
| GEVO | 177.5 | 7.1% | -0.9 |
| REX | 656.2 | 3.6% | 2.8 |
| AMTX | 230.2 | 20.0% | -0.9 |
| CLNE | 442.4 | 3.7% | -0.4 |
| CVI | 8,473 | 55.5% | 0.7 |
Source: Yahoo Finance
GPRE’s revenue fell 19.3% TTM, while CVI grew 55.5%, AMTX grew 20.0%, GEVO grew 7.1%, REX grew 3.6%, and CLNE grew 3.7%. That is a clear growth discount versus CVI and AMTX, but GPRE still produced $204.1M of EBITDA TTM, so the market is paying for a contraction that is already visible rather than for a collapse in earnings power.
Valuation
| Company | Trailing P/E | Forward P/E | EV/Revenue | EV/EBITDA | Price/Sales (TTM) | Price/Book (mrq) | FCF Yield % (TTM) | Forward EPS | Analyst Target Price – Low | Analyst Target Price – Mean | Analyst Target Price – High | # Analyst Opinions |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GPRE | 9.7 | 10.4 | 0.8 | 7.4 | 0.6 | 1.3 | 2.9% | 1.6 | 10 | 17.9 | 20 | 7 |
| GEVO | — | 25.7 | 2.8 | -20.9 | 2.1 | 1.3 | 4.9% | 0.1 | 1.9 | 5.4 | 14 | 4 |
| REX | 16 | 19.7 | 1.9 | 13.5 | 2.2 | 2.3 | 1.7% | 2.3 | — | — | — | — |
| AMTX | — | -4.2 | 3 | -444.2 | 0.6 | -0.5 | -44.1% | -0.5 | 2.5 | 13.4 | 28 | 4 |
| CLNE | — | -46.3 | 1.2 | 39.3 | 0.8 | 0.6 | -3.1% | 0 | 1.9 | 4 | 7 | 6 |
| CVI | 57.3 | 18.1 | 0.6 | 6.8 | 0.5 | 7.6 | 5.4% | 2.2 | 25 | 31.4 | 36 | 5 |
Source: Yahoo Finance
GPRE trades at 0.8x EV/Revenue, 9.7x trailing P/E, 10.4x forward P/E, 0.6x Price/Sales, and a 2.9% FCF yield, versus CVI at 0.6x EV/Revenue, 57.3x trailing P/E, 18.1x forward P/E, 0.5x Price/Sales, and 5.4% FCF yield, with REX at 1.9x EV/Revenue, 16.0x trailing P/E, 19.7x forward P/E, and 1.7% FCF yield. On a peer-multiple basis, applying the 0.6x to 1.9x EV/Revenue range to GPRE’s $1.8B TTM revenue gives an implied enterprise value of about $1.1B to $3.4B, or roughly $10.0 to $43.0 per share after netting $548.6M of debt and $185.4M of cash and dividing by 70.1M shares.
The more telling read is FCF yield: GPRE’s 2.9% sits below CVI’s 5.4% and above REX’s 1.7%, so the stock is not obviously cheap on cash generation even though it screens below REX on revenue multiples. In other words, the market is not paying a growth premium for GPRE, but it is also not pricing it as a clear cash compounder.
Profitability
| Company | Operating Margin (TTM) | Net Margin (TTM) | Return on Equity (TTM) | Gross Margin (TTM) | EBITDA Margin (TTM) |
|---|---|---|---|---|---|
| GPRE | 15.2% | 6.8% | 15.5% | 16.0% | 11.2% |
| GEVO | -76.8% | -119.9% | -55.5% | 44.7% | -13.2% |
| REX | 11.8% | 14.1% | 15.8% | 16.5% | 13.8% |
| AMTX | 9.2% | -26.1% | — | 10.4% | -0.7% |
| CLNE | -4.8% | -21.3% | -16.4% | 27.5% | 3.1% |
| CVI | 2.8% | 0.8% | 24.3% | 10.9% | 9.1% |
Source: Yahoo Finance
GPRE’s operating margin of 15.2%, net margin of 6.8%, gross margin of 16.0%, and EBITDA margin of 11.2% all exceed GEVO’s -76.8%, -119.9%, 44.7%, and -13.2%, AMTX’s 9.2%, -26.1%, 10.4%, and -0.7%, and CLNE’s -4.8%, -21.3%, 27.5%, and 3.1%. CVI still posts 2.8% operating margin, 0.8% net margin, 10.9% gross margin, and 9.1% EBITDA margin on a much larger revenue base, so GPRE looks solid rather than exceptional.
That gap looks structural rather than cyclical, because GPRE’s margins are good for a renewable fuels producer but not enough to justify a premium multiple over a larger, more diversified refiner. The return profile is acceptable, not dominant.
Leverage
| Company | Total Debt/Equity % (mrq) | Current Ratio (mrq) | Total Debt (mrq, USD Mil) | Free Cash Flow TTM (USD Mil) | Net Debt/EBITDA (TTM) | FCF Margin % (TTM) |
|---|---|---|---|---|---|---|
| GPRE | 63.1 | 2 | 548.6 | 32.9 | 1.8 | 1.8% |
| GEVO | 60.8 | 2.7 | 170.7 | 18.5 | -4.8 | 10.4% |
| REX | 2.7 | 6.8 | 19.5 | 24.4 | -3.8 | 3.7% |
| AMTX | — | 0.1 | 552.1 | -65.8 | -349.5 | -28.6% |
| CLNE | 57.7 | 2.5 | 322.6 | -11.1 | 13.3 | -2.5% |
| CVI | 241.8 | 1.4 | 1,799 | 214.5 | 1.4 | 2.5% |
Source: Yahoo Finance
GPRE’s debt/equity is 63.1%, net debt/EBITDA is 1.8x, and FCF margin is 1.8%, versus CVI at 241.8%, 1.4x, and 2.5%, REX at 2.7%, -3.8x, and 3.7%, and CLNE at 57.7%, 13.3x, and -2.5%. Net debt/EBITDA matters more than raw debt/equity here because GPRE is not a net-cash name, so the balance sheet is a real constraint but not a distress signal.
That is why I think the leverage profile supports a holdable equity, not a balance-sheet-driven rerating. The company has enough liquidity to keep operating, but not enough free cash flow to make leverage irrelevant.
Conclusion
I would put my rating as a Hold because the recovery is real, but it is still too dependent on policy support and margin discipline to call it a Buy. EBITDA has improved to $93.3M in the latest quarter, yet revenue is still down 19.3% year over year and FCF margin is only 1.8% TTM, so the numbers show progress without proving durability.
The bull case is straightforward: if quarterly EBITDA stays above $90M and FCF margin moves above 3.0%, then Green Plains would be showing that 45Z support, CCS, and the product-mix shift are turning into repeatable cash generation. In that case, I would move more toward a Buy because the current 7.4x EV/EBITDA would start to look conservative against a business that is finally converting policy tailwinds into cash.
The bear case is just as clear. If revenue stays near the $440M quarterly level while EBITDA slips back toward $50M–$60M, then the recent margin lift would look more like subsidy timing than a durable operating improvement. A policy setback that cuts the expected $188M of FY2026 45Z adjusted EBITDA would be an even sharper warning sign, because it would hit a business that already carries $548.6M of debt and still has thin free cash flow.
I stay at Hold because the bull case needs one more clean quarter to prove itself, while the bear case only needs policy noise or a spread reset to reassert itself. The setup is better than it was a year ago, but I do not yet see enough evidence that the current earnings run rate is the new floor.
What to Watch Next
- Quarterly EBITDA above $90M — would support a move toward Buy.
- FCF margin above 3.0% — would show cash conversion is improving.
- Revenue holding above $440M per quarter — would confirm the top line has stabilized.
- FY2026 45Z adjusted EBITDA near $188M — would validate policy support in earnings.
- Net debt/EBITDA staying near 1.8x — would keep refinancing risk manageable.
What’s your take? I rated Green Plains (GPRE) HOLD above — but the goal here is to get this right, not just to publish an opinion. What would you add to this analysis, or which risk or catalyst do you think I’m under- or over-weighting? Tell me in the comments.
Sources
- SEC 10-K Annual Report — filed 2026-02-10
- SEC 8-K Filing (2026-05-07)
- SEC 8-K Filing (2026-04-23)
- SEC 8-K Filing (2026-02-05)
- SEC 8-K Filing (2026-01-12)
- SEC 8-K Filing (2026-01-05)
- SEC Form 4 Insider Transaction (2026-06-08)
- SEC Form 4 Insider Transaction (2026-05-18)
- SEC Form 4 Insider Transaction (2026-04-30)
Data sourced from Yahoo Finance and SEC EDGAR. Not investment advice.
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