Company: SDSYA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001163609-25-000023
Chunk: 34

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 34
---
 competition from South American producers pressured U.S. cash basis values, which fell to record lows in the latter half of the period.

Looking ahead, the federal government has issued guidance that is expected to strengthen biofuels demand. The proposed Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard for 2026 and 2027 represent a significant increase over prior years, likely driving robust demand from the biofuels sector beginning in late 2025 and continuing through 2027.

Further, new legislation has been introduced to address the impact of imported feedstocks and biofuels on domestic markets. Elements of the recently passed "Big Beautiful Bill," including  more favorable carbon intensity scoring for soybean oil under the 45Z tax credit framework, have already contributed to stronger soybean oil values and significantly improved board crush margin.

Construction of the High Plains Processing plant near Mitchell, South Dakota, continued to progress steadily. A relatively mild winter once again supported construction efforts, helping to keep the project on schedule. Costs remained within budgeted estimates, and design changes were minimal. The plant remains on track to begin operations in the fall of 2025.

17

RESULTS OF OPERATIONS

Comparison of the Three Months Ended June 30, 2025 and 2024

Three Months Ended June 30, 2025Three Months Ended June 30, 2024$% of Revenue$% of RevenueRevenue$110,640,734 100.0 $149,716,835 100.0 Cost of revenues(110,367,359)(99.8)(141,155,491)(94.3)Gross profit273,375 0.2 8,561,344 5.7 Operating expenses(1,681,784)(1.5)(1,503,055)(1.0)Interest expense(1,227,078)(1.1)(1,919,069)(1.3)Other non-operating income (expense)184,593 0.2 1,497,166 1.0 Net income (loss)(2,450,894)(2.2)6,636,386 4.4 Net income (loss) attributable to non-controlling interests in consolidated entities(1,477,747)(1.3)606,027 0.4 Net income (loss) attributable to Company$(973,147)(0.9)$6,030,359 4.0