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Achieved record fiscal 2025 EPS and net income, attributed to strong export demand, favorable commodity pricing, and high operational efficiency.
Recognized $28,000,000 in 45Z tax credits for the full fiscal year 2025 as regulatory clarity improved, significantly boosting fourth-quarter net income.
Maintained 22 consecutive quarters of profitability by leveraging market expertise to manage the spread between improved ethanol pricing and reduced corn costs.
Expanded ethanol sales volumes to an all-time high of 290,000,000 gallons, supported by a robust global demand environment for lower-carbon fuels.
Strengthened the balance sheet to include $375,800,000 in cash and zero bank debt, providing the flexibility to fund major capital projects internally.
Capitalized on strong corn oil demand, with sales volumes increasing 10% year-over-year to approximately 97,000,000 pounds.
Anticipates the One Earth Energy capacity expansion to 200,000,000 gallons will become fully operational in fiscal 2026 following testing and commissioning.
Expects continued 45Z tax credit benefits through 2029, with potential for higher credits once carbon capture and sequestration (CCS) projects are permitted.
Projects a profitable first quarter of 2026, supported by favorable corn supplies and manageable input costs.
Assumes high global oil prices will continue to drive ethanol demand by maintaining a significant price advantage over petroleum-based gasoline.
Remains focused on the ‘Three P’s’ strategy—Profit, Position, and Policy—to guide capital allocation and operational priorities in the coming year.
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.
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.
Reported an increase in SG&A to $32,600,000 for the year, primarily driven by higher incentive bonuses tied to record company profitability.
Acknowledged that while nationwide E15 blending is unlikely due to industry opposition, incremental demand is expected from independent retailers adding E15 pumps.
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Management confirmed the current recognition rate is approximately $0.10 per gallon across their total volume.
Stated that 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.
