The world’s second-largest ethanol producer Brazil is considering raising the amount of ethanol in gasoline https://t.co/NYiMxGPI71 ...

Core Insights - REX American Resources reported record ethanol sales volume for fiscal 2025, with 290 million gallons sold, slightly up from 289.7 million gallons in fiscal 2024 [2][4][7] - The company characterized fiscal 2025 as "exceptional" and "transformative," highlighting strong export demand and a solid balance sheet with no bank debt [3][5] - The fourth quarter saw a significant increase in net income attributable to shareholders, reaching $43.7 million compared to $11.1 million in the previous year [12][13] Financial Performance - Gross profit for fiscal 2025 was $93.7 million, an increase from $91.5 million in fiscal 2024, with fourth-quarter gross profit rising to $28.9 million from $17.6 million [9] - SG&A expenses increased to $32.6 million in fiscal 2025 from $27.1 million in fiscal 2024, with fourth-quarter SG&A rising to about $12.3 million from $6.2 million [10] - Net income attributable to REX shareholders for fiscal 2025 was $83.0 million, up from $58.2 million in fiscal 2024, with diluted EPS reaching an all-time high of $2.50 [12][13] Co-Product Performance - Dried distillers grains (DDGs) sales volume decreased by 3% to 612,000 tons in fiscal 2025, with fourth-quarter volume declining about 9% year over year [1] - Modified distillers grains volume increased to 81,900 tons in fiscal 2025 from about 70,000 tons in fiscal 2024, with an average selling price of approximately $65.82 per ton [7] - Corn oil sales increased to approximately 97.0 million pounds in fiscal 2025, up from 88.1 million pounds in fiscal 2024, with an average selling price of $0.54 per pound [8] Expansion and Initiatives - The One Earth Energy expansion project is nearing completion, expected to reach 200 million gallons annual capacity by fiscal 2026 [6][15] - The carbon capture facility is complete but awaiting permits for the Class VI well and pipeline, with the company engaged with regulatory bodies [16][17] - REX has invested approximately $166 million in carbon capture and ethanol expansion projects, remaining within its budget of $220 million to $230 million [18] Market Environment and Outlook - The company anticipates a profitable start to fiscal 2026, supported by strong exports and the benefits from the 45Z tax credit [5][19] - Management noted that U.S. ethanol export volumes reached record levels in 2025, with continued strength into 2026 [20] - Favorable corn supplies are expected to support manageable input costs and healthy crush margins [21]

Strategic Performance and Operational Drivers - Achieved record fiscal 2025 EPS and net income, attributed to strong export demand, favorable commodity pricing, and high operational efficiency [5] - Recognized $28,000,000 in 45Z tax credits for the full fiscal year 2025, significantly boosting fourth-quarter net income [5] - Maintained 22 consecutive quarters of profitability by managing the spread between improved ethanol pricing and reduced corn costs [5] - Expanded ethanol sales volumes to an all-time high of 290,000,000 gallons, supported by robust global demand for lower-carbon fuels [5] - Strengthened the balance sheet to include $375,800,000 in cash and zero bank debt, providing flexibility for major capital projects [5] - Capitalized on strong corn oil demand, with sales volumes increasing 10% year-over-year to approximately 97,000,000 pounds [5] Growth Initiatives and 2026 Outlook - Anticipates the One Earth Energy capacity expansion to 200,000,000 gallons will become fully operational in fiscal 2026 [5] - Expects continued 45Z tax credit benefits through 2029, with potential for higher credits once carbon capture and sequestration (CCS) projects are permitted [5] - Projects a profitable first quarter of 2026, supported by favorable corn supplies and manageable input costs [5] - Assumes high global oil prices will continue to drive ethanol demand by maintaining a significant price advantage over petroleum-based gasoline [5] - Remains focused on the 'Three P's' strategy—Profit, Position, and Policy—to guide capital allocation and operational priorities in the coming year [5] Strategic Projects and Regulatory Context - Invested approximately $166,000,000 to date in carbon capture and ethanol expansion projects, remaining within the total budget of $220,000,000 to $230,000,000 [5] - Noted that while the carbon capture facility is physically complete, operations are pending Class VI well and pipeline permits from the EPA and state commissions [5] - Management confirmed the current recognition rate for 45Z tax credits is approximately $0.10 per gallon across their total volume [8] - Successful carbon capture implementation could reduce CI scores by an additional 30 to 35 points, potentially reaching a $1.00 per gallon credit at the One Earth facility [8]

Financial Data and Key Metrics Changes - Fiscal 2025 was marked by record ethanol sales volume of 290 million gallons, a slight increase from 289.7 million gallons in fiscal 2024, with fourth quarter sales at 70.1 million gallons compared to 74.6 million gallons in Q4 2024 [10] - Average selling price for consolidated ethanol volumes was approximately $1.74 per gallon for the full year and $1.72 for Q4 [10] - Gross profit for fiscal 2025 was $93.7 million, up from $91.5 million in fiscal 2024, with Q4 gross profit at $28.9 million compared to $17.6 million in Q4 2024 [12][14] - Net income attributable to REX shareholders for fiscal 2025 was $83 million, compared to $58.2 million in fiscal 2024, with Q4 net income at $43.7 million versus $11.1 million in Q4 2024 [14][15] - Diluted net income per share reached an all-time high of $2.50 for fiscal 2025, compared to $1.65 in fiscal 2024, with Q4 diluted net income per share at $1.32 compared to $0.31 in Q4 2024 [15] Business Line Data and Key Metrics Changes - Dried distillers grains sales volumes decreased by 3% to 612,000 tons in fiscal 2025 from 632,000 tons in fiscal 2024, with Q4 volumes down approximately 9% [11] - Modified distillers grains sales volumes increased to 81,900 tons in fiscal 2025 from approximately 70,000 tons in fiscal 2024, with Q4 volumes up approximately 1% [11] - Corn oil sales volumes increased by approximately 10% to 97 million pounds in fiscal 2025 from 88.1 million pounds in fiscal 2024, with Q4 sales volumes at approximately 25.2 million pounds, a 7% increase [12] Market Data and Key Metrics Changes - Ethanol export demand remained strong, with U.S. exports reaching record levels in 2025, supported by favorable market conditions and high oil prices [18][32] - The company expects continued strong export demand into 2026, driven by global demand for lower carbon fuel and increased fuel blending [18] Company Strategy and Development Direction - The company is focused on expanding capacity at the One Earth Energy facility to 200 million gallons per year, with completion expected in fiscal 2026 [7][17] - The implementation of the 45Z tax credit is anticipated to positively impact results, with the company positioned to capitalize on this program [5][8] - The company is committed to sustainability through carbon capture and sequestration initiatives, awaiting permitting for related projects [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on momentum from fiscal 2025, citing expanded capacity and favorable market conditions as key growth drivers [6][17] - The company has delivered 22 consecutive quarters of profitability, with expectations for continued strong performance in fiscal 2026 [17] - Management highlighted the importance of operational excellence and teamwork in navigating market challenges [4][6] Other Important Information - The company ended fiscal 2025 with total cash equivalents and short-term investments of $375.8 million, compared to $359.1 million at the end of fiscal 2024, with no bank debt [15][16] - SG&A expenses increased to $32.6 million for fiscal 2025 from $27.1 million in fiscal 2024, primarily due to increased incentive bonuses [13] Q&A Session Summary Question: Regarding the 45Z tax credits, is the $28 million for Q4 or a catch-up for previous periods? - The $28 million represents the full fiscal year of 2025, and the company remains optimistic about claiming these credits through 2029 [22][23] Question: How will the carbon capture project impact the CI score? - The company has not disclosed specific improvements to the CI score but expects significant benefits from the carbon capture project [25][27] Question: What is the status of the Class VI injection permit? - The permitting process has moved to September, but the company is in the final stages of technical review with the EPA [29][31] Question: How are tariffs impacting operations for ethanol and corn oil? - There has been no negative impact from tariffs on ethanol exports, and high oil prices are expected to benefit the business [32][35] Question: What are the prospects for nationwide E15? - While nationwide E15 would be beneficial, the company does not expect it to happen due to the influence of oil companies, but anticipates more independent retailers adopting E15 [49][50]

Financial Data and Key Metrics Changes - Fiscal 2025 was an exceptional year for REX American Resources, with record earnings per share (EPS) of $2.50, up from $1.65 in fiscal 2024, marking a significant increase [16] - Net income attributable to REX shareholders for the year was $83 million, compared to $58.2 million in fiscal year 2024 [15] - Gross profit for fiscal year 2025 was $93.7 million, an increase from approximately $91.5 million in fiscal year 2024 [12] Business Line Data and Key Metrics Changes - Ethanol sales volumes reached 290 million gallons in fiscal year 2025, a slight increase from 289.7 million gallons in fiscal year 2024 [10] - Dried distillers grains sales volumes decreased by 3% to 612,000 tons in fiscal 2025 from 632,000 tons in fiscal 2024 [11] - Corn oil sales volumes increased by approximately 10% to 97 million pounds in fiscal year 2025, compared to 88.1 million pounds in fiscal year 2024 [12] Market Data and Key Metrics Changes - Ethanol export demand remained strong, with U.S. exports reaching record levels in 2025, supported by favorable market conditions [19] - The company expects continued strong performance in 2026, driven by expanded production capacity and favorable market tailwinds [20] Company Strategy and Development Direction - The company is focused on expanding capacity at the One Earth Energy facility, which is nearing completion and will increase annual production capacity to 200 million gallons [5] - REX is actively pursuing carbon capture and sequestration initiatives to enhance sustainability and long-term value creation [5] - The strategic focus remains on profit, position, and policy, with an emphasis on operational excellence and market expertise [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on momentum from fiscal 2025, citing strong financial foundations and favorable market conditions [6] - The 45Z tax credit program is expected to provide meaningful benefits, with management optimistic about continued eligibility for these credits [24][25] - The company anticipates another year of strong performance in 2026, supported by expanded production capacity and favorable corn supply [20] Other Important Information - The company ended fiscal year 2025 with total cash equivalents and short-term investments of $375.8 million, compared to $359.1 million at the end of fiscal year 2024 [17] - REX American Resources reported no bank debt at the end of the fiscal year, providing financial flexibility for future growth [17] Q&A Session Summary Question: Regarding the 45Z tax credits, is the $28 million for Q4 or a catch-up for previous periods? - The $28 million represents the full fiscal year of 2025, and the company remains optimistic about claiming these credits in future years [24] Question: How will the carbon capture project impact the CI score? - The company has not disclosed specific improvements to the CI score but indicated that it would be significant [26][28] Question: What is the status of the Class VI injection permit? - The permitting process has moved to September, but the company is in the final stages of technical review with the EPA [30][32] Question: How are tariffs impacting operations for ethanol and corn oil? - There has been no negative impact from tariffs on ethanol exports, and the company is experiencing strong export demand [33][34] Question: What are the prospects for nationwide E15? - While nationwide E15 would be beneficial, management does not expect it to happen due to the influence of oil companies, but anticipates more independent retailers adopting E15 [50]

Core Viewpoint - REX American Resources Corporation reported its financial and operational results for the full year and fiscal fourth quarter of 2025, highlighting its interests in six ethanol production facilities [1]. Financial Performance - The results for Q4 and the full fiscal year 2025 are primarily influenced by the performance of the One Earth Energy and NuGen Energy ethanol production facilities, which are consolidated [1].

Core Viewpoint - Alto Ingredients Inc has experienced a significant stock rally following a strong earnings report, indicating a return to profitability and positive operational improvements. Financial Performance - In Q4 2025, Alto reported a net income of $21.5 million, or 28 cents per diluted share, compared to a loss of $42 million in the same quarter the previous year [2] - Gross profit improved to $15.2 million from a loss of $1.4 million [2] - Adjusted EBITDA increased to $27.9 million from negative $7.7 million, driven by wider crush margins, higher renewable fuel exports, and derivative gains [3] - For the full year 2025, net income was $12.1 million, or 16 cents per share, versus a loss of $60.3 million in 2024, with adjusted EBITDA rising to $44.7 million from $13.9 million [3] Stock Performance - Alto's shares have surged from a low of approximately 78 cents to a 52-week high of around $3.86, with the latest earnings-driven increase contributing to a rally that began in late 2025 [4] - The stock is currently trading above its 20-, 50-, and 200-day moving averages, indicating strong upward momentum [4] - As of Friday morning, Alto shares were up 8.71% at $4.37, marking a new 52-week high [5]

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 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 segment had a positive gross profit for both Q4 and the full year, aided by the Carbonic acquisition, which contributed $1.4 million during the quarter [12] - The average sales price per gallon increased to $2.10 from $1.88 per gallon, partially offsetting the reduction in volume sold [10] Market Data and Key Metrics Changes - Increased crush margins were a major contributor to improved performance, with a stronger market crush margin of $0.23 per gallon in Q4 2025 compared to $0.08 per gallon in 2024 [11] - Renewable fuel export sales at premiums to domestic sales contributed $5 million on higher volume and higher average sales price per gallon [11] Company Strategy and Development Direction - The company is focused on maximizing earnings through tactical decisions, including adjusting staffing, capturing cost savings, and investing in plant efficiency [5][6] - Plans for 2026 include elevating capital expenditures to approximately $25 million while maintaining strong cost discipline and prioritizing high ROI projects [17][18] - The company aims to capitalize on demand growth for liquid CO2 and expand its throughput volume and storage capacity [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 company is optimistic about the trajectory for E15 as a long-term demand tailwind for the farming and ethanol industries [22] Other Important Information - The company recorded $7.5 million in 45Z credit earnings for the full year, with expectations to qualify for $0.20 per gallon in 2026 [8][14] - The company plans to complete repairs on the Pekin campus river loading dock and add a second alcohol load-out dock to enhance logistical capabilities [18] 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 credits [26][27] Question: Are there any revenue improvements expected from 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 emphasized the importance of optimizing product value and balancing domestic and export markets [39][40] Question: How has the company raised the floor for business performance? - Management highlighted efforts to shore up financial viability through revenue diversification and cost management [46][48]

Shell Plc is committed to inject 3.5 billion reais ($666 million) in Brazilian ethanol producer Raízen SA, a joint venture it has in partnership with Cosan SA. https://t.co/baY6gWJ6KV ...

Summary of Green Plains Conference Call Company Overview - **Company**: Green Plains (NasdaqGS: GPRE) - **Date**: February 26, 2026 - **New Management Team**: CEO Chris Osowski and CFO Anne Reese have recently joined, indicating a significant turnover in management [1][2] Key Industry Insights - **Ethanol Industry**: The ethanol sector is experiencing exciting opportunities, with Green Plains positioned for growth under the new management [6] - **Carbon Credits and 45Z**: The company expects to generate over $180 million in EBITDA from carbon credits this year, a significant increase from previous estimates [7][11] Core Points and Arguments - **Management Changes**: New directors and committees focused on risk management and strategic planning have been established [2] - **Operational Improvements**: New processing models and a sales and operations planning process have been implemented to enhance data-driven decision-making [3] - **Carbon Capture Projects**: The Advantage Nebraska project is operational, capturing carbon at high recovery rates, which has positively impacted financial projections [9] - **Efficiency Gains**: Improved operational efficiency and ethanol yields are critical for monetizing carbon credits [10] - **Future Projections**: The company is optimistic about increasing EBITDA from carbon credits, contingent on operational performance and energy input reductions [11][12] Regulatory and Legislative Context - **USDA Guidance**: The USDA is finalizing a calculator for farmer practices that could impact carbon intensity (CI) scores, which Green Plains is preparing to leverage [13][14] - **Legislative Challenges**: Proposed legislation regarding CO2 pipelines could significantly affect the Summit pipeline project, which is crucial for carbon capture initiatives [20] Market Dynamics - **Ethanol Margins**: Current crush margins are favorable due to record corn yields and strong domestic ethanol market performance [37] - **Export Opportunities**: The export market is growing, particularly to Canada and the EU, with expectations for continued demand [44] - **Global Supply Considerations**: Brazil's increasing ethanol production from sugarcane is a factor to monitor, as it could impact global supply dynamics [52] Strategic Focus - **Capital Allocation**: Green Plains aims to be a low-cost, low-carbon biofuel producer, focusing on maintaining high utilization rates and improving operational efficiency [79][80] - **Debt Management and Growth**: The company is considering options for debt repayment, shareholder returns, and potential M&A opportunities as it generates free cash flow [81] Additional Considerations - **Sustainable Aviation Fuel (SAF)**: The company is exploring opportunities in the SAF market, although current projects are on hold pending economic viability [62][63] - **E15 Legislation**: There is bipartisan support for year-round E15, but legislative hurdles remain, impacting market expansion [72][75] Conclusion Green Plains is navigating a transformative period with new leadership, focusing on operational excellence and capitalizing on carbon credit opportunities while addressing regulatory challenges and market dynamics in the ethanol industry. The company is well-positioned for future growth, contingent on effective execution of its strategic initiatives.