Gevo jumps 31% after record quarter swings it to profit
Gevo shares jumped 30.9% to $1.82 on Wednesday after the renewable fuels maker posted record third-quarter revenue of $83 million and swung to a $23 million profit, helped by carbon credit sales.
What happened
Gevo shares jumped 30.9% to $1.82 on Wednesday after the renewable fuels company reported record third-quarter results for 2026. The stock opened at $1.75 and traded as high as $2.08 before closing well above Tuesday's close of $1.39.
Revenue nearly doubled to $83 million from $43 million a year earlier. Net income was $23 million, or $0.09 per share, reversing a net loss of $8 million in the same quarter last year. Adjusted EBITDA, a profit measure that strips out interest, taxes and some other costs, reached a record $44 million, up from $7 million, while gross profit rose to $48 million from $13 million. Operating cash flow was $41 million, and Gevo ended the quarter with $68 million in cash.
- Shares, Wednesday close+30.9% to $1.82
- Revenue, third quarter$83 million, vs $43 million a year earlier
- Net income, third quarter$23 million, vs an $8 million loss
- Adjusted EBITDA, third quarter$44 million, vs $7 million
- 2026 adjusted EBITDA outlookMore than $90 million
Carbon credits did the heavy lifting
Carbon credit sales powered much of the quarter. About $29.4 million of revenue came from sales of Canadian Clean Fuel Regulation credits, most of them generated in 2025 and the first half of 2026. Gevo expects its carbon business to generate more than $50 million of revenue in 2026, and it contracted sales of $70 million of clean-fuel tax credits in October.
Chief Executive Paul Bloom called the quarter the company's strongest to date and said the carbon business is now standing on its own. The company is also nearing completion of a project to lift low-carbon ethanol output to about 75 million gallons a year by the end of 2026, and it produced 19 million gallons in the quarter, up from 17 million a year earlier.
What traders are watching
Gevo raised its outlook along with the results. It now expects 2026 adjusted EBITDA of more than $90 million and 2027 adjusted EBITDA of more than $70 million. About $20 million of the 2026 figure comes from non-recurring banked carbon credits, so the outlook itself flags how much of the quarter may not repeat.
The broader market was strong on the day: the S&P 500 rose 1.31% to 7,619.38 and the Nasdaq Composite gained 1.60% to 25,466.19. The general view on Gevo is split between a real improvement in cash generation and a profit that leaned heavily on one-time credit sales. With the stock at $1.82 and a history of sharp moves in both directions, the next test is whether the underlying fuel and carbon business can keep producing cash once the banked credits run out. This post summarizes reported facts and our view of the risks involved. It is not a forecast and not investment advice.
