NASDAQ$GEVO

Gevo Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Gevo reported financial results for the third quarter of 2024.

Gevo's combined revenue and interest and investment income for the third quarter of 2024 was $5.8 million. The company ended the quarter with $292.9 million in cash, cash equivalents, and restricted cash. Gevo also secured a conditional commitment for a $1.6 billion loan guarantee from the DOE for its NZ1 project and acquired CultivateAI.

  • Gevo received conditional commitment for a $1.6 billion loan guarantee from the DOE for the NZ1 project.
  • Gevo entered into a definitive agreement to acquire Red Trail Energy's ethanol production and carbon capture assets.
  • Gevo acquired CultivateAI to enhance its Verity business unit with drone and satellite-based imaging for agricultural intelligence.
  • Gevo announced the sale of Investment Tax Credits, monetizing Inflation Reduction Act credits from its renewable natural gas facility.

Headline financials

Total Revenue

$1.97M

Previous: $4.53M-56.6%
EPS

-$0.09

Previous: -$0.07-28.6%
Adjusted EBITDA

-$16.7M

No prior period
Total Cash Balance

$293M

No prior period
Capital Expenditures

-$36.5M

Previous: -$61.4M+40.6%
Free Cash Flow

-$57.6M

Previous: -$77.1M+25.3%
Net Income

-$21.2M

Previous: -$15.7M-34.8%
Operating Income

-$24M

Previous: -$20.7M-15.8%
Gross Profit

$1.27M

Previous: -$2.95M+143.2%
Cash & Equivalents

$223M

Previous: $324M-31.0%
Total Assets

$604M

Previous: $670M-9.8%
R&D Expense

$1.11M

Previous: $1.56M-28.6%
Stock-Based Comp

$3.79M

Previous: $4.13M-8.4%

Revenue & EPS history

Gevo · Revenue · Quarterly

$1.97M

Q3 2024-56.6%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Gevo is well-positioned to achieve positive Adjusted EBITDA in 2025, driven by the acquisition of Red Trail Energy assets, Verity, and expected near-term RNG growth.

Tailwinds

  • Securing the DOE's $1.6 billion loan guarantee conditional commitment is a transformative milestone for Gevo and our Net-Zero 1 project.
  • Reaching the DOE commitment illustrates Gevo’s pioneering ability to develop and reduce the risk of a financially attractive, large-scale, net-zero SAF production facility.
  • Acquisition of the Red Trail Energy assets combined with Verity and expected near term RNG growth, we believe that we are well-positioned to achieve positive Adjusted EBITDA in 2025.
  • Investments are strategically positioning Gevo for long-term growth in new industries that need low-carbon products.
  • Managing cash and capital expenditures to execute from a position of financial strength.

Headwinds

  • Operating revenue decreased $2.6 million compared to the three months ended September 30, 2023, primarily due to lower sales of environmental attributes from our RNG project.
  • This is due to a buildup of environmental attribute inventory in anticipation of receiving the final pathway approval under the LCFS Program, which we expect to result in a lower CI score.
  • Loss from operations increased $3.3 million during the three months ended September 30, 2024, compared to the three months ended September 30, 2023, primarily due to the increase in costs for our Net-Zero and Verity projects.
  • Interest and investment income decreased $1.4 million during the three months ended September 30, 2024, compared to the three months ended September 30, 2023, primarily due to the usage of cash for our capital projects and operating costs, resulting in a lower balance of cash equivalent investments during the three months ended September 30, 2024.
  • On a standalone basis, our RNG subsidiary generated standalone GAAP loss from operations of $2.8 million, and non-GAAP adjusted EBITDA loss2 of $1.2 million for the third quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-4.0%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-1.1%

Avg return

30 days after

26%

16 / 61 earnings

Positive

+34.5%

Q1 2016

Best reaction

-43.5%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-16.6%-21.0%
Q4 2025+13.2%+21.7%+21.7%
Q3 2025-1.0%-7.1%+12.7%
Q1 2025-6.6%-4.8%+3.2%
Q4 2024-9.5%-10.3%-5.6%
Q3 2024-7.6%-4.7%-9.9%
Q2 2024+5.2%+29.4%+43.1%
Q1 2024-5.0%+7.2%-1.4%
Q4 2023-0.7%-10.0%-6.3%
Q3 2023+9.1%+11.8%+10.0%
Q2 2023-3.6%-9.1%-20.0%
Q1 2023-8.1%+0.0%+26.0%
Q4 2022-1.7%+4.0%-26.6%
Q3 2022-21.0%+5.2%-20.1%
Q2 2022+3.1%+14.1%-20.2%
Q1 2022-17.0%-5.8%-18.8%
Q4 2021+4.3%+18.5%+60.1%
Q3 2021-0.1%-2.3%-27.4%
Q2 2021-9.7%-9.7%+19.5%
Q1 2021+17.5%+36.7%+66.5%
Q4 2020-7.8%+9.3%-31.2%
Q3 2020-3.8%-5.7%+64.2%
Q2 2020-3.4%-3.4%+55.2%
Q1 2020-2.8%-1.9%+7.5%
Q4 2019-10.9%-13.9%-16.8%
Q3 2019-3.6%-1.2%-5.2%
Q2 2019-2.4%+2.8%+33.9%
Q1 2019+0.5%-9.8%-12.6%
Q4 2018+0.5%+4.1%+1.8%
Q3 2018+0.0%-0.9%-14.1%
Q2 2018-12.2%-18.3%+6.1%
Q1 2018-8.3%-2.8%-52.4%
Q4 2017-9.8%-13.7%-29.4%
Q3 2017-10.1%-8.7%-11.6%
Q2 2017-3.2%-1.6%+0.0%
Q1 2017-5.0%-3.0%-38.6%
Q4 2016-6.2%-1.8%-7.1%
Q3 2016-10.3%-20.5%-41.0%
Q2 2016-36.3%-32.5%-37.5%
Q1 2016+34.5%
Q4 2015-43.5%
Q3 2015-13.2%
Q2 2015-11.8%
Q1 2015-2.2%
Q4 2014+0.0%
Q3 2014+18.2%
Q2 2014-4.0%
Q1 2014-3.9%
Q4 2013-7.9%
Q3 2013-23.3%
Q2 2013-10.3%
Q1 2013-7.3%
Q4 2012-13.3%
Q3 2012+3.0%
Q2 2012+1.4%
Q1 2012-8.7%
Q4 2011+8.0%
Q3 2011+10.2%
Q2 2011-1.9%
Q1 2011+0.8%
Q4 2010+7.1%
Q3 2010
Q2 2010
Q1 2010

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