South Dakota Soybean Processors LLC, a leading player in the soybean processing industry, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational achievements, highlighting key metrics and developments that have shaped the company's trajectory over the past quarter.
Financial Highlights
- Revenues: $358.4 million, a decrease of 16.4% compared to the same period in 2024, primarily due to a decrease in the average sales price of soybean products and in production.
- Gross Profit: $20.0 million, an increase of 9.9% compared to the same period in 2024, driven by a $5.8 million net gain from derivative activities.
- Operating Income: $14.7 million, reflecting an increase in gross margins despite higher administrative expenses related to the High Plains Processing plant.
- Net Income: $12.6 million, compared to $13.2 million for the same period in 2024, with the increase in gross margins partially offset by a decrease in interest income.
- Basic and Diluted Earnings Per Capital Unit: $0.47, reflecting improved profitability compared to the same period in 2024.
Business Highlights
- Revenue Segments: The company reported revenue from two main product lines: soybean meal and hulls, and soybean oil and oil byproducts. For the nine months ended September 30, 2025, soybean meal and hulls generated $201 million, while soybean oil and oil byproducts contributed $157 million.
- Sales Units: Soybean processing volume sold increased by approximately 15.9% in the third quarter of 2025 compared to the same period in 2024, primarily due to operational improvements at the Volga facility.
- New Production Launches: The High Plains Processing plant in Mitchell, South Dakota, has been substantially completed and began operational testing in October 2025. The plant processed its first soybeans and is expected to contribute to revenues in the fourth quarter of 2025.
- Operational Efficiency: Process adjustments at the Volga plant led to higher production volumes and improved efficiency in the latter part of the period, despite initial challenges due to extreme dryness affecting processing.
- Future Outlook: The soybean crop harvested in September 2025 appears to have reached record levels for South Dakota, with positive trends in oil, protein, and moisture content. Processing margins for the fourth quarter are expected to remain profitable, although uncertainty in federal biofuels policy could impact profitability into 2026.
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