Financial Data and Key Metrics Changes - The net income per share for Q3 2025 was $0.71, an increase from $0.69 in Q3 2024, reflecting strong performance despite lower prices for ethanol and distillers grains [11] - Gross profit for Q3 2025 was $36.1 million, down from $39.7 million in Q3 2024, primarily due to lower prices [11] - Cash, cash equivalents, and short-term investments totaled approximately $335 million, maintaining a strong financial position with no bank debt [5][11] Business Line Data and Key Metrics Changes - Ethanol sales volumes reached 78.4 million gallons in Q3 2025, up from 75.5 million gallons in Q3 2024, while the average selling price decreased to $1.73 per gallon from $1.83 [10] - Dried distillers grains sales volumes were approximately 160,000 tons, with an average selling price of $139.93 per ton, down from 170,000 tons and $147.14 per ton in the prior year [10] - Corn oil sales volumes increased by approximately 17% to 27.4 million pounds, with an average selling price rising by approximately 36%, leading to a 60% increase in sales revenue for corn oil [10] Market Data and Key Metrics Changes - U.S. ethanol exports were approximately 10% ahead of the 2024 pace, with exports 14% higher than the first eight months of 2024 [13] - The USDA projects that corn production in South Dakota and Illinois for the 2025-2026 harvest season will be among the highest in recent years, favoring lower input prices [13] Company Strategy and Development Direction - The company is focused on solidifying its core business of ethanol production and expanding its One Earth Energy facility to 200 million gallons per year, expected to be completed in 2026 [4][5] - REX is actively engaged in evaluating potential benefits from the 45Z tax credits and is working on its carbon intensity score to qualify for these credits [5][12] - The company aims to leverage near-term opportunities provided by the 45Z tax credit program to enhance earnings as its ethanol production expansion and carbon sequestration facilities come online [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, expecting to generate a higher net profit than the previous year's fourth quarter [14] - The company anticipates continued growth and improved performance in 2026, supported by a strong balance sheet and expanding business opportunities [14] - Management highlighted the importance of operational excellence and strategic investments in driving superior results [5][12] Other Important Information - The company has invested approximately $155.8 million in carbon capture and ethanol expansion projects, remaining within a combined budget range of $220 million to $230 million for both initiatives [8][9] - REX has maintained profitability for 21 consecutive quarters, reflecting the team's discipline and operational excellence [12] Q&A Session Summary Question: Thoughts on key hurdles and timing for the 45Z tax credit program - Management is awaiting guidelines from the Treasury and is reviewing facts with experts to determine potential tax credits, with updates expected next quarter [17] Question: Impact of tariffs and crush spreads on the industry - Management noted that tariffs initially impacted exports but have led to increased ethanol exports to Europe and other countries, with expectations for continued growth in 2026 [19][20] Question: Status of the carbon sequestration project and permitting process - Management indicated that the Illinois Commerce Commission is working on pipeline requirements, and the moratorium will end on July 1, allowing applications to proceed [21][22] Question: Potential for partnerships in carbon capture - Management is focusing on the first well's operation before negotiating contracts for carbon sequestration with third parties [30]

Financial Data and Key Metrics Changes - The company reported net income of $20 million, or $0.59 per diluted share, and adjusted net income of $29 million, or $0.84 per diluted share for Q3 2025, compared to adjusted net income of $25 million, or $0.72 per diluted share in Q3 2024 [8] - Revenues increased slightly due to the addition of Skyland, despite lower overall commodity prices [8] - Adjusted EBITDA for Q3 was $78 million, down from $97 million in 2024 [9] Business Line Data and Key Metrics Changes - Agribusiness segment reported adjusted pre-tax income of $2 million, down from $19 million in Q3 2024, with adjusted EBITDA of $29 million compared to $45 million in 2024 [11][12] - Renewables segment generated adjusted pre-tax income of $46 million, up from $26 million in Q3 2024, with adjusted EBITDA of $67 million compared to $63 million last year [13][14] Market Data and Key Metrics Changes - The egg cycle remains in a trough due to abundant domestic supply and trade policy uncertainty, impacting export trade flows for some commodities [6] - Fertilizer business saw improved margins and volume in a typically quiet quarter, indicating potential for better results in the next planting season [12][44] Company Strategy and Development Direction - The company is focused on strategic growth in renewable fuels and agribusiness, with investments in facility expansions and improvements [4][5] - Plans include two significant long-term construction projects expected to be operational in 2026, including soybean meal export capacity and a mineral processing plant [5] - The company is evaluating additional capital investments and M&A opportunities due to current economic pressures [6][11] Management's Comments on Operating Environment and Future Outlook - Management expects a reduction in corn prices as harvest progresses and anticipates record production across the grain belt despite lower yield expectations [15][17] - Clarity on trade policy is expected to improve merchandising and sales opportunities, with a focus on integrating agribusiness segments and optimizing the portfolio [18] - The company aims to reach a run rate EPS of $4.30 by 2026, driven by improved agribusiness results and increased ethanol plant ownership [19] Other Important Information - The company generated cash flow from operations of $68 million in Q3 2025, down from $86 million in Q3 2024, with a cash balance of $82 million at the end of the quarter [9][10] - Capital spending for Q3 was $67 million, with expectations of approximately $200 million for the year, primarily for growth projects [10] Q&A Session Summary Question: Insights on 45Z tax credits and future expectations - Management expects a $10-$15 million EBITDA benefit from 45Z tax credits for Q4 2025, with further guidance on 2026 to be provided at the investor day [22][23] Question: Impact of trade policy clarity on agribusiness - Management indicated that clarity on trade policy could lead to immediate benefits, particularly in sorghum exports, but guidance on earnings normalization cannot be provided until purchases are confirmed [24][26] Question: Ethanol demand and margin outlook - Management noted that while board crush margins have decreased, the overall ethanol margins may not necessarily be down due to regional variations and reduced corn basis levels [30][33] Question: Future M&A opportunities - Management emphasized a disciplined approach to capital allocation and indicated that expected cash flows from tax credits may allow for larger M&A projects in the future [34][35] Question: Fertilizer business outlook - Management reported improved volumes and margins in the fertilizer business, with cautious optimism from farmers regarding input spending for the next marketing year [43][44]

Summary of Alto Ingredients Conference Call - October 21, 2025 Company Overview - **Company**: Alto Ingredients (NasdaqCM:ALTO) - **Industry**: Renewable fuels, ethanol production, and related products Key Points and Arguments Company Evolution and Strategy - Alto Ingredients began as a small ethanol brokering firm 25 years ago and evolved into a renewable fuel ethanol producer with multiple plants on the West Coast [5][6] - The company faced challenges due to increased corn costs, leading to the sale of two California facilities and idling the Burley, Idaho plant [6][8] - A shift towards high protein and corn oil expansion technology was initiated, but market conditions led to idling the facility [7][9] - The acquisition of a liquid CO2 processing facility has stabilized earnings and contributed positively to the portfolio [10][12] Diversification and Product Portfolio - Alto Ingredients diversified its operations by acquiring plants in the Midwest, allowing entry into various markets such as industrial, pharmaceutical, and beverage [11][12] - The PEAKIN campus includes facilities capable of producing renewable fuels, high-quality alcohols, and various protein products, enhancing product mix and market flexibility [12][13] - The company rebranded in 2021 to reflect its broader product offerings beyond ethanol [13] Financial Performance and Cost Management - The company has focused on improving profitability by reducing expenses, including an $8 million annual reduction through staffing adjustments [14] - Integration of Eagle Alcohol's distribution center with Kennergy marketing segment has eliminated redundancies and improved customer service [15] Growth Opportunities - CO2 utilization is a significant growth opportunity, with the Columbia facility capable of processing 170,000 tons of CO2 annually [16][17] - Regulatory changes, such as the 45Z tax credits, are expected to enhance profitability, with potential earnings of $4 million to $8 million from the Columbia facility starting in 2025 [22][23] - The shift to E15 blends could increase demand for ethanol by 50%, providing a substantial market opportunity [25][26] Regulatory Environment - Positive regulatory changes, including support for E15 and 45Z credits, are seen as tailwinds for the industry [21][25] - The company is assessing the impact of recent regulations on carbon capture projects, particularly in Illinois [20][30] Market Dynamics - The demand for CO2 is increasing, particularly in the beverage sector, with limited competition in the West Coast market [31] - The company is exploring opportunities to maximize the value of its CO2 production through investments in capture and compression equipment [18][19] Additional Important Information - The company has shifted production focus from renewable fuels to high-quality alcohols, which currently yield higher margins [29] - Alto Ingredients is dedicated to operational excellence and strategic diversification to capture market opportunities [29] This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, financial performance, growth opportunities, and the regulatory landscape affecting its operations.

Core Viewpoint - Palm oil futures have shown a bullish trend, with the main contract reaching a peak of 8522.00 yuan and closing at 8482.00 yuan, reflecting a 1.27% increase [1]. Group 1: Market Analysis - Hualian Futures suggests a support level for palm oil at around 7800 yuan [2]. - Zhonghui Futures anticipates that palm oil will mainly operate below previous highs in the near term [3]. - Ningzheng Futures recommends a low-position buying strategy for palm oil due to reduced production and increased exports in June [4]. Group 2: Supply and Demand Dynamics - SPPOMA data indicates a 0.65% month-on-month decrease in Malaysian palm oil production from June 1 to June 30, while exports have slightly increased, alleviating inventory pressure [2]. - The recent U.S. Senate decision to restrict tax credits for biofuels produced from non-North American materials is expected to positively impact soybean oil prices, indirectly affecting palm oil [2]. - The domestic market is experiencing a supply surplus of palm oil, leading to weak demand, as indicated by the ongoing inversion in the price difference between soybean and palm oil [4].