Darling Ingredients Inc (DAR) 2025 Q1 法說會逐字稿

Good morning and welcome to the Darling Ingredients Inc conference call to discuss the company's first quarter, 2025 financial results (Operator Instructions) I would now like to turn the call over to Ms. Suann Guthrie, Senior Vice President of Investor relations. Please go ahead.

早安，歡迎參加 Darling Ingredients Inc 電話會議，討論公司 2025 年第一季度的財務業績（操作員指示）現在，我想將電話轉給投資者關係高級副總裁 Suann Guthrie 女士。請繼續。

Thank you for joining the Darling Ingredients first quarter 2025 earnings call. Here with me today are Mr. Randall C. Stuewe, Chairman and Chief Executive Officer; Mr. Bob Day, Chief Financial Officer; and Mr. Matt Jansen, Chief Operating Officer in North America.

感謝您參加 Darling Ingredients 2025 年第一季財報電話會議。今天和我一起在場的還有董事長兼首席執行官 Randall C. Stuewe 先生；首席財務官鮑勃·戴先生；以及北美首席營運官馬特·詹森先生。

Our first quarter 2025 earnings news release and slide presentation are available on the investor page of our corporate website, and we'll be joined by a transcript of this call once it is available.

我們的 2025 年第一季財報新聞稿和投影片簡報可在我們公司網站的投資者頁面上找到，一旦此電話會議的記錄可用，我們就會將其附上。

During this call, we will be making forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties.

在本次電話會議中，我們將做出前瞻性陳述，即對未來事件的預測、預期或其他陳述。這些聲明是基於當前的預期和假設，但存在風險和不確定性。

Actual results could materially differ because of factors success in today's press release and the comments made during this conference call and in the risk factor section of our Form 10-K, 10-Q and other reported filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statement.

由於今天的新聞稿中的成功因素以及本次電話會議期間和我們向美國證券交易委員會提交的 10-K、10-Q 表格和其他報告文件中的風險因素部分所作的評論，實際結果可能會有重大差異。我們不承擔更新任何前瞻性聲明的義務。

Now I'll hand the call over to Randy.

現在我將把電話交給蘭迪。

Good morning. Thanks, Suann, and thanks for joining us for our first quarter of 2025 earnings call. As a reminder, Darling Ingredients is a global ingredients company that operates in 23 countries and repurposes over 15% of the world's meat production and food waste.

早安.謝謝，Suann，謝謝您參加我們的 2025 年第一季財報電話會議。提醒一下，Darling Ingredients 是一家全球性配料公司，業務遍及 23 個國家，重新利用了全球超過 15% 的肉類生產和食物垃圾。

Our global presence and diversified portfolio enables us to navigate and manage through challenging times very effectively. Although tariffs challenged various supply chains at this time, we expect them to remain immaterial to our portfolio and frankly support increased prices of waste fats.

我們的全球影響力和多元化投資組合使我們能夠非常有效地度過和管理充滿挑戰的時期。儘管目前關稅對各種供應鏈提出了挑戰，但我們預計它們對我們的投資組合來說仍然無關緊要，並且坦白說，支持廢棄脂肪價格上漲。

In the first quarter of 2025, Darling's business performed very well, with results accelerating throughout the quarter. This resulted in overall positive cash flow and demonstrated stability in an otherwise unpredictable global environment. The positive narrative surrounding renewable fuels public policy is very encouraging, and margins have started to improve and normalize. Ultimately, we expect our core business to continue to perform well. Generating cash and allowing us to continue to deliver the balance sheet and opportunistically repurchase shares throughout the balance of the year.

2025年第一季度，達林的業務表現非常出色，整個季度業績都在加速成長。這導致了整體正現金流，並在不可預測的全球環境中表現出穩定性。圍繞再生燃料公共政策的積極敘述非常令人鼓舞，利潤率已經開始改善和正常化。最終，我們預計我們的核心業務將繼續表現良好。產生現金並使我們能夠在全年餘額中繼續提供資產負債表並適時回購股票。

In the first quarter, combined adjusted EBITDA came in at $195.8 million, and we saw the impact of higher fat prices really starting to move through the P&L in March. Specifically, during the first quarter, we paid down $146.2 million in debt, lowering our financial leverage ratio to 3.33 times, and received $129.5 million in dividends from DGD and also repurchased $35 million in common stock.

第一季度，調整後的綜合 EBITDA 為 1.958 億美元，我們看到脂肪價格上漲的影響在 3 月開始真正體現在損益表中。具體來說，在第一季度，我們償還了 1.462 億美元的債務，將財務槓桿率降至 3.33 倍，並從 DGD 獲得了 1.295 億美元的股息，同時還回購了 3,500 萬美元的普通股。

Now turning to the feed ingredients segment Global rendering volumes remain strong. And despite several severe weather events in the Midwestern United States, from flooding to tornadoes to ice storms, our US rendering team adjusted well and managed operations very well in the first quarter of 2025.

現在轉向飼料成分部分，全球渲染量依然強勁。儘管美國中西部地區遭遇了洪水、龍捲風和冰暴等數次惡劣天氣，但我們的美國渲染團隊在 2025 年第一季度做出了良好的調整併出色地管理了運營。

European and Brazilian operations also enjoyed improved performances in the latter part of the quarter. The uncertainty on tariffs is a minor headwind and specifically for specialty proteins. However, tariffs are generally supportive of higher domestic fat prices. With the renewables market having digested the mechanics of 45G, we expect to benefit through higher fat prices for the balance of the year.

歐洲和巴西的業務在本季後半段也取得了不錯的業績。關稅的不確定性是一個小小的不利因素，特別是對於特種蛋白質而言。然而，關稅通常會支撐國內脂肪價格上漲。隨著再生能源市場消化了 45G 的機制，我們預計今年剩餘時間脂肪價格將上漲，從而受益。

Now, the food segment. We saw a nice improvement in sales and volumes, particularly during the latter part of the first quarter. Collagen peptides have regained strength, and the demand for our library products is growing.

現在，談談食品部分。我們看到銷售額和銷量有了顯著的成長，尤其是在第一季的後半段。膠原蛋白勝肽已恢復強勁，對我們庫產品的需求正在成長。

Nextida, our revolutionary natural glucose moderation collagen peptide, is gaining momentum, and other active peptide products are in clinical trials. We anticipate consistent and continued performance improvement in the food segment throughout the balance of the year.

我們的革命性天然葡萄糖調節膠原蛋白勝肽 Nextida 正在獲得發展勢頭，其他活性勝肽產品正在臨床試驗中。我們預計食品部門的業績將在今年餘下時間持續穩定改善。

In our fuel segment, DGD had a challenging first quarter with lower-than-expected margins, and volumes were affected by the turnarounds performed at DGD 1 and DGD 2. Receiving guidance on 45Z in late January created a choppy first quarter, as supply chains had to be redirected, contracts had to be modified, and customers had to adjust. We're very encouraged about the sustainable aviation fuel market. Interest remains strong, and premiums and volumes have met our expectations.

在我們的燃料部門，DGD 第​​一季度面臨挑戰，利潤率低於預期，銷售受到 DGD 1 和 DGD 2 的周轉影響。1 月底收到的有關 45Z 的指導導致第一季出現波動，因為必須重新調整供應鏈、修改合同，並且客戶必須進行調整。我們對永續航空燃料市場感到非常鼓舞。興趣依然濃厚，保費和交易量都符合我們的預期。

While the transition from the blender's tax credit to the producer's tax credit created some complications, DTD has made the necessary adjustments to optimize the tax credits available, and we anticipate we will book 100% of the producer's tax credit for eligible feedstocks during the second quarter. The effects of 45Z are in full swing with a sharp decline in imported biofuels during the first quarter.

雖然從混合器稅收抵免到生產者稅收抵免的轉變帶來了一些複雜情況，但 DTD 已做出必要的調整以優化可用的稅收抵免，我們預計我們將在第二季度為符合條件的原料預訂 100% 的生產者稅收抵免。45Z 的影響正在全面顯現，第一季進口生質燃料急劇下降。

The sharp reduction in imports coupled with the rationalization of domestic production, points to an improved outlook for renewable diesel and sustainable aviation fuel during the second quarter.

進口量的急劇減少加上國內生產的合理化，預示著第二季再生柴油和可持續航空燃料的前景將有所改善。

Now I'd like to end the call over to Bob to take us through the financials. I'll come back at the end here and discuss my outlook for the balance of 2025. Bob?

現在我想結束通話，讓鮑伯向我們介紹一下財務狀況。最後我會回到這裡，討論我對 2025 年平衡的展望。鮑伯？

Thank you, Randy. Good morning, everyone. As Randy mentioned, DGD's results in the first quarter had more to do with macro events impacting the biofuel market than anything specific to DGD. Meanwhile, the core darling ingredients business performed very well and gained momentum as the quarter progressed.

謝謝你，蘭迪。大家早安。正如蘭迪所提到的，DGD 第​​一季度的業績更多地與影響生物燃料市場的宏觀事件有關，而不是 DGD 特有的因素。同時，核心寵兒成分業務表現非常出色，並且隨著本季度的進展而獲得了發展動力。

For first quarter of 2025, Darling's combined adjusted EBITDA was $195.8 million versus $280.1 million in the first quarter of 2024. And adjusting for DGD first quarter of 2025 EBITDA was approximately $190 million versus approximately $165 million in the first quarter of 2024.

2025 年第一季度，Darling 的綜合調整後 EBITDA 為 1.958 億美元，而 2024 年第一季為 2.801 億美元。經 DGD 調整後，2025 年第一季的 EBITDA 約為 1.9 億美元，而 2024 年第一季約為 1.65 億美元。

Total net sales in the first quarter of 2025 are $1.38 billion versus $1.42 billion in the first quarter of 2024, while raw material volume was almost the same at 3.79 million metric tons and 3.8 million metric tons, and gross margins improved to 22.6% in the first quarter of 2025 versus 21.4% in the first quarter of 2024.

2025 年第一季的總淨銷售額為 13.8 億美元，而 2024 年第一季為 14.2 億美元，原物料數量幾乎相同，分別為 379 萬公噸和 380 萬公噸，毛利率提高至 2025 年第一季的 22.6%，而 2024 年第一季為 2024 年第一季為 2024 年第一季為 2024 年第一季為 2024 年第一季。

Looking at the feed segment, total net sales increased and EBITDA improved on relatively unchanged volumes and higher fat prices, increasing through the end of the quarter. Specifically, total sales for first quarter of 2025 or $896.3 million versus $889.8 million in the first quarter of 2024.

從飼料部門來看，總淨銷售額增加，EBITDA 在銷售相對不變和脂肪價格上漲的情況下有所改善，並在本季末有所成長。具體而言，2025 年第一季的總銷售額為 8.963 億美元，而 2024 年第一季的總銷售額為 8.898 億美元。

Feed raw material volumes were approximately 3.1 million metric tons for both quarters, while EBITDA increased to $110.6 million in the first quarter of 2025 versus $106.8 million in the first quarter of 2024. Gross margins for the feed segment in quarter one 2025 were lower at 20.3% versus 20.7% in quarter one 2024, which was due to certain one-time items such as inventory adjustments.

兩季的飼料原料產量約為 310 萬公噸，而 EBITDA 在 2025 年第一季增至 1.106 億美元，而 2024 年第一季為 1.068 億美元。2025 年第一季飼料部門的毛利率為 20.3%，低於 2024 年第一季的 20.7%，這是由於庫存調整等某些一次性項目造成的。

Moving to the food segment, we began to see noticeable improvement in margins as the industry continued destocking from the inventory buildup experienced over the past 12 to 18 months. While total sales for first quarter of 2025 of $349.2 million were lower than first quarter of 2024 at $391.3 million, margins and volumes increased with raw material at 329,400 metric tons versus 299,800 metric tons and EBITDA increased to $70.9 million versus $61.7 million. Looking at the fuel segment, sales for the first quarter of 2025 are $135.1 million versus $139.2 million in the first quarter of 2024 of higher raw materials of 374,100 metric tons versus 356,900 million metric tons, but slightly lower finished product sales volumes.

轉向食品領域，隨著該行業繼續減少過去 12 至 18 個月累積的庫存，我們開始看到利潤率顯著提高。雖然 2025 年第一季的總銷售額為 3.492 億美元，低於 2024 年第一季的 3.913 億美元，但利潤率和銷量均有所增加，原材料為 329,400 公噸，而 299,800 公噸，EBITDA 增加至 7,090 萬美元，而 7,0970 萬美元。從燃料部分來看，2025 年第一季的銷售額為 1.351 億美元，而 2024 年第一季的銷售額為 1.392 億美元，原材料銷量為 374,100 公噸，而 2024 年第一季的銷售額為 356,900 公噸，但銷量略低。

Meanwhile, overall EBITDA and other metrics in the fuel segment were clouded by DGD's results. Specifically, EBITDA was $24.2 million in the first quarter of 2025 versus $133.1 million in the first quarter of 2024, whereas net of DGD, EBITDA was approximately $18 million in both quarters. Looking more closely at DGD, results were mainly impacted by four things.

同時，燃料部門的整體 EBITDA 和其他指標也受到 DGD 績效的影響。具體而言，2025 年第一季的 EBITDA 為 2,420 萬美元，而 2024 年第一季的 EBITDA 為 1.331 億美元，扣除 DGD 後，兩季的 EBITDA 約為 1,800 萬美元。仔細觀察 DGD，結果主要受到四個因素的影響。

First, the transition from the blender's tax credit to the producer's tax credit resulted in a lower value per gallon and a delayed reaction in RIN Values as obligated party compliance has been slow to react. Second, the complexity of the producer's tax credit and delayed guidance temporarily impacted both sales and feedstock eligibility for fuel types and destinations. Three tariffs on imported feedstocks and four downtimes related to catalyst turnarounds at DGD1 and DGD2.

首先，從混合器稅收抵免到生產者稅收抵免的轉變導致每加侖的價值降低，並且由於義務方合規反應遲緩，RIN 值的反應延遲。其次，生產商稅收抵免的複雜性和延遲指導暫時影響了燃料類型和目的地的銷售和原料資格。對進口原料徵收三項關稅，並因 DGD1 和 DGD2 催化劑檢修而停工四次。

Darling's share of DGD EBITDA was approximately $6 million for the first quarter of 2025 versus approximately $115 million for first quarter of 2024, a difference of approximately $109 million. These items had a bigger impact on DGD in quarter one than we expect will be the case going forward. However, DGD was and remains ahead of the curve with respect to making changes to its supply chain and positioning the business for success in this environment.

2025 年第一季度，達林在 DGD EBITDA 中的份額約為 600 萬美元，而 2024 年第一季約為 1.15 億美元，差額約為 1.09 億美元。這些項目對第一季的 DGD 的影響比我們預期的未來情況還要大。然而，DGD 在改變其供應鏈和在這種環境下為業務成功做好準備方面一直處於領先地位。

Overall, DGD has adjusted to supply chain requirements needed to maximize the value of tax credits, and we're pleased by the positive direction in the RIN Market and overall margins for renewable diesel and staff.

總體而言，DGD 已根據最大化稅收抵免價值所需的供應鏈要求進行調整，我們對 RIN 市場以及再生柴油和員工的整體利潤率的積極方向感到高興。

While we faced some challenges during the quarter, we continued to improve the health of our balance sheet as we paid down approximately $146.2 million in debt and repurchase slightly more than $1 million shares for approximately $35 million.

儘管我們在本季度面臨一些挑戰，但我們繼續改善資產負債表的健康狀況，因為我們償還了約 1.462 億美元的債務，並以約 3500 萬美元的價格回購了略高於 100 萬美元的股票。

The company's total debt, net of cash as of March 29, 2025, was $3.84 billion versus $3.97 billion at December 28, 2024, leading to an improvement in our bank covenant preliminary leverage ratio of 3.33 times at quarter end, first quarter 2025 versus 3.93 times at quarter end fourth quarter 2024. In addition, capital expenditures totalled approximately $63 million in the first quarter of 2025 and we ended with approximately $1.27 billion available on our revolving credit facility.

截至 2025 年 3 月 29 日，公司扣除現金後的總債務為 38.4 億美元，而 2024 年 12 月 28 日為 39.7 億美元，導致我們的銀行契約初步槓桿率在 2025 年第一季末為 3.33 倍，而在 2024 年第四季末為 3.33 倍。此外，2025 年第一季的資本支出總額約為 6,300 萬美元，我們的循環信貸額度約為 12.7 億美元。

The company recorded an income tax benefit of $1.2 million for the three months ended March 29, 2025, yielding an effective tax rate of 4.6%, which is lower than the federal statutory rate of 21% due primarily to the producer's tax credit. The effective tax rate, excluding the impact of the producer's tax credit in discrete items was 21.7% for the three months ended March 29, 2025.

該公司在截至 2025 年 3 月 29 日的三個月內記錄了 120 萬美元的所得稅收益，有效稅率為 4.6%，低於聯邦法定稅率 21%，這主要歸因於生產者的稅收抵免。截至 2025 年 3 月 29 日的三個月，不包括生產者對離散計畫的稅收抵免的影響的有效稅率為 21.7%。

The company also paid $9.2 million of income taxes in the first quarter of 2025. For full year 2025, we expect the effective tax rate to remain about the same at 5% and cash taxes to be approximately $60 million for the remainder of the year. We are also in the early stages of monetizing Darling's share of the producer's tax credit and look forward to providing an update next quarter. Overall, the company had a net loss of $26.2 million for the first quarter of 2025, or negative $0.16 per diluted share compared to net income of $81.2 million or $0.50 per diluted share for the first quarter.

該公司還在 2025 年第一季繳納了 920 萬美元的所得稅。對於 2025 年全年，我們預計有效稅率將保持在 5% 左右，今年剩餘時間的現金稅約為 6,000 萬美元。我們還處於將達林的製片人稅收抵免份額貨幣化的早期階段，並期待在下個季度提供最新消息。總體而言，該公司 2025 年第一季的淨虧損為 2,620 萬美元，即每股攤薄虧損 0.16 美元，而第一季的淨收入為 8,120 萬美元，即每股攤薄虧損 0.50 美元。

Now I will turn the call back over to Randy.

現在我將把電話轉回給蘭迪。

Thanks, Bob. As I said earlier, January and February started slowing, but as fat prices continue to rise, we have great momentum for the remainder of the year. I'm encouraged by the performance of our core business in March. March, EBITDA contribution was strong, and we expect this trend to continue. This gives me great confidence that our core business is strong enough to consistently generate cash and enable us to deliver, effectively weathering any uncertainty that exists in the biofuels market.

謝謝，鮑伯。正如我之前所說，一月和二月開始放緩，但隨著脂肪價格持續上漲，我們在今年剩餘時間內將保持強勁勢頭。我對我們三月核心業務的表現感到鼓舞。3 月份，EBITDA 貢獻強勁，我們預期這一趨勢將持續下去。這讓我非常有信心，我們的核心業務足夠強大，能夠持續產生現金並使我們能夠交付，有效地抵禦生物燃料市場存在的任何不確定性。

Looking at the March run rate, I think the core business will earn somewhere between $950 million and $1 billion of EBITDA for the year. As I mentioned, there has been a lot of noise in the renewables market, and while DGD did not perform as we had hoped, we believe the worst.

從 3 月的運行率來看，我認為核心業務全年的 EBITDA 將在 9.5 億美元至 10 億美元之間。正如我所提到的，再生能源市場一直存在著許多噪音，雖然 DGD 的表現不如我們所希望的那樣，但我們認為情況已經是最糟糕的了。

Behind us, we expect margins to improve and DGD to adjust accordingly. With that, I am reaffirming our guidance of $1.25 billion to $1.3 billion combined adjust at IBIDA for the balance of the year for fiscal 2025. With that, now let's open it up to questions.

我們預計利潤率將會提高，DGD 也會進行相應調整。因此，我重申我們對 IBIDA 在 2025 財年餘額進行 12.5 億美元至 13 億美元合併調整的指引。好了，現在就讓我們開始提問吧。

(Operator Instructions) Derrick Whitfield, Texas Capital.

（操作員指示）德里克·惠特菲爾德，德克薩斯首府。

Good morning all and thanks for taking my questions. Maybe starting with the as I. Starting with the DGD, as I understand, DGD was not able to optimize feedstocks for 45Z policies in Q1. Looking forward, what is the value of an optimized feedstock slate and then more broadly, what's the composition of that slate as you see it today?

大家早安，感謝您回答我的問題。也許從我這裡開始。從 DGD 開始，據我了解，DGD 無法在第一季針對 45Z 政策優化原料。展望未來，優化原料結構的價值是什麼？更廣泛地說，您今天看到的原料結構是什麼樣的呢？

Yeah, this is Matt. I, I'd answer that at least initially some of the others maybe to join in on that, but DGD typically processes a mix of feedstocks, and that is essentially margin driven and so it's always procuring the best product that nets the highest margin. And so that can be a mix of all types of oils and fats and frankly, we have all types in our recipe, so to speak, and so that that will vary depending on the month of the quarter, but it's a traditional mix that you know is largely based on animal fat, and cooking oil, as well as corn oil and different, bean oil and other oils.

是的，這是馬特。我想回答的是，至少在最初階段，其他一些公司可能會加入其中，但 DGD 通常會處理多種原料，而這本質上是由利潤驅動的，因此它總是採購能夠獲得最高利潤的最佳產品。因此，這可以是所有類型的油和脂肪的混合物，坦白說，我們的配方中含有所有類型的油和脂肪，可以這麼說，這會根據季度月份的不同而有所不同，但這是一種傳統的混合物，主要基於動物脂肪和食用油，以及玉米油和不同的豆油和其他油。

So it it's an ever changing mix, but it's the usual suspects, let's say in the in the in the mix that are it's all margin driven.

因此，這是一個不斷變化的組合，但它是常見的，讓我們說在組合中，它都是由利潤驅動的。

Yeah, I understand. Hey, Derrick, this is Bob. It's, this is going to depend in part how hard we're running staff. Obviously, the value of the PTC is higher for the potential value is higher for staff. The feedstocks required to make staff are generally lower carbon intensity so that, further enhances the value of 45Z.

是的，我明白。嘿，德里克，我是鮑伯。這在一定程度上取決於我們如何努力管理員工。顯然，PTC 對員工的潛在價值更高。製造員工所需的原料通常碳強度較低，因此進一步提高了 45Z 的價值。

So we plan on fully maximizing the value of that. As Matt pointed out, some of this, it just depends on access to different feedstocks. Obviously, as Darling, we have an advantage in, maximizing what we can pull through our own network, to obtain low CI score feedstocks that are eligible for PTC. And so, I think we're pretty optimistic about what the value of that is going to result in for DGD, but it's hard to kind of tell you right now what's the average cents per gallon. I think, what I would say is, we, we'd be on the very higher end of the curve, for both RD and staff, as we go forward.

因此我們計劃充分發揮其價值。正如馬特指出的那樣，這其中的一部分只是取決於獲取不同原料的途徑。顯然，作為 Darling，我們具有優勢，可以最大限度地利用我們自己的網絡，獲取符合 PTC 條件的低 CI 分數原料。因此，我認為我們對其對 DGD 的價值非常樂觀，但現在很難告訴您每加侖的平均價格是多少美分。我想說的是，隨著我們不斷前進，無論是研發還是員工，我們都會處於曲線的最高端。

Yeah, I think Derrick, this is Randy, and I think Matt and Bob did a nice job there. I mean, the optimism that comes out of here is really the move from the noise that we had in Q1. Remember, we didn't get guidance from treasury until January 20. We had feedstocks in route that qualified that didn't qualify.

是的，我認為德里克，這是蘭迪，我認為馬特和鮑勃在那裡做得很好。我的意思是，這裡出現的樂觀情緒實際上是從我們在第一季所聽到的噪音中產生的。請記住，我們直到 1 月 20 日才收到財政部的指導。我們的運輸途中既有合格的原料，也有不合格的原料。

There there's various things as we noted in the script, there are requirements under 45C that required us to go back to our customers and rework contracts, get them to a degree. There were three basic requirements we won't go through them, but they had to use it, or it had to go to retail, and there was one other. But it, but at the end of the day, there's just a lot of noise that went down that allowed us only to claim a portion of 45Z in Q1 and what we're saying is in Q2, we've got the supply chain normalized.

正如我們在腳本中提到的那樣，存在各種各樣的事情，45C 下的要求要求我們回到客戶那裡並重新制定合同，以達到一定程度。有三個基本要求，我們不會一一列舉，但他們必須使用它，或者它必須進入零售領域，另外還有一個。但最終，只是出現了很多噪音，導致我們在第一季只獲得了 45Z 的一部分，而我們所說的是，在第二季度，我們的供應鏈已經恢復正常。

We've got the turnarounds behind us, and we expect to recognize a 100% PTC on the eligible feedstocks that we'll process. And that's not to be sleight of hand. Some of the feedstocks that may come in cheaper that don't need the PTC, so it's really, as Matt said, it's a margin driven, but we see margins improving dramatically in Q2 versus Q1.

我們已經扭轉了局面，並期望對我們將要加工的合格原料確認 100% 的 PTC。這並不是什麼花招。有些原料可能更便宜，不需要 PTC，所以正如馬特所說，這實際上是由利潤驅動的，但我們看到第二季度的利潤率與第一季相比大幅提高。

Terrific, makes sense. And then with regard to feed, we can see your margin optimism and the spread between waste and SPO feeds as they materially tightened or turned positive to your benefit. Other than timing for the quarter, were there any other drivers for lower margins in one cue?

太棒了，很有道理。然後關於飼料，我們可以看到您的利潤樂觀度以及廢物和 SPO 飼料之間的差距，因為它們實質上收緊或變為對您有利的正值。除了季度時間之外，還有其他因素導致利潤率較低嗎？

Well, I think, yeah. I mean there, there's, yeah, if we compare it to, first quarter of 2024, it was a pretty significant improvement. But there were just some things that came into quarter four, end of year type things that were somewhat one-off items that clouded a little bit. I don't know, Matt, if you want. Yeah, I.

嗯，我想，是的。我的意思是，是的，如果我們將其與 2024 年第一季進行比較，這是一個相當顯著的改善。但第四季出現了一些事情，像是年底之類的事情，這些事情都是一次性的事情，讓人有點摸不著頭腦。我不知道，馬特，如果你想知道的話。是的，我。

I think, at the end of the day, sequentially, when you look at the quarter guys. There were some one-offs. Brad noted in the script that we did have an insurance settlement in there. We've got a bigger pipeline now headed to DGD than we've ever had because of the restrictions on imported feedstocks and qualifications and remember that the euro's up, remember prices are up around the world for waste fats and so it made domestic fats now more attractive.

我認為，到最後，當你按順序看季度時，你會明白這一點。有一些一次性的事情。布拉德在劇本中指出，我們確實有一份保險賠償金。由於進口原料和資質的限制，我們現在擁有比以往更大的通往 DGD 的管道，並且請記住歐元上漲，請記住全球廢棄脂肪的價格上漲，因此這使得國產脂肪現在更具吸引力。

So that flowed through. We said in the script Jan, Feb the typical weakness that we see and then March, what we've done now is taken the March run rate. And divided, as I always tell people, this is an easy business to give you forward guidance on when you're either in a flat or a rising market.

就這樣順利通過了。我們在劇本中說過，一月、二月是我們看到的一個典型疲軟時期，然後是三月，我們現在所做的就是計算三月的運行率。正如我經常告訴人們的那樣，這是一個很容易的業務，它可以為你提供前瞻性的指導，無論你是處於平穩的市場還是上升的市場。

The DGD, given the amount of fat that comes out of the North American supply chain, it is now it's a, it's a very transparent, thing for us, and it's a rising market. We have somewhere between a 45Z, and a 75-day pipeline sold at any given time.

考慮到北美供應鏈產生的脂肪量，DGD 現在對我們來說是一個非常透明的事情，而且是一個新興的市場。我們隨時都有 45Z 到 75 天的銷售管道。

And so you didn't, we had that done in November, December and so now as January, February came in, and March is when the prices are hitting. And you'll see that continue on at the current pricing. That's where we're formulating the guidance that we're throwing out there. And I think, prices have actually moved up since March even here.

所以你沒有，我們在十一月、十二月就已經這麼做了，現在一月、二月已經到來，三月是價格上漲的時候。並且您將看到其價格仍維持在當前水準。這就是我們制定指導方針的地方。我認為，即使在這裡，價格實際上自三月以來也已經上漲。

So it feels, this business feels very solid going forward right now, barring any other craziness out of, we're going to need a little help out of DC here, but I think we're okay.

所以感覺，這項業務現在進展非常穩健，除非出現任何其他瘋狂的情況，我們將需要 DC 的一點幫助，但我認為我們會沒事的。

Dushyant Ailani, Jeffrey.

杜尚特·艾拉尼，傑弗裡。

Hi, thank you for taking my question, sir. The first one, could you possibly quantify how much better feed was in March versus the first two months of the year and then how that translates to, core ingredients a bit for to you.

您好，先生，謝謝您回答我的問題。第一個問題，您能否量化一下三月的飼料品質與今年前兩個月相比有多大改善，然後將其轉化為核心成分？

And Dushyant, you can do the math and look at the $195 million for the first quarter of $190 million minus DGD and then they come with the $950 million to $1billion run rate, you can back into that, but no, we don't break out a quarter. Second question I didn't.

杜什揚特，你可以算一下，第一季的 1.95 億美元是 1.9 億美元，減去 DGD，然後他們得出 9.5 億美元到 10 億美元的運行率，你可以回到這個數字，但是，我們不會單獨列出一個季度。第二個問題我沒有。

That was the only question I understood, yeah.

是的，這是我唯一理解的問題。

Yeah, and then just the second one, I guess could you quantify what the that the one time inventory impact was on feed?

是的，然後是第二個問題，我想您能量化一次性庫存對飼料的影響嗎？

The one time inventory.

一次性庫存。

Yeah.

是的。

We don't, we're not calling those out. I think it's just there was some smaller one-time items. Some have been called out in the last quarter on the insurance settlement so that the quarter-on-quarter comparison, and to say it's sequentially lower, obviously. The numbers are what the numbers are, but there's just some one off on both sides of this that they're, we're not calling over.

我們不會，我們不會叫出這些。我認為只是有一些較小的一次性物品。有些人對上個季度的保險理賠情況表示擔憂，因此與上一季相比，顯然保險理賠額較上季下降。數字就是數字，但雙方都有人，我們沒有打電話過來。

They're not, and I, the guidance that we gave in February was that we, that as we were talking to folks and we said, well, what do you see the year off of Q4. And we said we ran [233] and Q4. We said times 4. What we didn't say was it's not radibly spread over each quarter because you've got a situation of rising prices now. So, you'll see an improved feed segment, gross margin, we look at all of it. If you look at all of the segments, even in the food segment. Remember, while 20%, 17% to 20% is a high value collagen gelatin and 80% of its feed and feed and fat.

他們不是，而我，我們在二月給出的指導是，當我們與人們交談時，我們說，好吧，你認為第四季度的業績會怎樣。我們說我們跑了[233]和Q4。我們說的是乘以 4。我們沒有說的是，由於現在物價上漲，這個問題並沒有明顯地分攤到每季。因此，您會看到飼料部分和毛利率都有所改善，我們會全面關注這些。如果你看一下所有的部分，甚至是食物部分。請記住，其中 20%、17% 至 20% 是高價值膠原蛋白明膠，而其 80% 是飼料和飼料和脂肪。

So you get a lift there. You get a lift in the fuel segment too because of the different products that are processed there. So, focusing on the feed segment in my opinion, focus on the $950 million to $1 billion run rate for the year and that's what's important here.

所以你搭便車去那裡。由於燃料領域加工的產品種類繁多，燃料領域的銷售量也會提升。因此，我認為，重點關注飼料領域，關註今年 9.5 億至 10 億美元的運行率，這才是最重要的。

Got it, thank you.

知道了，謝謝。

Heather Jones, Heather Jones Research.

希瑟瓊斯，希瑟瓊斯研究。

Good morning.

早安.

Thank you for the question. Randy, I wanted to start with, so you've seen all the Reuters rumours, and we've all heard different reports. What do you think a 2026 RVO would, that would be suitable would be like what is the number that You would be happy with and that would represent, you think upside to the $950 million to a $1 billion you gave us.

謝謝你的提問。蘭迪，首先我想說，你已經看到了路透社的所有傳言，我們都聽到了不同的報導。您認為 2026 年的 RVO 會是多少，那會是合適的，您會對多少數字感到滿意，您認為這會比您給我們的 9.5 億美元增加 10 億美元。

Heather, this is Matt. I would say that the common RVO that is expected and hopeful will be coming out here in the next few days is$ 5.25 billion gallons, and that is something that I would say across industries has been widely supported and the feedback that we have so far is that that is gaining traction and that's what we're looking forward to.

希瑟，這是馬特。我想說的是，預計和有希望在未來幾天內公佈的共同 RVO 是 52.5 億加侖，我想說的是，這已經得到了各行各業的廣泛支持，到目前為止，我們收到的反饋表明，這正在獲得關注，這正是我們所期待的。

Okay, thanks for that. And then my follow up is Not trying to belabour this point, but Randy, in the past you've told us that roughly every penny and fat pricing is worth roughly $12 million to $15 million EBITDA.

好的，謝謝。然後我的後續問題是，我並不是想過度強調這一點，但是蘭迪，過去你告訴過我們，大約每一分錢和高價都價值大約 1200 萬到 1500 萬美元的 EBITDA。

And like if you look at Q1 fats pricing versus Q1 of '24, it was up several pennies and then you also didn't have that ward South Carolina issue, but yet the EBITDA for ee was roughly flat year on year. So just trying to Get a sense of Was y'all's feed and feed segment impacted by the dislocation at Diamond Green or was there something else that we're missing? I get the lag and pricing relative to Q3 and Q4 last year. I'm just having a hard time understanding. The year on year impact.

如果你將第一季的脂肪定價與 24 年第一季進行比較，你會發現它上漲了幾美分，而且你也沒有遇到南卡羅來納州的問題，但 ee 的 EBITDA 卻與去年同期基本持平。所以只是想了解一下你們的飼料和飼料部分是否受到 Diamond Green 錯位的影響，或者我們是否遺漏了其他東西？我了解與去年第三季和第四季相比的滯後和定價。我只是很難理解。同比影響。

Hi Heather, it's Matt again. I would say think about it this way. First of all, the, we have a forward sales book on almost all the time, somewhere on average of 60 to 90 days. And so, there's a lagging effect in this and that, that's also partially one of the reasons it gives us confidence when we look at how March improved over the over the first two months because Some of that started to get traction. So I think you'll see this shine through in the numbers as we go forward.

嗨，希瑟，又是我馬特。我想說，請這樣想。首先，我們幾乎一直都有遠期銷售帳簿，平均為 60 至 90 天。因此，這其中存在滯後效應，這也是當我們觀察 3 月相對於前兩個月的改善情況時給予我們信心的原因之一，因為其中一些因素開始獲得關注。因此，我認為，隨著我們不斷前進，您會在數字中看到這一點。

And I would add to that, Heather, remember when you came out of '23, we came out in December of '23, soybean oil was $0.55 a pound, and by the time we got to Q1 and in '24, we were in a very much a deflationary market, so we were flowing through higher prices that were coming down in Q1 of '24, and now we're back in an inflationary. Improving markets. So, they're not, as I say, they're kind of hard with the forward sales book to kind of, if you will, reconciling in what you're trying to do. What we're trying to do is say we've got 100% visibility to the March run rate.

我想補充一點，希瑟，記得你剛走出 23 年的時候，23 年 12 月，大豆油的價格是每磅 0.55 美元，而到了 2024 年第一季度，我們處於一個通貨緊縮的市場，所以我們經歷了 2024 年第一季度價格下跌的局面，現在我們又回到了通貨膨脹的市場。改善市場。所以，正如我所說，他們並不是很難透過遠期銷售帳簿來協調你正在嘗試做的事情。我們想要做的就是 100% 了解 3 月份的運作率。

Prices have started to flow through in March. They're probably going to improve a little bit in April. If you look at imported fats into the US today, they're closer to $0.60 a pound. So, they're almost, $100 bucks a ton over top, what we're doing right now in the US maybe $120. So, like I said, this is not a difficult business once you are in a flat or an improving market to give forward looks to.

價格在三月已開始顯現。四月份的情況可能會有所改善。如果你看看今天進口到美國的脂肪，它們的價格接近每磅 0.60 美元。所以，它們的價格幾乎是每噸 100 美元，而我們現在在美國的價格可能是每噸 120 美元。所以，就像我說的，只要你處於一個平穩或不斷改善的市場中，這並不是一個困難的業務。

Manav Gupta, UBS.

瑞銀的 Manav Gupta。

Hey Andy, congrats on the leverage taking down, going back to the guidance a little, you still probably need about $250 million or so from the RD business. So, help us understand a little bit what you expect besides the PTC. That you start getting into you any help that you think you'll probably get on the car front and then what could be the rent prices help us bridge the GAAP to that about $250 million of EBITDA that you will need from the renewable diesel business to get to your guide.

嘿，安迪，恭喜你降低了槓桿率，稍微回到指導方針，你可能仍然需要從研發業務中獲得大約 2.5 億美元左右。因此，請幫助我們了解除了 PTC 之外您還有什麼期望。您開始了解您認為在汽車方面可能獲得的任何幫助，然後租金價格可能會幫助我們將 GAAP 與您從再生柴油業務中獲得的約 2.5 億美元 EBITDA 聯繫起來，以獲得您的指南。

Yeah, I mean, good question, and I think it sets the stage, and I'll have Matt and Bob help me here, and we'll give, we'll kind of give a view on the balance of the year. I mean, clearly the Jan, Feb production rate in the march suggests that the RINS have to improve. You've got capacity idled right now around the industry. The industry is behaving like it should.

是的，我的意思是，這是個好問題，我認為這奠定了基礎，我會讓馬特和鮑勃在這裡幫助我，我們會對今年的平衡給出一個看法。我的意思是，3 月 1 月、2 月的生產力明顯表明 RINS 必須改進。目前整個產業都有閒置產能。該行業正在按照應有的方式運作。

It's showing discipline and says, I'm not going to run and burn up Catalysts for zero margin. So where does, where do the RINS have to go? The RINS have to go, I don't know, a buck and a half somewhere in there, up $0.45, $0.50 from where they are to restart the capacity. So when we talk about the forward look here, the [125 to 113], I think it's fairly conservative.

它表現出紀律性，並表示我不會為了零利潤而浪費催化劑。那麼 RINS 要去哪裡呢？我不知道 RINS 必須下降多少，大概在 1.5 美元左右，或從現在的水平上漲 0.45 美元或 0.50 美元，才能重新啟動產能。因此，當我們談論前瞻性時，[125 到 113]，我認為這是相當保守的。

And if you look at it, As we know on the Valley call here shortly, they'll be telling you an adjusted run rate for the year about $1.1 billion because of turnarounds that we had in the gallons, total gallons, and you sit there and say, well, we told you we're going to earn, $0.55, $0.65 a gallon on the PTC. It's not hard to back into How we come up with the additional [250 to 300] in within DGD to get to our guidance. What that says is we're not making a statement that DGD is going to run at 0 for RD for the year and then get a PTC. We're saying RINS have to improve and we're giving you a conservative forward look.

如果你看一下，正如我們很快在矽谷電話會議上了解到的那樣，他們會告訴你今年調整後的運行率約為 11 億美元，因為我們在加侖、總加侖方面的周轉率很高，而你坐在那裡說，好吧，我們告訴過你，我們將在 PTC 上每加侖賺取 0.55 美元或 0.65 美元。不難回想我們如何在 DGD 中提出額外的 [250 到 300] 來獲得我們的指導。也就是說，我們並沒有聲明 DGD 今年的 RD 成本將為 0，然後再獲得 PTC。我們說 RINS 必須改進，我們給你一個保守的前瞻性看法。

Yeah so, this is Bob, and I think, with respect to RINS. The run rate so far Jan, Feb March puts us on pace to produce about $6 billion RINS, D4 RINS, and really, we need to make [7.5] in 2025 to meet the mandate. So, we're still underproducing by quite a bit. We've seen RINS go up by over $0.40, equivalent to $0.65 a gallon since the start of the year.

是的，這是鮑勃，我認為，關於 RINS。截至目前，1 月、2 月和 3 月的運行率使我們預計將生產價值約 60 億美元的 RINS、D4 RINS，而實際上，我們需要在 2025 年生產 [7.5] 才能滿足要求。所以，我們的產量仍然遠不足。我們看到，自今年年初以來，RINS 價格上漲了 0.40 多美元，相當於每加侖 0.65 美元。

So there is a lot of momentum, moving in the right direction. And it really comes down to when obligated parties feel the need for compliance as to when those values get to where they ultimately need to be. So, we see a lot of support there, as Randy mentioned in the PTC, we weren't able to realize a lot of the PTC in the first quarter due to the late guidance and, having maybe not the best feedstocks in place. And some of the sales qualifications that we needed to go through to get ready.

因此，我們擁有很大的動力，並且正在朝著正確的方向前進。而這其實取決於義務方何時感到需要遵守，以及這些價值觀何時才能達到最終需要達到的程度。因此，我們看到了很多支持，正如蘭迪在 PTC 中提到的那樣，由於指導較晚，並且可能沒有最好的原料，我們在第一季度未能實現很多 PTC。以及我們需要準備的一些銷售資格。

So that's going to also be a real lift to the P&L as we go forward. We, the other thing we haven't talked a lot about is just the downtime. I mean, you can see, the number of gallons we produced, we were less than 2/3 of total capacity. So, that, that's another thing that is really going to provide a helpful lift as we go forward through the rest of the year.

因此，隨著我們不斷前進，這也將對損益表產生真正的提升。我們還沒有談論過的另一件事就是停機時間。我的意思是，您可以看到，我們生產的加侖數還不到總產能的 2/3。所以，這是另一件在我們度過今年剩餘時間時真正能提供有益推動的事情。

And then Lastly, there are a lot of positive discussions kind of going on behind the scenes around the RVO and also at CARB and so, I think we're pretty confident in what the outlook is without those things, but if those come to pass, then It certainly could change the picture in a positive way.

最後，在幕後，圍繞著 RVO 和 CARB 正在進行許多積極的討論，所以我認為我們對沒有這些事情的前景非常有信心，但如果這些事情成為現實，那麼它肯定會以積極的方式改變局面。

I would just also include this is mad. I would also include that there's also the staff component. I mean, so this is a continuous margin bill with the PTC with the with the RIN, with obviously that price, all of these will influence the margins, but with our staff, production, we're also, that also gives us more confidence.

我還要補充一點，這太瘋狂了。我還要提還有員工部分。我的意思是，這是 PTC 和 RIN 的持續保證金帳單，顯然價格都會影響利潤，但有了我們的員工和生產，這也給了我們更多的信心。

Perfect. And sometimes that doesn't get enough credit for the kind of innovation you bring to the market. So, recently you have launched some products, to control blood sugar, and you also have an attractive pipeline of projects and products you do plan to bring to the market. Can you help us walk us through some parts of that business which I think remains somewhat underappreciated.

完美的。有時，這並不能充分體現你為市場帶來的創新。所以，最近你們推出了一些控制血糖的產品，而且你們也計劃將一系列有吸引力的項目和產品推向市場。您能否幫助我們了解一下該業務中一些我認為仍未得到充分重視的部分？

So this is Bobby. I think you're referring to Russolo and our college and business, and you point out, I mean, EBITDA increased pretty significantly, this quarter versus a year ago and last quarter, we are bringing some very innovative products to market. I think, we've advertised as loudly as we can the next data portfolio products and the next day the glucose control product that is currently on the market and undergoing.

這就是 Bobby。我想您指的是 Russolo 和我們的學院和業務，您指出，我的意思是，本季度與去年同期和上一季度相比，EBITDA 增長相當顯著，我們正在向市場推出一些非常創新的產品。我認為，我們已經盡可能大聲地宣傳了下一代數據組合產品，第二天又宣傳了目前正在市場上銷售的血糖控制產品。

Additional trials, to really get this out in a larger way. We love talking about collagen and our ability to innovate through collagen and put together, peptide profiles that have targeted health benefits and really do amazing things for people. What's exciting from the business standpoint is that margins are significantly higher in those products.

進行額外的試驗，以便更大規模地真正解決這個問題。我們喜歡談論膠原蛋白以及我們透過膠原蛋白進行創新的能力，並整合具有針對性健康益處並真正為人們帶來驚人效果的勝肽譜。從商業角度來看令人興奮的是這些產品的利潤率明顯更高。

And so as we continue to develop the next item of GC product and other products in the next data portfolio, we look to see earnings in that particular segment increase quite a bit.

因此，隨著我們繼續開發下一個 GC 產品和下一個數據組合中的其他產品，我們希望看到該特定領域的收益大幅增加。

Tom Palmer, Citigroup.

花旗集團的湯姆·帕爾默。

Good morning and thanks for the question. I guess just first I wanted to clarify on the guidance. You noted the expectation, that in the relative near term we could get some resolution on the RVO sounded like 5.25 billion gallons for 5MS based diesel was your expectation.

早安，感謝您的提問。我想首先我想澄清一下指導意見。您指出，我們預計在相對較短的時間內可以就 RVO 問題得到一些解決方案，這聽起來像是您預期的 5MS 柴油產量為 52.5 億加侖。

I know it might be hard to be overly precise, but I just want to understand how much of this is baked into how you're thinking about the year versus if it does come through with this 5.25 level, that would be kind of upside versus how you're thinking about the year.

我知道可能很難做到過於精確，但我只是想了解這其中有多少與你對今年的看法有關，如果它確實達到了 5.25 這個水平，那將與你對今年的看法相比有所提升。

Yeah, and this is Randy, Tom, great question in a sense, I mean, obviously coming off of last year we're a little bit snake bitten and we're being with a pretty conservative view. I mean, DC is a bit hard to handicap right now.

是的，蘭迪、湯姆，從某種意義上說，這個問題問得很好，我的意思是，顯然，從去年的情況來看，我們有點被蛇咬了，我們的觀點相當保守。我的意思是，現在 DC 有點難被阻礙。

We've spent a lot of time there recently with our colleagues across the agriculture and energy.

最近，我們與農業和能源領域的同事在那裡度過了很多時間。

It feels like we have alignment on the 5.25 billion gallons. I mean, clearly the White House needs some wins here. And I think, the American farmer has been singled out as somebody that the trump administration gets and understands and wants to support. And so, I think we're going to ride that momentum and that that's very positive. Now, the good news is the 5.25 billion gallons is that's a lot of demand that that hasn't been there in the past.

感覺我們在 52.5 億加侖的目標上已經達成一致。我的意思是，白宮顯然需要在這裡取得一些勝利。我認為，美國農民是川普政府所關心、理解和支持的對象。所以，我認為我們將順應這一勢頭，這是非常積極的。現在，好消息是，52.5億加侖的需求是過去從未有過的。

That gets friendly feedstocks, whether you're, your soybean oil or whether your animal fats and waste fats. So, it's bullish the base business that is not baked in yet, because remember that doesn't start until, '26. So that, that's number one. Number two, if you start moving feedstocks up unless you're going to get help out of RINS.

這可以獲得友善的原料，無論是大豆油還是動物脂肪和廢棄脂肪。因此，對於尚未成熟的基礎業務來說，這是利好消息，因為請記住，基礎業務要到 26 年才開始。所以，這是第一點。第二，如果你開始提高原料價格，除非你能得到 RINS 的幫助。

If you're going to get help out of LCFS, there, there's still no margin in this until at the end of the day, those are going to have to move in order to fulfil the, what I'm going to call the ren deficit that is building out there right now. So, we're setting up. Right now, for what I'm going to call, the fantastic finish in the back half of the year here as this thing becomes a little more clear. Bob, you want anything?

如果你要從低收入家庭服務 (LCFS) 獲得幫助，那麼到最後，這方面仍然沒有任何餘地，人們必須採取行動來彌補目前正在形成的人口赤字。那麼，我們正在準備。現在，我想說，隨著事情變得更加明朗，今年下半年將會有一個完美的收官。鮑勃，你想要什麼嗎？

Yeah, I just, one thing I think that it's interesting that what we're hearing is talk about a gallon mandate when historically it's really been referred to as RINS and so I think there's quite a lot of confusion actually between RINS and gallons. The reality is a 5.25-billion-gallon D4 mandate would effectively increase in demand by about $3 billion in 2026 versus 2025. So, it's, that would be a substantial increase. We're not really faking that into this forward guidance. I think if that were to be clarified, we'd probably see a pretty interesting market unfold.

是的，我只是覺得有趣的一件事，我們聽到的是加侖授權，而歷史上它實際上被稱為 RINS，所以我認為 RINS 和加侖之間實際上存在很多混淆。實際情況是，52.5億加侖的D4強制規定實際上將導致2026年的需求比2025年增加約30億美元。所以，這將是一個大幅的成長。我們實際上並沒有將其偽造成前瞻性指引。我認為，如果這一點能夠澄清，我們可能會看到一個相當有趣的市場展開。

I mean, you've seen Tom, you've seen RINS move from $0.61 to the start of the year to $1.05. But capacity, especially in the biomass-based diesel or biodiesel industry is still fairly, is idle and negative. So, something's got to give. What the situation we're in right now is not sustainable. What we know is we have the two lowest cost operating assets in the best place in the world, and they're profitable. And we know that as we were given that guidance in Q2 here. So, but in order to restart the industry, and to fulfil the existing mandate before the new mandate, you've got to bring back profitability. There just isn't enough capacity to fill the RVO even as it stands today at the margins that exist.

我的意思是，你已經看到湯姆，你已經看到 RINS 從年初的 0.61 美元漲到了 1.05 美元。但產能，特別是以生物質為基礎的柴油或生質柴油產業的產能仍然相當低，處於閒置和負成長狀態。所以，必須做出一些讓步。我們目前所處的狀況是不可持續的。我們知道的是，我們在世界上最好的地方擁有兩項成本最低的營運資產，而且它們有利可圖。我們知道這一點，因為我們在第二季度得到了這樣的指導。因此，為了重啟該行業，並在新任務之前履行現有任務，您必須恢復盈利能力。即使按照目前現有的邊緣容量，也沒有足夠的容量來填滿 RVO。

Thanks for all that color. Maybe I could just follow up quickly on kind of the last point you noted, at least on, regeneration year-to-date, it is tracking below this year's mandate. What do you think is driving this at this point? And I guess any view on what might cause kind of a change other than obviously this RVO announcement for '26 maybe, making people more concerned about the rim bank.

感謝所有這些色彩。也許我可以快速跟進您提到的最後一點，至少從年初至今的再生情況來看，它的進度低於今年的要求。您認為目前是什麼原因推動了這個現象？我想，除了 26 年 RVO 公告之外，任何可能導致變化的觀點都可能使人們更加關注輪圈坡度。

Yeah, and well, the three of us will tag team this one because and there isn't any differing views at the table. Remember, the obligated party has all year it, and Bob has always said it's really not a futures market that that anticipates the S&D here. So, the obligated parties are still sitting here trying to figure out what's going on in DC. Are there going to be SREs?

是的，我們三個人會組隊解決這個問題，因為大家的觀點都一致。請記住，有義務的一方全年都有義務，而鮑伯一直說這實際上並不是一個預測 S&D 的期貨市場。因此，有義務的各方仍坐在這裡試圖弄清楚華盛頓到底發生了什麼事。會有 SRE 嗎？

Is there going to be a bigger RVO? I can tell you that our colleagues in San Antonio, we see a tightness in RINS building very rapidly here. So we, we've got a universal view on this right now, but there's just so much noise, it, it's, if you think about it, [61 to 105] is a big move already and, but it's not enough to restart the industry.

是否會出現更大規模的 RVO？我可以告訴你們，我們在聖安東尼奧的同事們發現這裡的 RINS 建設非常緊張。所以，我們現在對此有一個普遍的看法，但是噪音實在太大，如果你仔細想想，[61 到 105] 已經是一個很大的舉措，但這還不足以重啟這個行業。

There's very limited liquidity, if you will, if you wanted to go out there and said, let's go get long RINS today. There's very limited liquidity and the obligated parties just until they get more transparency. I don't know what do you think, Bob, Matt.

流動性非常有限，如果你想去那裡並說，今天我們就去買多頭 RINS 吧。在提高透明度之前，流動性和義務方都非常有限。我不知道你們怎麼想，鮑勃，馬特。

I think that's right. I think for some of the obligated parties, who don't have an immediate penalty for lack of compliance, they're looking at a pretty significantly increased rent price and they're sitting on the sidelines, but as time goes on, that, that's going to be harder and harder to do.

我認為那是對的。我認為，對於一些有義務的人來說，他們不會因為不遵守規定而立即受到處罰，他們看到租金大幅上漲，所以他們選擇袖手旁觀，但隨著時間的推移，這會變得越來越難。

Tom, I would just say there's really, there's two things to watch for number one is just the margin in terms of what the renewable diesel and the biodiesel margin is. It would help, will dictate the production and therefore the in generation, and then the other is imports, whether it is on importing on biofuels. So, those two things I would watch for as indicators, to look for, some, direction on RINS market.

湯姆，我只想說，確實有兩件事要注意，第一就是再生柴油和生質柴油的利潤率。它將有所幫助，將決定生產，從而決定發電量，然後另一個是進口，無論是進口生物燃料。因此，我會關注這兩件事作為指標，以尋找 RINS 市場的一些方向。

Ryan Todd, Piper Sandler.

瑞恩·托德、派珀·桑德勒。

Good, thanks. Good morning, everybody. Maybe a question first of all, you mentioned a little bit earlier in your comments, but I know there are a lot of moving pieces of volatility as it stands right now. Can you talk through the impacts of the current tariff regime on the various aspects of your business?

很好，謝謝。大家早安。首先可能有一個問題，您在評論中稍早提到過，但我知道目前有很多波動因素。您能談談當前關稅制度對您業務各個方面的影響嗎？

Look at a at a high level, talking about the core business, it's probably a slight net positive for darling, one thing with tariffs coming in the United States, it limits availability of waste fats and so that's been supportive to the North American waste fat prices.

從高層次來看，談論核心業務，這對親愛的來說可能是一個輕微的淨利好，隨著美國關稅的出台，它限制了廢棄脂肪的供應，因此這對北美廢棄脂肪價格起到了支撐作用。

So that that's generally good. I think that, the one area where it's not entirely positive is in selling protein products to China, but that, that's less of a, like a tariff hit and just, it just takes a market that was available that's, that needs to be redirected somewhere else but the net really isn't a, it really isn't a negative for Darling's core business.

總體來說這很好。我認為，一個不太積極的領域是向中國銷售蛋白質產品，但這並不完全是關稅打擊，而只是需要一個可用的市場，需要將其重新定向到其他地方，但這對達林的核心業務來說真的不是一個負面因素。

The question really is more about how does it affect the renewable fuel industry in the United States and, tariffs on feedstocks and as we kind of re-engineer supply chains, we're just finding ways around those things, so we don't see it as a really negative thing for our business, fortunately.

問題實際上更多的是它如何影響美國的可再生燃料產業和原料關稅，以及當我們重新設計供應鏈時，我們只是在尋找解決這些問題的方法，所以幸運的是，我們並不認為這對我們的業務來說是一件真正負面的事情。

Good thanks. And then maybe shifting to staff, can you maybe provide a little more color in terms of what you said, I mean, you said the demand pool has been reasonable so far like. Can you walk through what sort of demand pool are you seeing? Is it, is that mostly coming from mandated markets or is it also the voluntary markets? And what would you need to see, at this point to think about moving forward with the second staff project?

很好，謝謝。然後也許轉向員工，您是否可以就您所說的內容提供更多細節，我的意思是，您說到目前為止需求池是合理的。能介紹一下您所看到的需求池類型嗎？這主要來自強制市場還是也來自自願市場？那麼，此時您需要看到什麼才能考慮推進第二個員工專案？

So, this is Matt. So, we have a mix between whether it's the demand, whether it's the obligated or the markets or the voluntary markets, it's pretty well balanced on that. We're running at an optimal rate to maximize the margins that we have.

這就是馬特。因此，我們將需求、義務市場、市場或自願市場進行混合，在這方面保持相當好的平衡。我們正在以最佳速度運行，以最大限度地提高我們的利潤。

And, our staff sales book started more than a year ago, as we were contracting staff. So, we've got a fair bit of a book on already. I tell you quite a strong book as a matter of fact, through the whole year. And so, we're delivering on those contracts. And so, to your question on a second staff line, I think right now we need to let some of the storm clear on all of the, all of these market dynamics that are going on, to make a final call on that. It's something that is on the table and we, we've done some of the engineering work on that, but we're holding off, for the time being to have more clarity on what the future holds.

而且，我們的員工銷售記錄一年多前就開始了，當時我們正在與員工簽約。至此，我們已經寫了相當多的書了。事實上，我可以告訴你，這是一本貫穿全年的相當精彩的書。因此，我們正在履行這些合約。因此，對於您在第二條員工線上提出的問題，我認為現在我們需要澄清所有正在發生的市場動態，以便對此做出最終決定。這是我們正在討論的事情，我們已經完成了一些工程工作，但我們暫時擱置，以便更清楚地了解未來的發展。

The other reality is that as the market evolves in the, the credit scenario, what we're seeing more and more interest in is the booking claim process.

另一個現實是，隨著市場在信貸情景中的演變，我們看到人們對預訂索賠流程的興趣越來越大。

And so it's not necessarily contracts with airlines and the distributors, but there is a booking claim process that we're the some of the tech high energy users are buying the scope three credits.

因此，它不一定與航空公司和分銷商簽訂合同，但有一個預訂索賠流程，我們是一些技術高能耗用戶購買範圍三信用額度。

Pooran Sharma, Stephens.

普蘭夏爾馬，史蒂芬斯。

Hey, thanks for the question.

嘿，謝謝你的提問。

Just wanted to get a sense of capital allocation priorities from here. Looks like you did do a little bit of deli deleveraging also with the share repurchases, but just wanted to talk about something you said on the last call. I think you mentioned your target is 2.5%. Wanted to get a sense of when you think, we could get there and what the pace of deleveraging. Investors can expect going forward.

只是想從這裡了解資本配置的優先順序。看起來你確實透過股票回購做了一些熟食去槓桿，但我只是想談談你在上次電話會議上說的一些事情。我想您提到過您的目標是 2.5%。想要了解我們何時能夠實現這一目標以及去槓桿的速度。投資者可以期待未來。

Yeah, thanks, this is Bob. That's correct. I mean, first I just say that our plan hasn't changed. We are focused on continuing to pay down debt and, delever our balance sheet. We've made a lot of progress to that end recently and we will continue through the rest of the year. We'll get pretty close to that 2.5% by the end of the year. We may not quite get there, but we'll, it'll happen early 2026 if it doesn't happen by the end of the year that's really what we're seeing.

是的，謝謝，我是鮑伯。沒錯。我的意思是，首先我要說的是我們的計劃沒有改變。我們專注於繼續償還債務並降低資產負債表的槓桿率。我們最近在這方面取得了很大進展，並將在今年剩餘時間繼續努力。到今年年底，我們的成長率將非常接近 2.5%。我們可能還沒有完全實現這一目標，但是，如果到今年年底還沒有實現，那麼它將在 2026 年初實現，而這正是我們所看到的。

Okay, I appreciate that. And just really wanted to, I think everybody's asked good questions about DGD. Maybe I could focus in on the food segment here. A really good margins, much higher than anticipated. You kind of spoke to some of the strength here, but wondering if you could share some incremental color and do you think that this is a level of gross margin performance that you can sustain here? I think last time on the last call you said you were working with CPG customers.

好的，我很感激。我真的很想問，我認為每個人都問了有關 DGD 的好問題。也許我可以專注於這裡的食物部分。利潤率確實很高，遠高於預期。您談到了這裡的一些優勢，但我想知道您是否可以分享一些增量細節，您是否認為這是您可以維持的毛利率水平？我記得上次通話時您說過您正在與 CPG 客戶合作。

To help them, better educate their customers on this product. So, I was just wondering if you could just give us an overview on food and next to there.

為了幫助他們，更好地向客戶介紹該產品。所以，我只是想知道您是否可以為我們概述那裡的食物和周邊情況。

Yeah, this is Bob again. So, I appreciate you bringing this segment up. It's an exciting one for us here. I think on a high level what we've seen is an industry that has really gotten a little bit more healthy here as low, let's say high-cost production around the world has stopped making product and they've begun to destock inventories. We've seen some announcement.

是的，我又是鮑伯。所以，我很感謝您提出這個主題。這對我們來說是一件令人興奮的事。我認為，從高層次來看，我們看到這個行業確實已經變得更加健康，因為世界各地的高成本生產已經停止生產產品，並且他們已經開始減少庫存。我們看到了一些公告。

That some of the higher cost areas of the world have decided to shut production down, and that's just led to an overall, better health in the gelatin market and the collagen market. So, we think that we're in a pretty good spot as we go forward.

世界上一些成本較高的地區決定停止生產，這導致明膠市場和膠原蛋白市場整體狀況更好。因此，我們認為我們目前的處境非常有利。

As far as Nextida, we do have a product on the market under a brand called Code ACODEAGE and the Nextida glucose control product is inside. Inside that product, we are going through some trials that we should finish this summer, and that's with a much larger sample size that would allow the larger CPG companies to be comfortable, taking this product to market. So really what we're expecting is to get through that process, go through some, commercial activities to be able to see this product in much higher volume as we kind of get near the end of 2025.

就 Nextida 而言，我們確實在市場上推出了一款名為 Code ACODEAGE 的產品，其中包括 Nextida 血糖控制產品。在這個產品內部，我們正在進行一些試驗，應該會在今年夏天完成，而且樣本量會更大，這樣大型 CPG 公司就可以放心地將該產品推向市場。因此，我們真正期望的是完成這個過程，進行一些商業活動，以便能夠在 2025 年底接近時看到該產品的產量大幅增加。

Andrew Strelzik, BMO.

蒙特利爾銀行 (BMO) 的 Andrew Strelzik。

Hey, good morning. Thanks for taking the questions. My first one is just on the comment you made that we could get the preliminary RVO in the next couple days, I guess what informs that view? Do you have some visibility to that? It sounds like there's, based on your comments, still some uncertainty around maybe the SRE, so could we get a preliminary number without a resolution around that? Just curious about that comment specifically.

嘿，早安。感謝您回答這些問題。我的第一個問題是針對您所說的我們可以在接下來的幾天內獲得初步的 RVO 的評論，我想您是從哪裡了解到這個觀點的？您對此有什麼看法嗎？聽起來，根據您的評論，SRE 可能仍然存在一些不確定性，那麼我們能否在沒有解決方案的情況下獲得初步數字？只是對那條評論特別好奇。

Let me, if I did say next couple of days, I guess I wouldn't try to be that exact on that. I really did say next couple of days, few days. Okay, well, I think in the coming days is probably a better description of that, and I apologize if I came out, too soon on that, but we are optimistic on that. We, but in terms of having special insight or anything that gives us any confidence more than what other people who are industry participants, I would say we don't have any extra knowledge in that regard, but we do have we remain optimistic about the volume as well as the timing.

如果我說的是接下來的幾天，我想我不會試圖那麼精確地做到這一點。我確實說過接下來的幾天，幾天。好的，嗯，我想未來幾天可能對此有更好的描述，如果我太早說出這一點，我很抱歉，但我們對此持樂觀態度。但就我們擁有的特殊見解或任何讓我們比其他行業參與者更有信心的東西而言，我想說我們在這方面沒有任何額外的知識，但我們對數量和時間仍然保持樂觀。

Yeah, Andrew. The discussions are clearly happening in DC. We're part of them with a larger group. There's a, there is a, the first time in my career since 2007 that we have absolute alignment amongst a high majority, if not the major, 90% of the trade groups in this on what should happen here. And we have a President that also is now realizes that the American farmers are important. So, my view is that I think you'll see something out of DC here somewhere in the next, 45 days to 60 days, maybe sooner, but That they're all working on it, and, it's just a lot of different moving parts there, but everybody at least is reading off for the same song sheet right now.

是的，安德魯。顯然，這些討論正在華盛頓特區進行。我們和更大的團體一起屬於他們。這是自 2007 年以來，在我的職業生涯中第一次，絕大多數（如果不是大多數的話）貿易團體就此事應該如何進行達成了絕對一致。我們的總統現在也意識到美國農民的重要性。所以，我的觀點是，我認為你會在未來 45 天到 60 天內，甚至更早的時候，在華盛頓特區看到一些東西，但他們都在為此努力，而且，那裡有很多不同的活動部分，但至少現在每個人都在為同一首歌譜而努力。

Got it. Okay. That makes sense and I appreciate you clarifying that my second question, I feel like we felt like the runway was there for, with all these drivers and better performance, for the last couple of quarters and so I guess I'm just Curious kind of how you handicap the risks. I know most of this is kind of industry related and macro related, but as you sit here today and taking the march and just kind of extrapolating that makes a lot of sense, how do you handicap the risks or what you're paying attention to on the risks on the guidance.

知道了。好的。這很有道理，我很感謝你澄清我的第二個問題，我覺得我們覺得跑道已經在那裡了，在過去的幾個季度裡，有了所有這些驅動因素和更好的表現，所以我只是好奇你是如何限制風險的。我知道這其中大部分與行業和宏觀相關，但當你今天坐在這裡，採取行進方式並進行某種推斷時，這很有意義，你如何限制風險或你專注於指導中的風險。

Look, this is Bob. I think guidance around the core business is the risks are relatively low. What the market that we're seeing today, certainly things could change, but, typically, these are sort of momentum-driven markets, and they're pointed in the right direction. So, I think it'd be pretty low there as it relates to biofuels, there's certainly, there's going to be more uncertainty there just because it's so influenced by policy and there's so much going on behind the scenes. We give guidance today based on what we're seeing and, all the things that we've explained, but that's one that could be affected more by things outside of our control than our core business.

看，這是鮑伯。我認為圍繞核心業務的指導風險相對較低。我們今天看到的市場當然可能會發生變化，但通常情況下，這些都是由動量驅動的市場，並且朝著正確的方向發展。因此，我認為就生物燃料而言，其風險會相當低，肯定會存在更多不確定性，因為它受到政策的影響很大，而且幕後發生了很多事情。我們今天根據所看到的情況和所解釋的所有事情給出指導，但這可能會受到我們無法控制的因素的影響，而不是我們的核心業務。

Matthew Blair with TPH.

TPH 的 Matthew Blair。

Thank you and good morning. So, regarding the new LCFS standards in California, I think the comment period just ended a few days ago, and we're waiting for CARB to resubmit the new targets to the OAL. Is that you’re understanding as well? And then perhaps more importantly, do you have a view on the implementation timing? For these new targets, do you think they'll be backdated to January 1, 2025, or is an implementation date in 2026 more reasonable at this point? Thank you.

謝謝，早安。因此，關於加州新的低碳食品標準，我認為評論期幾天前剛結束，我們正在等待加州空氣資源委員會 (CARB) 將新目標重新提交給 OAL。您也明白嗎？也許更重要的是，您對實施時間有什麼看法？對於這些新目標，您認為它們會追溯到 2025 年 1 月 1 日，還是 2026 年實施日期目前更合理？謝謝。

Hey, good morning, Matthew. I would say that particular to your question on the timing, the, yes, the comment period ended on Monday, and we understand there's 30 working days to provide some analysis that's going to, they have to go through a process in order to address the comments.

嘿，早上好，馬修。我想針對你關於時間的問題說，是的，評論期於週一結束，我們了解有 30 個工作日的時間來提供一些分析，他們必須經過一個流程才能解決這些評論。

We understand that's ongoing and we remain optimistic that the this was is on track and we're going to see something come out definitively. In the reasonably near future, I don't want to get the expectations too high on that, yeah, so we think that's on track, and so now whether that is going to be retroactive or effective in sometime mid-year or first year, that's a question we continue to ask. I think we're prepared no matter what, but. I think in my view, a worst-case scenario would be January 1 of '26, but there is a chance from what we understand of having something there.

我們知道這是正在進行的，我們仍然樂觀地認為這一切都在按計劃進行，我們將看到一些最終的結果。在不久的將來，我不想對此抱有太高的期望，是的，所以我們認為這是在按計劃進行的，所以現在這是否會追溯生效或在年中或第一年的某個時候生效，這是我們繼續問的問題。我認為無論怎樣我們都已經做好了準備，但是。我認為，最糟糕的情況是 26 年 1 月 1 日，但據我們了解，那裡有可能發生一些事情。

Great thank you and then. For DGD, your reported Q1 EBITDA was quite a bit different than what your partner reported. It sounds like there is at least some 45 contributions in in your number which may not be in your partner's reported number. But can I also clarify, is there any LCM impact in your, Q1 DGD EBITDA, and if so, how much?

太好了，謝謝。對於 DGD，您報告的第一季 EBITDA 與您的合作夥伴報告的差異有很大差異。聽起來您的數字中至少有 45 個貢獻，但可能不在您的伴侶報告的數字中。但我還可以澄清一下，LCM 對您的 Q1 DGD EBITDA 有影響嗎？如果有，影響有多大？

Hey Matt, this is Bob. Yeah, I mean, we're, we see a pretty big difference there. I think one thing I just want to make really clear is that none of the difference has anything to do with recognition of 45Z.

嘿，馬特，我是鮑伯。是的，我的意思是，我們看到了很大的差異。我想明確一點的是，這些差異與 45Z 的識別沒有任何關係。

Historically, we have shown, we report LCM differently. So, I think that's the way to look at it. In particular, the first quarter had had a lot of volatility in both LIFO and LCM. The big difference between our number and what Valero is showing is with the LCM.

從歷史上看，我們已經表明，我們以不同的方式報告 LCM。所以，我認為這就是看待這個問題的方式。尤其是第一季度，後進先出法和庫存管理法都大幅波動。我們的數字與瓦萊羅所展示的數字之間的最大差異在於 LCM。

Betty Zhang, Scotiabank.

豐業銀行的 Betty Zhang。

Thanks. Good morning. Thanks for taking the question. I'm sorry to go back to this, but I was wondering for the PCC that was recognized in first quarter. Can you share how much of it was recorded?

謝謝。早安.感謝您回答這個問題。很抱歉再次提及此事，但我想知道第一季確認的 PCC 是什麼。可以分享一下錄製了多少內容嗎？

I think we would sort of roughly say that. We, so we'll show this in more clarity in the 10, which will come out in a couple of weeks, but we were roughly able to realize PTC on about a third of the volume that we had in the quarter.

我想我們可以粗略地說出這一點。我們將在幾週後發布的 10 財報中更清楚地展示這一點，但我們大致能夠實現本季約三分之一交易量的 PTC。

Great, thank you. And for my follow up, so we saw there were some buybacks, and you also paid down some debt. I'm wondering, going forward, how do you see that split? How do you view, allocation, going forward?

太好了，謝謝。在我的後續跟進中，我們看到有一些回購，而且你們還償還了一些債務。我想知道，展望未來，您如何看待這種分裂？您如何看待未來的分配？

So it's Bob again. We, we're focused on paying down debt. I mean, we'll opportunistically look at buying shares back when we can. We want to buy back our delusion, so we did some of that in the first quarter, but, the lion's share of the capital we spent that way was towards debt pay down and we'll continue to focus more on that.

又是鮑伯。我們專注於償還債務。我的意思是，我們會抓住機會，在可能的情況下回購股票。我們想要挽回我們的幻想，所以我們在第一季做了一些這樣的事情，但是，我們以這種方式花費的大部分資金都用於償還債務，我們將繼續更多地關注這一點。

Jason Gabelman, TD Securities.

加貝爾曼（Jason Gabelman），道明證券。

Morning. Thanks for taking my questions. I was one of the people who thought there was a different PTC booking versus LCM with your DGD partner, so appreciate that clarification. The first question on the PTC monetization, and I guess it seems like some of, if not all of the distribution from DGD.

早晨。感謝您回答我的問題。我曾經認為你們與 DGD 合作夥伴的 PTC 預訂和 LCM 預訂有所不同，因此非常感謝你們的澄清。第一個問題是關於 PTC 貨幣化的，我猜這似乎是 DGD 的部分（如果不是全部）分配。

A that you booked in one cu was related most likely to timing of blenders' tax credit, cash inflows. So as we look forward, I would suspect the distributions are tied to monetizing the producer tax credit.

您在一個立方英尺中預訂的 A 很可能與攪拌機的稅收抵免、現金流入的時間有關。因此，展望未來，我懷疑分配與生產者稅收抵免貨幣化有關。

So with that in mind, I was hoping you could provide a little more context on the steps involved and what we should be looking out for in terms of progressing the ability to monetize that. Thanks.

因此，考慮到這一點，我希望您能提供更多有關所涉及的步驟以及我們在提高貨幣化能力方面應該注意什麼的背景資訊。謝謝。

Yeah, Jason, this is Bob again. So just to kind of touch on something you said, the distributions from DGD, I mean, certainly the PTC, realization, monetization of PTC is one source of revenue that we will realize. But whether it's bigger or smaller than distributions for DGD ultimately is going to depend on the size of renewable diesel and sustainable aviation fuel margins. Wouldn't rule that out, that we get more that way, but we'll see how that plays out. As far as the process around monetizing the PTC, it's moving forward, I would say very efficiently. As it is with these types of processes, there are a number of steps, brokerage firms involved, lining up counterparties, getting contracts kind of ironed out terms of legal terms ironed out, and we're going through that process to be able to set up for, let's call it some sort of an auction to be able to sell those credits and monetize those in the latter half of the second quarter.

是的，傑森，我又是鮑伯。所以，稍微談一下您所說的內容，DGD 的分配，我的意思是，當然是 PTC，PTC 的實現、貨幣化是我們將實現的收入來源之一。但它是否比 DGD 的分佈更大或更小最終將取決於可再生柴油和可持續航空燃料利潤的大小。不會排除這種可能性，我們可以透過這種方式獲得更多，但我們會看看結果如何。就 PTC 貨幣化進程而言，我認為它正在非常有效率地推進。就像這些類型的流程一樣，有許多步驟，涉及經紀公司、安排交易對手、制定合約、解決法律條款，我們正在經歷這個過程，以便能夠做好準備，我們稱之為某種拍賣，以便能夠出售這些信用額度，並在第二季度後半段將其貨幣化。

But you don't need.

但你不需要。

Any further guidance or anything from the, yeah.

是的，還有什麼進一步的指導或資訊嗎？

No.

不。

No, and going.

不，還要去。

Forward, we would expect to capture 100% of the qualified feedstock PTC.

未來，我們希望能夠捕獲 100% 的合格原料 PTC。

Got it. Great. My follow up is just on the strength in feed prices, and I understand that it's a benefit to the feed business. You have the sensitivity $0.01 per pound is worth $15 million of EBITDA, but I would imagine all else equal those feed prices moving higher are actually a headwind to the DGD business that outweighs the feed business. So, is that correct? And then further to that point, if you just talk about what exactly is driving the waste oil strength. It seems like they're pricing above their carbon intensity difference to vegetable oil. So, if they're at kind of a sustainable premium to vegetable oil or if they need to come down a bit, thanks.

知道了。偉大的。我只是關注飼料價格的強勢，我知道這對飼料業務有利。你的敏感度是每磅 0.01 美元相當於 1500 萬美元的 EBITDA，但我想，在其他條件相同的情況下，飼料價格上漲實際上對 DGD 業務構成了阻力，其阻力大於飼料業務。那麼，這是正確的嗎？然後進一步討論這一點，如果您只是談論究竟是什麼推動了廢油的強度。看起來他們的定價高於與植物油的碳強度差異。因此，如果它們的價格相對於植物油而言處於可持續的溢價水平，或者需要稍微下降一點，那就謝謝了。

That's a great question. I, there, there's an inherent premium in the in the waste fat compared to soybean oil that in the, you can even see it in the in the CI scores and so that that's reflected in the in pricing and so let me that's the simple answer to that question. The other reality is there's only a certain number of US produced animal fat that's available in the market and so it's in demand right now. For good reason, and so that that's also part of the price differentiation that we're seeing between that and so.

這是一個很好的問題。我認為，與大豆油相比，廢棄脂肪具有固有的溢價，您甚至可以在 CI 分數中看到這一點，這反映在定價中，所以這就是這個問題的簡單答案。另一個現實情況是，市場上只有一定數量的美國產動物脂肪可供供應，因此目前需求量很大。這是有充分理由的，這也是我們看到的兩者之間價格差異的一部分。

Yeah, and this is Bob, just that, one of the other reasons is crop oils aren't eligible for all types of biofuels. So, there is that element as well where I used cooking oil, verified used cooking oil, certified used cooking oil is eligible for pretty much any type of fuel, whether it's biodiesel, renewable diesel, sustainable aviation fuel regardless of the destination. So some feedstocks just do have more versatility and then they therefore may trade above their carbon intensity adjusted value.

是的，這是鮑勃，另一個原因是農作物油不適合用於所有類型的生物燃料。因此，還有這個因素，我使用的食用油、經過驗證的廢棄食用油、經過認證的廢棄食用油幾乎可以用於任何類型的燃料，無論是生物柴油、可再生柴油還是可持續航空燃料，無論目的地在哪裡。因此，一些原料確實具有更多的多功能性，因此它們的交易價格可能會高於其碳強度調整值。

Ben Kallo, Baird.

本卡洛，貝爾德。

Hi, good morning, if, Randy, everything stayed the same today, how would the core business, be in Q2? I'm just trying to figure out the cadence of EBITDA for the core business, not, DGD.

嗨，早上好，蘭迪，如果今天一切都保持不變，那麼第二季的核心業務會如何？我只是想弄清楚核心業務的 EBITDA 節奏，而不是 DGD。

Thank you. Hey, Ben, this is Bob. I think, it, what I would probably do is I would just say that we don't expect quarter two to look a lot different from quarters three and four. And so, if you just take quarter one, subtract that from the guidance, that that's probably the best way to do the math on that.

謝謝。嘿，本，我是鮑伯。我認為，我可能會說，我們預計第二季度與第三季和第四季不會有太大不同。因此，如果你只取第一季的數據，然後從指引中減去這個數字，這可能是計算的最佳方法。

Okay, thanks.

好的，謝謝。

Thank you for your question. That concludes our Q&A portion for today. I would now like to pass the conference back to the management team for closing remarks.

感謝您的提問。今天的問答環節到此結束。現在，我想將會議交還給管理團隊，請他們作最後發言。

All right. Thanks everyone. Thanks, Victoria. Thank you for questions today. If you have any other questions, please reach out to Sue Anne. Thanks for taking the time to be with us today. Stay safe and have a great day and talk to you here next quarter.

好的。謝謝大家。謝謝，維多利亞。感謝大家今天的提問。如果您還有其他問題，請聯絡 Sue Anne。感謝您今天抽出時間與我們在一起。保持安全並祝您有美好的一天，下個季度我們將在這裡與您交談。

That concludes today's call. Thank you for your participation and have a wonderful rest of your day.

今天的電話會議到此結束。感謝您的參與，祝您有美好的一天。