King Safon

King Safon, on behalf of Salvatore Tiano from Bank of America Corporation, asked for clarification on why Q4 cash flow from operations before working capital was significantly lower than EBITDA. He also inquired about the massive working capital tailwind in Q4 and its implications for 2026 net working capital, and the outlook for Q1 and Q2 ethanol EBITDA.

Answer

Will Joekel, Vice President and Treasurer, explained that the lower Q4 cash flow was due to not having taken full receipt of carbon earnings cash, with the remainder expected in Q1. He attributed the working capital tailwind to accelerated receivables and inventory from the Eco transaction and building farmer payments. Imre Havasi, Senior Vice President of Trading and Commercial Operations, noted that Q1 is seasonally the low point but the industry and company are in much better shape than last year, with strong operational efficiency, good yields, and resilient consolidated crush margins due to inexpensive corn and better corn oil prices. He expressed confidence in a strong Q1 compared to the prior year.