Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q2 2025 reached $55 million, with year-to-date EBITDA amounting to $91 million, reflecting a 60% year-over-year decline in both periods [10][11][12] - Sales totaled $392 million during Q2, with year-to-date sales reaching $716 million, driven by higher volumes sold across operations despite lower prices [10][11] Business Line Data and Key Metrics Changes - In the Sugar, Ethanol, and Energy business, crushing volume was 20% lower year-over-year due to fewer effective milling days and a selective slower milling pace [12][13] - Farming business reported a 12% year-over-year increase in total production, attributed to higher planted area and record productivity in rice operations [12][20] - Adjusted EBITDA for the Farming business totaled $1 million during the quarter, with year-to-date EBITDA at $18 million, impacted by lower international prices and higher costs [21][23] Market Data and Key Metrics Changes - Rice prices have significantly decreased, but customized rice varieties at premium prices are being offered to offset global price drops [7] - Dairy processing volumes are increasing due to a growing market presence, while efforts are ongoing to expand the product portfolio [7][20] Company Strategy and Development Direction - The company aims to be the lowest cost producer while diversifying operations across geographies and products, which serves as a natural hedge against commodity price fluctuations and weather risks [5][6] - A memorandum of understanding was signed with Tether to explore using a portion of energy production for bitcoin mining, indicating a potential innovative project [8] - The company is focusing on improving margins by reducing leased area by approximately 30% in response to challenging price and cost conditions [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about reaching similar crushing levels to the previous year despite a difficult start to the season, citing improved crushing rates in July and August [31][32] - The company is constructive about sugar and ethanol prices, anticipating a potential increase due to lower sugarcane yields and strong ethanol demand [35][36] - Management acknowledged the need to maintain a net leverage ratio below 2.0 times EBITDA while exploring both organic and inorganic growth opportunities [67][68] Other Important Information - Net debt increased to $699 million, 11% higher year-over-year, primarily due to higher short-term borrowings for working capital [23][24] - The company has committed $45 million to shareholder distribution, including dividends and share repurchases [27] Q&A Session Summary Question: Expectations for crushing figures and sugar prices - Management indicated that despite a challenging first quarter, they expect to crush similar amounts of sugarcane as last year, driven by improved performance in July and August [31][32] - They anticipate sugar prices to react positively due to lower sugarcane yields and strong ethanol demand [35][36] Question: Quality of cane and yield expectations - Management expects yields to be flat year-over-year, with a slight decrease in TRS content due to frost affecting sugarcane [41][45] Question: Triggers for hedging next season - Management believes sugar prices could react in the short term based on Brazilian crop impacts, with plans to accelerate hedging once market conditions clarify [54][55] Question: Partnership with Tether and its impact - The partnership is seen as a potential opportunity to sell energy at attractive prices, with ongoing evaluations to determine feasibility [74]

Group 1: Agreement Overview - The recently signed agreement between the US and UK is described as a "trivial small tariff agreement" by UK Conservative Party leader Badenoch, indicating its limited scope compared to previous commitments [1] - The agreement primarily focuses on tariff reductions for UK automotive and aerospace products, while steel and pharmaceutical tariffs remain under negotiation, leading to a narrower actual coverage than expected [1][5] - The agreement lacks legal binding force, allowing either party to modify or withdraw at any time, raising concerns about its stability and execution [1][8] Group 2: Automotive and Aerospace Tariffs - UK-produced cars will benefit from a tariff quota of 100,000 units annually at a 10% tax rate, which is lower than the 25% tariff imposed on other trade partners [3] - Import tariffs on UK aerospace products will be eliminated immediately upon publication in the Federal Register, aligning with the WTO Civil Aircraft Agreement [4] Group 3: Outstanding Issues - Tariff issues regarding steel and pharmaceuticals remain unresolved, with the US Secretary of Commerce set to evaluate the UK's compliance with supply chain security standards before establishing steel and aluminum tariff quotas [5][6] - The UK government aims for zero tariffs on core steel products, but negotiations are ongoing, and the implementation timeline is uncertain [6][8] Group 4: Agricultural Trade - The agreement allows US farmers to export 13,000 metric tons of beef to the UK annually, a significant increase from the previous quota of 1,000 metric tons, while maintaining strict food safety standards [7] - The UK will also provide a duty-free quota of 1.4 billion liters for US ethanol producers, which is equivalent to the UK's total annual ethanol demand, raising concerns among domestic producers [7] Group 5: Broader Trade Context - The agreement is viewed as a memorandum rather than a comprehensive trade deal, failing to meet the standards of a free trade agreement and violating WTO's most-favored-nation principle [8] - The slow progress of trade negotiations is highlighted, with the UK being the only country to reach such an agreement with the US so far [8]

Core Viewpoint - A UK ethanol producer warns that tariff-free imports from the US pose a risk to its business, indicating that it is nearly too late to save production [1] Group 1: Company Impact - The operator Ensus states that following a trade agreement with the US in May, its plant in Wilton, UK, is facing an imminent shutdown [1] - The shutdown will result in the loss of over 100 jobs at the plant and affect the supply chain of approximately 3,000 local individuals [1]

Financial Data and Key Metrics Changes - In Q1 2025, ethanol sales volumes were 70.9 million gallons, down from 74.5 million gallons in Q1 2024, with an average selling price of $1.76 per gallon [11] - Gross profit for Q1 2025 was $14.3 million, slightly down from $14.5 million in Q1 2024, primarily due to lower sales prices for dry distiller grains [12] - Net income attributable to REX shareholders was $8.7 million or $0.51 per diluted share, compared to $10.2 million or $0.58 per diluted share in Q1 2024 [13] - Cash, cash equivalents, and short-term investments at the end of Q1 were $315.9 million, reflecting ongoing capital investments and share repurchases [13][14] Business Line Data and Key Metrics Changes - Dry distiller grain sales volumes were approximately 153,000 tons with an average selling price of $145.65 per ton [11] - Modified distillery grain volumes totaled approximately 22,000 tons with an average selling price of $73.44 per ton [12] - Corn oil sales volumes were approximately 21.4 million pounds with an average selling price of $0.46 per pound [12] Market Data and Key Metrics Changes - U.S. ethanol exports through March 2025 were nearly 19% higher than the same period in 2024, with March 2025 exports up 23% compared to March 2024 [17] - The company anticipates stable performance in Q2 2025, expecting another profitable result [17] Company Strategy and Development Direction - The company is focused on organic growth initiatives, including carbon capture and expansion of ethanol production capacity, with a combined budget range of $220 million to $230 million for both projects [6][10] - REX continues to evaluate potential acquisition opportunities that meet strict operational and financial criteria [6] - The company is committed to delivering consistent value to shareholders through share buybacks, having repurchased approximately 822,000 shares for $32.7 million in Q1 2025 [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain regulatory and market conditions, highlighting the strength of the balance sheet [5] - The company is closely monitoring potential changes to the Inflation Reduction Act and other regulatory developments that could impact future economic decisions [9][29] - Management remains optimistic about the ethanol market, citing favorable conditions and expected record corn production due to strong planting and good weather [31] Other Important Information - The company has maintained a strong financial position with no bank debt [14] - The total investment in carbon capture and ethanol expansion projects stands at approximately $122.7 million as of the end of Q1 2025 [10] Q&A Session Summary Question: What drives REX's ability to consistently deliver performance? - Management attributes consistent profitability to strong leadership, effective communication, and a dedicated team that closely monitors market conditions [20][22][24] Question: What specific deregulation measures would help REX? - Management noted that current regulatory measures are in limbo and emphasized the importance of ongoing communication with contacts in Washington [26][29] Question: Thoughts on industry fundamentals and ethanol margins? - Management expects positive trends in ethanol margins due to anticipated record corn production and favorable export conditions, while also monitoring natural gas prices closely [31][32]

Financial Data and Key Metrics Changes - In Q1 2025, ethanol sales volumes were 70.9 million gallons, down from 74.5 million gallons in Q1 2024, with an average selling price of $1.76 per gallon [10] - Gross profit for Q1 2025 was $14.3 million, slightly down from $14.5 million in Q1 2024, primarily due to lower sales prices for dry distiller grains [11] - Net income attributable to REX shareholders was $8.7 million or $0.51 per diluted share, compared to $10.2 million or $0.58 per diluted share in Q1 2024 [12] - Cash, cash equivalents, and short-term investments at the end of Q1 were $315.9 million, reflecting ongoing capital investments and share repurchases [12] Business Line Data and Key Metrics Changes - Dry distiller grain sales volumes were approximately 153,000 tons with an average selling price of $145.65 per ton [10] - Modified distillery grain volumes totaled approximately 22,000 tons with an average selling price of $73.44 per ton [11] - Corn oil sales volumes were approximately 21.4 million pounds during the quarter with an average selling price of $0.46 per pound [11] Market Data and Key Metrics Changes - U.S. ethanol exports through March 2025 were nearly 19% higher than the same period in 2024, with March 2025 exports up 23% compared to March 2024 [16][17] - The company anticipates stable performance in Q2 2025, expecting another profitable result [16] Company Strategy and Development Direction - The company is focused on organic growth initiatives, including carbon capture and expansion of ethanol production capacity, with a combined budget range of $220 million to $230 million for both projects [5][9] - REX continues to evaluate potential acquisition opportunities that meet strict operational and financial criteria [5] - The company is committed to delivering consistent value to shareholders through share buybacks, having repurchased approximately 822,000 shares for $32.7 million in Q1 2025 [6][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain regulatory and market conditions, highlighting the strength of the balance sheet [4] - The company is closely monitoring potential changes to the Inflation Reduction Act and other regulatory developments that could impact future economic decisions [8] - Management remains optimistic about the ethanol sector's favorable market conditions and expects record corn production to boost profits for the rest of the year [29] Other Important Information - The company has maintained a strong financial position with no bank debt [13] - The ongoing technical review of the ethanol facility expansion is expected to enhance long-term operational efficiencies [7] Q&A Session Summary Question: What drives REX's ability to consistently deliver performance? - Management attributed consistent profitability to strong leadership, effective monitoring of market conditions, and a dedicated team [20][22] Question: What specific deregulation measures would help smooth the runway? - Management noted that regulatory developments are currently in limbo and emphasized the importance of monitoring changes closely [24][27] Question: Thoughts on industry fundamentals and ethanol margins? - Management expects positive trends in ethanol margins due to strong corn production and favorable export conditions, while also monitoring natural gas prices closely [29]

Financial Data and Key Metrics Changes - Fiscal year 2024 saw ethanol sales volume increase to 289.7 million gallons from 285.9 million gallons in 2023, with Q4 volumes at 74.7 million gallons compared to 72.1 million gallons in Q4 2023 [15][5] - Gross profit for fiscal year 2024 was $91.5 million, down from $98.2 million in 2023, with Q4 gross profit at $17.6 million compared to $30.4 million in Q4 2023 [18][19] - Net income attributable to REX shareholders for the year was $58.2 million, down from $60.9 million in fiscal year 2023, with Q4 net income at $11.1 million compared to $20.6 million in Q4 2023 [20][21] - Selling, general and administrative expenses decreased to $27.1 million for fiscal year 2024 from $29.4 million in 2023, with Q4 expenses at approximately $6.2 million compared to $7.4 million in Q4 2023 [19] Business Line Data and Key Metrics Changes - Dry distillers grain sales volumes decreased by 3% to 632,000 tons in fiscal year 2024 from 652,000 tons in 2023, with Q4 volumes down by approximately 2% [16] - Modified distillers grain sales volumes increased to 70,000 tons in fiscal year 2024 from 54,000 tons in 2023, with Q4 volumes up by approximately 11% [16] - Corn oil sales volume increased by approximately 1% to 88.1 million pounds in fiscal year 2024 compared to 87.5 million pounds in 2023, with Q4 volumes up by 7% [17] Market Data and Key Metrics Changes - U.S. ethanol exports reached a record high of 1.9 billion gallons in 2024, supporting pricing throughout the year [24] - Canada accounted for approximately 36% of U.S. ethanol exports, while Mexico represented about 21% of U.S. DDG exports in 2024 [25] Company Strategy and Development Direction - The company is focused on efficient and profitable operations while pursuing growth projects, including carbon capture and ethanol facility expansion [6][10] - A share repurchase program is in place, with 373,000 shares repurchased in Q4 and an additional 282,000 shares in Q1 of fiscal year 2025 [7][21] - The company is monitoring policy changes that could impact the ethanol market, including potential tariffs on exports and the debate around year-round E15 blending [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a profitable Q1 2025, which would mark the nineteenth consecutive profitable quarter [23] - The company is closely watching regulatory developments and market conditions to make informed decisions [23][24] Other Important Information - The total cash, cash equivalents, and short-term investments at the end of the fiscal year were $359.1 million, down from $378.7 million in 2023, primarily due to capital expenditures and share repurchases [21][22] - The company ended the year without any bank debt [22] Q&A Session Summary Question: Details on higher capital budget for expansion project - Management explained that the increase in budget is due to the need for energy-efficient equipment capable of handling future production increases, which has also extended the project timeline [29][31] Question: Update on regulatory and permitting side - Management discussed the new FSMA rules and the current review process under the new administration, indicating that previous regulations are under review and may be invalid for implementation [33] Question: Dialogue with EPA on Class VI well permitting - Management confirmed that communication with the EPA has resumed and they are optimistic about moving forward with the permitting process [37][38]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q4 reached $103 million, with a total of $444 million for 2024, marking an 8% year-over-year increase [4][9] - Gross sales totaled $368 million in Q4, with annual revenues reaching almost $1.5 billion, a 2% increase year-over-year [9] - Net cash from operations for 2024 was $161 million, allowing for a minimum distribution of $64 million in 2025 [7][25] Business Line Data and Key Metrics Changes - Record results were achieved in the Rice and Dairy segments, while the Sugar, Ethanol, and Energy business saw operational records despite challenges [4][10] - Total crushing volume in the Sugar, Ethanol, and Energy business reached 12.8 million tonnes in 2024, a new record, although down 12% year-over-year for the quarter [11][12] - Adjusted EBITDA for the Farming business totaled $4 million in Q4 and $103 million for the year, consistent with the previous year [21][24] Market Data and Key Metrics Changes - The average selling price for sugar was $0.226 per pound, down from $0.232 per pound in 2023, reflecting lower global sugar prices [13] - Ethanol prices have been recovering due to strong domestic consumption, although still below the previous year due to the depreciation of the Brazilian Real [14][56] - Carbon credits generated over 600,000 SEVAILOS at an average price of $14 per SEVAILO, totaling $9 million in net sales [15] Company Strategy and Development Direction - The company is focusing on maximizing sugar production due to its attractive premium over ethanol, with a strategy to gradually increase hedges if prices rise above $0.19 per pound [33] - Investments are being made in expanding sugarcane plantations and developing biomethane production in Brazil, alongside enhancing rice and dairy operations in Argentina and Uruguay [7][26] - The company is also committed to ESG initiatives, including training programs for women in agribusiness and leadership development for employees [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the sugar market is expected to see price increases due to disappointing crops in the Northern Hemisphere and a smaller Brazilian crop anticipated for the upcoming season [32][33] - The company expects a slight increase in annual crushing figures for 2025, assuming normal weather conditions, while acknowledging the challenges posed by dry weather in 2024 [18][19] - Management emphasized the importance of weather conditions for crop yields and the potential benefits from ongoing trade dynamics affecting South American agriculture [35] Other Important Information - The company distributed $102 million in 2024, exceeding its distribution policy by $32 million, with a 9.4% distribution yield [24] - The unsolicited proposal from TETA Investments to acquire a majority stake in the company is under evaluation, with discussions ongoing but no assurance of a definitive agreement [27][28] Q&A Session Summary Question: What are the main triggers for positive price action on sugar? - Management highlighted disappointing crops in the Northern Hemisphere and a smaller Brazilian crop as key factors influencing sugar prices [32][33] Question: How will import tariffs affect the company's operations? - Management noted potential benefits for South American soy and corn production due to tariffs, while also seeing opportunities in rice and dairy markets [35] Question: What is the outlook for sugarcane crushing and potential constraints? - Management indicated that weather conditions are a significant factor, with expectations for improved crushing in the second half of the year [45][46] Question: Can you elaborate on the dynamics of ethanol prices and expected parity? - Management expects ethanol prices to recover due to high demand and limited supply, with a potential increase in the blend ratio soon [56][60] Question: What are the expectations for production costs in 2025? - Management anticipates production costs to remain similar in real terms, with a slight decrease in dollar terms due to various cost components [64][66] Question: How are expansion costs impacting the company's outlook? - Management noted that strategic leasing of high-quality farms is expected to lower planting costs in the future [78]

Financial Data and Key Metrics Changes - Green Plains reported a net loss of $54.9 million or $0.86 per share for Q4 2024, compared to a net income of $7.2 million or $0.12 per share in the same period of 2023 [8][17] - Consolidated revenues for Q4 were $584 million, approximately 18% lower than the same period a year ago, primarily due to lower market prices for ethanol, dry distillers grains, and renewable corn oil [16] - EBITDA for Q4 was negative $18.9 million, down from $44.7 million in the prior year period [17] Business Line Data and Key Metrics Changes - The company executed $30 million of cost improvements, with a target of $50 million in annualized cost savings identified [5][6] - The Fairmont facility, with a capacity of 120 million gallons, was shut down due to market conditions and flooding issues, impacting overall production [7] - Operating rates at plants improved, achieving 92% in Q4, with expectations to continue operating in the mid-90s range [11][17] Market Data and Key Metrics Changes - Strong exports are anticipated, with a record of approximately 1.9 billion gallons expected for the year, and projections for 2025 to exceed that [9] - The U.S. corn market remains tight, with planting intentions closely monitored to avoid higher corn prices in the future [10] - The protein complex is under pressure from oversupply due to expanded domestic soy crushing capacity, but there are bright spots in aquaculture sales [12] Company Strategy and Development Direction - The company is transitioning from innovation to commercialization, focusing on cost rationalization and margin expansion [5][6] - Carbon capture initiatives are on track, with expectations to begin capturing biogenic CO2 in the second half of the year [13][21] - The company believes the value of its Nebraska assets is not reflected in its current share price, with carbon earnings expected to transform its earnings power [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over negative EBITDA for Q4 but noted a positive EBITDA of $44.7 million for the full year [8][17] - The management is optimistic about the potential for improved margins and profitability as the market conditions evolve and carbon capture initiatives are implemented [21][24] - The company is focused on reducing SG&A costs and simplifying its structure to enhance operational efficiency [31] Other Important Information - The company reached a settlement with the IRS regarding R&D tax credits, impacting its tax position for the year [18] - Capital expenditures for Q4 were allocated across various initiatives, with a total of $95 million incurred year-to-date [19] Q&A Session Summary Question: Cost initiatives and profitability impact - Management indicated that the $50 million cost savings would enhance overall profitability, transitioning focus from innovation to commercialization [35][36] Question: Aquaculture market penetration - Management confirmed successful sales in aquaculture, with significant quantities sold and a focus on expanding market presence [38][39] Question: Carbon capture project timeline - Management expects the carbon capture project to be operational by late Q3 or early Q4, with construction underway [42][43] Question: Sugar market development - Management is optimistic about customer interest in sugar products, awaiting food safety certification to ramp up production [49][50] Question: Corn oil pricing expectations - Management anticipates corn oil to trade at a premium to soybean oil, reflecting market conditions [60][61] Question: 45Z tax credit monetization - Management expressed confidence in finding buyers for tax credits and offsets, with a robust market for these products [81][82]