Green Plains Updates 2026 Tax-Credit EBITDA Outlook

The Tip Desk · November 11, 2026 · 4 min read

The biofuels producer posted record adjusted EBITDA of $118.0 million in the third quarter and set 2026 45Z contribution guidance at $230 million to $250 million.

Green Plains Inc. (GPRE) posted record adjusted EBITDA of $118.0 million in the third quarter of 2026, up from $93.3 million in the second quarter, and updated its 2026 outlook for 45Z production tax credit contribution.

The low-carbon biofuels producer said the quarter’s adjusted EBITDA included $52.6 million from the base business and $65.4 million of 45Z production tax credit value net of discounts and other costs. It updated 2026 full-year guidance to $230 million to $250 million of adjusted EBITDA contribution from 45Z tax credit value net of discounts and other costs. In the first-quarter release the company had given a range of $200 million to $225 million of EBITDA associated with the generation of production tax credits.

Net income attributable to Green Plains was $85.4 million, or $1.03 a share, compared with $67.1 million, or $0.83 a share, in the second quarter. Revenues were $496.0 million.

Plant utilization rose to 95% across eight operating ethanol plants from 88% in the second quarter. Ethanol production segment volumes sold were 174.9 million gallons, up from 160.7 million gallons. The consolidated ethanol crush margin widened to $122.8 million from $95.1 million. The company said record quarterly ethanol and corn oil yields supported improved crush margins.

Ethanol production segment revenue was $454.4 million, down 4.1% from $473.9 million a year earlier. Agribusiness and energy services revenue was $46.7 million, up 14.5% from $40.8 million. Consolidated revenues decreased $12.5 million from the year-ago quarter, which the company attributed primarily to lower ethanol production segment revenues from lower volumes sold after the disposition of the Obion, Tennessee plant, offset by higher volumes sold and weighted average selling prices on ethanol and renewable corn oil.

Ethanol production adjusted EBITDA was $122.3 million, up 121.6% from $55.2 million a year earlier. Agribusiness and energy services adjusted EBITDA was $6.3 million. Ethanol gallons sold by the production segment were 174.9 million, down 11.3% from 197.3 million a year earlier; renewable corn oil was 64.2 million pounds.

Net income increased $74.6 million and adjusted EBITDA increased $65.4 million versus the year-ago quarter, which the company said was primarily due to a $42.3 million increase in Section 45Z production tax credits recorded net of discounts, other costs and selling, general and administrative expenses, higher margins in the ethanol production segment, and $2.7 million lower selling, general and administrative expenses.

Interest expense was $8.1 million for the three months ended September 30, 2026, down $39.7 million from $47.8 million a year earlier, primarily due to prior-year loan fees related to refinancing and extinguishment of junior mezzanine notes, partially offset by higher debt balances associated with carbon sequestration equipment. Income tax expense was $0.7 million.

In the first quarter of 2026 the company elected to early adopt ASU 2025-10 and changed its accounting policy for Section 45Z credits, recognizing them by analogy under the income model as a reduction of cost of goods sold rather than within income tax benefit. The retrospective adjustment recorded $26.5 million of 45Z credits as a reduction of cost of goods sold for the three and nine months ended September 30, 2025.

Cash flow from operating activities was $47.4 million for the nine months ended September 30, 2026. As of September 30, 2026, cash and cash equivalents plus restricted cash were $225.1 million, with $290.0 million available under a committed revolving credit facility and total debt of $477.7 million.

On October 29, 2026, Green Plains executed an agreement to monetize $250 million to $325 million of 2026 45Z production tax credits. Chief Executive Officer Chris Osowski said the monetization agreement provided greater visibility into converting that value into cash. Chief Financial Officer Ann Reis said the company’s cash position and free cash flow allow it to explore a variety of options, with standards for deploying capital unchanged.