Total Revenue

**-18% " " " " **

The decline in revenue was primarily driven by lower weighted average selling prices for ethanol and distillers grains, along with slightly reduced volumes sold, although partially offset by incremental gains in other segments.

Ethanol Production

**-24% " " " " **

The drop stemmed from reduced selling prices across ethanol and related co-products, and less favorable crush margins, with only modest relief provided by declining input costs.

Agribusiness & Energy Services

**+22% " " " " **

The increase resulted from stronger trading margins and higher demand for renewable corn oil, which helped offset lower trading volumes in other commodities.

Operating Income (EBIT)

**from $16.3 million to -$40.9 million " " " " **

The swing to a loss was largely driven by overall revenue declines outpacing cost efficiencies, with unfavorable market conditions placing additional pressure on margins and contributing to higher operating losses.

Ethanol Market Dynamics

In Q1, earnings emphasized improved margins via blending incentives and seasonal stock draws. " " Q2 discussions highlighted competitive pricing, record export potential, and margin expansion despite high stocks. " " " Q3 commentary noted rapid margin compression yet signs of stabilization and optimism for 2025. " " " "

Q4 focused on weak fundamentals driven by elevated production, high inventory levels, and margin pressures, while underscoring optimism from a strong export outlook and anticipated improvements during the driving season. " " "

Persistent caution on margins with renewed optimism from strong export demand and seasonal factors, though overall sentiment remains guarded.

High-Protein Product Strategy

Q1 through Q3 consistently discussed recurrent demand for 50 Pro products and a strategic shift toward 60 Pro Sequence, with emphasis on differentiating premium products amid margin compression and competitive pressures. " " " " "

In Q4, production volumes were lower due to modernization and rebaselining efforts, yet the focus remains on scaling the premium Sequence product to serve domestic pet food and international aquaculture markets despite ongoing margin pressures. " " " "

A strategic shift toward higher-value, premium protein products continues as the company adjusts production processes to counter persistent margin pressures.

Clean Sugar Technology (CST)

Q1 discussions focused on early commissioning and catalyst scaling challenges. " " " In Q2, issues with construction quality and debottlenecking were prominent. " " " Q3 emphasized ramping up customer validation and addressing production bottlenecks. "

Q4 highlighted progress with certifications (Kosher, Halal) and the clearing of a key food production license, yet the project remains hampered by operational scaling challenges—particularly wastewater management issues—and potential shifts to campaign mode production. " "

Long-term potential remains strong, but ongoing operational scaling challenges continue to temper immediate performance.

Carbon Initiatives

Q1 discussions outlined early plans for carbon capture (CCS) and leveraging 45Z credits. " " " " Q2 updates focused on heavy capital investment, ordering of compression equipment, and projecting high extra free cash flow from decarbonization. " " " Q3 updates detailed progress on the Trailblazer project, well approvals, and monetization strategies using various credit programs. " " "

In Q4, the conversation expanded with more detailed plans on pipeline construction, improved GREET model metrics, and the anticipated financial contributions from CCS and 45Z credits from Nebraska facilities, projecting strong earnings contributions starting late 2025. " " " "

A clearer, more optimistic roadmap is emerging—with enhanced focus on low carbon intensity and CCS initiatives promising high future impact—solidifying its importance for long-term growth.

Corporate Reorganization

No specific reorganization or cost-saving initiatives were noted in Q1, Q2, or Q3 discussions.

Q4 marked a significant announcement with a targeted $50 million in annualized cost savings (with $30 million already achieved), workforce and SG&A reductions, and a strategic pivot from innovation to commercialization. " " " "

A new and aggressive cost-reduction initiative has emerged in Q4, reflecting a fresh strategic focus on corporate streamlining and improved profitability.

Renewable Diesel / DCO Demand

Q1 highlighted the potential of DCO due to its lower carbon intensity compared to alternatives. " Q2 emphasized the premium shift for corn oil fueled by renewable diesel demand and its environmental advantages. " Q3 did not feature notable discussion on this topic.

In Q4, the discussion reinforced renewable diesel potential with increased DCO demand bolstered by environmental credentials, including CORSIA certification and rising premiums due to supply constraints (e.g. ban on UCO imports). " " "

Sentiment has grown more positive around renewable diesel, as environmental credentials and market dynamics strengthen DCO’s role as a key feedstock.

Trade Uncertainties and Tariffs

In Q1, there was a brief mention of Brazil potentially importing ethanol despite tariffs. " " Q2 and Q3 did not offer notable commentary on trade issues.

Q4 contained a detailed discussion on trade uncertainties, including the impact of potential tariffs, developments in the Chinese UCO situation, and favorable news from the Canadian market, while noting mixed implications for exports and input costs. "

An emerging focus in Q4 driven by evolving global trade dynamics—introducing cautious sentiment as external trade policies could impact export markets.

Operational Challenges and Margin Compression

Q1 saw challenges from oversupply, adverse weather impacts, and compressed margins across ethanol, protein, and corn oil segments. " " " In Q2, scheduled maintenance, equipment delays, and pricing headwinds were prominent. " " " " Q3 discussions continued to note maintenance issues, production ramp-up challenges (including CST), and further margin pressures across key segments. " " "

Q4 continued to face margin compression in both ethanol and protein segments due to weak fundamentals, along with additional cost rationalization measures (including idling certain plants), although efforts to improve efficiencies are underway. " " " "

Persistent operational challenges and margin compression remain a concern, although ongoing cost-saving and capacity rationalization initiatives signal a cautious, yet proactive, approach to stabilization.