Preliminary Verbio Results Disappoint Investors: Verbio Misses 2024/25 EBITDA Target Significantly – Impairments Weigh on Earnings – Stock Plummets

Leipzig (Germany) – Verbio has published preliminary financial figures for the fiscal year 2024/2025, reporting an EBITDA of around €14 million, significantly missing the most recently communicated forecast. The stock plunged.

The Verbio management board had expected an EBITDA in the mid-double-digit million range and had narrowed this down to the lower end of the range with the publication of the 9-month figures. Excluding special effects, the preliminary EBITDA amounts to around €31 million. The special effects mainly include write-downs of inventory assets caused by the absence of a short-term recovery in greenhouse gas (GHG) quota prices.

In addition, a non-cash impairment charge of approximately €66 million was recognized on long-term assets, primarily related to the straw biomethane plant in Iowa, USA. According to Verbio, the impairment results from changed market conditions for cellulosic fuels as well as higher-than-planned investment expenditures during the COVID-19 pandemic. However, Verbio emphasizes that biomethane based on stillage is not affected by these disadvantages and benefits from more attractive raw material costs and technological efficiencies.

Net financial debt as of June 30, 2025, stood at approximately €164 million. With a preliminary equity ratio of just under 60% at the fiscal year-end, the balance sheet remains stable, according to Verbio.

At the same time, Verbio expects positive impulses from regulatory developments such as the EU RED III directive. The company also anticipates benefits from the US Inflation Reduction Act, which, despite modified incentive mechanisms, continues to provide tax incentives for biofuels produced in the USA, strengthening the market environment for renewable fuels.

After the publication of the preliminary figures, the market reacted sharply: On August 6, the Verbio share price dropped 14.7 percent to €9.91 (closing price, Stuttgart Stock Exchange). Investors expressed disappointment over the significant forecast miss and high impairment charges.

Source: IWR Online, 08 Aug 2025