This article first appeared on GuruFocus .
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Biodiesel Output:311,000 tonnes in the first half of '25-'26.
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Ethanol Production:307,000 tonnes year-over-year increase.
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Biomethane Production:672 gigawatt hours year-over-year increase.
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Revenue:Increased due to higher production and sales volumes.
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EBITDA:Increased to EUR30.1 million from EUR20.8 million in Q2 last year.
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Operating Cash Flow:EUR35.6 million, a year-to-date swing of EUR21.7 million.
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CapEx:EUR47.8 million, leading to net debt of EUR173 million.
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Equity Ratio:58.2%.
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Biodiesel Segment EBITDA:Increased to EUR24.1 million.
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Bioethanol/Biomethane Segment Revenue:EUR228 million, a new quarterly record.
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Group EBITDA:EUR30.1 million, back in the black at the earnings per share level.
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Net Debt:Decreased from its peak, with positive free cash flow in Q2.
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Guidance:Full year EBITDA expected at the upper end of the high double-digit million euro range.
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Release Date: February 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Verbio SE ( XTER:VBK ) delivered a strong first half of the year, with expectations for full-year EBITDA to reach the upper end of the prior guidance range.
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The company achieved record production volumes in Europe, highlighting strong operational stability.
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Ethanol and biomethane production increased year-over-year, driven by the ramp-up of the Nevada plant and better uptime at the South Bend plant.
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Revenue increased due to higher production and sales volumes, supported by a rise in demand for greenhouse gas quotas.
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The Bioethanol/Biomethane segment reported a positive segment EBITDA for the first time in five quarters, driven by stabilization in the greenhouse gas quota market and attractive ethanol spreads in Europe.
Negative Points
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Biodiesel output was slightly below the level of the same period last year, with production in Canada deliberately scaled back due to regulatory changes.
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Material costs were well above the level of the same period last year, although the increase was disproportionately lower compared to revenue growth.
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Net debt increased to EUR173 million due to strategic investments, although it decreased from its peak in Q1.
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The company faced regulatory noise and uncertainties, particularly regarding the greenhouse gas quota system and potential changes in quota levels.
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The Nevada plant faced challenges due to extreme weather conditions, impacting production during January.
Q & A Highlights
Q: Can you provide clarity on the guidance and whether EUR30 million per quarter is a realistic run rate for the rest of the year? A: Claus Sauter, CEO, explained that while the first half of the year was strong, there are still regulatory uncertainties. The guidance remains cautious and realistic, with potential for an upward revision by the end of Q3 if conditions improve.
Q: What is the current status of the Nevada plant ramp-up and its utilization rates? A: Claus Sauter, CEO, stated that the Nevada plant achieved record production in December. Despite a temporary halt in January due to extreme weather and high natural gas prices, the plant is on track for full utilization in Q4, with previous utilization rates reaching 83-85%.
Q: What are the implications of potential increases in the German THG quota from 16% to possibly 17.5% or 18%? A: Claus Sauter, CEO, indicated that an increase in the quota would require additional CO2 savings, potentially absorbing frozen volumes from 2024. He expressed confidence that a higher quota is likely, which would positively impact the market.
Q: How much of the recovery in bioethanol/biomethane was driven by spot contracts versus spread improvements? A: Claus Sauter, CEO, noted that the majority of the recovery was driven by better ethanol prices, with a smaller contribution from CO2 savings. The unusual price acceleration in November and December was due to market adjustments ahead of regulatory changes.
Q: What is the expected contribution from the ethenolysis plant, and at what EBITDA level would you consider increasing biomethane production? A: Claus Sauter, CEO, explained that the ethenolysis plant will start in the next business year, but significant contributions are not expected immediately as the market develops. Regarding biomethane, no new investments are planned until regulatory measures against fraud prove effective.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
