Alto Ingredients, Inc.
For the period ended Mar 31, 2026. Filed May 8, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 8, 2026
ALTO$3.74+1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001213900-25-107625
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001213900-26-053870
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 116 previous paragraphs and 104 current paragraphs.
32 unchanged; 38 reworded; 34 added; 42 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 25 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
Our Magic Valley facility remained cold-idled for all of 2025, the first quarter of 2026 and through the filing of this report to minimize financial losses. We continue to provide ethanol terminaling services at the plant and may resume operations at the facility if the economic environment in the region sustainably improves.
Current report
The first quarter is a seasonally weak period for us and for the ethanol industry, reflecting the build-up of inventories and lower demand following the winter months. In contrast, our first quarter 2026 results were strong relative to our historical performance for this period. We generated profitability on both an adjusted EBITDA and net income basis, supported by higher crush margins, an improved product mix that emphasized higher-value renewable fuel export sales and incremental earnings from transferrable Section 45Z clean fuel production tax credits. Importantly, even without the contribution from Section 45Z tax credits, our operations were profitable in the quarter. We believe these results demonstrate the benefits of our strategic realignment, operational improvements, and continued success in capturing premiums over domestic renewable fuel.
Current report
We remain focused on maximizing value from our diversified portfolio of assets and on pursuing multiple revenue opportunities in response to market demand. Our priorities are to improve utilization and reliability across our platform, execute our 2026 optimization and capital projects on time and within budget, and advance our commercial strategy, including expanding the value we capture from Section 45Z tax credits and optimally monetizing the value of our biogenic CO 2 production across our facilities to lower our carbon footprint.
Current report
During the first quarter of 2026, unusually cold weather in the first half of the quarter disrupted river logistics and led us to curtail production at our Pekin Campus. We used this unplanned downtime to accelerate a portion of our planned wet mill biennial outage work that had originally been scheduled for the second quarter. This will allow us to recapture some of the lost production later in the year when crush margins are typically stronger and help us stay on track toward our goal of increasing total 2026 alcohol volumes and prioritizing product mix that delivers premiums to domestic renewable fuel.
Current report
We also executed a planned outage at our Columbia facility during what is typically a seasonally slower quarter for liquid CO 2 sales. Combined with an outage taken in December 2025, this work addressed certain deferred process-related activities intended to improve production performance and plant reliability for the remainder of 2026. These efforts are designed to help ensure our Columbia plant can run at optimal rates to support the growing needs of our CO 2 offtake customers during the higher-demand summer months and to enable us to qualify additional gallons for Section 45Z tax credits. We are planning a normal outage at our ICP facility in the second quarter, consistent with 2025.
Current report
At our Pekin Campus, we began both the repairs on our original loading dock and the construction of a second loadout dock. As previously discussed, the second dock is intended to provide redundancy and enhance our logistical capabilities. We are currently on track to complete both projects by the end of 2026. Once the original dock is restored and the second dock is in service, we expect to reduce bottlenecks and increase loadout capacity.
Current report
We also commenced a project to increase throughput and storage capacity at our Columbia liquid CO 2 processing facility by adding a third storage tank. We believe this project will position us to further capitalize on favorable liquid CO 2 market conditions, particularly the growing demand in the Pacific Northwest and limited supply of premium liquid CO 2 in the region. Combined with the process improvements described above, this investment is intended to enhance our ability to serve existing customers, support incremental volumes and monetize more of the CO 2 produced at our Columbia plant.
Current report
At our Pekin dry mill, which is our most efficient ethanol plant, we are moving the planned outage from the third quarter into June. During this downtime, we expect to complete a debottlenecking project designed to increase annual production capacity by approximately 8%, or about 5 million gallons. We expect to fully realize the benefits of these improved production rates in the fourth quarter of 2026. If successful, this project should provide incremental margin and allow us to qualify additional volumes for Section 45Z tax credits.
Current report
In addition to the capital projects already underway or planned for 2026, we continue to evaluate large-scale CO 2 utilization and sequestration opportunities at our Pekin Campus. These potential projects are intended to lower our facilities’ carbon intensity scores and provide additional earnings opportunities through Section 45Z tax credits and higher-value liquid CO 2 sales.
Current report
With respect to Section 45Z transferable tax credits for 2026, we expect to qualify approximately 90 million gallons of combined annual production at our Columbia and Pekin dry mill facilities at $0.20 per gallon, which would result in approximately $15 million of net proceeds after estimated monetization costs. For the first quarter of 2026, we recorded $3.9 million in Section 45Z credit earnings. The sale of all of our 2025 Section 45Z credits is underway at values consistent with previously recorded estimates, and we currently expect to complete that transaction in the second quarter of 2026. We are working to qualify additional gallons and further reduce our carbon intensity scores in order to capture more of the Section 45Z benefits in future periods.
Current report
As we manage liquidity and continue to focus on our priorities, we remain disciplined in our capital allocation. We expect to spend approximately $25 million on capital expenditures in 2026, primarily on maintenance and optimization projects with the highest projected returns. Capital expenditures in the first quarter of 2026 were approximately $1 million, with the majority of spending planned over the remaining three quarters as our 2026 projects progress. We also repaid $16.6 million of term debt in the first quarter, as planned, and ended the quarter with $38.4 million outstanding on our term loan. With a lower debt balance, interest expense decreased compared to the prior-year quarter, reflecting our focus on minimizing idle cash, maintaining ample borrowing availability and reducing our interest burden.
Current report
We are closely monitoring macroeconomic and geopolitical developments, including unrest in the Middle East, which can indirectly affect our business through energy and commodity price volatility, as well as freight and export logistics. We seek to actively manage these exposures through our commercial strategy, hedging activities and operational flexibility. We are also encouraged by continued progress on E15. In California, Assembly Bill 30 has provided a pathway for year-round E15 sales, and we are monitoring the state’s implementation process. At the federal level, momentum in Congress for legislation allowing year-round E15 continues to build. We view expanded E15 access as an important demand-side complement to production incentives such as Section 45Z because it can help ensure the market is able to absorb additional low-carbon renewable fuel gallons over time. Without corresponding demand growth, production incentives alone could contribute to industry overproduction and margin pressure.
Current report
Overall, we believe our first quarter 2026 results demonstrate that our operating model—focusing on improving margins through higher-value revenue opportunities and disciplined cost management—is working. With multiple product streams, we have the flexibility to respond quickly as markets shift and we are continuing to strengthen our ability to perform through commodity cycles. We intend to continue executing on our 2026 optimization and capital projects, improving utilization and reliability across our asset base, and advancing our commercial strategy, including expanding the value we capture from Section 45Z credits and further monetizing our biogenic CO 2 production across our facilities. We remain committed to further enhancing shareholder value over both the near- and longer-term.
Current report
Critical Accounting Estimates
Current report
Net Sales, Cost of Goods Sold and Gross Profit (Loss)
Current report
Pekin Campus Production Segment
Current report
Net sales of alcohol from our Pekin Campus production segment increased by $0.7 million, or 1%, to $108.0 million for the three months ended March 31, 2026 as compared to $107.3 million for the same period in 2025. The segment’s average sales price per gallon increased by $0.10, or 5%, to $2.00 for the three months ended March 31, 2026 from $1.90 for the same period in 2025. Our total volume of production gallons sold decreased by 2.6 million gallons, or 5%, to 53.9 million gallons for the three months ended March 31, 2026 as compared to 56.5 million gallons for the same period in 2025. The increase of $0.10, or 5%, in the segment’s average sales price per gallon for the three months ended March 31, 2026 as compared to the same period in 2025 increased our net sales from the segment by $5.9 million. With the segment’s average sales price per gallon of $2.00 for the three months ended March 31, 2026, we generated $5.2 million in fewer net sales from the 2.6 million fewer gallons of alcohol sold in the three months ended March 31, 2026 as compared to the same period in 2025.
Current report
Net sales of essential ingredients from our Pekin Campus production segment declined by $0.6 million, or 1%, to $44.0 million for the three months ended March 31, 2026 as compared to $44.6 million for the same period in 2025. Our total volume of essential ingredients sold decreased by 20,400 tons, or 9%, to 217,500 tons for the three months ended March 31, 2026 from 237,900 tons for the same period in 2025. The increase of $14.72, or 8%, in the segment’s average sales price per ton for the three months ended March 31, 2026 as compared to the same period in 2025 increased our net sales from the segment by $3.5 million. With the segment’s average sales price per ton of $202.27 for the three months ended March 31, 2026, we generated $4.1 million less in net sales from the 20,400 fewer tons of essential ingredients sold in the three months ended March 31, 2026 as compared to the same period in 2025.
Current report
Western Production Segment
Current report
Net sales of alcohol from our Western production segment increased by $0.5 million, or 3%, to $16.7 million for the three months ended March 31, 2026 as compared to $16.2 million for the same period in 2025. Our total volume of alcohol sold decreased by 0.1 million gallons, or 1%, to 8.2 million gallons for the three months ended March 31, 2026 as compared to 8.3 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.03 for the three months ended March 31, 2026, we generated $0.2 million less in net sales from the 0.1 million fewer gallons of alcohol sold in the three months ended March 31, 2026 as compared to the same period in 2025.The increase of $0.08, or 4%, in the segment’s average sales price per gallon for the three months ended March 31, 2026 as compared to the same period in 2025 increased our net sales from the segment by $0.7 million.
Current report
Net sales of essential ingredients from our Western production segment declined by $0.5 million, or 6%, to $7.3 million for the three months ended March 31, 2026 as compared to $7.8 million for the same period in 2025. Our total volume of essential ingredients sold increased by 1,600 tons, or 2%, to 74,500 tons for the three months ended March 31, 2026 from 72,900 tons for the same period in 2025. With the segment’s average sales price per ton of $97.72 for the three months ended March 31, 2026, we generated $0.2 million in increased net sales from the 1,600 additional tons of essential ingredients sold in the three months ended March 31, 2026 as compared to the same period in 2025. However, the decrease of $9.39, or 9%, in our average sales price per ton for the three months ended March 31, 2026 as compared to the same period in 2025 reduced our net sales of essential ingredients from the segment by $0.7 million.
Current report
Corporate and other
Current report
Cost of Goods Sold and Gross Profit (Loss)
Current report
Our consolidated gross profit improved to $9.2 million for the three months ended March 31, 2026 from a gross loss of $1.8 million for the same period in 2025, representing a gross margin of 4.1% and a negative gross margin of 0.8% for the three months ended March 31, 2026 and 2025, respectively. Higher gross margin for the first quarter of 2026 was primarily driven by improved crush margins, including from a product mix that emphasized higher-value renewable fuel export sales, and unrealized gains on our derivative instruments.
Current report
Pekin Campus Production Segment
Current report
Our Pekin Campus production segment’s gross profit, net of intercompany activity, improved by $11.2 million to a gross profit of $9.0 million for the three months ended March 31, 2026 as compared to a gross loss of $2.2 million for the same period in 2025. Of this improvement, $11.7 million is attributable to higher margins, partially offset by $0.5 attributable to lower sales volumes for the three months ended March 31, 2026 as compared to the same period in 2025.
Current report
Western Production Segment
Current report
Our Western production segment’s gross profit, net of intercompany activity, remained flat at a gross loss of $1.3 million for the three months ended March 31, 2026 and 2025.
Current report
Corporate and other
Current report
Our SG&A expenses declined by $0.5 million for the three months ended March 31, 2026 as compared to the same period in 2025. The decline in SG&A expenses primarily reflects reduced compensation expenses and professional fees.
Current report
The significant improvement in net income (loss) attributable to common stockholders is primarily due to higher margins, income from transferable tax credits, lower SG&A expenses and lower interest expense as well as the other factors affecting gross profit discussed above.
Current report
Quantitative Year-End Liquidity Status
Current report
We used $0.9 million in cash during the three months ended March 31, 2026 for capital expenditures.
Current report
Cash used in our Financing Activities
Removed paragraphs (42)
Previous report
In January 2024, we temporarily hot-idled our Magic Valley facility to minimize losses from negative regional crush margins – that is, revenue from ethanol minus the cost of corn, also referred to as market crush – and to expedite the installation of additional equipment to achieve the intended production rate, quality and consistency from our corn oil and high protein system at the facility. We restarted our Magic Valley facility in July 2024 and by October 2024, the facility consistently achieved average ethanol production rates at full capacity, the protein content yield from the plant reached 50% or greater, and we were able to expand our corn oil yields. Increases in regional corn basis and declining market prices for protein and corn oil resulted in overall margin compression, outweighing the economic benefits of our plant improvements. As a consequence, we cold-idled our Magic Valley facility on December 31, 2024 to minimize financial losses. We continue to provide terminal services at the plant and intend to resume operations at the facility when the economic environment in the region sustainably improves. The cold-idling of our Magic Valley facility has had a positive impact on our overall financial results in 2025 compared to 2024.
Previous report
In the third quarter, strong market conditions combined with the benefits realized from our recent strategic realignment delivered improvements across all segments of our business compared to the same period in 2024. Gross profit increased nearly $18 million and net income (loss) improved nearly $17 million while Adjusted EBITDA grew by over $9 million. These robust quarterly improvements were driven by multiple key factors. First, we increased higher-margin renewable fuel export sales, illustrating the advantage of our platform’s flexibility to shift our product mix to meet market demand to capture the highest value for our products. Second, we benefitted from strong demand for liquid CO 2, particularly on the West Coast, illustrating the success of our liquid CO 2 plant acquisition in early 2025. Finally, we reduced costs and improved efficiencies, including through the continued effects of rationalizing unprofitable business activities, successfully lowering expenses year-over-year.
Previous report
We continue to prioritize shorter-term projects based on their anticipated cost, timing and return on investment. We believe this strategy will contribute incremental profitability. Our goals include lowering our carbon intensity score to capture a greater portion of the Section 45Z tax credits available under the Inflation Reduction Act of 2022 and increasing our CO 2 utilization at our Pekin Campus and at our Columbia plant in Boardman, Oregon, building on our successful liquid CO 2 plant acquisition.
Previous report
As we manage liquidity and continue focusing on our priorities, capital expenditures have been lower than historical averages. In addition, through the third quarter, we recorded $24 million in repairs and maintenance expense, in line with our estimate of $32 million for the full year.
Previous report
Once we complete the groundwork to qualify for Section 45Z tax credits, we expect to earn $0.10 per gallon at our Columbia plant for 2025. In addition, with the updated indirect land use change, referred to as iLUC, we expect to lower our carbon intensity scores for 2026, increasing available tax credits to $0.20 per gallon at our Columbia facility and $0.10 per gallon at our Pekin Campus dry mill for the year. If we produce at nameplate capacity at all of our facilities, the total value of Section 45Z tax credits could be up to $18 million for 2025 and 2026, in aggregate, before any related monetization costs. Since Section 45Z tax credits are transferrable tax assets, we have started the process to forward sell these assets to monetize the credits for 2026 through 2029. The recent Section 45Z updates have improved the intrinsic value of our facilities as a whole.
Previous report
We have improved our CO 2 utilization as a result of acquiring Kodiak Carbonic in early 2025 and related initial capital expenditure programs at our Columbia facility. Our efforts to further improve plant reliability and ethanol production rates have improved synergies between the ethanol plant and adjacent liquid CO 2 plant, and include measures to increase CO 2 throughput and add storage capacity. A number of these ethanol production improvements were completed in October.
Previous report
Given the benefits of owning the liquid CO 2 plant adjacent to our Columbia ethanol facility, we are now considering options for other liquid CO 2 plants. We also believe the opportunity to add liquid CO 2 production capacity is compelling since the demand for liquid CO 2 continues to rise, particularly in Oregon and Idaho, resulting from significant supply shortfalls and increased consumption in the region. These market dynamics have positioned producers in the region to leverage strong liquid CO 2 market pricing.
Previous report
We continue to evaluate options for our Magic Valley facility in Idaho, including its sale, potential CO 2 utilization at the plant and Section 45Z tax credits, the latter two of which may support restarting the facility from its current cold idled state.
Previous report
At our Pekin Campus, our ability to react to market signals and shift production enables us to capture the highest value for our products and continues to create opportunities. As the export market for renewable fuel began to grow, we earned the necessary certifications to export our products to Europe and began exports in the fourth quarter of 2024. This strategy continues to pay off. In the third quarter, the fuel export market and related pricing was stronger than the domestic market. As such, we produced and sold more gallons into the export market, capturing more of the available demand for this product. In the third quarter, we also leveraged our production flexibility and these market dynamics to forward contract significant export volumes for the fourth quarter and first-half of 2026 to lock in favorable premiums to domestic renewable fuel. We believe the export market for renewable fuel will continue to grow.
Previous report
California Assembly Bill 30, which authorizes E15 fuel sales year-round in the state, unlocks significant demand for domestically produced ethanol. California is the largest market that allows E15 blends year-round, adding potentially over 600 million additional gallons per year at full blend rates for gasoline sold in the state. Assembly Bill 30 expands consumer choice for lower-carbon, cheaper fuels in California during a time when refineries are being idled and gasoline capacity in the state is tightening. We are well positioned to help fill the gap through our marketing and distribution services on the West Coast.
Previous report
Our high-quality alcohol products continue to deliver a premium to domestic renewable fuel and our contracting season for 2026 is on pace with 2025.
Previous report
Carbon capture and storage at our Pekin Campus is delayed due to regulatory and environmental constraints enacted in Illinois, including drilling restrictions specifically impacting our planned site. We continue to be flexible about our options to maximize CO 2 utilization as we collaborate with Vault 44.01 to address changes in the law and determine a path forward. Our long-standing CO 2 customers who sell into the food and beverage markets have shown interest in a potential expansion of our CO 2 capture capabilities at our Pekin Campus.
Previous report
We are vetting additional low-cost options at our plants to further reduce our carbon intensity scores, including lowering our energy consumption, changing our energy sources to lower their carbon intensity impact, shifting to low carbon corn, and undertaking smaller projects to improve efficiencies and throughput.
Previous report
Our Pekin Campus dock, damaged in April by rapidly rising river levels, remains under repair. During the third quarter, our dock outage resulted in $0.8 million in business interruption, additional logistics and preliminary property repairs. Although we have temporarily remedied the situation, we continue to work with our insurance carrier to assess our level of coverage and determine the timing of reimbursements. To minimize business interruption, we are relying on local third parties to transport our essential ingredients. To create redundancy, we intend to build a second alcohol loadout dock for use while we repair the original dock. Once the original dock is restored, the second dock will effectively remove a frequent bottleneck by improving loadout capacity, accelerating loadout times and lowering costs. We are in the process of finalizing designs, obtaining permits and contracting work crews to begin the repairs and new dock installation starting this coming spring.
Previous report
Critical Accounting Policies and Estimates
Previous report
Three Months ended September 30, 2025 as compared to the Three Months ended September 30, 2024
Previous report
Net sales of alcohol from our Pekin Campus production segment increased $2.8 million, or 3%, to $109.3 million for the three months ended September 30, 2025 as compared to $106.5 million for the same period in 2024. Our total volume of production gallons sold increased by 0.5 million gallons, or 1%, to 53.3 million gallons for the three months ended September 30, 2025 as compared to 52.8 million gallons for the same period in 2024. The increase of $0.03, or 2%, in the segment’s average sales price per gallon for the three months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $1.0 million. With the segment’s average sales price per gallon of $2.05 for the three months ended September 30, 2025, we generated $1.8 million in additional net sales from the 0.5 million additional gallons of alcohol sold in the three months ended September 30, 2025 as compared to the same period in 2024.
Previous report
Net sales of essential ingredients from our Pekin Campus production segment improved by $4.1 million, or 10%, to $45.3 million for the three months ended September 30, 2025 as compared to $41.2 million for the same period in 2024. Our total volume of essential ingredients sold increased 5,600 tons, or 2%, to 242,200 tons for the three months ended September 30, 2025 from 236,600 tons for the same period in 2024. The increase of $12.86, or 7%, in the segment’s average sales price per ton for the three months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $3.0 million. With the segment’s average sales price per ton of $187.06 for the three months ended September 30, 2025, we generated $1.1 million in additional net sales from the 5,600 additional tons of essential ingredients sold in the three months ended September 30, 2025 as compared to the same period in 2024.
Previous report
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, increased $4.1 million, or 8%, to $58.7 million for the three months ended September 30, 2025 as compared to $54.6 million for the same period in 2024.
Previous report
Net sales of alcohol from our Western production segment declined by $19.0 million, or 52%, to $17.4 million for the three months ended September 30, 2025 as compared to $36.4 million for the same period in 2024. Our total volume of alcohol sold decreased by 9.9 million gallons, or 55%, to 8.1 million gallons for the three months ended September 30, 2025 as compared to 18.0 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.14 for the three months ended September 30, 2025, we realized $21.2 million less in net sales from the 9.9 million fewer gallons of alcohol sold in the three months ended September 30, 2025 as compared to the same period in 2024. The increase of $0.12, or 6%, in the segment’s average sales price per gallon for the three months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $2.2 million.
Previous report
Net sales of essential ingredients from our Western production segment decreased by $2.4 million, or 23%, to $8.0 million for the three months ended September 30, 2025 as compared to $10.4 million for the same period in 2024. Our total volume of essential ingredients sold decreased 77,900 tons, or 50%, to 76,900 tons for the three months ended September 30, 2025 from 154,800 tons for the same period in 2024. With the segment’s average sales price per ton of $104.25 for the three months ended September 30, 2025, we generated $8.1 million less in net sales from the 77,900 fewer tons of essential ingredients sold in the three months ended September 30, 2025 as compared to the same period in 2024. The increase of $37.02, or 55%, in our average sales price per ton for the three months ended September 30, 2025 as compared to the same period in 2024 increased our net sales of essential ingredients from the segment by $5.7 million.
Previous report
Our consolidated gross profit improved to a gross profit of $23.5 million for the three months ended September 30, 2025 from a gross profit of $6.0 million for the same period in 2024, representing a gross margin of 9.7% and 2.4% for the three months ended September 30, 2025 and 2024, respectively. Seasonally strong crush margins remained comparable for both year-over-year quarterly periods at $0.41 per gallon. Gross profit improved primarily due to an $8.0 million year-over-year change in unrealized noncash derivatives, $5.6 million of margin attributable to higher renewable fuel exports, $2.0 million of margin attributable to our Alto Carbonic liquid CO 2 business at our Columbia site, $3.6 million attributable to higher essential ingredients return resulting from strong corn oil pricing and a shift in our production mix to higher value proteins, plus the cost savings associated with the cold idling of our Magic Valley facility, all of which were partially offset by $2.9 million of lower premiums for high quality alcohol. We also continued to benefit from other prior cost reduction efforts, including rationalization of unprofitable businesses.
Previous report
Our Pekin Campus production segment’s gross profit, net of intercompany activity, improved by $12.8 million to a gross profit of $19.8 million for the three months ended September 30, 2025 as compared to gross profit of $7.0 million for the same period in 2024. Of this improvement, $12.6 million is attributable to higher alcohol sales margins and $0.2 million is attributable to higher sales volumes.
Previous report
Our marketing and distribution segment’s gross profit, net of intercompany activity, increased by $0.9 million to a gross profit of $2.2 million for the three months ended September 30, 2025 as compared to a gross profit of $1.3 million for the same period in 2024. Of this improvement, $0.8 million is attributable to higher margins from sales of third-party renewable fuel and $0.1 million is attributable to higher sales volumes.
Previous report
Our Western production segment’s gross profit, net of intercompany activity, increased by $3.4 million to a gross profit of $1.3 million for the three months ended September 30, 2025 as compared to a gross loss of $2.1 million for the same period in 2024. Of this improvement, $4.9 million is attributable to higher renewable fuel margins, in part due to lower expenses due to the cold idling of our Magic Valley plant, and increased CO 2 sales, partially offset by $1.5 million attributable to lower sales volumes.
Previous report
Nine Months ended September 30, 2025 as compared to the Nine Months ended September 30, 2024
Previous report
Net Sales
Previous report
The decrease in our consolidated net sales for the nine months ended September 30, 2025, as compared to the same period in 2024, is primarily attributable to lower sales of renewable fuel and essential ingredients, predominately related to cold idling our Magic Valley facility and rationalizing unprofitable business activities in our marketing and distribution segment, partially offset by higher average sales prices per gallon from both our Western production and marketing and distribution segments.
Previous report
Net sales of alcohol from our Pekin Campus production segment declined by $4.8 million, or 2%, to $310.7 million for the nine months ended September 30, 2025 as compared to $315.5 million for the same period in 2024. Our total volume of production gallons sold decreased by 2.7 million gallons, or 2%, to 158.0 million gallons for the nine months ended September 30, 2025 as compared to 160.7 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $1.97 for the nine months ended September 30, 2025, we generated $5.3 million less in net sales from the 2.7 million fewer gallons of alcohol sold in the nine months ended September 30, 2025 as compared to the same period in 2024.The increase of $0.01, or less than 1%, in the segment’s average sales price per gallon for the nine months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $0.5 million.
Previous report
Net sales of essential ingredients from our Pekin Campus production segment increased by $2.2 million, or 2%, to $129.5 million for the nine months ended September 30, 2025 as compared to $127.3 million for the same period in 2024. Our total volume of essential ingredients sold increased by 31,100 tons, or 5%, to 690,300 tons for the nine months ended September 30, 2025 from 659,200 tons for the same period in 2024. With the segment’s average sales price per ton of $187.59 for the nine months ended September 30, 2025, we generated $5.8 million in additional net sales from the 31,100 additional tons of essential ingredients sold in the nine months ended September 30, 2025 as compared to the same period in 2024. The decrease of $5.52, or 3%, in the segment’s average sales price per ton for the nine months ended September 30, 2025 as compared to the same period in 2024 reduced our net sales from the segment by $3.6 million.
Previous report
Our volume of third-party renewable fuel sold reported gross by the segment decreased by 8.1 million gallons, or 9%, to 81.2 million gallons for the nine months ended September 30, 2025 as compared to 89.3 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.04 for the nine months ended September 30, 2025, we realized $16.5 million less in net sales from the 8.1 million fewer gallons of third-party renewable fuel sold gross in the nine months ended September 30, 2025 as compared to the same period in 2024. The $0.03 per gallon, or 1%, increase in the segment’s average sales price per gallon for the nine months ended September 30, 2025 as compared to the same period in 2024 resulted in a $3.1 million increase in our net sales from third-party renewable fuel sold by the segment.
Previous report
Net sales of alcohol from our Western production segment declined by $23.9 million, or 32%, to $50.2 million for the nine months ended September 30, 2025 as compared to $74.1 million for the same period in 2024. Our total volume of alcohol sold decreased by 13.5 million gallons, or 35%, to 24.7 million gallons for the nine months ended September 30, 2025 as compared to 38.2 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.03 for the nine months ended September 30, 2025, we generated $27.4 million less in net sales from the 13.5 million fewer gallons of alcohol sold in the nine months ended September 30, 2025 as compared to the same period in 2024. The increase of $0.09, or 5%, in the segment’s average sales price per gallon for the nine months ended September 30, 2025 as compared to the same period in 2024 increased our net sales from the segment by $3.5 million.
Previous report
Net sales of essential ingredients from our Western production segment decreased by $0.1 million, or less than 1%, to $24.1 million for the nine months ended September 30, 2025 as compared to $24.2 million for the same period in 2024. Our total volume of essential ingredients sold decreased 107,300 tons, or 32%, to 228,100 tons for the nine months ended September 30, 2025 from 335,400 tons for the same period in 2024. With the segment’s average sales price per ton of $105.5 for the nine months ended September 30, 2025, we generated $11.3 million less in net sales from the 107,300 fewer tons of essential ingredients sold in the nine months ended September 30, 2025 as compared to the same period in 2024. The increase of $33.45, or 46%, in our average sales price per ton for the nine months ended September 30, 2025 as compared to the same period in 2024 increased our net sales of essential ingredients from the segment by $11.2 million.
Previous report
Net sales of alcohol from corporate and other declined by $3.0 million, or 35%, to $5.6 million for the nine months ended September 30, 2025 as compared to $8.6 million for the same period in 2024. These sales are from Eagle Alcohol’s business, which represented 1.7 million gallons and 2.7 million gallons, respectively.
Previous report
Our consolidated gross profit increased to a gross profit of $19.8 million for the nine months ended September 30, 2025 from gross profit of $11.1 million for the same period in 2024, representing a gross margin of 2.9% and 1.5% for the nine months ended September 30, 2025 and 2024, respectively. Similar to the three-month period ending September 30, 2025, gross profit for the nine-month period improved due to higher renewable fuel exports, our Alto Carbonic liquid CO 2 business at our Columbia site, a higher essential ingredients return and cost savings associated with the cold idling of our Magic Valley facility as well as other prior cost reduction efforts, including rationalization of unprofitable businesses.
Previous report
Our Pekin Campus production segment’s gross profit, net of intercompany activity, declined by $11.4 million to a gross profit of $11.2 million for the nine months ended September 30, 2025 as compared to gross profit of $22.6 million for the same period in 2024. Of this decline, $11.2 million is attributable to lower alcohol sales margins and $0.2 million is attributable to lower sales volumes.
Previous report
Our Western production segment’s gross profit, net of intercompany activity, improved by $16.5 million to a gross profit of $2.4 million for the nine months ended September 30, 2025 as compared to a gross loss of $14.1 million for the same period in 2024. Of this improvement, $17.8 million is attributable to higher renewable fuel margins, in part due to lower expenses due to the cold idling of our Magic Valley plant, and increased CO 2 sales, partially offset by $1.3 million attributable to lower sales volumes.
Previous report
Our SG&A expenses declined for the three and nine months ended September 30, 2025 as compared to the same periods in 2024. The decrease in SG&A expenses for the three-month period is primarily due to a realignment of our staffing levels and a $0.7 million reduction in acquisition-related expenses. The decreases in SG&A expenses for the nine-month period are primarily due to a $2.5 million reduction in acquisition-related expenses, a $0.2 million decrease in compensation expenses from our efforts to rationalize our business and right size our staffing to better align with our current operational footprint and a $1.3 million reduction in non-cash stock compensation. We are now exceeding our target annualized total overhead savings of $8.0 million. We also took additional steps to further lower our future costs, including, for example, negotiating lower property taxes, improving terms with suppliers, reducing reliance on outside services and other changes which we expect, in aggregate, will make a meaningful difference to our future profitability. We expect a continuation of these cost savings and similar SG&A levels going forward.
Previous report
The improvement in our net income (loss) attributable to common stockholders for the three and nine months ended September 30, 2025 as compared to the same periods in 2024 is primarily due to higher crush margins and lower operating costs at our Western production segment due to the cold idling of our Magic Valley plant, as well as the other factors contributing to higher gross profit as discussed above.
Previous report
Quantitative Period-End Liquidity Status
Showing the first 40 of 42 passages. Open the source sections for the rest.
Reworded paragraphs (38)
Previous wording
The following discussion and analysis should be read in conjunction with our consolidated financial statements and notes to consolidated financial statements included elsewhere in this report. This report and our consolidated financial statements and notes to consolidated financial statements contain forward-looking statements, which generally include the plans and objectives of management for future operations, including plans and objectives relating to our future economic performance and our current beliefs regarding revenues we might generate and profits we might earn if we are successful in implementing our business and growth strategies. The forward-looking statements and associated risks may include, relate to or be qualified by other important factors, including:
Current wording
The following discussion and analysis should be read in conjunction with our condensed consolidated financial statements and notes to condensed consolidated financial statements included elsewhere in this report. This report and our condensed consolidated financial statements and notes to condensed consolidated financial statements contain forward-looking statements, which generally include the plans and objectives of management for future operations, including plans and objectives relating to our future economic performance and our current beliefs regarding revenues we might generate and profits we might earn if we are successful in implementing our business and growth strategies. The forward-looking statements and associated risks may include, relate to or be qualified by other important factors, including:
Previous wording
We operate five alcohol production facilities. Three of our production facilities are located in Illinois, one is located in Oregon and another is located in Idaho. We have an annual alcohol production capacity of 350 million gallons, including both renewable fuels and specialty alcohols ranging from industrial-, pharmaceutical-, and high-quality food- and beverage-grade alcohols. Of this amount, we can produce up to 110 million gallons annually of specialty alcohols, depending on our product mix among high-quality beverage-grade alcohol and other quality specification alcohols. We market and distribute all of the alcohols produced at our facilities as well as alcohols produced by third parties. In 2024, we marketed and distributed approximately 386 million gallons combined of our own produced alcohols as well as fuel-grade ethanol produced by third parties, and over 1.4 million tons of essential ingredients on a dry matter basis.
Current wording
We operate five alcohol production facilities. Three of our production facilities are located in Illinois, one is located in Oregon, and another is located in Idaho. We have an annual alcohol production capacity of 330 million gallons, including both renewable fuels and specialty alcohols ranging from industrial-, pharmaceutical-, and high-quality food- and beverage-grade alcohols. Of this amount, we can produce up to 110 million gallons annually of specialty alcohols, depending on our product mix among high-quality beverage-grade alcohol and other quality specification alcohols. We market and distribute all of the alcohols produced at our facilities as well as alcohols produced by third parties. In 2025, we marketed and distributed approximately 350 million gallons combined of our own produced alcohols as well as fuel-grade ethanol produced by third parties, and over 1.2 million tons of essential ingredients.
Previous wording
We also own and operate a liquid CO 2 production facility adjacent to our plant in Oregon for the offtake of CO 2 gas from the plant for conversion to liquid CO 2 and subsequent sale. In addition, we break bulk distribute specialty alcohols, produced by us and third parties, through our Eagle Alcohol business.
Current wording
We also own and operate a liquid carbon dioxide, or CO 2, production facility adjacent to our plant in Oregon for the offtake of CO 2 gas from the plant for conversion to liquid CO 2 and subsequent sale. In addition, we break bulk and distribute specialty alcohols, produced by us and third parties.
Previous wording
We produce specialty alcohols, renewable fuels and essential ingredients, focusing on five key markets:Health, Home & Beauty;Food & Beverage;Industry & Agriculture;Essential Ingredients; andRenewable Fuels. Products forHealth, Home & Beauty markets include specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants and cleaners. Products forFood & Beverage markets include grain neutral spirits used in alcoholic beverages and vinegar and corn germ used for corn oils. Products forIndustry & Agriculture markets include alcohols and other products for paint applications and fertilizers. Products forEssential Ingredients markets include dried yeast, corn protein meal, corn protein feed, corn germ, distillers grains, liquid CO 2 and liquid feed used in commercial animal feed and pet foods. We also sell yeast and liquid CO 2 for human consumption. Our products for theRenewable Fuels markets include fuel-grade ethanol and distillers corn oil used as a feedstock for renewable diesel and biodiesel fuels.
Current wording
We produce specialty alcohols, renewable fuels and essential ingredients, focusing on five key markets:Health, Home & Beauty;Food & Beverage;Industry & Agriculture;Essential Ingredients; andRenewable Fuels. Products forHealth, Home & Beauty markets include specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants and cleaners. Products forFood & Beverage markets include grain neutral spirits used in alcoholic beverages and vinegar, as well as corn germ used for corn oils. Products forIndustry & Agriculture markets include alcohols and other products for paint applications, inks, vehicle fluids and fertilizers. Products forEssential Ingredients markets include dried yeast, corn protein meal, corn protein feed, corn germ, distillers grains, gas and liquid CO 2 and liquid feed used in commercial animal feed and pet foods. We also sell yeast and gas and liquid CO 2 for human consumption. Our products for theRenewable Fuels markets include fuel-grade ethanol and distillers corn oil used as a feedstock for renewable diesel and biodiesel fuels. Our specialty alcohols for theIndustry & Agriculture, Food & Beverage andHealth, Home & Beauty markets represented approximately 11%, 6% and 2%, respectively, of our sales in 2025 to customers in these three markets.
Previous wording
We produce our alcohols and essential ingredients at our facilities described below. Our production facilities located in Illinois are in the heart of the Corn Belt, benefit from relatively low-cost and abundant feedstock and enjoy logistical advantages that enable us to provide our products to both domestic and international markets via truck, rail or barge. Our production facilities located in Oregon and Idaho are near their respective fuel and feed customers, offering significant timing, product transportation cost and logistical advantages.
Current wording
We produce our alcohols and essential ingredients at our facilities described above. Our production facilities located in Illinois are in the heart of the Corn Belt, benefit from relatively low-cost and abundant feedstock and enjoy logistical advantages that enable us to provide our products to both domestic and international markets via truck, rail or barge. Our production facilities located in Oregon and Idaho are near their respective fuel and feed customers, offering significant timing, product transportation cost and logistical advantages.
Previous wording
All of our production facilities, other than our Magic Valley plant in Idaho, were operating for all of 2024 and 2025, subject to scheduled and unscheduled downtimes to address facility repair and maintenance.
Current wording
All of our production facilities, other than our Magic Valley plant, were operating for all of 2025, other than for scheduled and unscheduled downtimes to address facility repair and maintenance.
Previous wording
See “Note 3 – Segments” to our Notes to Consolidated Financial Statements included elsewhere in this report for financial information about our business segments.
Current wording
See “Note 2 – Segments” to our Notes to Condensed Consolidated Financial Statements included elsewhere in this report for financial information about our business segments.
Previous wording
Financial Review, Current Initiatives and Outlook
Current wording
Current Initiatives and Outlook
Previous wording
Management believes that certain financial measures not in accordance with generally accepted accounting principles, or GAAP, are useful measures of operations. Management provides EBITDA and Adjusted EBITDA as non-GAAP financial measures so that investors will have the same financial information that management uses, which may assist investors in properly assessing our performance on a period-over-period basis.
Current wording
Management believes that certain financial measures not in accordance with generally accepted accounting principles, or GAAP, are useful measures of operations. Management provides Adjusted EBITDA as a non-GAAP financial measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing our performance on a period-over-period basis.
Previous wording
We define EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes and depreciation and amortization expense. We define Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, unrealized derivative gains and losses, acquisition-related income and expense, asset impairments, provision for income taxes and depreciation and amortization expense.
Current wording
We define Adjusted EBITDA as unaudited consolidated net income or loss before interest expense, interest income, unrealized derivative gains and losses, excess insurance proceeds, acquisition-related expense or recoveries, provision or benefit for income taxes, asset impairments, and depreciation and amortization expense.
Previous wording
A table is provided below to reconcile Adjusted EBITDA to its most directly comparable GAAP measure, consolidated net income (loss). EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP and should not be considered as alternatives to consolidated 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. EBITDA and Adjusted EBITDA have limitations as analytical tools and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP.
Current wording
A table is provided below to reconcile Adjusted EBITDA to its most directly comparable GAAP measure, consolidated net income (loss). Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to consolidated 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 our results as reported under GAAP.
Previous wording
Information reconciling forward-looking EBITDA or Adjusted EBITDA to forward-looking consolidated net income (loss) would require a forward-looking statement of consolidated net income (loss) prepared in accordance with GAAP, which is unavailable to us without unreasonable effort. We are not able to provide a quantitative reconciliation of forward-looking EBITDA or Adjusted EBITDA to forward-looking consolidated net income (loss) because certain items required for reconciliation are uncertain, outside of our control and/or cannot reasonably be predicted, such as net sales, cost of goods sold, unrealized derivative gains and losses, asset impairments and provision (benefit) for income taxes, which we view as the most material components of consolidated net income (loss) that are not presently estimable.
Current wording
Information reconciling forward-looking Adjusted EBITDA to forward-looking consolidated net income (loss) would require a forward-looking statement of consolidated net income (loss) prepared in accordance with GAAP, which is unavailable to us without unreasonable effort. We are not able to provide a quantitative reconciliation of forward-looking Adjusted EBITDA to forward-looking consolidated net income (loss) because certain items required for reconciliation are uncertain, outside of our control and/or cannot reasonably be predicted, such as net sales, cost of goods sold, unrealized derivative gains and losses, asset impairments and provision (benefit) for income taxes, which we view as the most material components of consolidated net income (loss) that are not presently estimable.
Previous wording
Our discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses for each period. We believe that of our significant accounting policies, the following critical accounting policies and estimates are those policies that we believe are the most important to the portrayal of our financial condition and results of operations and that require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain: accounting for business combinations; revenue recognition; impairment of long-lived assets; valuation allowance for deferred taxes and derivative instruments. Except as noted below, these significant accounting principles are more fully described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
Our discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses for each period. We believe that of our critical accounting estimates, defined as those estimates that we believe are the most important to the portrayal of our financial condition and results of operations and that require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain: impairment of long-lived assets and valuation allowance for deferred taxes. These critical accounting estimates are more fully described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
The following selected financial information should be read in conjunction with our consolidated financial statements and notes to our consolidated financial statements included elsewhere in this report, and the other sections of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report.
Current wording
The following selected financial information should be read in conjunction with our condensed consolidated financial statements and notes to our condensed consolidated financial statements included elsewhere in this report, and the other sections of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report.
Previous wording
Certain performance metrics that we believe are important indicators of our results of operations include the following:
Current wording
Certain performance metrics that we believe are important indicators of our results of operations:
Previous wording
The following table presents our net sales, cost of goods sold and gross profit in dollars and gross profit as a percentage of net sales (in thousands, except percentages):
Current wording
The following table presents our net sales, cost of goods sold and gross profit (loss) in dollars and gross profit (loss) as a percentage of net sales (in thousands, except percentages):
Previous wording
The decrease in our consolidated net sales for the three months ended September 30, 2025 as compared to the same period in 2024 is primarily attributable to lower sales volumes, predominately related to cold idling our Magic Valley facility and rationalizing unprofitable business activities in our marketing and distribution segment, partially offset by an increase in our average sales price per gallon.
Current wording
The decrease in our consolidated net sales for the three months ended March 31, 2026 as compared to the same period in 2025 is attributable to fewer total gallons sold as well as lower volumes and lower average sales prices of essential ingredients due to a lower commodity price environment, partially offset by an increase in our average sales prices per gallon for both specialty alcohols and renewable fuel.
Previous wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, declined by $13.4 million, or 7%, to $165.9 million for the nine months ended September 30, 2025 as compared to $179.3 million for the same period in 2024.
Current wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, declined by $1.7 million, or 3%, to $47.3 million for the three months ended March 31, 2026 as compared to $49.0 million for the same period in 2025.
Previous wording
Our volume of third-party alcohol sold reported gross by the segment increased 1.9 million gallons, or 8%, to 27.1 million gallons for the three months ended September 30, 2025 as compared to 25.2 million gallons for the same period in 2024. With the segment’s average sales price per gallon of $2.17 for the three months ended September 30, 2025, we generated $4.1 million in additional net sales from the 1.9 million additional gallons of third-party alcohol sold gross in the three months ended September 30, 2025 as compared to the same period in 2024.
Current wording
Our volume of third-party alcohol sold reported gross by the segment declined by 0.9 million gallons, or 4%, to 23.5 million gallons for the three months ended March 31, 2026 as compared to 24.4 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.01 for the three months ended March 31, 2026, we generated $1.7 million less in net sales from the 0.9 million fewer gallons of third-party alcohol sold gross in the three months ended March 31, 2026 as compared to the same period in 2025.
Previous wording
Net sales of alcohol from corporate and other declined by $0.4 million, or 15%, to $2.3 million for the three months ended September 30, 2025 as compared to $2.7 million for the same period in 2024. These sales are from Eagle Alcohol’s business, which represented 0.7 million gallons and 0.8 million gallons, respectively.
Current wording
Net sales of alcohol from corporate and other declined by $0.2 million, or 13%, to $1.4 million for the three months ended March 31, 2026 as compared to $1.6 million for the same period in 2025. These sales are from Eagle Alcohol’s business.
Previous wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, improved by $3.4 million to a gross profit of $6.1 million for the nine months ended September 30, 2025 as compared to a gross profit of $2.7 million for the same period in 2024. Of this improvement $4.0 million is attributable primarily to higher margins from sales of third-party renewable fuel, partially offset by $0.6 million from lower sales volumes for the nine months ended September 30, 2025 as compared to the same period in 2024.
Current wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, decreased by $0.7 million to a gross profit of $1.1 million for the three months ended March 31, 2026 as compared to a gross profit of $1.8 million for the same period in 2025. Of this decrease, $0.6 million is attributable to slightly lower margins from sales of third-party fuel-grade ethanol and $0.1 million is attributable to lower sales volumes for the three months ended March 31, 2026 as compared to the same period in 2025.
Previous wording
Gross profit from corporate and other increased by $0.4 million to a gross profit of $0.2 million for the three months ended September 30, 2025 as compared to a gross loss of $0.2 million for the same period in 2024, all of which were from Eagle Alcohol’s business.
Current wording
Gross profit from corporate and other improved by $0.5 million to a gross profit of $0.4 million for the three months ended March 31, 2026 as compared to a gross loss of $0.1 million for the same period in 2025, all of which were from Eagle Alcohol’s business.
Previous wording
During the nine months ended September 30, 2025, we funded our operations primarily from cash on hand, cash flow from operating activities and proceeds from Kinergy’s operating line of credit. We generated $22.8 million of cash from our operations for the three months ended September 30, 2025. In addition to funding our operations, our capital resources were used to purchase Kodiak Carbonic, make our final payments relating to our acquisition of Eagle Alcohol and for capital expenditures during the nine-month period. As of September 30, 2025, we had $33.1 million in cash, cash equivalents and restricted cash, $20.3 million available for borrowing under Kinergy’s operating line of credit and $65.0 million that may be available for capital improvement projects under our Orion term loan, subject to certain conditions. As of September 30, 2025, our derivative net asset position was $3.5 million. We believe we have sufficient liquidity to meet our anticipated working capital, debt service and other liquidity needs for at least the next twelve months from the date of this report.
Current wording
During the three months ended March 31, 2026, our operations generated positive cash flow, and we supplemented our liquidity with cash on hand and net proceeds from Kinergy’s operating line of credit. In addition to funding our operations, our capital resources were used to make principal payments on our term debt. As of March 31, 2026, we had $21.6 million in cash, cash equivalents and restricted cash, $29.3 million of unused borrowing availability under Kinergy’s operating line of credit and $65.0 million that may be available for capital improvement projects under our Orion term loan. We believe we have sufficient liquidity to meet our anticipated working capital, debt service and other liquidity needs for at least the next twelve months from the date of this report.
Previous wording
We believe that the following amounts provide insight into our liquidity and capital resources. The following selected financial information should be read in conjunction with our consolidated financial statements and notes to consolidated financial statements included elsewhere in this report, and the other sections of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report (dollars in thousands).
Current wording
We believe that the following amounts provide insight into our liquidity and capital resources. The following selected financial information should be read in conjunction with our condensed consolidated financial statements and notes to condensed consolidated financial statements included elsewhere in this report, and the other sections of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report (dollars in thousands).
Previous wording
At September 30, 2025, we had approximately $47.2 million of net assets at our subsidiaries that were not available to be transferred to Alto Ingredients, Inc. in the form of dividends, distributions, loans or advances due to restrictions contained in our subsidiaries’ credit facilities.
Current wording
At March 31, 2026, we had approximately $59.1 million in net assets at our subsidiaries that were not available to be transferred to Alto Ingredients, Inc. in the form of dividends, distributions, loans or advances due to restrictions contained in our subsidiaries’ credit facilities.
Previous wording
Working capital improved to $108.5 million at September 30, 2025 from $95.3 million at December 31, 2024 as a result of a decrease of $15.4 million in current liabilities, partially offset by a decrease of $2.2 million in current assets.
Current wording
Working capital improved to $116.9 million at March 31, 2026 from $96.8 million at December 31, 2025 as a result of a decrease of $17.4 million in current liabilities and an increase of $2.6 million in current assets.
Previous wording
Current assets decreased primarily due to decreases in cash and cash equivalents, restricted cash and accounts receivable, partially offset by an increase in inventories from December 31, 2024.
Current wording
Current assets increased primarily due to an increase in accounts receivable, transferable tax credits and derivative instruments, partially offset by a decrease in cash and cash equivalents and restricted cash and inventories.
Previous wording
Our current liabilities decreased primarily due to lower accounts payable and accrued liabilities as a result of the timing of payments, and a decrease in other current liabilities as we paid the remaining purchase price for our acquisition of Eagle Alcohol.
Current wording
Our current liabilities decreased primarily due to lower current portion of long-term debt and derivative instruments, partially offset by increases in accounts payable and accrued liabilities as a result of timing of payments.
Previous wording
Our cash, cash equivalents and restricted cash declined by $3.1 million due to $12.2 million in cash used in our investing activities, partially offset by $3.7 million in cash provided by our operating activities and $5.4 million in cash provided by our financing activities.
Current wording
Our cash, cash equivalents and restricted cash declined by $4.0 million due to $7.3 million in cash used in our financing activities and $0.9 million used in our investing activities, partially offset by $4.2 million in cash provided by our operating activities.
Previous wording
We generated $3.7 million of cash from our operations for the nine months ended September 30, 2025 as compared to $6.3 million for the same period in 2024. Significant factors that contributed to the change in cash provided by our operating activities include:
Current wording
We generated $4.2 million of cash from our operations for the three months ended March 31, 2026 as compared to $18.2 million of cash used in our operations for the same period in 2025. Significant factors that contributed to the change in cash provided by our operating activities include:
Previous wording
Cash provided by our financing activities was $5.4 million for the nine months ended September 30, 2025, which reflects net proceeds of $6.3 million from Kinergy’s operating line of credit, partially offset by $0.9 million in preferred stock dividends paid. During the third quarter, we used $18.5 million in cash to repay debt on Kinergy’s operating line of credit to lower our interest expense and pay preferred dividends.
Current wording
Cash used in our financing activities was $7.3 million for the three months ended March 31, 2026, which reflects $16.6 million in principal payments on our term debt and $0.3 million in preferred stock dividends paid, partially offset by $9.6 million in proceeds from Kinergy’s operating line of credit.
Previous wording
Kinergy maintains an operating line of credit for an aggregate amount of up to $100.0 million. The credit facility matures on November 7, 2027. Interest accrues under the credit facility at a rate equal to (i) the daily Secured Overnight Financing Rate, plus (ii) a specified applicable margin ranging from 1.25% to 1.75%. The credit facility’s monthly unused line fee is 0.25% to 0.375% of the amount by which the maximum credit under the facility exceeds the average daily principal balance during the immediately preceding month. Payments that may be made by Kinergy to Alto Ingredients, Inc. as reimbursement for management and other services provided by Alto Ingredients, Inc. to Kinergy are limited under the terms of the credit facility to $1.5 million per fiscal quarter. The credit facility also includes the accounts receivable of our indirect wholly-owned subsidiary, Alto Nutrients, LLC, or Alto Nutrients, as additional collateral. Payments that may be made by Alto Nutrients to Alto Ingredients, Inc. as reimbursement for management and other services provided by Alto Ingredients, Inc. to Alto Nutrients are limited under the terms of the credit facility to $0.5 million per fiscal quarter. Alto Nutrients markets our essential ingredients and also provides raw material procurement services to our subsidiaries. In addition, the amount of cash distributions that Kinergy or Alto Nutrients may make to us is also limited to up to 75% of excess cash flow.
Current wording
Kinergy maintains an operating line of credit for an aggregate amount of up to $85.0 million. The credit facility matures on November 7, 2027. Interest accrues under the credit facility at a rate equal to (i) the daily Secured Overnight Financing Rate, plus (ii) a specified applicable margin ranging from 1.25% to 1.75%. The credit facility provides for an unused line fee, payable monthly in arrears, at an annual rate of 0.25% to 0.375% on the amount by which the maximum credit under the facility exceeds the average daily principal balance during the preceding month. Payments that may be made by Kinergy to Alto Ingredients, Inc. as reimbursement for management and other services provided by Alto Ingredients, Inc. to Kinergy are limited under the terms of the credit facility to $1.5 million per fiscal quarter. The credit facility also includes the accounts receivable of our indirect wholly-owned subsidiary, Alto Nutrients, LLC, or Alto Nutrients, as additional collateral. Payments that may be made by Alto Nutrients to Alto Ingredients, Inc. as reimbursement for management and other services provided by Alto Ingredients, Inc. to Alto Nutrients are limited under the terms of the credit facility to $0.5 million per fiscal quarter. Alto Nutrients markets our essential ingredients and also provides raw material procurement services to our subsidiaries. In addition, the amount of cash distributions that Kinergy or Alto Nutrients may make to us is also limited to up to 75% of excess cash flow.
Previous wording
For all monthly periods in which excess borrowing availability falls below a specified level, Kinergy and Alto Nutrients must collectively maintain a fixed-charge coverage ratio (calculated as a twelve-month rolling earnings before interest, taxes, depreciation and amortization divided by the sum of interest expense, capital expenditures, principal payments of indebtedness, indebtedness from capital leases and taxes paid during such twelve-month rolling period) of at least 1.1 and are prohibited from incurring certain additional indebtedness (other than specific intercompany indebtedness). The obligations of Kinergy and Alto Nutrients under the credit facility are secured by all of our tangible and intangible assets.
Current wording
For all monthly periods in which excess borrowing availability falls below a specified level, Kinergy and Alto Nutrients must collectively maintain a fixed-charge coverage ratio (calculated as a twelve-month rolling earnings before interest, taxes, depreciation and amortization divided by the sum of interest expense, capital expenditures, principal payments of indebtedness, indebtedness from capital leases and taxes paid during such twelve-month rolling period) of at least 1.10 and are prohibited from incurring certain additional indebtedness (other than specific intercompany indebtedness). The obligations of Kinergy and Alto Nutrients under the credit facility are secured by all of our tangible and intangible assets.
Previous wording
Alto Ingredients, Inc. has guaranteed all of Kinergy’s obligations under the credit facility. As of September 30, 2025, Kinergy had an outstanding balance of $46.0 million and $20.3 million of unused borrowing availability under the credit facility.
Current wording
Alto Ingredients, Inc. has guaranteed all of Kinergy’s obligations under the credit facility. As of March 31, 2026, Kinergy had an outstanding balance of $39.2 million and $29.3 million of unused borrowing availability under the credit facility.
Previous wording
On November 7, 2022, we entered into a credit agreement with certain funds managed by Orion Infrastructure Capital, or Lenders, under which the Lenders extended a senior secured credit facility in the amount of up to $125.0 million, or Term Loan. The Term Loan matures on November 7, 2028. The Term Loan is secured by a first priority lien on certain of our assets and a second priority lien on certain assets of Kinergy and Alto Nutrients. Interest accrues on the unpaid principal amount of the Term Loan at a fixed rate of 10% per annum.
Current wording
On November 7, 2022, we entered into a credit agreement with certain funds managed by Orion Infrastructure Capital, or Lenders, under which the Lenders extended a senior secured credit facility in the amount of up to $125.0 million, or Term Loan. The Term Loan is secured by a first priority lien on certain of our assets and a second priority lien on certain assets of Kinergy and Alto Nutrients. Interest accrues on the unpaid principal amount of the Term Loan at a fixed rate of 10% per annum. The Term Loan matures on November 7, 2028, or earlier upon acceleration.
Previous wording
We must prepay amounts outstanding under the Term Loan on a semi-annual basis on each June 30 th and December 31 st in an amount equal to a percentage of our excess cash flow based on a specified leverage ratio, as follows: (i) if our leverage ratio is greater than or equal to 3.0x, then the mandatory prepayment amount will equal 100% of our excess cash flow, (ii) if our leverage ratio is less than 3.0x and greater than or equal to 1.5x, then the mandatory prepayment amount will equal 50% of our excess cash flow, and (iii) if our leverage ratio is less than 1.5x, then the mandatory prepayment amount will equal 25% of our excess cash flow. No prepayment was made or required to be made for the three and nine months ended September 30, 2025 and 2024.
Current wording
We must prepay amounts outstanding under the Term Loan on a semi-annual basis beginning with the six-month period ending December 31, 2023 in an amount equal to a percentage of our excess cash flow based on a specified leverage ratio, as follows: (i) if our leverage ratio is greater than or equal to 3.0x, then the mandatory prepayment amount will equal 100% of our excess cash flow, (ii) if our leverage ratio is less than 3.0x and greater than or equal to 1.5x, then the mandatory prepayment amount will equal 50% of our excess cash flow, and (iii) if our leverage ratio is less than 1.5x, then the mandatory prepayment amount will equal 25% of our excess cash flow.
Previous wording
As of September 30, 2025 and December 31, 2024, the principal amount outstanding under the Term Loan was $60.0 million.
Current wording
As of March 31, 2026 and December 31, 2025, the principal amount outstanding under the Term Loan was $38.4 million and $55.0 million, respectively.
Previous wording
As of September 30, 2025, we had future commitments for certain capital projects totaling $6.3 million. These commitments are scheduled to be satisfied through 2025.
Current wording
As of March 31, 2026, we had future commitments for certain capital projects totaling $18.4 million. These commitments are scheduled to be satisfied in 2026.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Net Sales, Cost of Goods Sold and Gross Profit
Previous report — wording carried elsewhere
Cost of Goods Sold and Gross Profit
Previous report — wording carried elsewhere
Cost of Goods Sold and Gross Profit
Previous report — wording carried elsewhere
Gross profit from corporate and other increased by $0.3 million to a gross profit of $0.2 million for the nine months ended September 30, 2025 as compared to gross loss of $0.1 million for the same period in 2024, all of which were from Eagle Alcohol’s business.