Financial Data and Key Metrics Changes - Earnings for Q4 2025 were $21 million, a $63 million improvement compared to Q4 2024. For the full year 2025, earnings were $12 million, a $72 million improvement [7][15] - Adjusted EBITDA for Q4 2025 was $28 million, a $36 million positive swing from last year. For 2025, adjusted EBITDA grew to $45 million, a $53 million improvement compared to 2024 [7][16] - Net sales for Q4 2025 were $232 million, $4 million lower than the prior year, reflecting a reduction in volume sold of 10.6 million gallons [10] Business Line Data and Key Metrics Changes - The Western production segment benefited from the Carbonic acquisition, contributing $1.4 million during Q4 2025 [12] - The average sales price per gallon increased to $2.10 from $1.88 per gallon, partially offsetting the reduction in volume sold [10] - Gross profit for Q4 2025 was $15.2 million, a significant increase of $16.6 million compared to Q4 2024's gross loss of $1.4 million [11] Market Data and Key Metrics Changes - The company expects to qualify approximately 90 million gallons of combined production on an annual basis for 45Z credits at its Columbia and Pekin dry mill facilities [8] - Renewable fuel export sales at premiums to domestic sales contributed $5 million on a higher volume and higher average sales price per gallon [11] Company Strategy and Development Direction - The company aims to focus on opportunities within its control to maximize earnings, including adjusting staffing and investing in plant efficiency [5][6] - Plans for 2026 include elevating capital expenditures to roughly $25 million while maintaining strong cost discipline and prioritizing high ROI projects [17][18] - The company is exploring large-scale CO2 utilization and sequestration opportunities at its Pekin campus [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with a leaner cost structure and a higher mix of premium exports and carbon advantage volumes [19] - The first quarter is expected to be seasonally challenging due to extreme cold weather disrupting logistics and production [20] - Management believes the trajectory for E15 remains positive, supporting incremental ethanol demand over time [22] Other Important Information - The company recorded $7.5 million in 45Z credit earnings for the full year, contributing directly to the bottom line in Q4 2025 [14] - The company ended the year with a cash balance of $23 million and generated $10 million in cash flow from operations during Q4 2025 [16][17] Q&A Session Summary Question: What steps are being taken to increase 45Z tax credits? - Management is focused on lowering carbon intensity scores and increasing production capacity at the Pekin dry mill to capitalize on 45Z tax credits [26][27] Question: Are there expectations for revenue pickup in the Western asset in 2026? - Management intends to increase production capacity and overall utilization in the Western segment [30] Question: Can you quantify the ethanol exports locked in for the first half of 2026? - Management did not provide specific details but emphasized optimizing the value of products for export markets [39][40] Question: How has the company raised the floor for business performance? - Management highlighted improvements in operational efficiency, cost management, and diversification of revenue sources as key factors [46][48]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net income of $11.9 million, or $0.17 per diluted share, compared to a net loss of $54.9 million, or -$0.86 per diluted share in Q4 2024 [12] - Adjusted EBITDA for Q4 2025 was $49.1 million, an improvement of over $67 million compared to Q4 2024's adjusted EBITDA of -$18.2 million [6][13] - Revenue for Q4 2025 was $428.8 million, down 26.6% year-over-year due to the impact of the Obion plant sale and idling of the Fairmont facility [14] Business Line Data and Key Metrics Changes - The company increased its maximum production capacity to 730 million gallons per year, a 10% increase from the previous capacity [5] - Four plants reached historical production volumes, and seven plants achieved record ethanol yields [4] - The startup of CO2 compression equipment at three Nebraska plants is now fully operational, contributing to cash flow and lowering carbon intensity (CI) scores [6] Market Data and Key Metrics Changes - Ethanol margins remained resilient in Q4 2025 due to strong domestic blending and export demand, supported by a record corn crop [20] - Ethanol exports set a record last year, with expectations for increased demand in 2026 [21] - Corn oil markets remained steady, contributing positively to gross margins, while protein pricing faced pressure [21] Company Strategy and Development Direction - The company is focusing on five strategic priorities: improving energy efficiency, evaluating carbon sequestration opportunities, debottlenecking or expanding facilities, increasing on-site grain storage, and balancing capital structure [23][24] - The company aims to be a low-cost, low-carbon biofuels producer, with ongoing projects to reduce energy consumption and operational costs [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational execution and the potential for carbon monetization, with expectations of at least $188 million of adjusted EBITDA from carbon-related activities in 2026 [8][9] - The company is optimistic about the regulatory environment supporting biofuels and the potential for year-round E15 adoption [9][62] Other Important Information - The company refinanced a majority of its 2027 convertible notes through a new $200 million convertible note due in 2030 [13] - Consolidated liquidity at the end of the quarter included $230.1 million in cash equivalents and restricted cash, with $325 million in working capital revolver availability [18] Q&A Session Summary Question: Interest in 2026 45Z credits - Management confirmed active marketing of 2026 45Z credits and expressed confidence in the platform's ability to deliver credits [28] Question: Upside potential for carbon opportunities - Management indicated numerous plant efficiency projects with fast returns and potential for additional investments to lower energy consumption [29][30] Question: Q4 cash flow from operations - Management explained that Q4 cash flow was lower than EBITDA due to timing of cash receipts from carbon earnings and accelerated receivables [33] Question: Q1 ethanol EBITDA outlook - Management noted that while Q1 is typically a low point, the company is in a better position compared to the previous year, with strong operational efficiency [35] Question: CI score and potential improvements - Management discussed the potential for further reductions in CI scores due to new guidance and ongoing projects [51][52]