Awesome. [music] It is really a superc califragilistic espialadidocious time to be standing in front of you today. So, good morning everyone.Are we good. Are we enjoying the conversations. Good.Cuz I've got exams for you. I'm not wasting this particular story. Get your pens and paper ready because we are going to do a bit of mindset shifting.Before we do that, I want to set the scene for you. Picture this. You are walking in the wonderful streets of Lasiddi, Lagos, Nigeria, or it's an afternoon drive in Kin ...

Group 1 - CNH's New Holland brand is advancing sustainable farming with the T7 Methane Power tractor, which is designed for farmers to adopt alternative fuel solutions [3][4] - The T7 Methane Power tractor features a gas tank capacity of 657 liters (173 gallons US), allowing it to operate for a full eight-hour silage shift [4] - Biogas is becoming increasingly popular in the agricultural sector, with CNH investing in Bennamann, a UK start-up that provides on-farm fueling stations and micro-digesters for converting cattle manure into fuel [5] Group 2 - CNH Industrial is a global leader in equipment, technology, and services, focusing on innovation, sustainability, and productivity [6] - The company has a diverse portfolio of brands, including Case IH, New Holland, STEYR, Raven, and others, providing a wide range of agricultural and construction solutions [6][7] - CNH has a history of over two centuries as a pioneer in its sectors, with a workforce of over 35,000 employees dedicated to empowering customers [7]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $20.1 million, over 30% higher compared to the same period last year [7] - Revenue for the quarter was $85.4 million, compared to $64.9 million in Q1 2024 [13] - Net income increased to $1.3 million from $0.7 million in Q1 2024 [13] Business Segment Data and Key Metrics Changes - Fuel Station Services segment EBITDA was approximately $12.5 million, 80% higher versus Q1 2024 [7] - RNG fuel production for the quarter was 1.1 million MMBtus, up nearly 40% compared to the same period last year [8] - The company maintains its 2025 RNG production guidance of 5 million to 5.4 million MMBtus, representing a 37% increase versus 2024 [11] Market Data and Key Metrics Changes - The company is experiencing delays in investment decisions from customers due to recent trade policy uncertainties, but does not expect a material impact on guidance [9] - The regulatory outlook is shifting positively for RNG CNG powered heavy-duty trucking, which could expand adoption [10] Company Strategy and Development Direction - The company is focused on vertical integration to maximize the value of RNG produced and enhance cash flow stability [8] - There are ongoing construction projects for four landfill RNG projects, with expectations for commercial operations to commence in 2025 [11][12] - The company is maintaining its guidance for Fuel Station Services adjusted EBITDA growth of 30% to 50% versus 2024 [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain macro and regulatory environments but remains confident in long-term growth potential [9][10] - There is strong bipartisan support for American biofuels and investment in RNG, which is expected to bolster future growth [10] - The company is monitoring regulatory developments closely, including the implementation of 45Z and EPA rulings [10] Other Important Information - Capital expenditures for the quarter totaled $17 million, including $5.4 million related to equity method investments [15] - The company expects to monetize approximately $50 million in total ITC sales in 2025, enhancing operating cash flow [16] Q&A Session Summary Question: Production trajectory for the year - Management indicated that production was affected by an unusually cold winter and availability issues but expects sequential growth through the year [22][24] Question: Impact of tariffs on construction projects - Management stated that there are currently no cost increases due to tariffs, as equipment has already been ordered under fixed-price contracts [25][26] Question: RIN pricing and future expectations - The average realized RIN price was about $271 in Q1, with expectations for a lower price in Q2 [31][32] Question: Growth in Fuel Station Services - Growth is driven by higher volumes from new stations and improved margins due to a tighter dispensing market [33][35] Question: Capital return to shareholders - Management discussed the flexibility in capital deployment, including potential dividends or share buybacks as free cash flow increases [38][40] Question: Renewable power segment performance - The decrease in revenue was attributed to the termination of contracts related to the ISCC pathway [65][66] Question: Tax benefits from ITC credits - The $8 million income tax benefit was from the sale of ITC Section 48 tax credits, which is not included in EBITDA guidance [70][71] Question: Conversion of biofuel power projects to RNG - Management expressed excitement about the potential to accelerate conversion projects based on public policy outcomes [73][74] Question: Concerns about oil prices and natural gas - Management is not overly concerned about short-term oil price fluctuations, believing natural gas will remain cheaper than oil [76][78]