Financial Data and Key Metrics Changes - Combined adjusted EBITDA for Q4 2025 was $336.1 million, an increase from $289 million in Q4 2024 and $245 million in Q3 2025 [12] - Total net sales for Q4 2025 reached $1.7 billion, compared to $1.4 billion in Q4 2024 [12] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [13] - For the full year 2025, core ingredients EBITDA was $922 million, up from $790 million in 2024 [12] Business Line Data and Key Metrics Changes - Core ingredients EBITDA for Q4 2025 was $278 million, compared to $230 million in Q4 2024 [12] - Feed segment EBITDA improved to $193 million in Q4 2025 from $150 million a year ago, with total sales of $1.13 billion versus $924 million [13] - Food segment total sales for Q4 2025 were $429 million, up from $362 million in Q4 2024 [14] - Fuel segment, specifically Diamond Green Diesel (DGD), achieved $57.9 million in EBITDA for Q4 2025, marking its strongest quarter of the year [8][15] Market Data and Key Metrics Changes - Demand for domestic fats in the U.S. remains robust, supported by favorable agricultural and energy policies [8] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [8] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million in EBITDA, or $0.21 per gallon [9] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on operational excellence and core strengths [5] - Plans to sharpen the portfolio may lead to asset sales, while also exploring opportunities to strengthen and expand core business [10] - The company is optimistic about the policy backdrop for renewable fuels, which is expected to enhance DGD's earning potential [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainties from evolving renewables public policy and global trade but emphasized a commitment to fundamentals [5] - The outlook for 2026 is encouraging, with positive global demand trends and expectations for improved margins in the fuel segment [8][20] - Management anticipates a modest pullback in Q1 2026 but expects core ingredients adjusted EBITDA to be in the range of $240 million to $250 million [21] Other Important Information - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Restructuring and impairment charges of $58 million were recorded in the quarter [19] - The company ended 2025 with approximately $1.3 billion available on its revolving credit facility [17] Q&A Session Summary Question: Guidance for DGD margins and potential inclusion in future guidance - Management indicated that guidance for DGD will depend on clarity regarding the Renewable Volume Obligation (RVO) [27][28] Question: Sensitivity of the feed business to RVO changes - Management noted that the feed business is sensitive to U.S. and North American feedstock values, which are expected to be supportive [29] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [33] Question: Expectations for the food business and EBITDA - Management expressed optimism for the collagen and gelatin business, expecting a year similar to or better than the previous year [35] Question: RVO expectations and potential impact on Darling's feed business - Management supports an RVO for advanced biofuels translating to 5.25 billion to 5.61 billion gallons, which would be constructive for margins [40] Question: Rationale for the Potencei Group acquisition - Management highlighted the strategic fit of the Potencei facilities within their existing footprint and the potential for margin enhancement [68] Question: Capital allocation priorities post-leverage targets - Management emphasized that capital allocation will focus on paying down debt, with reassessment following clarity on cash flow from DGD [79]

Financial Data and Key Metrics Changes - For Q4 2025, combined adjusted EBITDA was $336.1 million, up from $289 million in Q4 2024 and $245 million in the previous quarter [11] - Total net sales for Q4 2025 reached $1.7 billion, compared to $1.4 billion in Q4 2024 [11] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [12] - For the full year 2025, core ingredients EBITDA was $922 million, an increase from $790 million in 2024 [11] Business Line Data and Key Metrics Changes - In the feed ingredients segment, Q4 EBITDA improved to $193 million from $150 million a year ago, with total sales of $1.13 billion compared to $924 million [12] - The food segment saw total sales for Q4 2025 at $429 million, up from $362 million in Q4 2024, with EBITDA increasing to $82 million from $64 million [13][14] - The fuel segment, specifically Diamond Green Diesel (DGD), delivered $57.9 million of EBITDA in Q4 2025, marking its strongest quarter of the year [8][15] Market Data and Key Metrics Changes - In the U.S., demand for domestic fats remains robust, supported by favorable agricultural and energy policies [8] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [8] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million of EBITDA, reinforcing its position as the lowest cost operator [9] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on core strengths and operational excellence [5] - Strategic acquisitions are being pursued, including a stalking horse bid for three rendering facilities in Brazil, which are expected to enhance operational capabilities [10] - The company is open to opportunities that strengthen its core business, potentially leading to asset sales in the near future [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing positive global demand trends and a favorable policy backdrop for renewable fuels [8][20] - The company anticipates a modest pullback in Q1 2026 but expects core ingredients adjusted EBITDA to range between $240 million and $250 million [22] - Management highlighted the importance of regulatory clarity regarding the Renewable Volume Obligation (RVO) for future growth [90] Other Important Information - Total debt net of cash was approximately $3.8 billion at year-end 2025, down from $4 billion at the end of 2024 [17] - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Restructuring and impairment charges amounted to $58 million in Q4 2025 [19] Q&A Session Summary Question: Guidance on DGD margins and potential RVO impact - Management indicated that guidance on DGD will depend on clarity regarding the RVO, with strong results expected to carry into Q1 [29] Question: Sensitivity of feed business to RVO changes - Management noted that the feed business is sensitive to policy changes, with supportive policies likely benefiting rendering businesses in the U.S. and Canada [30] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [34] Question: Expectations for food business EBITDA - Management expressed confidence in the collagen and gelatin business, expecting a strong year ahead due to rebounding demand [36] Question: RVO expectations and LCFS market dynamics - Management supports an RVO for advanced biofuels translating to 5.25 billion gallons, which would be constructive for margins [41] Question: Potential for asset sales - Management indicated that asset sales would be opportunistic, focusing on areas where the company has core capabilities [71]

Core Insights - Mercuria Energy Group is in advanced negotiations to acquire a refinery and hundreds of fuel retail stations in Argentina from Raízen, a Brazilian biofuels producer facing financial difficulties [1][2][3] Group 1: Acquisition Details - The deal value is expected to exceed $1 billion, although no binding agreement has been signed yet [2] - Negotiations have progressed significantly, with a potential finalization of the transaction soon, but risks remain that it could still fall through [2][3] Group 2: Raízen's Financial Situation - Raízen has been under financial pressure, posting heavy quarterly losses and accumulating high debt levels, leading to a selloff in its bonds and multiple credit downgrades [4][5] - Fitch Ratings downgraded Raízen's rating to "B" and then to "CCC," while S&P Global Ratings rated it "CCC+" due to concerns over liquidity and refinancing risks [5] Group 3: Industry Context - The acquisition would enhance Mercuria's downstream presence in South America, as trading houses are increasingly seeking control over refining and retail assets to secure margins amid volatile energy markets [6]

Core Insights - The company has achieved significant operational improvements, resulting in a Q4 adjusted EBITDA of $49.1 million, an increase of over $67 million compared to the previous year [1][11] - The company is benefiting from the 45Z clean fuel production tax credit, generating $27.7 million in Q4, which is contributing to the overall financial performance [1][11] - The company has increased production capacities across several facilities, with a new total capacity of 730 million gallons per year, reflecting a 10% increase [2][3] Financial Performance - For Q4 2025, the company reported a net income of $11.9 million, compared to a net loss of $54.9 million in Q4 2024 [10] - Revenue for Q4 was $428.8 million, down 26.6% year-over-year, primarily due to the sale of the Obion plant and idling of the Fairmont facility [12] - SG&A expenses totaled $22.9 million, a decrease of $2.8 million from the previous year, indicating effective cost management [12] Production and Capacity - The company has increased production capacities at several facilities, with Central City and Wood River now at 120 million gallons per year each, and other plants adjusted accordingly [2] - The start-up of CO2 compression equipment at Nebraska plants has made carbon capture fully operational, contributing to lower carbon intensity scores [2][3] Strategic Initiatives - The company is focusing on five strategic priorities, including improving energy efficiency, evaluating carbon sequestration opportunities, and expanding grain storage capabilities [21][22] - The introduction of new leadership in finance and legal functions aims to enhance governance and strategic transactions [8] Market Outlook - The company anticipates that carbon-related opportunities could generate at least $188 million of adjusted EBITDA in 2026, subject to production volumes and carbon intensity factors [5][36] - Strong export demand for ethanol and a record corn crop are expected to support the company's market position [6][17] Regulatory Environment - The release of proposed 45C clean fuel production credit regulations is seen as a positive development for the industry, providing clarity and supporting decarbonization efforts [7] - The company is actively marketing its 2026 tax credits and expects to announce agreements soon, reflecting strong interest from counterparties [5][25]

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 [7][13] - Revenue for Q4 2025 was $428.8 million, down 26.6% year-over-year, primarily due to the sale of the Obion plant and idling of the Fairmont facility [14] Business Line Data and Key Metrics Changes - The production capacity for plants, excluding Fairmont, was increased to 730 million gallons per year, a 10% increase from the previous capacity [5] - The startup of CO2 compression equipment at three Nebraska plants was highlighted, with carbon capture now fully operational [7] Market Data and Key Metrics Changes - Ethanol margins remained resilient in Q4 2025, supported by strong domestic blending and export demand [20] - Ethanol exports set a record last year, and demand is expected to increase again in 2026 [21] Company Strategy and Development Direction - The company is focusing on five strategic priorities: improving energy efficiency, evaluating carbon sequestration opportunities, expanding facilities, increasing grain storage, and balancing capital structure [24] - The company aims to capitalize on carbon decarbonization programs and operational excellence while maintaining a disciplined hedging strategy [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational execution and the potential for carbon-related earnings, projecting at least $188 million of adjusted EBITDA from carbon initiatives in 2026 [8][9] - The company is optimistic about the ethanol market, citing strong bipartisan support for biofuels and favorable policy developments [9][10] Other Important Information - The company refinanced a majority of its 2027 convertible notes with a new $200 million convertible note due in 2030 [13] - The company has a federal net operating loss balance of $2,260.2 million, providing future tax efficiency [18] Q&A Session Questions and Answers Question: Interest in 2026 45Z credits - Management is actively marketing the 2026 45Z credits and is confident in the platform's ability to deliver credits going forward [28] Question: Cash flow from operations vs. EBITDA - The lower cash flow from operations was due to not fully receiving cash from carbon earnings, with a portion expected in Q1 [34] Question: Q1 ethanol EBITDA outlook - The company expects a better position compared to the previous year, with operational efficiency and favorable market fundamentals [36] Question: Clarification on carbon efficiency projects - The $5-$10 million efficiency projects are separate from the $15-$25 million in capital expenditures for maintenance [46] Question: CI score and on-farm practices - The company is optimistic about capturing value from on-farm practices, which could positively impact the CI score [54]

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]

Financial Data and Key Metrics Changes - The company reported fourth quarter adjusted earnings per share of $0.87 and full-year adjusted earnings per share of $3.43, with total segment operating profit of $821 million for the fourth quarter and $3.2 billion for the full year [5][12] - The trailing fourth quarter adjusted return on invested capital (ROIC) was 6.3%, and cash flow from operations before working capital changes was $2.7 billion for 2025 [5][22] - The company achieved approximately $200 million in cost savings through portfolio optimization and simplification initiatives [8] Business Line Data and Key Metrics Changes - The Ag Services and Oilseeds (AS&O) segment operating profit for the fourth quarter was $444 million, down 31% year-over-year, and for the full year, it was $1.6 billion, a decrease of 34% compared to 2024 [14] - The Carbohydrate Solutions segment operating profit for the fourth quarter was $299 million, down 6% year-over-year, and for the full year, it was $1.2 billion, down 12% compared to 2024 [18] - The Nutrition segment revenues were $1.8 billion for the fourth quarter, remaining relatively flat year-over-year, with human nutrition revenue increasing by 5% and animal nutrition revenue decreasing by 4% [19] Market Data and Key Metrics Changes - The company noted that the operating environment throughout 2025 was challenging, but improvements in global trade relations and U.S. biofuel policy clarity are expected to support a more constructive market environment in 2026 [11][12] - The company anticipates positive economic opportunities for the industry and American farmers, which should drive additional long-term investments [11] Company Strategy and Development Direction - The company is focused on five key growth areas: enhanced nutrition, biotics, biosolutions, precision fermentation, and decarbonization, each with different growth profiles and timelines for value creation [9][10] - The company aims to optimize its results in what is expected to be a more constructive operating environment, with a focus on disciplined capital allocation and cost savings [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the importance of timing regarding U.S. biofuel policy clarity and its potential positive impact on operations [33][34] - The company expects adjusted EPS for 2026 to be in the range of $3.60-$4.25, reflecting growth over 2025 [12][27] Other Important Information - The company paid its 376th consecutive quarterly dividend during the fourth quarter [6] - The company has made significant progress in improving working capital efficiency, realizing a $1.5 billion cash flow benefit from inventory reduction [22] Q&A Session Summary Question: Comments on the RVO and its impact on operating rates - Management acknowledged the difficulty in providing guidance due to external factors but expressed optimism about the positive impact of RVO clarity on operating rates and margins [33][34] Question: Update on Nutrition segment performance and customer recovery - Management clarified that while the Nutrition segment faced challenges, there was strong performance in flavors and a recovery in specialty ingredients, with ongoing efforts to regain market share [41][42] Question: Insights on crush margins and demand - Management indicated that the crush margins are influenced by various factors, including RVO policy and consumer demand, and emphasized the need for careful monitoring of market conditions [58][60] Question: Discussion on Starches and Sweeteners demand - Management noted that demand softness is attributed to various factors, including consumer behavior changes and pricing pressures, but emphasized efforts to offset these challenges [65][66]

Core Insights - Aemetis, Inc. announced that its Universal Biofuels subsidiary in India has secured approximately $24 million for the supply of over 27 million liters of biodiesel to three government-owned Oil Marketing Companies (OMCs) until March 2026 [1][2] Group 1: Company Overview - Aemetis is a diversified renewable natural gas and biofuels company headquartered in Cupertino, California, focusing on innovative technologies to lower energy costs and reduce emissions [5] - The Universal Biofuels subsidiary has been operational for over 17 years and is one of the largest biodiesel producers in India, with a production capacity of 80 million gallons per year [3][6] - The company is also involved in the production of high-quality biodiesel and refined glycerin at its East Coast facility in India [6] Group 2: Industry Context - The Indian government aims to increase biodiesel blending from 1% to a targeted 5%, which requires significant expansion of biodiesel production [2] - Universal Biofuels has a successful track record in producing renewable fuels and is exploring opportunities to diversify into other renewable fuels such as dairy biogas, ethanol, and sustainable aviation fuel [4] - The company is preparing for an Initial Public Offering (IPO) to sell a minority equity stake to public investors on the Indian stock exchange, contingent on favorable market conditions [4]

Core Insights - Argus has launched the world's first assessed prices for sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) from the Strait of Malacca, marking a significant development in the pricing of renewable fuels in Southeast Asia [1][2]. Group 1: Market Development - The new pricing mechanism enhances Argus' coverage of Asian hydrotreated biofuels, providing a transparent pricing structure for a region that is becoming a key global producer of these renewable fuels [2]. - By mid-2026, Argus anticipates that the hydrotreated biofuels capacity in Singapore, Malaysia, and Thailand will exceed 3.3 million tons per year [2]. Group 2: Regional Trade and Policy - Adrian Binks, CEO of Argus Media, highlighted that the launch of these assessments comes at a crucial time for regional markets, which are expected to see increased intra-regional trade flows due to new SAF targets [3]. - Singapore aims to implement a 1% SAF usage on flights departing from the country starting in 2026, becoming the first Asian nation to set such a target, with other countries in the region, including South Korea, Thailand, Indonesia, and India, also announcing similar targets [3]. Group 3: Pricing Assessments - The new prices will complement Argus' existing assessments, including fob China SAF (HEFA-SPK) and HVO assessments launched in January 2023, as well as Singapore SAF and HVO netbacks with historical price data dating back to November 2020 [4].

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the **Sustainable Aviation Alternative Fuels (SAAS)** and **biodiesel** industry, highlighting the potential for biodiesel (including first-generation and HVO) to become more popular than SAAS by 2026 due to economic conditions in Europe [2][3]. Core Insights and Arguments - **SAAS Demand and Economic Impact**: The overall volume of SAAS in 2026 may not meet expectations, with a 6% blending target achievable depending on the European economic situation [2][3]. - **Airline Industry Challenges**: Airlines face significant challenges due to high asset costs and poor profitability, with rising jet fuel prices potentially impacting internal competition [2][5]. - **Domestic Supply Issues**: There is insufficient supply of UCO (Used Cooking Oil) to meet SAAS demand, leading to a contraction in device authorizations by technology suppliers [2][6]. - **New Capacity Projections**: Domestic new capacity is expected to exceed 4 million tons in 2026, primarily concentrated in the southwestern region of China, but raw material supply remains a bottleneck [2][6]. - **Raw Material Quality**: Waste cooking oil is the primary raw material for SAAS, with kitchen waste oil being the highest quality. A shortage of waste oil could lead to price increases that affect the entire supply chain [2][7]. - **Price Stability**: The cancellation of large wave calculations may cause short-term price fluctuations in the UCO market, but overall prices should remain stable or slightly decrease in the long term due to strong demand and resource scarcity [2][8][10]. Additional Important Insights - **Production Costs**: The total processing cost for producing SAP (Synthetic Aviation Fuel) from UCO is approximately 11,000 RMB per ton, with raw material costs being a significant factor [4][12]. - **Market Dynamics**: The demand for UCO in the overseas market is significant, with high-quality UCO primarily being exported, which could impact domestic SAAS production if not retained [19]. - **Investment Trends**: There is a trend of overseas companies investing in biodiesel and astaxanthin products, driven by the oil content in waste oils and geopolitical risk considerations [20]. - **Biomass Char for Green Methanol**: The development of biomass char for green methanol production is facing challenges in China, with a need to shift towards pre-treatment methods to improve process efficiency [21]. Future Price Trends - **Market Price Fluctuations**: The UCO market is expected to follow a trend of stability in the first half of the year, with potential price increases in the second half due to stockpiling demands [23].