Verbio SE: Strong operating cash flow underlines the quality of earnings in the financial year 2025/26

Strong operating cash flow underlines the quality of earnings in the financial year 2025/26

• A turnaround in results has been achieved: EBITDA increased to EUR 193.9 million
• Positive free cash flow and falling net financial debt
• Outlook for 2026/27: EBITDA of EUR 210–250 million expected

Leipzig, September 24, 2026 – Verbio has successfully turned its results around in the financial year 2025/26. Overall, business performance was more positive than originally expected. In addition to the rigorous implementation of operational improvements, Verbio has benefited from structural progress in the regulatory environment and rising demand for renewable fuels.

Group revenue for the financial year 2025/26 increased compared with the previous year to EUR 1,872.7 million (2024/25: EUR 1,579.8 million). In addition to the recovery in the greenhouse gas quota market, Verbio benefited from higher selling prices across its product portfolio, as well as increased sales volumes of bioethanol and biomethane. At the same time, the Group set new production records.

EBITDA was EUR 193.9 million in the financial year 2025/26 (2024/25: EUR 14.2 million), in line with the provisional result of around EUR 192.0 million. The increase was primarily due to improved development in the Bioethanol/Biomethane segment. Significant drivers included the normalisation of the GHG quota market, improved market spreads^[1] in the bioethanol business, and the higher capacity utilisation at production plants in North America. In addition, the Biodiesel segment made a higher contribution to profit. The reversal of impairment losses on inventories of GHG quotas amounting to EUR 19.1 million, as well as higher contributions from commodity forward contracts, also had a positive effect. Further, there was no recurrence of the negative one-off effects recognised in the previous year.

Earnings before taxes and interest (EBIT) totalled EUR 128.2 million (2024/25: EUR -118.2 million). The year-on-year increase is attributable not only to the improved operating performance but also to the impairment losses on assets recognised in the financial year 2024/25. The net result for the period amounted to EUR 63.9 million (2024/25: EUR -137.9 million). Lower interest expenses following the repayment of financial liabilities had a positive impact on the financial result. Based on the result for the period, basic earnings and diluted earnings per share were EUR 1.00 (2024/25: EUR -2.17/EUR -2.16) with a return to positive earnings per share.

The significant improvement in operating cash flows to EUR 164.6 million (2024/25: EUR 13.9 million) primarily reflected the Group’s higher profitability. In the same period cash outflows for investments totalled EUR 86.6 million (2024/25: EUR 133.0 million), which related in particular to the expansion of the bio-based speciality chemicals business in Europe as well as the production plant in South Bend (Indiana, USA). As a result, free cash flow rose to EUR 78.0 million (2024/25: EUR -119.1 million).

The strong cash generation contributed to a reduction in net financial debt to EUR 91.5 million at the balance sheet date (June 30, 2025: EUR 164.0 million). The equity ratio improved to 59.7 percent (June 30, 2025: 58.2 percent) and underlines Verbio’s continued high level of financial stability.

In light of the successful turnaround in results and the significantly improved financial position, the Management and Supervisory Boards will propose to the annual general meeting that a dividend of EUR 0.20 per share be paid for the financial year 2025/26.

A strong final quarter leads to a significantly higher increase in earnings for the financial year 2025/26

Verbio generated revenues of EUR 531.9 million in the fourth quarter (Q3 2025/26: EUR 447.1 million; Q4 2024/25: EUR 433.4 million). As a result EBITDA was EUR 88.2 million (Q3 2025/26: EUR 60.2 million; Q4 2024/25: EUR -8.2 million).

In the Biodiesel segment production in Europe reached a new record high in the fourth quarter of 2025/26, and confirmed the strong operational strength of the segment. Bolstered by higher production volumes in Canada, total production rose significantly compared with the same quarter of the previous year and the previous quarter.

Revenue increased in the fourth quarter to EUR 280.4 million, from EUR 202.7 million in Q3 2025/26 and EUR 244.4 million in Q4 2024/25. The primary factors behind this were a significant rise in sales volumes as well as higher biodiesel selling prices. Sales volumes benefited in particular from the increased demand for biodiesel in Europe following the implementation of RED III. At the same time Verbio was able to meet the increased demand, while some of its competitors faced logistical constraints due to low water levels on the Rhine. Taking account of changes in inventory of work in progress and finished goods, the gross margin was significantly higher compared to the same quarter of the previous year and the previous quarter. In Europe, Verbio was able to increase earnings despite a decline in the market spread^[1] compared with the same quarter of the previous year. Significant drivers were favourable rapeseed oil purchases and higher GHG quota prices. In addition, higher revenue from by-products compared to the same quarter of the previous year contributed to the improvement in margins. In North America, higher capacity utilisation, increased sales volumes and improved CO₂ efficiency also led to an improvement in margins.

In line with the development in the gross margin, Verbio increased EBITDA in the segment to EUR 32.8 million, compared with EUR 20.8 million in the same quarter of the previous year and EUR 18.5 million in the previous quarter.

In the Bioethanol/Biomethane segment, production volumes in the fourth quarter of 2025/26 were almost on a par with the same quarter of the previous year and were higher than in the previous quarter. A significant driver was the higher level of production in North America. In Europe, production remained below the previous year’s level as a result of the biological disruption to fermentation processes that occurred in the previous quarter, but there was a recovery compared with the previous quarter.

Revenue increased to EUR 243.5 million in Q4 2025/26, from EUR 236.3 million in Q3 2025/26 and EUR 186.1 million in Q4 2024/25. Compared with the previous year, the segment benefited in particular from higher selling prices for bioethanol and GHG quotas as well as higher capacity utilisation at its North American production plants. Compared with the previous quarter, there was support from higher sales prices and volumes for bioethanol. Despite the higher price of GHG quotas, revenue from the GHG quotas business in Europe was lower than in the previous quarter, which was strong in line with the seasonal trend.

Taking account of changes in inventory of work in progress and finished goods, the gross margin was significantly higher compared to the same quarter in the previous year and the previous quarter. The key factors behind this were improved market spreads^[1] in Europe and North America and the higher capacity utilisation at the production plants in North America and India. In addition, earnings compared to the previous year benefited from a positive contribution from the GHG quota business. Furthermore, the reversal of impairment write-downs recognised against inventories of GHG quotas in the corresponding quarter of the previous year had a positive impact on the result. Even without this effect, operating profit showed an improvement compared with the same quarter of the previous year and the previous quarter.

In accordance with the development in the gross margin, EBITDA in the segment improved to EUR 55.0 million, compared with EUR -26.3 million in the same quarter of the previous year and EUR 34.2 million in the previous quarter.

In the Other segment, Verbio generated revenues from transport and logistics services of EUR 12.2 million in the fourth quarter of 2025/26 (Q3 2025/26: EUR 12.3 million; Q4 2024/25: EUR 8.0 million). Taking into account trading activities the Other segment reported an EBITDA of EUR 0.3 million (Q3 2025/26: EUR 7.6 million; Q4 2024/25: EUR -2.7 million). The result on commodity forward contracts amounted to EUR 8.2 million; the majority of this represented realised amounts.

Consistently driving forward the expansion of value creation

In the financial year 2025/26, Verbio further strengthened the Group’s competitiveness through targeted efficiency measures and strategic investments. In addition to opening up opportunities to improve CO₂ efficiency, further optimisation measures have been implemented across the existing production processes. Adjusted for the changes in calculation methodology made during the current financial year (see H1 2025/26), the CO₂ handprint of Verbio’s products rose to 4.7 million tonnes of CO₂, reflecting the Group’s higher value added as well as its increased production and sales volumes. At the same time, the ethenolysis plant in Bitterfeld is currently being commissioned. The planned start of production in the coming weeks marks an important step towards diversifying value creation and tapping into new sales markets for renewable products.

Outlook for 2026/27: further growth expected

For the financial year 2026/27 the Management Board expects the Group’s EBITDA to be between EUR 210 million and EUR 250 million, which is higher than in the financial year 2025/26. The expected increase in Group EBITDA is primarily due to the higher contribution to earnings from the Bioethanol/Biomethane segment. This is driven in particular by higher production volumes in North America, rising biomethane production and additional contributions to earnings from the GHG quotas business.

The positive trend in earnings, as well as lower capital expenditure compared with the previous year, is expected to contribute to a further significant reduction in net financial debt. The investments include, among other things, the further refurbishment of the plant in South Bend, which will see the existing ethanol production gradually expanded to include the production of biogas and, in the long term, biomethane.

After more than a decade of political reticence, biomass is experiencing a renaissance. It is seen as part of the solution to energy security, price stability and climate change mitigation. This benefits the bioeconomy markets.

“Verbio’s position today is significantly better than it was twelve months ago. We have decreased our debt levels, improved the efficiency of our production plants and benefited from changes to the regulatory framework conditions. Our aim remains to be among the best in our markets. That is why we will continue to work with a high degree of discipline and consistently further strengthen our competitiveness,” said Claus Sauter, Chief Executive Officer of Verbio.

Verbio key figures

(EUR millions)	FY 24/25	FY 25/26	yoy	Q3 25/26	Q4 25/26	qoq
Production
Biodiesel (tonnes)[2]	619,250	626,918	1.2 %	145,208	172,412	18.7 %
Bioethanol (tonnes)	582,610	590,884	1.4 %	124,149	159,889	28.8 %
Biomethane (MWh)[2]	1,190,339	1,410,312	18.5 %	365,932	370,194	1.2 %
Revenue	1,579.8	1,872.7	18.5 %	447.1	531.9	19.0 %
Segment Biodiesel	894.2	951.0	6.4 %	202.7	280.4	38.3 %
Segment Bioethanol	672.1	899.0	33.8 %	236.3	243.5	3.0 %
Segment Other	35.1	40.0	14.0 %	12.3	12.2	-1.0 %
EBITDA	14.2	193.9	1,262.0 %	60.2	88.2	46.4 %
Segment Biodiesel	89.6	98.0	9.4 %	18.5	32.8	77.7 %
Segment Bioethanol	-77.2	85.5	n.a.	34.2	55.0	60.8 %
Segment Other	1.8	10.4	475.5 %	7.6	0.3	-95.6 %

(EUR millions)	30.06.2025	30.06.2026	+/-
Net debt	164.0	91.5	-44.2 %
Equity ratio	58.2 %	59.7 %	1.5 pp

Detailed information on business developments in the financial year 2025/26 is provided in the annual report for the period ended June 30, 2026, which can be viewed from 8.30 a.m. (CEST) on September 24, 2026 on Verbio’s website at www.verbio.de/en/financial-reports/.

About Verbio

At Verbio we make more from biomass. In Europe, North America and Asia we process locally available biomass into sustainable fuels and bio-based products for the chemical and industrial sectors. Our motto, “Pioneering green solutions”, sums up what drives our international team: we develop innovative technologies and turn them into commercially viable industrial solutions. Sustainability is a key component of our business model. Our biorefinery concept is therefore centred on the systematic multiple use of biomass.

As a leading bioeconomy company, we supply renewable molecules needed to replace fossil raw materials as part of the transition towards meeting climate targets. The use of regional biomass strengthens independence from global supply chains, creates added value in rural areas, and supports a secure and cost-effective supply of energy and raw materials.

Verbio shares (ISIN DE000A0JL9W6/WKN A0JL9W) have been listed in the Prime Standard segment of the Frankfurt Stock Exchange since October 2006. Our headquarters are in Zörbig, Germany.

 

www.verbio.de | www.verbiogas.de | www.strohklug.de | www.verbiolifechemicals.com
Facebook & Instagram: @verbio.se | LinkedIn: @verbio-se | LinkedIn: @claussauter

Important notice

This publication contains forward-looking statements that are based on current assumptions and estimates made by the management of Verbio SE. Although the Company’s management is of the opinion that these assumptions and estimates are realistic, actual future developments and actual future results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include, among other things, changes in the financial and asset situation, the development or performance of the company, the legal and regulatory framework in Germany and the EU, and changes in the industry. Verbio neither intends nor assumes any separate obligation to update, revise or adapt forward-looking statements to take account of future events or developments.

^[1] The market spread is the difference between the spot price of the biofuel finished product and the spot prices of the primary raw materials used, expressed per tonne of biofuel.

^[2] Amounts reported for previous quarters have been adjusted to reflect current data.

Contact:
Verbio SE
Ritterstraße 23 (Oelßner’s Hof)
04109 Leipzig
Alina Köhler (IR)
Ulrike Kurze (PR)
+49(0)341/308530-299
E-Mail: ir@verbio.de/pr@verbio.de