Combined Adjusted EBITDA

FY 2025

$1.25 billion to $1.3 billion " "

$1.25 billion to $1.3 billion "

no change

Core Business EBITDA

FY 2025

no prior guidance

$950 million to $1 billion "

no prior guidance

Renewable Diesel Business (DGD) EBITDA

FY 2025

no prior guidance

Approximately $250 million "

no prior guidance

Effective Tax Rate

FY 2025

no prior guidance

5% "

no prior guidance

Cash Taxes

FY 2025

no prior guidance

$60 million "

no prior guidance

Bank Leverage Ratio

FY 2025

2.5x "

no current guidance

no current guidance

Dividend from Diamond Green Diesel (DGD)

FY 2025

$86.4 million "

no current guidance

no current guidance

Core Business Performance and EBITDA

In Q2 and Q3 2024, the core business was described as generating steady or “flat sequential” performance with significant emphasis on achieving EBITDA guidance (e.g., combined adjusted EBITDA targets of $1.15–$1.175B in Q3 and $1.3–$1.4B in Q2), along with optimism for record earnings in 2025. " " "

In Q1 2025, the core business is reported as performing strongly with an acceleration in results throughout the quarter. EBITDA improved markedly (e.g., Q1 EBITDA rose from $28.1M to $195.8M, with reaffirmed guidance of $1.25–$1.3B) and cash generation is robust, enabling efficient deleveraging. " " "

Improved performance and heightened confidence. The narrative shifted from steady performance with promising tailwinds to accelerated results and clear demonstration of EBITDA growth.

Fat Price Trends Driving Operational Excellence

In Q2 2024 and Q3 2024 calls, fat price trends were discussed in the context of slow recoveries, gradual improvements in global fat pricing, and challenges from feedstock imports impacting operational margins. " " " "

In Q1 2025, rising fat prices are highlighted as a major positive driver, with precise EBITDA impacts (e.g., every $0.01 increase adds roughly $12–$15M to EBITDA). The Feed segment benefited from these trends, supporting overall operational excellence even though some lagged effects remain. " " " "

More positive and detailed outlook. While previous calls noted gradual improvements and challenges, Q1 2025 reflects a stronger, more quantifiable benefit from higher fat prices, indicating a shift toward enhanced operational performance.

Margin Improvement and Operational Efficiency

Q2 and Q3 2024 discussions focused on initiatives like improved procurement strategies, cost-cutting, and operational excellence programs that were expected to gradually boost margins. Q3 specifically mentioned targets around 23%–25% in the Feed segment and emphasized cost management and efficiency improvements across regions. " " " "

Q1 2025 reported improved gross margins across segments (e.g., overall gross margin rising to 22.6% vs. 21.4% previously), with specific improvements in the Food segment margins and strong operational efficiency seen in managing challenges such as severe weather impacting rendering. " " " "

Consistent and accelerating improvement. There is a continued focus on margin expansion, with Q1 2025 providing evidence of actual margin gains and operational efficiency enhancements compared to the preparatory steps discussed in earlier periods.

Regulatory and Policy Developments

In Q2 2024 and Q3 2024, regulatory topics (RINs, LCFS, RVO, tax credit transitions) were discussed in terms of uncertainty and gradual improvements. Recent meetings and anticipated transitions (e.g., BTC to PTC) were expected to boost margins in 2025, albeit with ongoing challenges. " " " " "

In Q1 2025, the discussion becomes more detailed with RIN values rising significantly, clearer expectations on tax credit monetization, and ongoing adjustments to regulatory transitions. Despite complexities, regulatory clarity (on LCFS and RVO) appears to be improving along with a systematic ramp-up in requirements. " " " "

Evolving clarity amid continued complexity. Earlier periods reflected uncertainty and broad anticipation while Q1 2025 portrays a more advanced stage of regulatory transition, with clearer quantification of regulatory impacts—even though challenges still persist.

Volatility in Diamond Green Diesel (DGD) Performance

Q2 and Q3 2024 highlighted volatility at DGD driven by regulatory uncertainty (RIN and LCFS issues), delayed feedstock adjustments, and operational factors, though dividends and capacity utilization were noted as positives. " " " "

In Q1 2025, volatility is still present due to factors such as catalyst turnarounds, tariff impacts, and complex tax credit transitions affecting feedstock eligibility. However, the explanation is more granular and there is cautious optimism that adjustments will eventually improve margins. " " " "

Persistent volatility with better diagnostic detail. Volatility remains a theme across periods; however, Q1 2025 provides a more comprehensive breakdown of causal factors while maintaining a guarded optimism about future stabilization.

Sustainable Aviation Fuel (SAF) Development

Q2 and Q3 2024 discussions centered on SAF plant development being ahead of schedule or near commissioning, with emphasis on strong market potential, long-term contracts, and early positive project economics. The market potential was described as large, and regulatory incentives were noted. " " " " " "

Q1 2025 shows that SAF has moved further into execution with a strong sales book in place, feedstock optimization adjustments underway, and anticipation of booking full producer tax credits in Q2. There is an increased focus on operational delivery and market positioning. " " "

Advancing from commissioning to market delivery. The strategic emphasis on SAF has evolved from development and planning in earlier periods to active management and execution in Q1 2025, indicating robust progress in market positioning.

Food Segment Innovation and Competitive Pressures

In Q2 and Q3 2024, the Food segment discussion highlighted new product developments (e.g., Next Tito GC) and innovation pipelines alongside challenges from increased capacity and competitive pricing pressure in commodity gelatin markets. There was emphasis on countering destocking and margin pressures through innovation. " " " "

In Q1 2025, the Food segment discussion features a focus on cutting‐edge product innovation (e.g., Nextida glucose control and collagen peptide advancements), with clinical trials and improved margins that offset competitive pressures. The narrative is more positive with differentiation through innovation. " "

Enhanced focus on innovation mitigating competitive pressures. The Food segment has transitioned from managing competitive pressures through cost control to actively leveraging product innovation for higher margins and market differentiation in Q1 2025.

Supply Chain Disruptions and Tariff Impacts on Feedstock Sourcing

In Q3 2024, there was no explicit discussion on supply chain disruptions or tariff impacts; the emphasis was on feedstock import trends and efforts to improve procurement strategies in various regions. " " "

In Q1 2025, the topic emerges more explicitly. The discussion details how tariffs on imported feedstocks and global adjustments are directly impacting feedstock sourcing, with a reengineered supply chain that benefits from higher domestic fat prices and strategic adjustments to mitigate tariff-related challenges. " " " "

Emergence of explicit supply chain focus. While earlier periods touched on related trends indirectly, Q1 2025 gives a clear, detailed account of how tariffs and supply chain disruptions are managed, reflecting a more proactive strategy.

Global Economic and Recessionary Pressures

In Q2 2024, there was discussion of deflationary pressures, volatile global ingredient pricing, and challenges in customer demand due to broader economic uncertainty. Q3 2024 explicitly mentioned ongoing recessionary conditions impacting key markets such as China, Europe, and the U.S.. " " " "

Q1 2025 does not explicitly delve into recessionary pressures; rather, the focus is on business stability and positive cash flow in an “unpredictable global environment,” indicating that while global conditions remain challenging, the company’s performance appears buffered. " "

Reduced explicit focus with underlying caution. Earlier periods provided detailed commentary on recessionary pressures; in Q1 2025 the narrative is less explicit, suggesting either adaptation to or a more measured discussion of macroeconomic challenges.

Financial Management and Capital Allocation Strategies

In Q2 and Q3 2024, the company emphasized strong debt management, cost reductions, working capital improvements, capital expenditure control, and opportunistic share buybacks as core parts of its financial strategy. " " " The focus was on reducing leverage and maintaining liquidity while preparing for future growth.

In Q1 2025, the focus on financial management and capital allocation continues robustly with significant debt reduction (e.g., $146.2M paid down), active share repurchases, and strong cash flow, all aimed at advancing deleveraging objectives and improving the balance sheet further. " " " "

Consistent and prudent financial discipline with measurable progress. The financial management narrative remains a principal theme, with Q1 2025 demonstrating tangible improvements and ongoing commitment to capital allocation priorities established in earlier periods.