A rush to make car fuel from corn in Brazil has had an unexpected side effect: a slump in global sugar prices https://t.co/Dyq7Nif4gp ...

Darling Ingredients (NYSE:DAR) Q3 2025 Earnings Call October 23, 2025 09:00 AM ET Company ParticipantsBob Day - CFODushyant Ailani - Equity Research SVPRandall Stuewe - Chairman and CEOSuann Guthrie - SVP of Investor RelationsConor Fitzpatrick - VPBen Mayhew - VP of Ag/Protein Equity ResearchManav Gupta - Executive DirectorBetty Zhang - Associate DirectorMatthew Blair - Managing Director of Refiners, Chemicals, and Renewable FuelsJason Gabelman - Director of Energy Equity ResearchConference Call Participant ...

Financial Data and Key Metrics Changes - The combined adjusted EBITDA for the third quarter was $245 million, compared to $237 million in the third quarter of 2024 and $250 million in the previous quarter [8][10] - Total net sales for the quarter were $1.6 billion, up from $1.4 billion year-over-year, while gross margins improved to 24.7% from 22.1% [8][10] - Overall net income was $19.4 million for the quarter, or $0.12 per diluted share, compared to net income of $16.9 million, or $0.11 per diluted share for the same quarter last year [15] Business Line Data and Key Metrics Changes - In the feed segment, EBITDA improved to $174 million from $132 million a year ago, with total sales reaching $1 billion compared to $928 million [9][10] - The food segment saw total sales of $381 million, higher than $357 million in the third quarter of 2024, with gross margins increasing to 27.5% from 23.9% [9][10] - The fuel segment, specifically Diamond Green Diesel (DGD), reported a negative EBITDA of $3 million for the quarter, down from positive $39 million in the third quarter of 2024 [10][12] Market Data and Key Metrics Changes - Global rendering volumes and margins in the feed segment were up both sequentially and year-over-year, driven by strong demand for fats and proteins [5][6] - Export protein demand is showing signs of recovery, with slightly firmer pricing trends emerging, although tariff implications have impacted value-added poultry protein products [6][9] - The renewables market continues to face headwinds, with higher feedstock costs and lower RINs and LCFS pricing impacting margins [7][10] Company Strategy and Development Direction - The company is focused on its core ingredients business, expecting EBITDA for 2025 to be in the range of $875 to $900 million, excluding DGD [16] - Management believes that the integrated model of Darling Ingredients provides a competitive advantage that is unmatched in the industry [4] - The company is optimistic about the future, anticipating that public policy changes will strengthen American agriculture and energy leadership, which will enhance DGD's earnings potential [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core ingredients business despite short-term uncertainties in the renewables market [4][16] - The company is optimistic about the upcoming clarity on regulatory items, including the Renewable Volume Obligation (RVO) [20] - Management noted that the current uncertainty around public policy impacts the fuel segment, but they remain focused on what they can control [16] Other Important Information - Total debt net of cash was $4.01 billion, with a minimal increase from $3.97 billion at the end of 2024 [14] - The company recorded an income tax benefit of $1.2 million for the quarter, yielding an effective tax rate of -6.3% [15] - The company expects to generate around $300 million in production tax credits in 2025, with significant sales anticipated in the fourth quarter [12][13] Q&A Session Summary Question: Timeline for clarity on regulatory items - Management expects clarity on RVO and exemptions by December, amid ongoing government shutdown [20] Question: Feed outlook for the fourth quarter - Management indicated that while waste fat prices have dipped, they expect the food segment to be stronger in Q4, with a narrow range for the business [21][23] Question: Benefits of REMS policy protectionism - Management noted uncertainty around how the EPA will treat foreign feedstocks, which will depend on various factors [26][28] Question: Drivers of DGD margins - Management clarified that DGD results were not as good as hoped, and the capture rate was affected by LCM accounting practices [29][30] Question: Outlook for the feed segment going into 2026 - Management expects continued improvement in feed segment margins, driven by protein price recovery and strong demand [35][37] Question: RIN pricing scenarios - Management indicated that RIN prices need to increase by approximately $0.40 to incentivize production to meet the 2026 mandate [43][44] Question: Debt repayment plans - Management confirmed they are committed to paying down debt and expect their debt coverage ratio to be around three times by year-end [45][46] Question: DGD1 restart conditions - Management stated that DGD1 will only restart when soybean oil margins are profitable enough to justify the catalyst costs [70][72] Question: Food segment outlook - Management expects a stronger Q4 for the food segment, with a rebound in hydrolyzed collagen business and new product launches [73][75]

#数据 根据美国农业部报告，美国是中国废食用油（UCO）的最大出口市场，2024年进口为127万吨，较2023年增长约52%，约占中国UCO出口总量的43%。去年中国对美UCO出口额为12亿美元左右，相比之下，美国对华出口大豆126亿美元。此外，美国环境保护署提议未来两年增加生物燃料量，意味着美国一旦终止与中国UCO贸易，仍将需从其他国家采购UCO。外汇交易员 (@myfxtrader):#数据 根据中国海关数据，中国今年前8个月对美国出口相关食用油及产品数量有限，金额不足40万美元。另据Volza海关数据，2024年6月至2025年5月，中国对美国出口仅18批次精炼菜籽油，主要用于食品加工企业试单，总金额不足百万美元。 https://t.co/6mjEOYDv04 ...

Soybean Market & Trade - US biofuel policy is seen as a solution to absorb excess soybean production resulting from China's reduced demand for US soybeans [1] - The US soybean industry hopes trade negotiations will resume to restore access to the Chinese market [2] Industry Stance - The National Oilseed Processors Association (NOPA) acknowledges the challenges faced by soybean farmers [1] - The American Soybean Association (ASA) remains optimistic about regaining access to the Chinese market [2]

Trade Relations - Chinese used cooking oil exports to the US were declining before President Trump's trade war [1] Geopolitics - President Trump designated Chinese used cooking oil exports to the US as a focal point in the trade war with Beijing [1]

Core Insights - Blue Biofuels has successfully completed its Phase 2 Small Business Innovation Research (SBIR) grant from the U.S. Department of Energy, advancing its patented Cellulose-to-Sugar (CTS) technology towards commercialization [1][2] - The company achieved commercially viable ethanol yields and reduced processing costs while utilizing sugarcane bagasse and king grass as feedstocks [2][4] - The CTS technology demonstrates flexibility in using various biomass sources, enabling expansion into diverse agricultural regions [3][6] Company Overview - Blue Biofuels aims to produce biofuels through its patented CTS technology and its joint venture with Vertimass, focusing on sustainable and renewable energy solutions [5][6] - The CTS process can convert cellulose from various plant materials into sugars for biofuels, including ethanol and sustainable aviation fuel (SAF) [5][6] - The company’s technology is designed to reduce reliance on food crops for ethanol production, utilizing abundant biomass sources [6]

Core Viewpoint - BofA Securities initiated coverage on Darling Ingredients Inc. with a Buy rating and a price target of $45.00, indicating a potential upside of approximately 40% [1] Group 1: Company Overview - Darling Ingredients Inc. is described as a vertically integrated producer of biofuels, biofuel feedstocks, and food ingredients [1] - The company is well positioned to benefit from recent U.S. policy changes that support renewable diesel and biodiesel demand [1] Group 2: Market Dynamics - Rising Renewable Identification Numbers (RIN) prices are expected to act as a tailwind for Darling's Renewable Energy segment [2] - Balance sheet deleveraging and potential restructuring within the Food Ingredients division could unlock additional value for the company [2] Group 3: Investment Thesis - BofA's bullish stance reflects both operational upside and a favorable regulatory backdrop that could expand margins across Darling's portfolio [2]

Summary of Gevo's Presentation at Lithium Partners Fall 2025 Investor Conference Company Overview - **Company Name**: Gevo - **Ticker Symbol**: GEVO on NASDAQ - **Industry**: Renewable Energy, specifically Synthetic Aviation Fuel (SAF) development - **Core Business**: Gevo is a diversified energy company focused on producing drop-in fuels with a lower carbon footprint, particularly synthetic aviation fuel derived from alcohols [2][4][12] Key Points and Arguments - **Innovative Achievements**: Gevo has achieved several industry firsts, including the first lab production of alcohol to hydrocarbon fuels, ASTM certification for jet fuel made from alcohols, and the first synthetic aviation fuel flight [2][4] - **Business Model**: The company operates a platform that extends alcohols to jet fuel, utilizing existing infrastructure without the need for fleet replacement with electric vehicles [4][5] - **Sustainable Practices**: Gevo emphasizes the use of biomass to produce fuels, which can be scalable and cost-competitive with fossil fuels while reducing carbon emissions [4][6] - **Production Capacity**: The company produces approximately 67 million gallons per year of low carbon ethanol and has a carbon capture capacity of about 1 million tons per year, currently utilizing 16% of that capacity [6][13] - **Revenue Streams**: Gevo's revenue model includes multiple co-products from ethanol production, state and federal credits, and voluntary carbon markets for carbon offsets [18][20] Financial Performance and Projections - **Recent Financials**: In the second quarter, Gevo reported a run-rate adjusted EBITDA of approximately $20 million, with expectations to double this to $40 million in the near term [23][24] - **Long-term Goals**: The company aims to exceed $100 million in EBITDA through optimization and expansion of its operations, particularly in the SAF sector [24][25] - **Cash Position**: As of the last quarter, Gevo had $127 million in cash and cash equivalents, with total assets around $700 million [25] Market Dynamics - **Demand for SAF**: The U.S. demand for jet fuel is projected to increase by about 2.3 billion gallons per year, while gasoline demand is declining [27] - **Competitive Advantage**: Gevo's Alcohol-to-Jet process can yield over 90% jet fuel, positioning it favorably against traditional fossil fuel refineries [28] - **Cost Competitiveness**: The company believes it can produce SAF at competitive prices compared to fossil jet fuel, depending on the market conditions of crude oil and corn prices [28][29] Strategic Initiatives - **Project North Star**: Gevo's initiative to leverage its North Dakota assets for SAF production, aiming to create a showcase for its technology and expand operations globally [33][34] - **Future Plans**: The company plans to grow existing EBITDA, deploy its first SAF plant, and replicate its model across the U.S. and internationally [34] Additional Insights - **Technological Integration**: Gevo has developed proprietary technologies and holds over 300 patents, focusing on efficient engineering designs that integrate various processes from ethanol to SAF [11][26] - **Sustainability Focus**: The company is committed to continuous improvement in reducing carbon footprints and enhancing the sustainability of its operations [6][12] This summary encapsulates the key aspects of Gevo's presentation, highlighting its innovative approach, financial outlook, market positioning, and strategic initiatives in the renewable energy sector.

Core Viewpoint - Green Plains Inc. has entered into an agreement to sell Clean Fuel Production Credits generated in 2025 under the Inflation Reduction Act, indicating a strategic move to capitalize on low-carbon initiatives [1] Group 1: Agreement Details - The agreement is with an affiliate of Freepoint Commodities LLC for the sale of Clean Fuel Production Credits, also known as 45Z tax credits [1] - The credits will be generated from low-carbon intensity ethanol production at Green Plains' three facilities located in Nebraska [1] - A portion of these credits is expected to be generated prior to the anticipated launch [1]