Alto Ingredients Inc (ALTO) 2025 Q4 法說會逐字稿

Good day, and welcome to the Alto Ingredients fourth-quarter and year-end 2025 financial results conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 Alto Ingredients 2025 年第四季暨全年財務結果電話會議。(接線員指示) 請注意，本活動將被錄音。

I would now like to turn the conference over to Ms. Harriet Fried of Alliance Advisors. Please go ahead.

現在我想把電話會議交給 Alliance Advisors 的 Harriet Fried 女士。請開始。

Thank you, operator, and thank you, all, for joining us today for the Alto Ingredients fourth-quarter and year-end 2025 results conference call. On the call today are President and CEO, Bryon McGregor; and CFO, Rob Olander.

謝謝您，接線員，也謝謝各位今天參加 Alto Ingredients 2025 年第四季暨全年業績電話會議。今天與會者包括總裁兼執行長 Bryon McGregor，以及財務長 Rob Olander。

Alto Ingredients issued a press release after the market closed today, providing details of the company's financial results for the fourth quarter of 2025. The company also prepared a presentation for today's call that is available on its website at altoingredients.com. A webcast and a webcast replay will be available on the Alto Ingredients website.

Alto Ingredients 已於今日收盤後發布新聞稿，提供公司 2025 年第四季財務結果的詳細資訊。公司也為今天的電話會議準備了一份簡報，已公布於其網站 altoingredients.com。Alto Ingredients 網站亦將提供網路直播及重播。

Please note that the information on this call speaks only as of today, March 4. You are advised that time-sensitive information may no longer be accurate at the time of any replay. Please refer to the company's Safe Harbor statement in the slide deck posted to the company's website, which states that some of the comments in this presentation constitute forward-looking statements and considerations that involve risks and uncertainties. The actual future results of Alto Ingredients could differ materially from those statements. Factors that could cause or contribute to such differences include, but are not limited to, events, risks, and other factors previously and from time to time disclosed in Alto Ingredients' filings with the SEC. Except as required by applicable law, the company assumes no obligation to update any forward-looking statements.

請注意，本次電話會議所提供的資訊僅截至今天（3 月 4 日）為準。提醒您，具時效性的資訊在任何重播時點可能已不再準確。請參閱公司網站所張貼投影片中的「安全港」聲明，其中指出本簡報中的部分評論構成前瞻性陳述與考量，並涉及風險與不確定性。Alto Ingredients 的實際未來結果可能與這些陳述存在重大差異。可能造成或導致此等差異的因素包括但不限於：先前以及不時於 Alto Ingredients 向美國證券交易委員會（SEC）提交之文件中揭露的事件、風險及其他因素。除非適用法律要求，公司不承擔更新任何前瞻性陳述之義務。

In management's prepared remarks, non-GAAP measures will be referenced. Management uses these non-GAAP measures to monitor the financial performance of operations and believes these measures will assist investors in assessing the company's performance for the periods reported. The company defines adjusted EBITDA as unaudited consolidated net income or loss before interest expense, interest income, provision or benefit for income taxes, asset impairments, unrealized derivative gains and losses, excess insurance proceeds, acquisition-related expense or recoveries, and depreciation and amortization expense.

在管理層的預先準備發言中，將提及非 GAAP 衡量指標。管理層使用這些非 GAAP 指標來監控營運的財務表現，並相信這些指標將協助投資人評估所報告期間的公司表現。公司將調整後 EBITDA 定義為（未經審計之）合併淨利或淨損，在扣除利息費用、利息收入、所得稅費用或利益、資產減損、未實現衍生性商品損益、超額保險理賠收入、併購相關費用或回收，以及折舊與攤銷費用之前的金額。

To support the company's review of non-GAAP information, a reconciling table has been included in today's release.

為支持公司對非 GAAP 資訊的檢視，今日新聞稿中已納入調節表。

On today's call, Bryon will provide a review of the company's strategic plan and activities. Rob will comment on its financial results, then Bryon will wrap up and open the call for Q&A.

在今天的電話會議中，Bryon 將回顧公司的策略計畫與相關活動。Rob 將評論財務結果，接著 Bryon 將作結並開放問答。

It's now my pleasure to introduce Bryon McGregor. Bryon, go ahead, please.

現在我很榮幸介紹 Bryon McGregor。Bryon，請開始。

Thank you, Harriet, and thank you, all, for joining us today. I'll begin with a quick review of our fourth-quarter results and achievements, after which I'll turn the call over to Rob for more details on our numbers. After that, I'll give you an overview of our major initiatives for 2026 and the opportunities we're seeing in our markets. We'll then open the call for Q&A.

謝謝你，Harriet，也謝謝各位今天加入我們。我將先快速回顧第四季的成果與成就，之後把電話交給 Rob，請他更詳細說明我們的數字。接著，我會概述我們 2026 年的主要推動項目，以及我們在市場上看到的機會。然後我們將開放問答。

The fourth quarter capped a year of strong execution, and it was a pivotal milestone in our strategic realignment. Entering the year, we made tactical decisions to focus on opportunities that were within our control to maximize earnings. We adjusted staffing to align with our current organizational footprint, captured cost savings, invested in the throughput and efficiency of our plants, culled underperforming business activities in our Marketing and Distribution segment, and maintained operational disciplines in support of our diversification efforts.

第四季為我們強勁執行的一年畫下句點，同時也是我們策略重新調整的關鍵里程碑。在年初，我們做出戰術性決策，聚焦於我們可控的機會，以最大化獲利。我們調整人力配置以符合目前的組織規模、取得成本節省、投資於工廠的產能通過量與效率、淘汰行銷與通路（Marketing and Distribution）部門中表現不佳的業務活動，並維持營運紀律以支持我們的多元化努力。

Earnings for the fourth quarter were $21 million, a $63 million improvement compared to the fourth quarter of 2024. For the full year 2025, earnings were $12 million, a $72 million improvement. Further, adjusted EBITDA for the fourth quarter was $28 million, a $36 million positive swing from last year.

第四季獲利為 2,100 萬美元，較 2024 年第四季改善 6,300 萬美元。2025 全年獲利為 1,200 萬美元，改善 7,200 萬美元。此外，第四季調整後 EBITDA 為 2,800 萬美元，較去年增加 3,600 萬美元。

For 2025, adjusted EBITDA grew to $45 million, a $53 million improvement compared to 2024. Increased crush margins, qualified 45Z credits, and strong renewable fuel export sales were major contributors to improved performance for both the quarter and the full year.

2025 年調整後 EBITDA 成長至 4,500 萬美元，較 2024 年改善 5,300 萬美元。壓榨利差（crush margins）提升、符合資格的 45Z 抵免，以及強勁的再生燃料出口銷售，是本季與全年表現改善的主要貢獻因素。

Our Carbonic acquisition in early 2025 is a perfect example of our focused strategy. This acquisition and the resulting diversification into liquid CO2 improved the profitability of our Columbia ethanol plant. Alto Carbonic also contributed positively to the profitability in our Western segment for both the fourth quarter and for all of 2025.

我們在 2025 年初完成的 Carbonic 收購，是我們聚焦策略的最佳例證。此項收購以及由此帶來的液態 CO2 業務多元化，提升了我們 Columbia 乙醇工廠的獲利能力。Alto Carbonic 也在第四季及 2025 全年，對我們西部（Western）事業部的獲利做出正面貢獻。

Further, we made significant progress in determining the amount of 45Z transferable tax credits for 2025 and associated incremental earnings. We expect to qualify approximately 90 million gallons of combined production on an annual basis for 45Z credits at our Columbia and our Pekin Dry Mill facilities.

此外，我們在釐清 2025 年可轉讓 45Z 稅額抵免的金額及其相關增量獲利方面，取得了重大進展。我們預期在 Columbia 與 Pekin Dry Mill 設施，按年化基礎合計約有 9,000 萬加侖的產量可符合 45Z 抵免資格。

In the fourth quarter, we recorded for the full year $7.5 million in 45Z credit earnings or $0.10 per gallon net of estimated monetization costs. For 2026, with the removal of the indirect land use change or ILUC, from the GREET model, we expect to qualify for $0.20 per gallon at our Columbia and Pekin Dry Mill facilities and to generate approximately $15 million in net proceeds.

在第四季，我們就全年認列 45Z 抵免收益 750 萬美元，或在扣除估計變現成本後每加侖 0.10 美元。展望 2026 年，隨著 GREET 模型移除間接土地使用變更（ILUC），我們預期 Columbia 與 Pekin Dry Mill 設施可達到每加侖 0.20 美元的資格，並產生約 1,500 萬美元的淨收益。

We continue to pursue opportunities to lower our carbon scores further. The Pekin Wet Mill and ICP do not currently qualify for these credits, but are advantaged to serve a variety of domestic and export markets, which are predominantly sold at a premium to ethanol.

我們將持續尋求進一步降低碳評分的機會。Pekin Wet Mill 與 ICP 目前尚不符合這些抵免資格，但在服務多元的國內與出口市場方面具備優勢，而這些產品多數以高於乙醇的溢價出售。

Finally, with respect to our Western asset optimization and monetization plan, as I mentioned at last quarter's call, current market conditions, including operational improvements, together with the positive impact of our Alto Carbonic acquisition have materially changed the calculus for simply selling the facility. Given Columbia's improved profitability, we are no longer actively marketing the asset. We continue, however, to evaluate all options for our Magic Valley facility, including selling the plant as well as restarting and capturing 45Z credits, and monetizing the valuable CO2 the facility would produce.

最後，關於我們西部資產最佳化與變現計畫，如我在上季電話會議所提到的，當前市場狀況（包括營運改善）以及 Alto Carbonic 收購的正面影響，已實質改變了單純出售該設施的評估基礎。鑑於 Columbia 獲利能力提升，我們已不再積極推銷該資產。然而，我們仍持續評估 Magic Valley 設施的所有選項，包括出售工廠、重啟並取得 45Z 抵免，以及將該設施可產出的高價值 CO2 進行變現。

In summary, we are pleased with our Q4 and full-year results that demonstrate the successful execution of our strategic realignment.

總結而言，我們對第四季與全年結果感到滿意，這些結果展現了我們策略重新調整的成功執行。

I'll now turn the call over to Rob for a more detailed review of our financial performance. Rob?

接下來我將把電話交給 Rob，請他更詳細回顧我們的財務表現。Rob？

Thank you, Bryon. Thank you.

謝謝你，Bryon。謝謝。

First, I'd like to review the financial results for the fourth quarter of 2025 compared to the fourth quarter of 2024. Net sales were $232 million, $4 million lower than in the prior year. This reflects a reduction in volumes sold of 10.6 million gallons, primarily due to our decision to idle our Magic Valley facility at the end of 2024.

首先，我想回顧 2025 年第四季相較於 2024 年第四季的財務結果。淨銷售額為 2.32 億美元，較前一年減少 400 萬美元。這反映出銷售量減少 1,060 萬加侖，主要是因為我們決定於 2024 年底讓 Magic Valley 設施停工。

On a consolidated basis, the average sales price per gallon increased to $2.10 from $1.88 per gallon, partially offsetting the reduction in volumes sold. Gross profit for Q4 2025 was $15.2 million, a significant increase of $16.6 million compared to Q4 2024's gross loss of $1.4 million.

以合併基礎計算，每加侖平均銷售價格由每加侖 1.88 美元上升至 2.10 美元，部分抵銷了銷售量下滑的影響。2025 年第四季毛利為 1,520 萬美元，較 2024 年第四季毛損 140 萬美元大幅增加 1,660 萬美元。

The significant improvement in gross profit was due to the following drivers: stronger market crush margin of $0.23 per gallon in Q4 2025 compared to $0.08 per gallon in 2024 accounted for approximately $8 million. An increase in renewable fuel export sales at premiums to domestic sales contributed $5 million on a higher volume and higher average sales price per gallon. We realized $2.6 million less in compensation costs for the quarter related to the staffing reduction implemented earlier in the year, including the impact of idling our Magic Valley plant and a gain on our annual pension valuation adjustment. The sale of Oregon carbon credits contributed an additional $2.9 million on improved market pricing.

毛利大幅改善主要來自以下驅動因素：2025 年第四季市場壓榨利差（crush margin）為每加侖 0.23 美元，較 2024 年的每加侖 0.08 美元更強，約貢獻 800 萬美元。可再生燃料出口銷售以高於國內銷售的溢價成交，受惠於更高銷量與更高的每加侖平均售價，貢獻 500 萬美元。由於年初實施的人力精簡（包含使 Magic Valley 工廠停產的影響）以及年度退休金精算評價調整帶來的收益，本季與薪酬相關成本較去年同期減少 260 萬美元。出售俄勒岡州碳權在市場價格改善下另貢獻 290 萬美元。

We continue to benefit from our Carbonic acquisition, which we completed at the beginning of 2025, as it contributed $1.4 million to our Western Production segment during the quarter. With the idling of Magic Valley, this segment had a positive gross profit for the quarter and the full year.

我們持續受惠於 2025 年初完成的 Carbonic 收購案，本季為我們的西部生產（Western Production）事業部貢獻 140 萬美元。隨著 Magic Valley 停產，該事業部本季及全年均實現正向毛利。

With high-value liquid CO2 now in our product mix, our Western Essential Ingredients return improved to 48% in the fourth quarter from 30% a year ago and contributed to an increase in our consolidated return to 52% from 43%, and partially offsetting these positives was a net negative $4.2 million in combined realized and unrealized changes in derivatives.

隨著高價值液態 CO2 納入產品組合，我們的西部關鍵原料（Western Essential Ingredients）報酬率在第四季由一年前的 30% 提升至 48%，並帶動合併報酬率由 43% 提升至 52%；部分抵銷上述正面因素的是，衍生性金融商品已實現與未實現變動合計淨負面影響 420 萬美元。

SG&A expenses decreased by $500,000 to $6.9 million. Once again, this is attributable to rightsizing staffing levels in the first half of the year. As you may recall, in Q4 of 2024, we recorded the final acquisition-related expenses for Eagle Alcohol of $5.7 million and $24.8 million of impairment charges related to Magic Valley and Eagle Alcohol, both of which were excluded from adjusted EBITDA.

銷售、一般及管理費用（SG&A）減少 50 萬美元至 690 萬美元。同樣地，這主要歸因於上半年將人力配置調整至適當規模。各位或許記得，2024 年第四季我們認列了與 Eagle Alcohol 收購相關的最後一筆費用 570 萬美元，以及與 Magic Valley 與 Eagle Alcohol 相關的減損費用 2,480 萬美元；上述項目均已自調整後 EBITDA 中排除。

In the fourth quarter of 2025, we recorded $800,000 of asset impairment charges related to the cleanup of CapEx projects. As discussed on prior calls, in April 2025, we sustained damage to our Pekin campus River loading dock. After filing an insurance claim with our carrier, in Q4, we received our maximum insurance coverage payment of $10 million. Of these proceeds, $1.5 million was recorded as a reduction to cost of goods sold as a reimbursement for previously recorded expenses. $1.8 million was recorded in other income for lost profits related to the business interruption. And the remaining $6.7 million of income was recorded as excess insurance proceeds in accordance with GAAP, which will be used to fund the repairs and improvements in 2026.

2025 年第四季，我們認列 80 萬美元的資產減損費用，與資本支出（CapEx）專案的收尾清理相關。如先前電話會議所述，2025 年 4 月，我們位於 Pekin 園區的河運裝載碼頭受損。向保險公司提出理賠後，我們於第四季收到最高保險理賠金額 1,000 萬美元。其中 150 萬美元作為先前已認列費用的補償，列為銷貨成本的減項。180 萬美元因營運中斷造成的損失利潤，列入其他收益。其餘 670 萬美元依據 GAAP 列為超額保險理賠收入，將用於 2026 年的修復與改善工程。

Since the excess proceeds were not related to operations, we excluded this gain from our calculation of adjusted EBITDA. As Bryon mentioned, we made significant progress in qualifying for 45Z credits and are entering into contracts to sell these credits to third parties.

由於該超額理賠收入與營運無關，我們在計算調整後 EBITDA 時將此項收益排除。如 Bryon 所提，我們在取得 45Z 抵減資格方面取得重大進展，並正簽訂合約將這些抵減額出售給第三方。

The expected proceeds from selling the 2025 credits are $7.5 million net of selling costs, which directly strengthened our bottom line in the fourth quarter. The combination of improved gross profit, lower SG&A expenses, recognition of 45Z tax credits, and the excess insurance proceeds resulted in net income attributable to common stockholders of $21.5 million or $0.28 per diluted share for Q4 2025, an increase of $63.5 million compared to Q4 2024. For the year, net income attributable to common stockholders was $12.1 million or $0.16 per diluted share compared to a loss of $60.3 million or $0.82 per share.

出售 2025 年度抵減額的預期所得為 750 萬美元（扣除銷售成本後淨額），並在第四季直接強化我們的最終獲利。毛利改善、SG&A 費用降低、認列 45Z 稅額抵減，以及超額保險理賠收入的綜合影響，使 2025 年第四季歸屬普通股股東之淨利達 2,150 萬美元，或稀釋後每股 0.28 美元，較 2024 年第四季增加 6,350 萬美元。全年歸屬普通股股東之淨利為 1,210 萬美元，或稀釋後每股 0.16 美元；相較之下，去年為淨損 6,030 萬美元，或每股虧損 0.82 美元。

Adjusted EBITDA increased $35.6 million to $27.9 million for Q4 2025 compared to a negative adjusted EBITDA of $7.7 million for Q4 2024, reflecting the above-mentioned improvements in gross profit and SG&A, but excluding the $6.7 million in excess insurance proceeds. And for the year, adjusted EBITDA was $44.7 million, an improvement of $53.2 million compared to negative adjusted EBITDA of $8.5 million for 2024.

2025 年第四季調整後 EBITDA 增加 3,560 萬美元至 2,790 萬美元，相較 2024 年第四季為負的調整後 EBITDA 770 萬美元；此反映前述毛利與 SG&A 的改善，但不包含 670 萬美元的超額保險理賠收入。全年調整後 EBITDA 為 4,470 萬美元，較 2024 年負的調整後 EBITDA 850 萬美元改善 5,320 萬美元。

Turning to our balance sheet. As of December 31, 2025, our cash balance was $23 million. During the fourth quarter, we generated $10 million in cash flow from operations. We generated $5 million in cash flow from investing activities, including $7 million from excess insurance proceeds, partially offset by $2 million in CapEx. We used $22 million in our financing activities as we paid down $16 million on our operating line of credit and $5 million on our term debt.

接著看資產負債表。截至 2025 年 12 月 31 日，我們的現金餘額為 2,300 萬美元。第四季我們自營運活動產生 1,000 萬美元現金流。我們自投資活動產生 500 萬美元現金流，其中包含 700 萬美元的超額保險理賠收入，部分被 200 萬美元資本支出（CapEx）所抵銷。在籌資活動方面我們使用 2,200 萬美元現金，用於償還營運循環信用額度 1,600 萬美元及定期債務 500 萬美元。

As a result, we ended the year with $55 million outstanding on our term loan. At year-end, we had a total loan borrowing availability of $102 million, consisting of $37 million under our operating line of credit and $65 million under our term loan facility.

因此，我們在年底時的定期貸款未償餘額為 5,500 萬美元。截至年底，我們可動用的總借款額度為 1.02 億美元，其中包含營運循環信用額度下的 3,700 萬美元，以及定期貸款融資額度下的 6,500 萬美元。

Our improved profitability in the last half of 2025 allowed us to further pay down $10 million of principal on our term debt in February of 2026, and we expect to pay down an additional $6 million in March. This will reduce the principal amount of our term debt to $39 million by the end of the first quarter. We are pleased to significantly reduce our debt and continue to strengthen our balance sheet.

2025 年下半年獲利能力改善，使我們得以在 2026 年 2 月進一步償還定期債務本金 1,000 萬美元，並預期於 3 月再償還 600 萬美元。這將使我們的定期債務本金在第一季末降至 3,900 萬美元。我們很高興能大幅降低負債並持續強化資產負債表。

In 2026, we plan to elevate our capital expenditures to roughly $25 million while maintaining strong cost discipline and prioritizing the highest ROI projects. Approximately 45% of our capital expenditure budget is earmarked for maintenance projects, while the remaining 55% is for optimization projects, including taking further steps to implement capacity increases at our Pekin Dry Mill. Included in the $25 million budget are the cost to complete the repairs of the existing dock and adding the second alcohol loadout dock.

2026 年，我們計畫在維持嚴格成本紀律並優先投入最高投資報酬率（ROI）專案的同時，將資本支出提高至約 2,500 萬美元。我們的資本支出預算約 45% 用於維護性專案，其餘 55% 用於最佳化專案，包括進一步推動 Pekin 乾磨廠（Dry Mill）的產能提升措施。2,500 萬美元預算亦包含完成既有碼頭修復，以及新增第二座酒精裝載碼頭的成本。

As a reminder, we are building the second dock to mitigate future business interruption and enhance our logistical capabilities by expanding throughput and creating redundancy. We expect to begin the repairs on the original dock and the installation of the second dock this spring and to complete both projects by the end of 2026.

提醒各位，我們興建第二座碼頭是為了降低未來營運中斷風險，並透過提升吞吐量與建立備援來強化物流能力。我們預期今年春季開始進行原碼頭修復及第二座碼頭的安裝，並於 2026 年底前完成兩項工程。

I'll now turn the call back to Bryon.

接下來我把電話會議交回給 Bryon。

Thank you, Rob. In summary, we entered 2026 with a leaner cost structure, a higher mix of premium exports and carbon advantage volumes, expanded CO2 opportunities, and potential upside from 45Z tax credits. We've completed the heavy lifting of addressing losses at underperforming assets, removing structural costs and repositioning our portfolio towards higher value and more consistent revenue streams and are moving forward with plans to improve the company's return on assets. By continuing to improve operations, we believe we will strengthen Alto's ability to capitalize on favorable margin environments, to stabilize when margins are compressed, and to ensure that our assets are producing positive returns.

謝謝你，Rob。總結來說，我們以更精實的成本結構、更高比例的溢價出口與碳優勢銷量、擴大的 CO2 機會，以及 45Z 稅額抵減帶來的潛在上行空間，進入 2026 年。我們已完成針對表現不佳資產虧損的關鍵處置工作，移除結構性成本，並將投資組合重新定位至更高價值且更穩定的營收來源，並持續推進提升公司資產報酬率的計畫。透過持續改善營運，我們相信將強化 Alto 在有利利差環境下把握機會的能力、在利差受壓縮時維持穩定，並確保我們的資產能產生正向報酬。

In 2026, we intend to stay focused on what is within our control on driving improved profitability and executing on multiple opportunities to grow earnings.

在 2026 年，我們打算持續專注於我們可控的事項，以推動獲利能力改善，並把握多項機會來成長盈餘。

As a reminder, the first quarter is a seasonally challenging period for us. And in January of this year, extreme cold weather disrupted River Logistics and curtailed production at our Pekin campus. We took advantage of the downtime to make some of the repairs we had planned to be completed in the second quarter during our biennial wet mill outage. This has allowed us to defer the remaining work until the spring of 2027 and to make up for January's lost production next quarter.

提醒一下，第一季對我們而言在季節性上是較具挑戰的期間。而在今年一月，極端寒冷天氣干擾了 River Logistics，並抑制了我們 Pekin 園區的產量。我們利用停工時間完成了原本計畫在第二季、於兩年一次的濕磨停機期間進行的部分維修。這使我們得以將剩餘工作延後至 2027 年春季，並在下個季度補回一月流失的產量。

With respect to additional outages planned for 2026, we expect normal Q2 outages at ICP and Columbia, consistent with those in 2025. In the second half of the year, the Pekin Dry Mill will take a longer outage to implement a project to increase production capacity by approximately 8%, further improving the plant's profitability.

就 2026 年規劃的其他停機而言，我們預期 ICP 與 Columbia 在第二季會有正常停機，與 2025 年一致。在下半年，Pekin 乾磨廠將進行較長時間的停機，以執行一項將產能提高約 8% 的專案，進一步提升該廠的獲利能力。

As Rob mentioned, we have important capital projects planned for 2026 and intend to maintain strong cost discipline, and we'll continue to prioritize the highest ROI projects. CO2 utilization remains a compelling opportunity for us as demand for liquid CO2 continues to rise. In 2026, we intend to capitalize further on demand growth in the Pacific Northwest and on our liquid CO2 processing capabilities by increasing our throughput volume and storage capacity.

如 Rob 所提，我們在 2026 年規劃了重要的資本專案，並打算維持嚴謹的成本紀律，同時將持續優先投入投資報酬率（ROI）最高的專案。隨著液態 CO2 需求持續上升，CO2 利用對我們而言仍是極具吸引力的機會。在 2026 年，我們打算進一步把握太平洋西北地區的需求成長，以及我們的液態 CO2 處理能力，透過提高處理量與儲存容量來擴大規模。

We're also assessing large-scale CO2 utilization and sequestration opportunities at our Pekin campus and developing plans to capture more value for our CO2 as quickly as possible. We have contracted to sell a significant volume of renewable fuel exports for the first half of 2026 and believe there are increasing opportunities for us to expand volumes and premiums in this market.

我們也正在評估在 Pekin 園區的大規模 CO2 利用與封存機會，並制定計畫，以盡快為我們的 CO2 捕捉更多價值。我們已簽約在 2026 年上半年銷售相當數量的再生燃料出口，並相信在此市場中，我們擴大銷量與溢價的機會正在增加。

We are on track to match our 2025 high-quality alcohol volumes. And on the regulatory front, we continue to view E15 as a meaningful long-term demand tailwind for the farming and ethanol industries. While permanent nationwide adoption remains pending, the EPA has consistently supported summer E15 sales through waivers and political momentum has strengthened entering 2026 with renewed administration and bipartisan congressional support.

我們正按計畫達成與 2025 年相當的高品質酒精銷量。在法規面，我們仍認為 E15 對農業與乙醇產業而言，是具意義的長期需求順風。雖然全國永久採用仍待定，但 EPA 一直透過豁免支持夏季 E15 銷售；隨著新一屆政府上任以及兩黨國會支持，進入 2026 年的政治動能也更為強勁。

Taken together, we believe the trajectory for E15 remains clearly positive and supportive of incremental ethanol demand over time.

綜合來看，我們認為 E15 的發展軌跡仍明顯正向，並將隨時間推進支持乙醇需求的增量成長。

I'm proud of the progress our team has made and excited about the path forward. Our focus remains on operational excellence and disciplined capital allocation.

我為團隊所取得的進展感到自豪，也對未來的道路感到振奮。我們的重點仍放在營運卓越與紀律性的資本配置。

We entered 2026 from a position of greater strength with an improved ability to navigate market volatility and a clear strategy to drive higher margin diversification and enhance asset value.

我們以更強健的態勢進入 2026 年，具備更好的能力因應市場波動，並有清晰的策略來推動更高毛利的多元化，以及提升資產價值。

Operator, we're now ready to begin Q&A with sell-side analysts.

接線員，我們現在準備開始與賣方分析師的問答環節。

(Operator Instructions) Amit Dayal, H.C. Wainwright.

(接線員指示) Amit Dayal，H.C. Wainwright。

Thank you. Good afternoon, everyone. Bryon, congratulations on a very strong quarter. It looks like a lot of drivers in place for a strong 2026 as well. But I just want to focus on the 45Z tax credits. You're guiding for around $15 million in those benefits in the year at $0.20 per gallon. What steps are you taking that could maybe get you even more in those benefits? And will that potentially come through in 2026, or will that -- are you working on it for maybe 2027 and beyond?

謝謝。各位下午好。Bryon，恭喜你們交出非常強勁的一季。看起來也有許多動能支撐 2026 年的強勁表現。不過我想聚焦在 45Z 稅收抵免。你們指引在每加侖 0.20 美元的情境下，全年大約有 1,500 萬美元的效益。你們正在採取哪些措施，可能讓你們獲得更多這方面的效益？而這些是否可能在 2026 年反映出來，或是——你們是在為 2027 年及之後做準備？

Sure. I'll take the front part of this, and then, Rob, if you want to round out anything that I otherwise missed.

當然。我先回答前半段，然後 Rob，如果你想補充我遺漏的部分，請再補上。

It's -- a lot of the drivers and opportunities around 45Z for us at these plants is around lowering our carbon intensity scores in some form or another, either reducing our energy demands or sourcing -- changes in sourcing of products and/or services. So anything that we can do in that regard or the way that we -- and the types of products that we purchase, whether it's corn and traceability and the like.

對我們而言，這些工廠在 45Z 方面的許多驅動因素與機會，主要在於以某種方式降低我們的碳強度（CI）分數——不論是降低能源需求，或是在產品與／或服務的採購來源上做調整。因此，任何能在這方面著力的作法，或是我們採購的方式與品項，例如玉米及其可追溯性等。

And so -- but it's clear that -- and compelling that anything that you can do to lower your score further as quickly as possible, the better. So it's really a priority for us. I don't know that it's appropriate to share more than that with regards to some of the projects, but we're actively pursuing it on many fronts and making sure that we can do what we can to lower those scores further.

因此——但很明顯也很有吸引力的是：你能越快、越多地進一步降低分數，就越好。所以這確實是我們的優先事項。至於某些專案細節，我不確定是否適合分享更多，但我們正從多個面向積極推進，並確保盡我們所能進一步降低那些分數。

Rob, anything else you want to add?

Rob，你還有什麼想補充的嗎？

Yeah, sure. Thanks, Bryon. As we mentioned, one opportunity to capitalize further on the 45Z tax credits is also to increase our production capacity. And we do have a project scheduled for end of Q3, early Q4 to expand the production capability of our Pekin Dry Mill. It's already one of our lowest-cost producing assets. But adding additional 45Z credits on that additional production really justifies that project. And our intent is to improve the capacity by about 8% or 5 million gallons.

有的，當然。謝謝，Bryon。如我們提到的，進一步把握 45Z 稅收抵免的一個機會，也是在於提升我們的產能。我們確實安排了一個專案，預計在第三季末、第四季初擴充我們 Pekin 乾磨廠的生產能力。它已經是我們成本最低的生產資產之一。但在新增產量上再加上額外的 45Z 抵免，確實讓這個專案更具合理性。我們的目標是將產能提升約 8%，也就是 500 萬加侖。

Understood. And then you just mentioned it, Bryon, the traceability of the feedstock, this -- are we already in compliance with that? There's a treasury proposal around 45Z eligibility. So I just wanted to see how we stand on that front.

了解。另外你剛提到的，Bryon，原料的可追溯性——我們目前是否已經符合這方面的要求？財政部有一項關於 45Z 資格的提案。所以我想了解我們在這方面的進度如何。

We're active in that front. I wouldn't say that all of our bushels are traced. I think that there is some work that needs to be done around incentivizing our farmers to provide that information. So I think -- and it's not just something that we can do on a standalone basis, but it's going to require regulatory support as well and adoption across the entire industry. That said, we're doing what we can, and we're making some headway there.

我們在這方面有積極投入。我不會說我們所有的蒲式耳（bushels）都已可追溯。我認為仍需要做一些工作，來激勵我們的農民提供那些資訊。所以我認為——這不只是我們單方面就能完成的事情，還需要法規支持，以及整個產業的採用。即便如此，我們正在盡力推進，也已取得一些進展。

Okay, thank you. And then just last one for me. On the Western asset, should we expect revenue pickup in 2026? I know operationally that is performing much better now. But do we see -- can we think of any revenue improvements coming through in 2026 for that segment?

好的，謝謝。最後一個問題。關於西部資產（Western asset），我們是否應該預期 2026 年營收會有所回升？我知道在營運上現在表現好很多。但我們是否——可以預期該部門在 2026 年會有任何營收改善？

Certainly intend to try and increase production capacity there or increase our overall -- that's what I'm looking for.

我們當然打算嘗試在那裡提升產能，或提高我們整體——我在找那個詞。

Yeah. We work on improving our production utilization rate. And then as I think Bryon mentioned in the call, we're exploring opportunities to expand our CO2 throughput as well.

是的。我們會致力於提升產能利用率。另外，如 Bryon 在電話會議中提到的，我們也在探索擴大 CO2 處理量的機會。

Well. Okay, that's all I have guys right now. I'll step back into queue. Thank you.

好。好的，我目前就這些問題，各位。我先回到隊列。謝謝。

Eric Stine, Craig-Hallum.

Eric Stine，Craig-Hallum。

Hi, Bryon. Hi, Rob.

嗨，Bryon。嗨，Rob。

Hello.

你好。

So you mentioned ethanol exports that you had locked in a portion of that. It sounds like a meaningful portion of that for the first half. I'm wondering if you can kind of quantify that a little bit.

你提到乙醇出口，你們已經鎖定了其中一部分。聽起來上半年鎖定的比例相當可觀。我想知道你能否稍微量化一下。

And then also curious, as you think about going forward, increasing volumes and increasing margins there, I know you have to have certain certifications to even access other markets. So just curious what kind of steps that would entail to both increase volumes and potentially the margins you get.

另外也想請教，展望未來，若要提高出口量並提升那邊的利潤率，我知道要進入其他市場甚至需要特定認證。所以想了解，若要同時提高量、以及可能提高你們取得的利潤率，大概需要採取哪些步驟。

Yeah, sure. So while we don't specifically provide that level of detail, what's, I think, important to understand for us is that it's to try and find the optimal balance to optimize the value of the product that we're making. So particularly for ICP and for -- or the distillery and the wet mill to the extent that we can produce higher-quality products or export fuel products would be the highest marginal value for those products, and they sell at a premium to -- or predominantly sell at a premium to what would be domestic fuel, even including 45Z credits.

好的，當然。雖然我們不會提供那麼細的細節，但我認為對我們而言重要的是，努力找到最佳平衡點，以最大化我們所生產產品的價值。特別是對ICP以及——或說蒸餾廠與濕磨廠而言，在我們能生產更高品質產品或出口燃料產品的範圍內，這些產品的邊際價值最高，而且其售價相較於國內燃料通常——或主要——是溢價成交，即使把45Z抵免也納入考量。

But where we can as well at other plants, which are largely designed to be selling into the domestic fuel markets that we're doing all that we can to continue to optimize those values to obtain as much 45Z credit as we can.

同時，在其他工廠——其設計主要是銷往國內燃料市場——我們也會盡一切努力持續優化這些價值，以取得盡可能多的45Z抵免。

So it's really, again, finding a balance. And what we've been able to do is to sell more of that product for increasing demand in Europe for those products. So while we've seen somewhat of a marginal -- a margin compression around some of the high-quality products that we sell, we've been able to see an increase in demand for that in the export market. Does that answer your question?

所以這確實是再次強調，找到一個平衡。而我們能做到的是，因為歐洲對這些產品的需求增加，我們把更多產品賣出去。因此，雖然我們看到我們銷售的一些高品質產品在邊際上——利潤率有些被壓縮——但我們也看到出口市場對其需求增加。這有回答你的問題嗎？

Rob, would there be anything else you want to add to that?

Rob，你還有什麼想補充的嗎？

Yeah. No, that's good.

有。沒有，這樣很好。

Yeah. I mean, clearly, back half of the year, I mean the purchases or the exports to some of those European markets were quite significant.

是的。我的意思是，很明顯在下半年，對一些歐洲市場的採購或出口量相當可觀。

So okay. Then I mean, I think the main question that I have is -- and this might be, Bryon, a really hard question to answer. But I mean, you've clearly raised the floor here to the business. I mean, I know in the past, you had the platform when the crush is strong that you would do quite well. But conversely, when it was really tough, I mean, it would definitely show in results. I mean, is there a way to think about what the business looks like, maybe not in a worst-case scenario, but in some of the bad markets that we've seen in the past because correct me if I'm wrong, but it seems like you have -- you've raised the floor pretty meaningfully versus where it's been in the past.

好。那我主要的問題是——而且這可能是，Bryon，一個很難回答的問題。但我的意思是，你們顯然已經把這個業務的「底部」抬高了。我知道過去在壓榨利差（crush）很強的時候，你們的平台表現會很好。但相反地，當環境真的很艱難時，結果也會很明顯地反映出來。我的意思是，有沒有一種方式可以思考這個業務在某些我們過去看過的較差市場中的樣貌——也許不是最壞情境——因為如果我沒理解錯的話，看起來你們相較過去已經相當有意義地把底部抬高了。

Yeah. So I think there's a number of factors that go into that. I think part of it is as you think back at the maturation and kind of the evolution of the company where we were originally focused around destination facilities, the brilliance in the destination was is that they're able to -- they perform really, really well when you see supply constraints, right? But they also demonstrate their vulnerability when you get an oversupplied ethanol market, which has been largely the case for most of the, call it, 18, 20 years where we've been producing over 15 billion, 14 billion gallons of capacity in the industry.

是的。所以我認為這裡面有很多因素。其中一部分是，回頭看公司成熟與演進的過程：我們最初是以「目的地型」設施為核心；目的地型設施的高明之處在於，當你看到供應受限時，它們能——表現得非常非常好，對吧？但當乙醇市場供給過剩時，它們也會顯示出其脆弱性；而在我們過去大概18到20年期間，產業產能一直超過150億、140億加侖，供給過剩在很大程度上一直是常態。

So what we've been able to do is, to some degree, both through monetization and exiting certain locations, but as well then being able to shore up the financial viability of those assets with other revenue sources and be able to lower operating costs around that, you're able to take out some of the vulnerabilities around the floor in tight crush margins.

因此，我們能做到的是，在某種程度上，透過資產變現與退出某些地點，同時也透過其他收入來源來強化這些資產的財務可行性，並降低相關營運成本，從而在壓榨利差緊縮時，降低底部的部分脆弱性。

And then again, the other focus in what would be the origin facilities at Pekin is around optimizing the value of those revenue streams or the value of those products that generate that revenue stream, and then being diligent and efficient about how we execute.

然後再者，另一個重點是在Pekin這類「起源型」設施上，著重於優化這些收入來源的價值——或說，優化能產生該收入來源之產品的價值——並且在執行上保持嚴謹與高效率。

So it's about cost management and then making sure that we're investing in projects that not only either increase revenue, but also reduce operating expenses and/or improve efficiencies as well. So if we can do all three, that's a home run. And I think we've been able to see a lot of those benefits over the last couple of years.

所以這關乎成本管理，並確保我們投資的專案不僅能提高收入，也能降低營運費用，並／或提升效率。如果三者都能做到，那就是全壘打。我認為過去幾年我們已經看到很多這類效益。

Got it. And so this is -- I mean, it sounds like you'd characterize it more as -- I mean, this has been many, many, many years in the making if you've gotten rid of a lot or you've sold the two California plants. But then what you've done in the next -- or I'm sorry, in the last, call it, two-plus years, you've just kind of taken it to that next level. Is that fair?

了解。所以這——我的意思是，聽起來你會把它描述為——我的意思是，如果你們已經處分了很多資產或賣掉了兩座加州工廠，這是多年、多年、多年的累積。但接著你們在接下來——或抱歉，是在最近大概兩年多的時間裡，又把它推進到下一個層級。這樣說公平嗎？

Yeah, Eric, that's right.

是的，Eric，沒錯。

Okay, thank you.

好的，謝謝。

And that will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Bryon McGregor for any closing remarks. Please go ahead.

以上結束我們的問答環節。我想把會議交回給Bryon McGregor先生，請他做結語。請開始。

Thank you, Chuck. Thanks again, everyone, for joining us to hear about our progress that we've been able to make and our initiatives for 2026. As always, we appreciate your feedback and support. Have a great day.

謝謝你，Chuck。也再次感謝各位加入我們，聆聽我們已取得的進展以及我們針對2026年的各項倡議。一如既往，我們感謝各位的回饋與支持。祝各位有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次會議到此結束。感謝各位出席今天的簡報。您現在可以中斷連線。