Q1 2026 Gross Profit of
Q1 2026 Net Income of
Q1 2026 Adjusted EBITDA of
“In a seasonally weak period for Alto and the industry, we delivered profitability on an adjusted EBITDA and net income basis through the contributions of strong export sales, higher crush margins and incremental earnings from Section 45Z tax credits. Even without the contribution of the tax credits we were profitable,” said President and Chief Executive Officer
Added
Financial Results for the Three Months Ended
- Net sales were
$224.7 million , compared to$226.5 million . - Cost of goods sold was
$215.5 million , compared to$228.3 million . - Gross profit was
$9.2 million , compared to a gross loss of$1.8 million . Gross profit was positively impacted by an$8.1 million net unrealized gain on derivatives. - Selling, general and administrative expenses were
$6.7 million , compared to$7.2 million . - Interest expense was
$2.2 million , compared to$2.7 million . - Net income attributable to common stockholders was
$4.0 million , or$0.05 per diluted share, compared to a net loss of$12.0 million , or$0.16 per share. - Adjusted EBITDA was
$4.7 million , compared to negative$4.4 million , an increase of$9.1 million .
Cash and cash equivalents at
First Quarter 2026 Results Conference Call
Management will host a conference call at
To receive a number and unique PIN by email, register here. To dial directly up to 20 minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. Alternatively, the webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com and will be available for one year.
Use of Non-GAAP Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision (benefit) for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense, excess insurance proceeds and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company's performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company's results as reported under GAAP.
About
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ expectations around profitability and executing on opportunities to grow earnings, including through improved utilization and reliability, optimization and capital projects, monetizing additional Section 45Z tax credits and monetizing the value of its biogenic CO2 to lower its carbon footprint; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints, including from tariffs; Alto Ingredients’ ability to timely and within budget execute on its optimization and capital projects; Alto Ingredients’ ability to expand and monetize the value of its CO2 production to lower its carbon footprint; regulatory developments and Alto Ingredients’ ability to successfully pursue and secure opportunities, and realize the expected results, under existing and new legislation, including the Section 45Z regulations, and to successfully apply for and receive anticipated credit amounts. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on
Company IR and Media Contact:
Investorrelations@altoingredients.com
IR Agency Contact:
Investorrelations@altoingredients.com
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share data) | ||||||
| Three Months Ended | ||||||
| 2026 | 2025 | |||||
| Net sales | $ | 224,680 | $ | 226,540 | ||
| Cost of goods sold | 215,461 | 228,347 | ||||
| Gross profit (loss) | 9,219 | (1,807 | ) | |||
| Selling, general and administrative expenses | 6,699 | 7,190 | ||||
| Income (loss) from operations | 2,520 | (8,997 | ) | |||
| Interest expense, net | (2,198 | ) | (2,729 | ) | ||
| Transferable tax credits, net | 3,900 | — | ||||
| Other income, net | 49 | 47 | ||||
| Income (loss) before provision for income taxes | 4,271 | (11,679 | ) | |||
| Provision for income taxes | — | — | ||||
| Net income (loss) | $ | 4,271 | $ | (11,679 | ) | |
| Preferred stock dividends | $ | (312 | ) | $ | (312 | ) |
| Net income (loss) attributable to common stockholders | $ | 3,959 | $ | (11,991 | ) | |
| Net income (loss) per share, basic | $ | 0.05 | $ | (0.16 | ) | |
| Net income (loss) per share, diluted | $ | 0.05 | $ | (0.16 | ) | |
| Weighted-average shares outstanding, basic | 74,789 | 73,836 | ||||
| Weighted-average shares outstanding, diluted | 76,639 | 73,836 | ||||
CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value) | ||||||
ASSETS | 2026 | 2025 | ||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ | 20,309 | $ | 23,415 | ||
| Restricted cash | 1,334 | 2,258 | ||||
| Accounts receivable, net | 59,700 | 55,069 | ||||
| Inventories | 52,831 | 61,676 | ||||
| Derivative instruments | 7,831 | 525 | ||||
| Transferable tax credits, net | 11,530 | 7,500 | ||||
| Other current assets | 5,017 | 5,474 | ||||
| Total current assets | 158,552 | 155,917 | ||||
| Property and equipment, net | 193,199 | 198,501 | ||||
| Other Assets: | ||||||
| Right of use operating lease assets, net | 17,215 | 16,931 | ||||
| Intangible assets, net | 7,419 | 7,574 | ||||
| Other assets | 9,908 | 9,863 | ||||
| Total other assets | 34,542 | 34,368 | ||||
| Total Assets | $ | 386,293 | $ | 388,786 | ||
CONSOLIDATED BALANCE SHEETS (CONTINUED) (unaudited, in thousands, except par value) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | 2026 | 2025 | ||||
| Current Liabilities: | ||||||
| Accounts payable | $ | 19,303 | $ | 14,509 | ||
| Accrued liabilities | 12,332 | 16,691 | ||||
| Current portion – long-term debt | — | 16,600 | ||||
| Current portion – operating leases | 4,975 | 4,958 | ||||
| Derivative instruments | 301 | 1,067 | ||||
| Other current liabilities | 4,741 | 5,246 | ||||
| Total current liabilities | 41,652 | 59,071 | ||||
| Long-term debt | 73,056 | 63,027 | ||||
| Operating leases, net of current portion | 13,240 | 13,012 | ||||
| Other liabilities | 8,467 | 8,435 | ||||
| Total Liabilities | 136,415 | 143,545 | ||||
| Stockholders’ Equity: | ||||||
| Preferred stock, Series A: no shares issued and outstanding as of March 31, 2026 and Series B: 927 shares issued and outstanding as of March 31, 2026 and | 1 | 1 | ||||
| Common stock, authorized; 77,946 and 77,307 shares issued and outstanding as of 2025, respectively | 78 | 77 | ||||
| Non-voting common stock, shares authorized; 1 share issued and outstanding as of | — | — | ||||
| Additional paid-in capital | 1,052,472 | 1,051,795 | ||||
| Accumulated other comprehensive income | 5,461 | 5,461 | ||||
| Accumulated deficit | (808,134 | ) | (812,093 | ) | ||
| Total Stockholders’ Equity | 249,878 | 245,241 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 386,293 | $ | 388,786 | ||
Reconciliation of Adjusted EBITDA to Net Income (Loss)
| Three Months Ended | ||||||
| (in thousands) (unaudited) | 2026 | 2025 | ||||
| Net income (loss) | $ | 4,271 | $ | (11,679 | ) | |
| Adjustments: | ||||||
| Interest expense | 2,198 | 2,729 | ||||
| Interest income | (77 | ) | (84 | ) | ||
| Unrealized derivatives gains | (8,073 | ) | (1,634 | ) | ||
| Depreciation and amortization expense | 6,366 | 6,266 | ||||
| Total adjustments | 414 | 7,277 | ||||
| Adjusted EBITDA | $ | 4,685 | $ | (4,402 | ) | |
Segment Financials
| (in thousands) (unaudited) | Three Months Ended | |||||
| 2026 | 2025 | |||||
| Net sales | ||||||
| Pekin Campus production: | ||||||
| Alcohol sales | $ | 107,952 | $ | 107,234 | ||
| Essential ingredient sales | 43,993 | 44,618 | ||||
| Intersegment sales | 262 | 297 | ||||
| Total Pekin Campus sales | 152,207 | 152,149 | ||||
| Marketing and distribution: | ||||||
| Alcohol sales | $ | 47,326 | $ | 49,058 | ||
| Intersegment sales | 2,450 | 2,506 | ||||
| Total marketing and distribution sales | 49,776 | 51,564 | ||||
| Western production: | ||||||
| Alcohol sales | $ | 16,680 | $ | 16,194 | ||
| Essential ingredient sales | 7,280 | 7,808 | ||||
| Intersegment sales | 399 | 264 | ||||
| Total Western production sales | 24,359 | 24,266 | ||||
| Corporate and other | 1,449 | 1,628 | ||||
| Intersegment eliminations | (3,111 | ) | (3,067 | ) | ||
| Net sales as reported | $ | 224,680 | $ | 226,540 | ||
| Cost of goods sold: | ||||||
| Pekin Campus production | $ | 144,021 | $ | 155,222 | ||
| Marketing and distribution | 46,037 | 47,650 | ||||
| Western production | 25,502 | 25,524 | ||||
| Corporate and other | 1,036 | 1,681 | ||||
| Intersegment eliminations | (1,135 | ) | (1,730 | ) | ||
| Cost of goods sold as reported | $ | 215,461 | $ | 228,347 | ||
| Gross profit (loss): | ||||||
| Pekin Campus production | $ | 8,186 | $ | (3,073 | ) | |
| Marketing and distribution | 3,739 | 3,914 | ||||
| Western production | (1,143 | ) | (1,258 | ) | ||
| Corporate and other | 413 | (53 | ) | |||
| Intersegment eliminations | (1,976 | ) | (1,337 | ) | ||
| Gross profit (loss) as reported | $ | 9,219 | $ | (1,807 | ) | |
Sales and Operating Metrics (unaudited)
| (in thousands) (unaudited) | Three Months Ended | ||||||||
| 2026 | 2025 | ||||||||
| Alcohol Sales (gallons in millions) | |||||||||
| Pekin Campus renewable fuel gallons sold | 31.2 | 32.6 | |||||||
| Western production renewable fuel gallons sold | 8.2 | 8.3 | |||||||
| Third party renewable fuel gallons sold | 23.5 | 24.4 | |||||||
| Total renewable fuel gallons sold | 62.9 | 65.3 | |||||||
| Specialty alcohol gallons sold | 23.0 | 24.3 | |||||||
| Total gallons sold | 85.9 | 89.6 | |||||||
| Sales Price per Gallon | |||||||||
| Pekin Campus | $ | 2.00 | $ | 1.90 | |||||
| Western production | $ | 2.03 | $ | 1.95 | |||||
| Marketing and distribution | $ | 2.01 | $ | 2.01 | |||||
| Average sales price per gallon | $ | 2.00 | $ | 1.93 | |||||
| Alcohol Production (gallons in millions) | |||||||||
| Pekin Campus | 51.2 | 54.3 | |||||||
| Western production | 7.9 | 8.3 | |||||||
| Total | 59.1 | 62.6 | |||||||
| Corn Cost per Bushel | |||||||||
| Pekin Campus | $ | 4.45 | $ | 4.65 | |||||
| Western production | $ | 5.54 | $ | 5.95 | |||||
| Total | $ | 4.58 | $ | 4.81 | |||||
| Average | |||||||||
| PLATTS Ethanol price per gallon | $ | 1.73 | $ | 1.71 | |||||
| CME Corn cost per bushel | $ | 4.38 | $ | 4.72 | |||||
| Board corn crush per gallons (1) | $ | 0.17 | $ | 0.02 | |||||
| Essential Ingredients Sold (thousand tons) | |||||||||
| Pekin Campus: | |||||||||
| Distillers grains | 80.4 | 90.7 | |||||||
| CO2 | 43.3 | 45.3 | |||||||
| Corn wet feed | 29.9 | 34.5 | |||||||
| Corn dry feed | 21.0 | 23.8 | |||||||
| Corn oil and germ | 18.1 | 19.6 | |||||||
| Corn meal | 9.5 | 9.4 | |||||||
| Syrup and other | 9.2 | 8.2 | |||||||
| Yeast | 6.1 | 6.4 | |||||||
| Total Pekin Campus essential ingredients sold | 217.5 | 237.9 | |||||||
| Western production: | |||||||||
| Distillers grains | 60.1 | 58.1 | |||||||
| CO2 | 12.8 | 12.6 | |||||||
| Corn oil | 0.8 | 1.4 | |||||||
| Syrup and other | 0.8 | 0.8 | |||||||
| Total Western production essential ingredients sold | 74.5 | 72.9 | |||||||
| Total Essential Ingredients Sold | 292.0 | 310.8 | |||||||
| Essential ingredients return % (2) | |||||||||
| Pekin Campus return | 54.0 | % | 48.0 | % | |||||
| Western production return | 49.9 | % | 49.0 | % | |||||
| Consolidated total return | 53.4 | % | 48.2 | % | |||||
________________
(1) Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
(2) Essential ingredients revenues as a percentage of total corn costs consumed.
