Verbio SE, the German biofuels producer, reported fourth-quarter earnings that significantly outpaced a year-ago loss, yet its shares slid 0.8% to $338 in premarket trading on Thursday following full-year outlook that fell short of some analyst projections.
Group EBITDA in the quarter ended June 30 reached EUR 88.2 million, a sharp rebound from a EUR 8 million loss in the same period last year, Chief Financial Officer Olaf Tröber said. For the full fiscal year, Group EBITDA came in at EUR 193.9 million, while quarterly EBITDA climbed steadily from EUR 15.4 million in the first quarter to EUR 88.2 million in the fourth.
The bioethanol and biomethane segment drove much of the improvement, posting EBITDA of EUR 55 million, up from a EUR 26 million loss a year earlier and a EUR 34 million figure in the third quarter. Revenue in that division reached EUR 243 million, up from EUR 236 million in Q3, though the company noted an approximately EUR 19 million inventory impairment reversal contributed to the result. Biodiesel operations also accelerated: production rose to 172,000 tons from 145,000 tons, and segment EBITDA more than doubled to EUR 32 million from EUR 18 million in Q3, with revenue climbing to EUR 280 million from EUR 202 million. Biomethane output hit a record exceeding 370 gigawatt hours.
On the balance sheet, Verbio reported operating cash flow of EUR 164.6 million and free cash flow of EUR 78 million. Net debt declined to EUR 91.5 million, while the equity ratio stood at 59.7% and return on capital employed recovered to roughly 12%. The company also recorded a carbon handprint of 4.7 million tons, a new high.
Looking ahead, Verbio guided for full-year Group EBITDA of EUR 210 million to EUR 250 million for the fiscal year ending June 2027, a range below the consensus estimate of EUR 283 million that helped weigh on the stock. Tröber said the increase would be driven primarily by the bioethanol and biomethane segment. The company also expects GHG quota pricing for calendar year 2027 to settle at EUR 420 to EUR 440 per ton, down from current financial-year levels above EUR 500 per ton that management referenced during the earnings call.
Verbio, which maintains a dividend yield of 0.45% and has paid dividends for 23 consecutive years, carries a market capitalization of $45.7 billion and a P/E ratio of 25.33. The stock is trading about 8.4% below its 52-week high of $367.04.
CEO Claus Sauter said the financial year developed more positively than originally anticipated and that the regulatory environment moved in the right direction, referencing European Union RED III mandates and U.S. 45Z tax credits as supportive tailwinds for the sector.
