Highwater Ethanol Reports Strong Q3 Results, Eyes Expansion Plans

Highwater Ethanol has reported strong results for the first three quarters of fiscal 2026, driven by robust demand for renewable fuels and steady production near 69.7 million gallons per year.

The company's net income for the third quarter, filed on September 11, 2026, was $10.8 million, fueled by operating income and significant revenue from 45Z tax credits tied to 2025 production.

Highwater is investing in a sixth fermenter and a Dryer Exhaust Energy Recovery System, slated to come online in July 2027, which will boost output while lowering natural gas use. The company has also applied for an updated air emissions permit in Minnesota, expected in October 2026, that would allow it to increase capacity to roughly 87 million gallons per year.

Management emphasized the importance of domestic E15 adoption, export growth, and higher ethanol blends to sustain a highly efficient U.S. ethanol industry. The company is also exploring technologies such as sustainable aviation fuel, renewable diesel, carbon capture, and solar power to reduce its carbon intensity and expand its product mix.