Alto Ingredients, Inc.
For the period ended Sep 30, 2026. Filed Nov 6, 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.
Sep 30, 2026 · Filed Nov 6, 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 2026-06-30; filed 2026-08-07.
0001213900-26-086336
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001213900-26-116887
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 115 previous paragraphs and 120 current paragraphs.
42 unchanged; 43 reworded; 32 added; 30 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 29 previous and 29 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 (32)
Current report
The third quarter of 2026 represents our fifth consecutive quarter of positive gross profit, income from operations, net income and Adjusted EBITDA. For the third quarter, we generated net sales of $257.9 million, gross profit of $14.8 million, net income attributable to common stockholders of $12.7 million, or $0.16 per diluted share, and Adjusted EBITDA of $21.0 million, compared to Adjusted EBITDA of $21.4 million for the third quarter of 2025. For the nine months ended September 30, 2026, we generated net income attributable to common stockholders of $28.0 million, or $0.36 per diluted share, and Adjusted EBITDA of $49.3 million, compared to a net loss attributable to common stockholders of $9.4 million, or $0.13 per share, and Adjusted EBITDA of $16.7 million for the same period in 2025. Our third quarter results were driven by the strength of our core operations, as reflected in our $7.0 million of income from operations, plus $7.6 million of Section 45Z clean fuel production tax credit earnings, net of estimated monetization costs, adding to an already solid foundation. As our track record grows, so does our confidence that our diversified operating model can generate positive Adjusted EBITDA on an annual basis through commodity cycles, while providing meaningful upside when market conditions are favorable, and that our diversified logistical platform enables us to pursue the highest value for our products under prevailing market conditions.
Current report
Industry crush margins remained healthy and profitable during the third quarter. Higher domestic blend rates, due in part to greater adoption of E15 in response to high gasoline and renewable identification number, or RIN, prices, together with continued strong industry export demand, supported improved ethanol pricing. Corn prices rose along with expectations for lower yields from this year’s harvest. While higher corn costs contributed to the year-over-year decline in market crush margins, they also supported improved values for our essential ingredients. Crush margins remained healthy and profitable in October 2026 at $0.32 per gallon.
Current report
During the third quarter, we completed our renewable fuel export shipments under the contracts we entered into in late 2025. With global market conditions shifting, we elected to sell more of our renewable fuel domestically, where our economics are currently more favorable than selling into Europe. Although we expect domestic sales to remain the more attractive option through the end of 2026, we are beginning to see more compelling economics for resuming renewable fuel exports to Europe in 2027.
Current report
We continue to make progress on our production and capital improvement initiatives. At our Pekin dry mill, the debottlenecking project we completed in the second quarter is performing in line with our plan following the restart of the facility. We remain on target to increase the dry mill’s annual production capacity by approximately 8%, or 5 million gallons, allowing us to exit 2026 at our new targeted annual run rate of approximately 65 million gallons. At our Pekin Campus, the first phase of our barge dock project, which added a new liquid loadout, is complete and operational, and we expect to complete the second phase, consisting of improvements to the existing dock, by the end of 2026. We expect these investments to provide greater logistics flexibility and loading capacity while helping us better leverage the strategic value of our Pekin location. At our Columbia facility, we expect to complete the installation of a third CO 2 storage tank before the end of 2026, providing additional capacity to capture more of our existing CO 2 production and to serve the growing demand for liquid CO 2 in the Pacific Northwest.
Current report
We remain on track to qualify 90 million gallons or more of combined production for Section 45Z tax credits in 2026. As a result of our efforts to lower our carbon intensity scores, we now project our Columbia facility to qualify for $0.30 per gallon and our Pekin dry mill to qualify for $0.20 per gallon, in each case on a gross credit basis. Accordingly, we now expect to generate a minimum of $20.0 million of Section 45Z tax credit earnings, net of estimated monetization costs, in 2026, compared to our previously expected minimum of $15.0 million. This expected minimum does not include any incremental Section 45Z tax credit earnings from low carbon intensity corn supplied by farmers under our cooperative agreements described below.
Current report
In addition to increasing production capacity at our Pekin dry mill, we have begun partnering with farmers to lower the carbon intensity of our qualified production. With clarifying rules on recognizing climate-smart farming practices, we are working to convert those practices into value for us and our agricultural partners. During the third quarter, we entered into our first multi-year agreement with a local farmer cooperative to supply up to 20 million bushels of low carbon intensity corn for our Pekin Campus and to share the resulting Section 45Z benefit with the cooperative’s members, and we are working to finalize additional agreements. We expect the earnings contribution from this first agreement to be modest in 2026, but to build in 2027 as participating farmers adopt additional measures beginning this fall. In addition, at our Columbia facility, we are completing the first phase of an energy reduction project in the fourth quarter of 2026 to further lower the facility’s carbon intensity score and support our Section 45Z earnings initiatives. We continue to work to capture additional Section 45Z earnings in 2026 and beyond, primarily by qualifying more gallons and by exploring additional opportunities to lower our carbon footprint.
Current report
During the third quarter, we generated approximately $13.0 million of cash from operating activities, which supported a $6.5 million paydown of Kinergy’s operating line of credit and approximately $4.0 million of capital expenditures. Over the past twelve months, we have reduced our term debt by $30.0 million, which we expect will lower our debt servicing costs by approximately $4.3 million annually. In the near term, our capital allocation priority is high-return projects that expand capacity and improve efficiencies. Longer term, we intend to pursue additional ways to monetize our CO 2 revenue stream relative to alternatives.
Current report
Looking ahead, we believe industry tailwinds are supporting healthy ethanol demand and strengthening our strategic position. The outlook for E15 improved meaningfully in September 2026 when California enacted legislation clearing the way for year-round E15 sales in the state. California is one of the nation’s largest gasoline markets, and we believe E15 could add an estimated 600 million gallons or more of annual ethanol demand as adoption ramps up. Year-round E15 sales are also available in several Midwestern states, and bipartisan support for permanent, nationwide year-round E15 sales continues to grow. Approximately 95% of vehicles are already compatible with E15, and, according to the National Corn Growers Association and Ethanol Producer Magazine, nationwide year-round E15 adoption could increase annual U.S. ethanol demand by approximately 50%, or 5 to 7 billion gallons. Taken together, we believe these developments set the stage for a more favorable margin environment and improved industry utilization. We believe our Columbia facility and our Western marketing and distribution capabilities position us well to serve the California market.
Current report
Having completed a strategic realignment over the past three years, we believe we are in a strong position to create value. Our cost structure is leaner, our operating model is working as intended and our diversified product portfolio is unlocking premium value opportunities. We believe we are well positioned to benefit from favorable industry fundamentals, and we are executing plans to grow, drive profitability and build shareholder value.
Current report
Reconciliation of Net Income (Loss) to Adjusted EBITDA
Current report
Three Months ended September 30, 2026 as compared to Three Months ended September 30, 2025
Current report
Net sales of alcohol from our Pekin Campus production segment increased by $5.2 million, or 5%, to $114.5 million for the three months ended September 30, 2026 as compared to $109.3 million for the same period in 2025. Our total volume of alcohol sold decreased by 0.2 million gallons, or less than 1%, to 53.1 million gallons for the three months ended September 30, 2026 as compared to 53.3 million gallons for the same period in 2025. The increase of $0.11, or 5%, in the segment’s average sales price per gallon for the three months ended September 30, 2026 as compared to the same period in 2025 improved our net sales from the segment by $5.6 million. With the segment’s average sales price per gallon of $2.16 for the three months ended September 30, 2026, we generated $0.4 million less in net sales from the 0.2 million fewer gallons of alcohol sold in the three months ended September 30, 2026 as compared to the same period in 2025.
Current report
Net sales of essential ingredients from our Pekin Campus production segment improved by $4.5 million, or 10%, to $49.8 million for the three months ended September 30, 2026 as compared to $45.3 million for the same period in 2025. Our total volume of essential ingredients sold increased by 600 tons, or less than 1%, to 242,800 tons for the three months ended September 30, 2026 as compared to 242,200 tons for the same period in 2025. The increase of $17.84, or 10%, in the segment’s average sales price per ton for the three months ended September 30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $4.3 million.**With the segment’s average sales price per ton of $204.90 for the three months ended September 30, 2026, we generated $0.2 million in additional net sales from the 600 additional tons of essential ingredients sold in the three months ended September 30, 2026 as compared to the same period in 2025.
Current report
Net sales of essential ingredients from our Western production segment increased by $1.1 million, or 14%, to $9.1 million for the three months ended September 30, 2026 as compared to $8.0 million for the same period in 2025. Our total volume of essential ingredients sold increased by 5,400 tons, or 7%, to 82,300 tons for the three months ended September 30, 2026 from 76,900 tons for the same period in 2025. The increase of $5.78, or 6%, in the segment’s average sales price per ton for the three months ended September 30, 2026 as compared to the same period in 2025 increased our net sales of essential ingredients from the segment by $0.4 million. With the segment’s average sales price per ton of $110.04 for the three months ended September 30, 2026, we generated $0.7 million in additional net sales from the 5,400 additional tons of essential ingredients sold in the three months ended September 30, 2026 as compared to the same period in 2025.
Current report
Corporate and Other
Current report
The decrease in gross profit was primarily attributable to lower alcohol margins at our Pekin Campus, reflecting lower industry crush margins, as the crush margin declined by $0.11 per gallon to $0.30 per gallon for the three months ended September 30, 2026 from $0.41 per gallon for the same period in 2025, which reduced our gross profit by approximately $6.5 million. Of this reduction, $4.9 million is reflected in net realized gains and losses on corn hedges we establish to bridge the period between contracting for and grinding corn, which allow us to capture the approximate market crush margin at the point of sale and are recognized in cost of goods sold. Net derivative gains decreased by $4.3 million, to $1.5 million for the three months ended September 30, 2026 from $5.8 million for the same period in 2025. In addition, because we contract our specialty alcohols at fixed prices in advance, rising ethanol prices narrowed the premium we earned on our specialty alcohols over renewable fuel by $1.8 million as compared to the same period in 2025. This decrease was more than offset by a $2.2 million increase in realized gains on derivative positions we use to lock in that premium upon contracting for future sales, which are reflected as a reduction to cost of goods sold, resulting in a net improvement in gross profit from our specialty alcohols of $0.4 million, or $0.02 per gallon. Our gross profit also benefited from higher essential ingredient returns, which improved to 53.5% from 52.5%.
Current report
Our Pekin Campus production segment’s gross profit, net of intercompany activity, decreased by $9.4 million to $10.4 million for the three months ended September 30, 2026 as compared to $19.8 million for the same period in 2025. This decrease was primarily attributable to lower alcohol sales margins and lower gains on our commodity derivative positions, partially offset by higher average sales prices, which more than offset higher corn costs, and higher essential ingredient returns.* *
Current report
Corporate and Other
Current report
Nine Months ended September 30, 2026 as compared to Nine Months ended September 30, 2025
Current report
Net sales of alcohol from our Pekin Campus production segment increased by $26.1 million, or 8%, to $336.8 million for the nine months ended September 30, 2026 as compared to $310.7 million for the same period in 2025. Our total volume of production gallons sold increased by 3.6 million gallons, or 2%, to 161.6 million gallons for the nine months ended September 30, 2026 as compared to 158.0 million gallons for the same period in 2025. The increase of $0.11, or 6%, in the segment’s average sales price per gallon for the nine months ended September 30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $18.6 million. With the segment’s average sales price per gallon of $2.08 for the nine months ended September 30, 2026, we generated $7.5 million in additional net sales from the 3.6 million additional gallons of alcohol sold in the nine months ended September 30, 2026 as compared to the same period in 2025.
Current report
Net sales of essential ingredients from our Pekin Campus production segment increased by $9.3 million, or 7%, to $138.8 million for the nine months ended September 30, 2026 as compared to $129.5 million for the same period in 2025. Our total volume of essential ingredients sold decreased by 20,500 tons, or 3%, to 669,800 tons for the nine months ended September 30, 2026 from 690,300 tons for the same period in 2025. The increase of $19.66, or 10%, in the segment’s average sales price per ton for the nine months ended September 30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $13.6 million. With the segment’s average sales price per ton of $207.25 for the nine months ended September 30, 2026, we generated $4.3 million less in net sales from the 20,500 fewer tons of essential ingredients sold in the nine months ended September 30, 2026 as compared to the same period in 2025.
Current report
Net sales of alcohol from our Western production segment increased by $8.0 million, or 16%, to $58.2 million for the nine months ended September 30, 2026 as compared to $50.2 million for the same period in 2025. Our total volume of alcohol sold increased by 2.0 million gallons, or 8%, to 26.7 million gallons for the nine months ended September 30, 2026 as compared to 24.7 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.18 for the nine months ended September 30, 2026, we generated $4.4 million in additional net sales from the 2.0 million additional gallons of alcohol sold in the nine months ended September 30, 2026 as compared to the same period in 2025. The increase of $0.15, or 7%, in the segment’s average sales price per gallon for the nine months ended September 30, 2026 as compared to the same period in 2025 improved our net sales from the segment by $3.6 million.
Current report
Net sales of essential ingredients from our Western production segment increased by $1.1 million, or 5%, to $25.2 million for the nine months ended September 30, 2026 as compared to $24.1 million for the same period in 2025. Our total volume of essential ingredients sold increased by 11,700 tons, or 5%, to 239,800 tons for the nine months ended September 30, 2026 from 228,100 tons for the same period in 2025. With the segment’s average sales price per ton of $105.00 for the nine months ended September 30, 2026, we generated $1.2 million in additional net sales from the 11,700 additional tons of essential ingredients sold in the nine months ended September 30, 2026 as compared to the same period in 2025. The decrease of $0.55, or less than 1%, in the segment’s average sales price per ton for the nine months ended September 30, 2026 as compared to the same period in 2025 reduced our net sales of essential ingredients from the segment by $0.1 million.
Current report
Corporate and other
Current report
The increase in gross profit was primarily attributable to higher alcohol margins at our Pekin Campus, reflecting a stronger crush margin environment, as the crush margin increased by $0.08 per gallon to $0.27 per gallon from $0.19 per gallon, lower Pekin Campus corn costs per bushel and higher essential ingredient returns. Net gains on our commodity derivative positions, which are recognized in cost of goods sold, were $12.1 million for the nine months ended September 30, 2026 as compared to $10.2 million for the same period in 2025.
Current report
Corporate and other
Current report
Our SG&A expenses increased for the three and nine months ended September 30, 2026 as compared to the same periods in 2025. The period-over-period increases in SG&A expenses are primarily due to higher compensation and benefits costs, reflecting inflationary impacts, higher professional fees associated with our efforts to qualify for additional Section 45Z clean fuel production tax credits and business development costs as we assess options to further improve our production processes and modernize our facilities. These increases were partially offset by the continued benefits of last year’s initiatives to right-size our staffing levels and reduce costs.
Current report
As of September 30, 2026, we had $15.8 million of transferable tax credits, net of estimated monetization costs. We expect to sell these Section 45Z tax credits in the first half of 2027, and we expect the proceeds to provide an additional source of liquidity to strengthen our balance sheet and fund growth investments.
Current report
We used a total of $15.9 million in cash for capital expenditures for the nine months ended September 30, 2026.
Current report
At-the-Market Offering Program
Current report
On August 5, 2026, we entered into an At-The-Market Issuance Sales Agreement, or the Sales Agreement. Under the Sales Agreement, we may offer and sell, from time to time, shares of our common stock with an aggregate offering price of up to $50.0 million, through or to certain sales agents, acting as agent or principal. Sales of our common stock under the Sales Agreement, if any, will be made through sales deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act. We will pay the applicable sales agent a commission of 3.0% of the gross proceeds from each sale. We are not obligated to sell any shares under the Sales Agreement. We intend to use the net proceeds from any sales for general corporate purposes, including working capital and capital expenditures.
Current report
As of the date of this report, we have not sold any shares under the Sales Agreement.
Removed paragraphs (30)
Previous report
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Previous report
The second quarter represents our fourth consecutive quarter of positive gross profit, income from operations, net income and Adjusted EBITDA. We have been consistently profitable during this period even without the contributions from Section 45Z clean fuel production tax credits. Our results demonstrate the strength of our diversified operating model, which gives us the flexibility to shift production toward the most attractive end-markets and capture premium-value opportunities. We remain focused on disciplined execution of our strategic plan and unlocking additional value across our asset portfolio.
Previous report
Our trailing 12-month results are also a testament to our efforts to drive profitability, maximize the value of our asset base, and make smart decisions around capital allocations, including purchasing our Alto Carbonic business and investing in projects to optimize our dry mill and reduce the carbon intensity of our production.
Previous report
For the second quarter, our results also reflect strong domestic demand and improved essential ingredient values compared to the same period last year.
Previous report
The second quarter’s market crush margins improved significantly to $0.33 per gallon from $0.11 per gallon in the same period last year. This increase was driven by robust export demand, strong domestic blending activity, and tighter ethanol inventories following industry-wide spring maintenance outages. As a result, ethanol prices improved during the quarter, supported by strong Renewable Volume Obligation, or RVO, blending requirements. Meanwhile, favorable crop conditions and larger projected grain supplies contributed to lower corn costs, boosting margins. Second quarter crush margins were not only significantly higher than those in the same period last year but were also strong by historical standards. Third quarter margins thus far, which in the past have marked the annual peak, continue to be healthy and profitable.
Previous report
While European demand remained robust, ongoing geopolitical disruptions in the Middle East negatively impacted renewable fuel export economics from the United States during the second quarter. Higher freight costs and reduced certainty of vessel availability to transport renewable fuel from the Gulf Coast compressed the U.S.-to-Europe trade arbitrage, increasing the competitiveness of Brazilian exports to Europe. As a result, we reduced our renewable fuel export volumes compared to the second quarter of last year but still generated higher overall revenue from export volumes for the quarter due to higher premiums to domestic renewable fuel compared to the second quarter of last year.
Previous report
Given the strength of domestic ethanol markets, we successfully optimized our product mix toward fuel-grade ethanol sales in U.S. markets. This outcome underscores the benefits of our diversified commercial platform, which enabled us to adapt and capture the value of a strong domestic crush-margin environment.
Previous report
During the second quarter, we also continued to improve utilization, reliability and throughput, with the goal of increasing total volume for 2026 over 2025. At our Pekin campus, we completed the planned outage of our dry mill along with a debottlenecking project to increase annual production capacity by approximately 8%, or 5 million gallons. This outcome illustrates our dedication to projects with highly attractive returns on investment. By increasing production capacity at our dry mill, our most efficient facility, we are positioned to capture additional gross margin and to qualify for additional Section 45Z clean fuel production tax credits. After a successful restart of our dry mill, we are now ramping up to our new production capacity and expect to realize the full benefit of this additional capacity in the fourth quarter. We also performed our routine spring outage at our ICP facility during the second quarter. We remain on track to finish the repairs on our Pekin campus’ existing dock and complete the installation of a second alcohol loadout by year end, improving our logistics and loading capacity.
Previous report
At our Columbia facility, we began work to add a third CO2 storage tank and expect the tank to be operational in the fourth quarter. This expanded storage capacity will allow us to further capitalize on the growing demand for premium CO2 in the Pacific Northwest. We continue advancing multiple pathways to further monetize CO2 production, including opportunities for utilization and sequestration. Our strategy emphasizes low-capital, high-return projects while preserving flexibility as regulatory and commercial markets continue to evolve. We intend to move quickly by pursuing partnerships with stakeholders that already have compression capabilities, allowing us to accelerate commercialization.
Previous report
Capital expenditures for the second quarter were $10.6 million for a total of $11.5 million year to date. We are on track to meet our annual capital expenditure budget of $25 million.
Previous report
We are focused on increasing our Section 45Z clean fuel production tax credits by producing higher volumes of qualifying fuel. We also continue to explore opportunities to lower our carbon scores without significant capital investment by working with our farmer partners to encourage them to lower the carbon intensity of their corn. We remain on track to qualify 90 million gallons, or more, of combined production this year, supporting an expected minimum of $15 million in income from Section 45Z clean fuel production tax credits, net of monetization costs.
Previous report
We remain encouraged by the growing momentum to adopt year-round E15 blending. As an example, the Renewable Fuels Association recently reported that about 72% of U.S. voters support year-round E15 blending, the highest level recorded since polling began in 2016. We believe that the ongoing geopolitical disruptions in the Middle East create conditions that drive domestic support for implementing year-round E15 blending. Nationally, support continues to build around the promise of E15 to reduce fuel costs, strengthen energy security and increase demand for domestically produced renewable fuels. Meanwhile, several Midwestern states have moved forward with permanent year-round E15 blending, providing an important blueprint for broader adoption nationwide.
Previous report
California is also making progress toward E15 blending following the passage of Assembly Bill 30. While final implementation steps remain, we believe the state’s transition toward E15 blending represents a meaningful long-term demand opportunity given California’s position as one of the largest gasoline markets in the country. Taken together, expanding adoption of E15 at both the federal and state levels has the potential to drive significant incremental demand for ethanol, improve industry capacity utilization, and support a more favorable margin environment over time.
Previous report
Reconciliation of Adjusted EBITDA to Consolidated Net Income (Loss)
Previous report
Three Months ended June 30, 2026 as compared to the Three Months ended June 30, 2025
Previous report
Net sales of alcohol from our Pekin Campus production segment increased by $20.2 million, or 21%, to $114.4 million for the three months ended June 30, 2026 as compared to $94.2 million for the same period in 2025. Our total volume of production gallons sold increased by 6.5 million gallons, or 14%, to 54.6 million gallons for the three months ended June 30, 2026 as compared to 48.1 million gallons for the same period in 2025. The increase of $0.14, or 7%, in the segment’s average sales price per gallon for the three months ended June 30, 2026 as compared to the same period in 2025 improved our net sales from the segment by $6.6 million. With the segment’s average sales price per gallon of $2.09 for the three months ended June 30, 2026, we generated $13.6 million more in net sales from the 6.5 million additional gallons of alcohol sold in the three months ended June 30, 2026 as compared to the same period in 2025.
Previous report
Net sales of essential ingredients from our Pekin Campus production segment improved by $5.5 million, or 14%, to $45.1 million for the three months ended June 30, 2026 as compared to $39.6 million for the same period in 2025. The increase of $26.73, or 14%, in the segment’s average sales price per ton for the three months ended June 30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $5.6 million. Our total volume of essential ingredients sold slightly decreased to 209,500 tons for the three months ended June 30, 2026 as compared to 210,000 tons for the same period in 2025, which resulted in $0.1 million less in net sales compared to 2025.
Previous report
Net sales of alcohol from our Western production segment increased by $4.2 million, or 25%, to $20.8 million for the three months ended June 30, 2026 as compared to $16.6 million for the same period in 2025. Our total volume of alcohol sold increased by 1.1 million gallons, or 13%, to 9.4 million gallons for the three months ended June 30, 2026 as compared to 8.3 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.20 for the three months ended June 30, 2026, we realized $2.5 million in additional net sales from the 1.1 million additional gallons of alcohol sold in the three months ended June 30, 2026 as compared to the same period in 2025. The increase of $0.20, or 10%, in the segment’s average sales price per gallon for the three months ended June 30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $1.7 million.
Previous report
Net sales of essential ingredients from our Western production segment increased by $0.6 million, or 7%, to $8.8 million for the three months ended June 30, 2026 as compared to $8.2 million for the same period in 2025. Our total volume of essential ingredients sold increased by 4,600 tons, or 6%, to 83,000 tons for the three months ended June 30, 2026 from 78,400 tons for the same period in 2025. The increase of $1.31, or 1%, in our average sales price per ton for the three months ended June 30, 2026 as compared to the same period in 2025 increased our net sales of essential ingredients from the segment by $0.1 million. With the segment’s average sales price per ton of $106.54 for the three months ended June 30, 2026, we generated $0.5 million in additional net sales from the 4,600 additional tons of essential ingredients sold in the three months ended June 30, 2026 as compared to the same period in 2025.
Previous report
Cost of Goods Sold and Gross Profit (Loss)
Previous report
Our consolidated gross profit improved due to higher sales and margins primarily driven by a few key factors. Our average sales prices per gallon improved across all of our business segments, reaching a combined average sales price of $2.15 per gallon, an over 10% increase compared to the second quarter of 2025. In addition, we benefitted from favorable overall production input costs, largely due to a lower cost of corn, which, together with higher average sales prices, significantly improved market crush margins to $0.33 cents per gallon for the second quarter of 2026 from $0.11 cents per gallon for the same period last year, driven by robust export demand, strong domestic blending activity, and tighter ethanol inventories following industry-wide spring maintenance outages. In addition, with RVOs for 2026 set, strong demand for corn oil and germ as a feedstock for biodiesel and renewable diesel drove essential ingredient prices higher. Our essential ingredients return improved to 51.6% for the three months ended June 30, 2026 compared to 45.2% for the same period in 2025. Improved crush margins contributed approximately $17 million of incremental gross profit for the second quarter, partially offset by $2 million of higher repairs and maintenance expenses arising from our Pekin dry mill and ICP facility spring outages and continued work at our Alto Carbonic facility to ensure we were prepared to reliably support the increased demand for our premium CO 2 during the seasonally strong summer months.
Previous report
Our Pekin Campus production segment’s gross profit, net of intercompany activity, increased by $17.4 million to a gross profit of $12.4 million for the three months ended June 30, 2026 as compared to gross loss of $5.0 million for the same period in 2025. Of this increase, $15.9 million is attributable to improved alcohol sales margins and $1.5 million is attributable to higher sales volumes.
Previous report
Six Months ended June 30, 2026 as compared to the Six Months ended June 30, 2025
Previous report
Net sales of alcohol from our Pekin Campus production segment increased by $20.9 million, or 10%, to $222.3 million for the six months ended June 30, 2026 as compared to $201.4 million for the same period in 2025. Our total volume of production gallons sold increased by 3.8 million gallons, or 4%, to 108.5 million gallons for the six months ended June 30, 2026 as compared to 104.7 million gallons for the same period in 2025. The increase of $0.13, or 7%, in the segment’s average sales price per gallon for the six months ended June 30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $13.1 million. With the segment’s average sales price per gallon of $2.05 for the six months ended June 30, 2026, we generated $7.8 million in additional net sales from the 3.8 million additional gallons of alcohol sold in the six months ended June 30, 2026 as compared to the same period in 2025.
Previous report
Net sales of essential ingredients from our Pekin Campus production segment increased by $4.9 million, or 6%, to $89.1 million for the six months ended June 30, 2026 as compared to $84.2 million for the same period in 2025. Our total volume of essential ingredients sold decreased by 20,900 tons, or 5%, to 427,000 tons for the six months ended June 30, 2026 from 447,900 tons for the same period in 2025. The increase of $20.63, or 11%, in the segment’s average sales price per ton for the six months ended June 30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $9.2 million. With the segment’s average sales price per ton of $208.58 for the six months ended June 30, 2026, we generated $4.3 million in fewer net sales from the 20,900 fewer tons of essential ingredients sold in the six months ended June 30, 2026 as compared to the same period in 2025.
Previous report
Net sales of essential ingredients from our Western production segment remained flat at $16.1 million for the six months ended June 30, 2026 as compared to the same period in 2025. Our total volume of essential ingredients sold increased by 6,200 tons, or 4%, to 157,500 tons for the six months ended June 30, 2026 from 151,300 tons for the same period in 2025. With the segment’s average sales price per ton of $102.37 for the six months ended June 30, 2026, we generated $0.6 million in additional net sales from the 6,200 additional tons of essential ingredients sold in the six months ended June 30, 2026 as compared to the same period in 2025. The decrease of $3.77, or 4%, in our average sales price per ton for the six months ended June 30, 2026 as compared to the same period in 2025 reduced our net sales of essential ingredients from the segment by $0.6 million.
Previous report
Cost of Goods Sold and Gross Profit (Loss)
Previous report
Our consolidated gross profit improved due to higher sales and margins primarily driven by the same factors that improved our second quarter results, as discussed above. Our average sales prices per gallon improved across all of our business segments, reaching a combined average sales price of $2.08 per gallon, an over 7% increase compared to the same period in 2025. In addition, we benefitted from favorable overall production input costs, largely due to a lower cost of corn, which, together with higher average sales prices, significantly improved market crush margins compared to the same period last year. In addition, our essential ingredients return improved to 52.5% for the six months ended June 30, 2026 as compared to 46.7% for the same period in 2025.
Previous report
Our SG&A expenses increased for the three and six months ended June 30, 2026 as compared to the same periods in 2025. The period over period increases in SG&A expenses are primarily due to an $0.8 million accrual for performance compensation as well as an $0.8 million one-time gain in 2025 related to the final payment for our acquisition of Eagle Alcohol that did not recur in 2026. Excluding those two notable items, SG&A expenses were comparable over the 2026 and 2025 periods despite higher net sales in the current year, reflecting the benefits of last year’s initiatives to right-size our staffing levels and cut costs.
Previous report
We used $11.5 million in cash during the six months ended June 30, 2026 for capital expenditures.
Reworded paragraphs (43)
Previous 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, and statements of the assumptions underlying or relating to any of the foregoing. 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 within the meaning of Section 27A of the Securities Act of 1933, as amended, or Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or Exchange Act, that are intended to be covered by the safe harbor provisions of those sections. These forward-looking statements 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, and statements of the assumptions underlying or relating to any of the foregoing. 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 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.
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 including 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
Our mission is to produce the highest quality, sustainable ingredients that make everyday products better. We intend to accomplish this goal in part by investing in our specialized and higher-value specialty alcohol production and distribution infrastructure, expanding production in high-demand essential ingredients, expanding and extending the sale of our products into new regional and international markets, building efficiencies and economies of scale and by capturing a greater portion of the value stream.
Current wording
Our mission is to produce the highest quality, sustainable ingredients that make everyday products better. We intend to accomplish this goal in part by investing in our specialized and higher-value specialty alcohol production and distribution infrastructure, expanding production in high-demand essential ingredients, expanding and extending the sale of our products into new regional and international markets, building efficiencies and economies of scale and capturing a greater portion of the value stream.
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, 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.
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 total net sales in 2025, to customers in these three markets.
Previous 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.
Current wording
All of our production facilities, other than our Magic Valley plant, operated throughout the periods presented, subject to scheduled and unscheduled downtime for repair and maintenance.
Previous wording
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 wording
Our Magic Valley facility has remained cold-idled since December 31, 2024 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.
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 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.
Current wording
Management believes that certain financial measures not in accordance with generally accepted accounting principles, or GAAP, are useful in evaluating our operating performance. 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
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.
Current wording
A table is provided below to reconcile Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). 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 our results as reported under GAAP.
Previous 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 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, are: 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. There have been no material changes to our critical accounting estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025.
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 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, are the impairment of long-lived assets and the 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. There have been no material changes to our critical accounting estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
Certain performance metrics that we believe are important indicators of our results of operations:
Current wording
Certain performance metrics that we believe are important indicators of our results of operations include the following:
Previous wording
Net Sales, Cost of Goods Sold and Gross Profit (Loss)
Current wording
Net Sales, Cost of Goods Sold and Gross Profit
Previous 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):
Current 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):
Previous wording
The increase in our consolidated net sales for the three months ended June 30, 2026 as compared to the same period in 2025 is primarily attributable to higher average sales prices per gallon across all of our business segments as well as higher average sales prices of essential ingredients due to a stronger commodity price environment. Net sales also improved due to higher total volumes sold of alcohols and essential ingredients.
Current wording
The increase in our consolidated net sales for the three months ended September 30, 2026 as compared to the same period in 2025 is primarily attributable to higher average sales prices per gallon across all of our business segments as well as higher average sales prices of essential ingredients due to a stronger commodity price environment. Renewable fuel prices improved due to continued demand from strong domestic blending, including greater adoption of E15, and global export demand, and were supported by higher corn prices. Higher sales prices of our essential ingredients were supported by rising corn costs, and, with renewable volume obligation requirements set, improved demand for corn oil as a feedstock for renewable diesel and biodiesel increased the sales prices of our corn oil and germ products. These increases were partially offset by a $2.4 million decrease in net sales from our renewable fuel exports, driven by lower export sales volumes, although at a higher average premium, as we elected to sell additional volumes of renewable fuel domestically, where our economics were more favorable under prevailing market conditions.
Previous wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, declined by $3.5 million, or 6%, to $54.7 million for the three months ended June 30, 2026 as compared to $58.2 million for the same period in 2025. Our volume of third-party alcohol sold reported gross by the segment decreased by 5.7 million gallons, or 19%, to 24.0 million gallons for the three months ended June 30, 2026 as compared to 29.7 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.27 for the three months ended June 30, 2026, we realized $12.9 million less in net sales from the 5.7 million fewer gallons of third-party alcohol sold gross in the three months ended June 30, 2026 as compared to the same period in 2025. The $0.31 per gallon, or 16%, increase in the segment’s average sales price per gallon for the three months ended June 30, 2026 as compared to the same period in 2025 resulted in a $9.4 million increase in our net sales from third-party renewable fuel sold by the segment.
Current wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, increased $3.3 million, or 6%, to $62.0 million for the three months ended September 30, 2026 as compared to $58.7 million for the same period in 2025. Our volume of third-party alcohol sold reported gross by the segment decreased by 0.7 million gallons, or 3%, to 26.4 million gallons for the three months ended September 30, 2026 as compared to 27.1 million gallons for the same period in 2025. The $0.18 per gallon, or 8%, increase in the segment’s average sales price per gallon for the three months ended September 30, 2026 as compared to the same period in 2025 resulted in a $4.9 million increase in our net sales from third-party renewable fuel sold by the segment. With the segment’s average sales price per gallon of $2.35 for the three months ended September 30, 2026, we realized $1.6 million less in net sales from the 0.7 million fewer gallons of third-party alcohol sold gross in the three months ended September 30, 2026 as compared to the same period in 2025.
Previous wording
Net sales of alcohol from our Western production segment increased by $4.7 million, or 14%, to $37.5 million for the six months ended June 30, 2026 as compared to $32.8 million for the same period in 2025. Our total volume of alcohol sold increased by 1.0 million gallons, or 6%, to 17.6 million gallons for the six months ended June 30, 2026 as compared to 16.6 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.13 for the six months ended June 30, 2026, we generated $2.1 million in additional net sales from the 1.0 million additional gallons of alcohol sold in the six months ended June 30, 2026 as compared to the same period in 2025. The increase of $0.15, or 8%, in the segment’s average sales price per gallon for the six months ended June 30, 2026 as compared to the same period in 2025 improved our net sales from the segment by $2.6 million.
Current wording
Net sales of alcohol from our Western production segment increased by $3.4 million, or 20%, to $20.8 million for the three months ended September 30, 2026 as compared to $17.4 million for the same period in 2025. Our total volume of alcohol sold increased by 1.0 million gallons, or 12%, to 9.1 million gallons for the three months ended September 30, 2026 as compared to 8.1 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.28 for the three months ended September 30, 2026, we realized $2.3 million in additional net sales from the 1.0 million additional gallons of alcohol sold in the three months ended September 30, 2026 as compared to the same period in 2025. The increase of $0.14, or 7%, in the segment’s average sales price per gallon for the three months ended September 30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $1.1 million.
Previous wording
Net sales of alcohol from corporate and other increased by $0.2 million, or 12%, to $1.9 million for the three months ended June 30, 2026 as compared to $1.7 million for the same period in 2025. These sales are from Eagle Alcohol’s business.
Current wording
Net sales of alcohol from corporate and other decreased by $0.5 million, or 22%, to $1.8 million for the three months ended September 30, 2026 as compared to $2.3 million for the same period in 2025. These sales are from Eagle Alcohol’s business.
Previous wording
Our consolidated gross profit (loss) improved to a gross profit of $16.6 million for the three months ended June 30, 2026 from a gross loss of $1.9 million for the same period in 2025, representing a positive gross margin of 6.8% for the three months ended June 30, 2026 as compared to a negative gross margin of 0.9% for the same period in 2025.
Current wording
Our consolidated gross profit declined to $14.8 million for the three months ended September 30, 2026 from $23.5 million for the same period in 2025, representing a gross margin of 5.7% for the three months ended September 30, 2026 as compared to 9.7% for the same period in 2025.
Previous wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, decreased by $0.1 million to a gross profit of $1.4 million for the three months ended June 30, 2026 as compared to a gross profit of $1.5 million for the same period in 2025. Of this decline, $0.2 million is attributable to higher margins from sales of third-party renewable fuel, offset by $0.3 million attributable to lower sales volumes.
Current wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, decreased by $0.6 million to $1.6 million for the three months ended September 30, 2026 as compared to $2.2 million for the same period in 2025. Of this decline, $0.5 million is attributable to lower margins from sales of third-party renewable fuel and $0.1 million is attributable to lower sales volumes.
Previous wording
Our Western production segment’s gross profit, net of intercompany activity, increased by $0.4 million to a gross profit of $2.0 million for the three months ended June 30, 2026 as compared to a gross profit of $1.6 million for the same period in 2025. Of this improvement, $0.2 million is attributable to higher renewable fuel margins and $0.2 million is attributable to higher sales volumes.
Current wording
Our Western production segment’s gross profit, net of intercompany activity, increased by $1.1 million to $2.4 million for the three months ended September 30, 2026 as compared to $1.3 million for the same period in 2025. Of this improvement, $0.9 million is attributable to higher renewable fuel margins and $0.2 million is attributable to higher sales volumes.
Previous wording
Gross profit from corporate and other increased by $0.9 million for the three months ended June 30, 2026, from a breakeven gross profit for the three months ended June 30, 2025, all of which were from Eagle Alcohol’s business.
Current wording
Gross profit from corporate and other increased by $0.2 million to $0.4 million for the three months ended September 30, 2026 as compared to $0.2 million for the same period in 2025, all of which was attributable to Eagle Alcohol’s business.
Previous wording
The increase in our consolidated net sales for the six months ended June 30, 2026 as compared to the same period in 2025 is primarily attributable to higher average sales prices per gallon across all of our business segments as well as higher average sales prices of essential ingredients due to a stronger commodity price environment, partially offset by a slight decrease in volumes sold.
Current wording
The increase in our consolidated net sales for the nine months ended September 30, 2026 as compared to the same period in 2025 is primarily attributable to higher average sales prices per gallon across all of our business segments and higher average sales prices for essential ingredients at our Pekin Campus, partially offset by slightly lower total volumes sold.
Previous wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, declined by $5.2 million, or 5%, to $102.0 million for the six months ended June 30, 2026 as compared to $107.2 million for the same period in 2025.
Current wording
Net sales of alcohol from our marketing and distribution segment, excluding intersegment sales, declined by $1.9 million, or 1%, to $164.0 million for the nine months ended September 30, 2026 as compared to $165.9 million for the same period in 2025.
Previous wording
Our volume of third-party renewable fuel sold reported gross by the segment decreased by 6.6 million gallons, or 12%, to 47.5 million gallons for the six months ended June 30, 2026 as compared to 54.1 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.14 for the six months ended June 30, 2026, we realized $14.1 million less in net sales from the 6.6 million fewer gallons of third-party renewable fuel sold gross in the six months ended June 30, 2026 as compared to the same period in 2025. The $0.16 per gallon, or 8%, increase in the segment’s average sales price per gallon for the six months ended June 30, 2026 as compared to the same period in 2025 resulted in a $8.9 million increase in our net sales from third-party renewable fuel sold by the segment.
Current wording
Our volume of third-party renewable fuel sold reported gross by the segment decreased by 7.3 million gallons, or 9%, to 73.9 million gallons for the nine months ended September 30, 2026 as compared to 81.2 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.22 for the nine months ended September 30, 2026, we realized $16.2 million less in net sales from the 7.3 million fewer gallons of third-party renewable fuel sold gross in the nine months ended September 30, 2026 as compared to the same period in 2025. The $0.18 per gallon, or 9%, increase in the segment’s average sales price per gallon for the nine months ended September 30, 2026 as compared to the same period in 2025 resulted in a $14.3 million increase in our net sales from third-party renewable fuel sold by the segment.
Previous wording
Net sales of alcohol from corporate and other increased by $0.1 million, or 3%, to $3.4 million for the six months ended June 30, 2026 as compared to $3.3 million for the same period in 2025. These sales are from Eagle Alcohol’s business.
Current wording
Net sales of alcohol from corporate and other decreased by $0.4 million, or 7%, to $5.2 million for the nine months ended September 30, 2026 as compared to $5.6 million for the same period in 2025. These sales are attributable to Eagle Alcohol’s business.
Previous wording
Our consolidated gross profit improved to a gross profit of $25.9 million for the six months ended June 30, 2026 from a gross loss of $3.7 million for the same period in 2025, representing a positive gross margin of 5.5% for the six months ended June 30, 2026 as compared to a negative gross margin of 0.8% for the same period in 2025.
Current wording
Our consolidated gross profit improved to $40.7 million for the nine months ended September 30, 2026 from $19.8 million for the same period in 2025, representing a gross margin of 5.6% for the nine months ended September 30, 2026 as compared to 2.9% for the same period in 2025.
Previous wording
Our Pekin Campus production segment’s gross profit, net of intercompany activity, improved by $27.9 million to a gross profit of $20.0 million for the six months ended June 30, 2026 as compared to a gross loss of $7.9 million for the same period in 2025. Of this improvement, $27.2 million is attributable to higher alcohol sales margins and $0.7 million is attributable to higher sales volumes.
Current wording
Our Pekin Campus production segment’s gross profit, net of intercompany activity, improved by $19.2 million to $30.4 million for the nine months ended September 30, 2026 as compared to $11.2 million for the same period in 2025. Of this improvement, $18.6 million is attributable to higher alcohol sales margins and $0.6 million is attributable to higher sales volumes.
Previous wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, declined by $1.2 million to a gross profit of $3.0 million for the six months ended June 30, 2026 as compared to a gross profit of $4.2 million for the same period in 2025. Of this decline, $0.8 million is attributable primarily to lower margins from sales of third-party renewable fuel and $0.4 million is attributable to lower sales volumes for the six months ended June 30, 2026 as compared to the same period in 2025.
Current wording
Our marketing and distribution segment’s gross profit, net of intercompany activity, declined by $1.9 million to $4.7 million for the nine months ended September 30, 2026 as compared to $6.6 million for the same period in 2025. Of this decline, $1.5 million is primarily attributable to lower margins from sales of third-party renewable fuel and $0.4 million is attributable to lower sales volumes.
Previous wording
Our Western production segment’s gross profit, net of intercompany activity, improved by $1.4 million to a gross profit of $1.4 million for the six months ended June 30, 2026 as compared to a breakeven gross profit for the same period in 2025, related to higher margins on ethanol sales.
Current wording
Our Western production segment’s gross profit, net of intercompany activity, improved by $2.0 million to $3.8 million for the nine months ended September 30, 2026 as compared to $1.8 million for the same period in 2025. Of this increase, $1.7 million is attributable to higher renewable fuel margins and $0.3 million is attributable to higher sales volumes.
Previous wording
Gross profit from corporate and other improved by $1.4 million to a gross profit of $1.3 million for the six months ended June 30, 2026 as compared to gross loss of $0.1 million for the same period in 2025, all of which were from Eagle Alcohol’s business.
Current wording
Gross profit from corporate and other improved by $1.5 million to $1.7 million for the nine months ended September 30, 2026 as compared to $0.2 million for the same period in 2025, all of which was attributable to Eagle Alcohol’s business.
Previous wording
The increase in our net income attributable to common stockholders for the three and six months ended June 30, 2026 as compared to the same periods in 2025 is primarily due to improved margins, as discussed above, Section 45Z clean fuel production tax credits, and reduced interest expense due to lower debt balances. For the three and six month periods in 2026, we had no tax provision as we expect to use a portion of our net operating losses to offset income for the year.
Current wording
The decrease in our net income attributable to common stockholders for the three months ended September 30, 2026 as compared to the same period in 2025 is primarily due to lower gross profit and higher SG&A expenses, as discussed above, partially offset by $7.6 million of Section 45Z clean fuel production tax credits, net of estimated monetization costs, and a $1.3 million reduction in interest expense due to lower outstanding debt balances. The increase in our net income attributable to common stockholders for the nine months ended September 30, 2026 as compared to the same period in 2025 is primarily due to higher gross profit, as discussed above, $16.6 million of Section 45Z clean fuel production tax credits, net of estimated monetization costs, and a $2.7 million reduction in interest expense due to lower outstanding debt balances, partially offset by higher SG&A expenses. For the three- and nine-month periods in 2026, we recorded no provision for income taxes because we expect to use a portion of our net operating loss carryforwards to offset taxable income for the year.
Previous wording
During the six months ended June 30, 2026, we generated positive cash flow from our operations, and we supplemented our liquidity with net proceeds from Kinergy’s operating line of credit. In addition to funding our operations, we used our capital resources to make principal payments on our term debt, including an $8.5 million payment for the second quarter, ending the quarter with $29.9 million in term debt outstanding. Year to date, we have made a total of $25.1 million in principal payments on our term debt. As of June 30, 2026, we had $24.0 million in cash, cash equivalents and restricted cash, $41.3 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.
Current wording
During the nine months ended September 30, 2026, we generated positive cash flow from our operations. In addition to funding our operations, we used our capital resources to make $25.1 million of principal payments on our term debt, ending the period with $29.9 million in term debt outstanding. We also made net payments of $1.4 million on Kinergy’s operating line of credit, reducing our total debt by $26.5 million during the period. As of September 30, 2026, we had $25.7 million in cash, cash equivalents and restricted cash, $42.7 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. In addition, in August 2026, we established an at-the-market equity offering program under which we may offer and sell shares of our common stock having an aggregate offering price of up to $50.0 million. As of the date of this report, we have not sold any shares under the program. See “—At-the-Market Offering Program” below.
Previous wording
At June 30, 2026, we had approximately $68.5 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 September 30, 2026, we had approximately $71.6 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.
Previous wording
Working capital improved to $110.4 million at June 30, 2026 from $96.8 million at December 31, 2025 as a result of a decrease of $8.7 million in current liabilities and an increase of $4.9 million in current assets.
Current wording
Working capital improved to $119.6 million at September 30, 2026 from $96.8 million at December 31, 2025 as a result of an increase of $13.8 million in current assets and a decrease of $9.0 million in current liabilities.
Previous wording
Current assets increased primarily due to an increase in accounts receivable, transferable tax credits and derivative instruments, partially offset by a decrease in inventories.
Current wording
Current assets increased primarily due to increases in accounts receivable, transferable tax credits and derivative instruments, partially offset by a decrease in inventories from December 31, 2025.
Previous 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 as a result of timing of payments.
Current wording
Our current liabilities decreased primarily due to a reduction in current portion – long-term debt, partially offset by an increase in accounts payable and accrued liabilities.
Previous wording
Our cash, cash equivalents and restricted cash declined by $1.7 million due to $22.9 million in cash used in our financing activities and $11.5 million used in our investing activities, nearly offset by $32.7 million in cash provided by our operating activities.
Current wording
Our cash, cash equivalents and restricted cash remained flat due to $45.6 million in cash provided by our operating activities, offset by $29.7 million used in our financing activities and $15.9 million used in our investing activities.
Previous wording
We generated $32.7 million of cash from our operations for the six months ended June 30, 2026 as compared to $19.1 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:
Current wording
We generated $45.6 million of cash from our operations for the nine months ended September 30, 2026 as compared to $3.7 million for the same period in 2025. Significant factors that contributed to the change in cash provided by our operating activities include:
Previous wording
Cash used in our financing activities was $22.9 million for the six months ended June 30, 2026, which reflects $25.1 million in principal payments on our term debt, $2.2 million for employee taxes paid for stock vesting in lieu of shares and $0.6 million in preferred stock dividends paid, partially offset by $5.0 million in net proceeds from Kinergy’s operating line of credit.
Current wording
Cash used in our financing activities was $29.7 million for the nine months ended September 30, 2026, which reflects $25.1 million in principal payments on our term debt, $2.2 million for taxes paid on behalf of employees for shares withheld upon vesting, net payments of $1.4 million on Kinergy’s operating line of credit, and $0.9 million in preferred stock dividends paid.
Previous 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.
Current wording
Kinergy maintains an operating line of credit for an aggregate amount of up to $85.0 million. The credit facility matures on August 9, 2028. 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 limited 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 1.10 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.
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 twelve-month rolling earnings before interest, taxes, depreciation and amortization divided by the sum of interest expense, capital expenditures, principal payments on 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.
Showing the first 40 of 43 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Cost of Goods Sold and Gross Profit
Current report — wording carried from elsewhere
Cost of Goods Sold and Gross Profit
Current report — wording carried from elsewhere
We believe we have sufficient liquidity to meet our anticipated working capital, debt service, capital expenditure and other liquidity needs for at least the next twelve months from the date of this report.