Question · Q4 2025
Connor Fitzpatrick asked for a breakdown of the drivers behind the record feed ingredients processing volume and strong revenue/gross margin percentage in Q4 2025, and which of these drivers are more ratable. He also inquired about the specific LCFS credit price required for Diamond Green Diesel (DGD) to redirect product toward California and away from other current end markets.
Answer
CEO Randall Stuewe attributed the feed segment's momentum to strong raw material tonnage globally (e.g., strong poultry in the U.S., large beef tonnage in Brazil, consistent Europe) and effective margin/spread management. He noted that many small factors contribute, including freight, product mix, and market sales. CFO Bob Day stated it's difficult to provide an exact LCFS credit price for DGD to redirect to California due to dynamic global markets, but it would need to be higher than current levels as better alternatives exist today.
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