Fubotv earnings beat by $0.10, revenue topped estimates
Alto Ingredients Inc. (ALTO) reported its second-quarter 2025 earnings, revealing a larger-than-anticipated loss per share and lower revenue than expected. The company posted an earnings per share (EPS) of -$0.15, falling short of the forecasted -$0.09, marking a surprise of 66.67%. Revenue also missed expectations, coming in at $218 million compared to the forecasted $234.62 million, a decrease of 6.91%. With a market capitalization of just $78.76 million, InvestingPro analysis suggests the stock is currently trading slightly below its Fair Value. Following the release, Alto’s stock remained stable in aftermarket trading, closing at $1.04, unchanged from the previous session.
Key Takeaways
- Alto Ingredients reported a net loss of $11.3 million in Q2 2025, compared to $3.4 million in the same quarter last year.
- The company’s revenue decreased by $18 million year-over-year, with sales volume dropping to 86.7 million gallons.
- Despite the earnings miss, Alto is on track to achieve $8 million in annual cost savings.
- The company is expanding its CO2 production capacity and exploring export opportunities in Europe.
- Alto is targeting $18 million in 45Z credits over the next two years.
Company Performance
Alto Ingredients experienced a challenging second quarter, with significant declines in both sales volume and net sales compared to the previous year. The company’s consolidated net loss widened considerably, reflecting ongoing market volatility. Operating with a significant debt burden and weak gross profit margins of just 1.08%, the company faces substantial operational challenges. Despite these setbacks, Alto managed to improve its adjusted EBITDA by $5.7 million, reducing it to a negative $200,000. For deeper insights into Alto’s financial health and detailed metrics, InvestingPro subscribers have access to over 10 additional key financial indicators and expert analysis.
Financial Highlights
- Revenue: $218 million, down $18 million year-over-year.
- Earnings per share: -$0.15, compared to the forecast of -$0.09.
- Cash balance: $30 million, with $70 million available in loan borrowings.
Earnings vs. Forecast
Alto Ingredients’ actual EPS of -$0.15 was below the forecasted -$0.09, resulting in a 66.67% negative surprise. Revenue also fell short of expectations by 6.91%, coming in at $218 million versus the anticipated $234.62 million. This performance marks a deviation from previous quarters where Alto had shown gradual improvements.
Market Reaction
Following the earnings announcement, Alto Ingredients’ stock price remained unchanged in aftermarket trading, closing at $1.04. Trading at a notably low Price/Book multiple of 0.38, the stock has moved within a 52-week range of $0.76 to $2.05. With a beta of 0.61, the stock shows lower volatility than the broader market, though investor caution remains evident amid the company’s current financial challenges. InvestingPro’s comprehensive research report provides detailed analysis of these valuation metrics and more.
Outlook & Guidance
Looking ahead, Alto Ingredients is focusing on expanding its CO2 production capacity and exploring new markets in Europe. The company is also evaluating low-carbon feedstock sourcing and continuing its Western asset monetization process. Alto aims to secure $18 million in 45Z credits over the next two years, which could provide a significant boost to its financial performance.
Executive Commentary
"Our purposeful initiatives in 2025 have delivered adjusted EBITDA improvements even though markets remain volatile," stated Brian McGregor, CEO. He emphasized the company’s focus on prioritizing projects based on cost, timing, and return on investment. Rob Olander, CFO, highlighted the successful negotiation of better terms with key suppliers, improving both payment terms and pricing.
Risks and Challenges
- Market volatility continues to pose a significant risk to Alto’s financial performance.
- The decline in sales volume and revenue highlights potential challenges in demand.
- The company’s reliance on regulatory credits, such as 45Z, introduces uncertainty.
- Ongoing efforts to reduce operational costs may impact service quality or efficiency.
- Expanding into new markets, like Europe, presents logistical and competitive challenges.
Q&A
During the earnings call, analysts inquired about the early returns from the carbonic acquisition and the expansion of CO2 production capacity. Executives addressed concerns regarding temporary dock damage and reassured stakeholders about ongoing repair efforts. The company’s export strategy to Europe and its cost-reduction initiatives were also key discussion points.
Full transcript - Alto Ingredients Inc (ALTO) Q2 2025:
Conference Operator: today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press Please note this event is being recorded. I would now like to turn the conference over to Kirsten Chapman with Alliance Advisors Investor Relations.
Please go ahead.
Kirsten Chapman, Investor Relations, Alliance Advisors, Alliance Advisors: Thank you, Ashia, and thank you all for joining us for the Alto Ingredients second quarter twenty twenty five results conference call. On the call today are President and CEO, Brian McGregor and CFO, Rob Olander. Alto Ingredients issued a press release after the market closed today providing details of the company’s financials for the 2025. The company also has prepared a presentation for today’s call that is available on the company’s website at altoingredients.com. A telephone replay of today’s call will be available through August 13, the details of which are included in today’s press release.
A webcast replay will also be available on Alto Ingredients’ website. Please note the information on this call speaks only as of today, 08/06/2025, and you are advised that time sensitive information may be no longer accurate at the time of any replay. Please refer to the company’s safe harbor statement on slide two of the presentation available online, which states that some of the comments in this presentation can constitute forward looking statements and considerations that involve risks and uncertainties. The actual future results of Alto Ingredients could differ materially from those statements. Factors that could cause or contribute to such differences include, but are not limited to, events, risks, and other factors previously and from time to time disclosed in Alto Ingredients’ filings with the SEC.
Except as required by applicable law, the company assumes no obligation to update any forward looking statements. In management’s prepared remarks, non GAAP measures will be referenced. Management uses these non GAAP measures to monitor the financial performance of operations and believes these measures will assist investors in assessing the company’s performance for the periods reported. The company defines adjusted EBITDA as consolidated net income or loss before interest expense, interest income, provision for income taxes, asset impairments, unrealized derivative gains and losses, acquisition related expense, and depreciation and amortization. To support the company’s review of non GAAP information, a reconciling table was included in today’s press release.
On today’s call, Brian will provide a review of strategic our strategic plan and activities, and Rob will comment on our financial results. Then Brian will wrap up and open the call for Q and A. It’s now my pleasure to introduce CEO Brian McGregor. Please go ahead, sir.
Brian McGregor, President and CEO, Alto Ingredients: Thank you, Kirsten. Thank you all for joining us today. The main takeaway for Q2 is that our adjusted EBITDA improved by nearly $6,000,000 compared to last year, reflecting the successful execution of our initiatives to increase productivity. For some time, we have been focusing on short term projects with more immediate returns, and we see the roots taking hold in delivering success. This approach will support our path to incremental profitability and an improved future.
Projects under evaluation will be prioritized by anticipated cost, timing, and ROI impact. Under consideration are projects to lower our carbon intensity and capture more of the benefits of the 45Z regulations, increase our CO2 utilization at our Pekin campus and at Columbia, building on our successful Carbonic acquisition, and improve our prospects to monetize our Western assets. Further, will continue to pursue opportunities to improve efficiency and productivity like we did in Q1 and Q2. As a brief update to our carbon capture and storage project for our Pekin campus, on August 1 the Governor of Illinois signed Senate Bill seventeen twenty three that prohibits CO2 sequestration directly through the Mohammad Aquifer as contemplated in our EPA class six permit. As a result we are developing alternatives with Vault as well as evaluating other promising non sequestration options to optimize the value of our co2 production.
The bottom line is while we lay the groundwork for longer term capital intensive projects we are focusing on executable strategies within our control with short term paybacks and potential long term benefits. Our adjusted EBITDA for Q2 compared to last year’s quarter reflects the benefits of multiple initiatives. We generated positive gross profit at our Western assets resulting from the combination of our liquid CO2 facility acquisition, improvements at our Columbia ethanol plant, and our decision to cold idle Magic Valley due to adverse market factors. Our Marketing and Distribution segment also improved reflecting the integration of our bulk volume customers from our Eagle Alcohol business, fostering third party ethanol marketing relationships that met profitability criteria, and transitioning away from businesses that had limited returns. We note that our Beacon Campus was negatively impacted by quarter over quarter changes in derivatives and the impact of the damage sustained to our load out dock in April.
However, we partially offset these effects by leveraging our operational flexibility at the Beacon Campus by increasing sales of higher margin IFCC products exported to Europe. I’ll cover more on the dock in a moment. Company wide we improved our operational model by rightsizing our corporate overhead to a level that aligns with our current company footprint. Based on our Q2 results we are on track to exceed our goal of saving approximately $8,000,000 annually. We continue to evaluate options to improve operational efficiency and throughput, focus on growth in profitable market segments, and identify additional cost saving opportunities that while smaller in amount should in the aggregate make a real difference in the long run.
Turning back to the Deakin campus in early April our loadout docks sustained damage due to rapidly rising river levels impacting production logistics and campus economics for most of Q2. Since our last call we made progress recovering from this setback in a few ways. First, we were able to respond quickly to take interim steps with third party river transload vendors to minimize business interruption. Also, we worked with our insurance carrier to confirm coverage for both the property damage and business interruption. Finally, we’re reviewing repair plans with our carrier to ensure the best path forward.
We intend to commence the project ahead of Mid West winter and expect work to extend into next year. On markets and regulatory trends the big beautiful bill enacted in July made several positive updates too including the 45Z credit extensions through the 2029 and spending on farm programs that are beneficial for the industry. The bill also increased focus on domestic renewable fuel production and introduced new eligibility restrictions particularly around foreign involvement. For example only fuel derived from feedstocks grown or produced in North America is eligible for the credit. We are pursuing options to capitalize on 45Z.
Based on our current carbon intensity scores Columbia will qualify for 10¢ per gallon for 2025 and up to 20¢ for 2026 While our peak and dry mill will qualify for 10¢ per gallon starting in 2026. This equates to roughly $4,000,000 in 2025 and $8,000,000 in 2026 for Columbia and $6,000,000 for the dry mill in 2026 based on production capacities. Further we expect to make improvements to our plans to increase the anticipated credits moving forward across all eligible facilities. While low carbon corn may contribute favorably towards further reduction and reducing our carbon footprint we are evaluating whether it’s economically beneficial to source that particular feedstock to reduce our carbon footprint. The other two operating plants at Beacon will continue to produce higher quality products as well as take advantage of the export market premiums for fuel as the new rule incentivizes domestic ethanol plants from 45Z eligible dry mills.
The bill also positively impacts farm programs by boosting sector profitability, reducing financial volatility, enhancing asset values, and strengthening the overall safety net with the intent to improve operational stability and long term farm enterprise value. Also contained within the bill is the increase in USDA commodity reference prices and base acres. Corn will increase by $3.7 per bushel to $4.1 per bushel and soybeans from $8.4 per bushel to $10 per bushel and the addition of up to 30,000,000 base acres that can enroll in farm programs. As a result farmers will need new and expanded markets to absorb the additional production. We believe this will bode well for the future of the higher ethanol blends and new uses of American grown feedstocks making The US an even more attractive origin for source ethanol and other renewable fuel products internationally.
Turning to crush margins the annual uptick in demand from the summer driving season helped lift ethanol prices and improved crush spreads. While it’s difficult to predict market fluctuations we’ve seen additional spread improvement in Q3. We remain optimistic for positive margins for the remainder of the summer. Regarding E15 blending waivers the EPA extended the waivers nationally through the summer offering continued support for near term domestic ethanol blending. In California there was further progress and regulatory momentum continues to build for E15 blending however full scale implementation is still pending further administrative review and regulatory updates.
On the sustainability front we finalized our Scope one and two greenhouse gas verifications during the quarter and we have submitted our 2025 ECOVADA scorecard. On the corporate front in June we held our annual meeting of stockholders electing two new board members Jeremy Bestic and Alan Tank. We look forward to their fresh perspectives and contributions. I’d also like to congratulate Gil Nathan on being named Chairman of the Board and Diane Nuria as Vice Chair. With that I’ll turn the time over to Rob for our financial review.
Rob Olander, CFO, Alto Ingredients: Thank you, Brian. I’ll review the financial results for Q2 twenty twenty five compared to Q2 twenty twenty four. We sold 86,700,000 gallons compared to 95,100,000 gallons. The change in volume reflects our decision to rationalize unprofitable business in our marketing and distribution segment and the impact of dock availability at our peaking campus. Because we sold fewer gallons in Q2 twenty twenty five and at average lower prices, net sales were $218,000,000 $18,000,000 lower than the prior year.
Cost of goods sold, or COGS, was $9,000,000 lower than the same quarter last year. Gross loss was $1,900,000 compared to gross profit of $7,600,000 reflecting the following factors. The Beacon Campus year over year change in unrealized noncash derivatives was negative $13,200,000 and the realized derivative gain was positive $7,600,000 resulting in a net unfavorable change of $5,600,000 Although the market crush continued to improve in 2025, it was still on average $0.10 lower than the Q2 twenty twenty four. This equated to $5,500,000 of lower crush margin comparatively. As Brian mentioned, we are heading in the right direction with the market crush averaging $0.30 per gallon for July.
High quality alcohol premiums were $0.15 per gallon less than the same quarter last year due to increased competition during the annual contracting process. This translated to 3,000,000 which we were able to offset with our ability to shift higher volumes into the more profitable ISCC export markets. This is a prime example of how our strategy to diversify production enables us to take advantage of market opportunities. Our essential ingredients return at the Peking campus dropped this quarter by nearly 4.5 points to 44.2%. However, this doesn’t include the impact of our related hedging activities.
Taking our realized hedging gains into consideration, there was no impact on profitability. The impact of the dock outage totaled $2,700,000 for the quarter, and we are working with our insurance company to recover the losses in excess of our deductibles. At the Western facilities, gross profit improved $5,600,000 over Q2 twenty twenty four. With the addition of our Alto Carbonic Liquid CO2 Processing Facility, the Columbia plant improved gross profit by $3,000,000 to $2,300,000 By idling our Magic Valley plant and utilizing it primarily as a terminal, we improved gross profit by another $2,600,000 We also reduced SG and A to $6,200,000 This $2,800,000 improvement includes $1,100,000 related to final payments for our acquisition of Eagle Alcohol, 900,000 from rightsizing our SG and A staffing levels, and another $900,000 less in non cash stock compensation. Along with our workforce reductions that improved COGS by $1,200,000 we are exceeding our target annual overhead savings of approximately $8,000,000 We also took additional steps to further lower our future costs, including negotiating lower property taxes, improving terms with suppliers, reducing reliance on outside services, as well as a myriad of other changes, which we expect in aggregate will make a meaningful difference in the future.
Interest expense increased $1,100,000 reflecting the higher average outstanding loan balances and interest rates. Our consolidated net loss was $11,300,000 for Q2 twenty twenty five, compared to a net loss of $3,400,000 in Q2 twenty twenty four, primarily due to higher unrealized non cash derivative losses, lower crush margins, lower high quality alcohol premiums, and an impact to our loading dock, as discussed earlier in the call. Adjusted EBITDA improved $5,700,000 to negative $200,000 in Q2 twenty twenty five. As of 06/30/2025, our derivative net asset position was $1,700,000 Our cash balance was $30,000,000 and our total loan borrowing availability was $70,000,000 including $5,000,000 under our operating line of credit and $65,000,000 subject to certain conditions under our term loan facility. During the 2025, we used $850,000 in cash from our operations.
We spent another $500,000 in CapEx, much lower than historical averages, to manage liquidity and focus priorities. And year to date we recorded $16,000,000 in repairs and maintenance expense, in line with our 2025 estimate of $32,000,000 In summary, our acquisition of Alto Corbonik, entering into the European ISCC markets, cost restructuring efforts, and scaling back marginal operations has improved our financial position. With that, I’ll turn the call back.
Brian McGregor, President and CEO, Alto Ingredients: Thank you Rob. Our purposeful initiatives in 2025 have delivered adjusted EBITDA improvements even though markets remain volatile. With these successes and positive overall backdrop we are doubling down to focus on executable projects within our control. The short term paybacks, more immediate returns, and long term benefits. We are prioritizing these projects by their anticipated cost, timing, and ROI impact.
We are also evaluating opportunities to improve low carbon prospects, improve asset monetization, and increase CO2 utilization and production. The regulatory environment is positive for the industry and is conducive to creating opportunities for Alto. The change in 45Z have created the opportunity for at least two plants to apply for credit totaling approximately $18,000,000 in the next two years alone based on our nameplate and targeted carbon intensity scores. And for our other plans to capture more of the export market, notably as a result of the 45Z updates, earnings profile and thus the intrinsic value of all our facilities have improved. Finally working with Guggenheim we continue to make progress on our Western asset optimization and monetization plan.
We are also evaluating strategic alternatives and interest for Pecan and the company as a whole. We will share more information in this regard when appropriate. Before we turn the call to questions, I’ll note we will present at the AC Wainwright Investor Conference on the September 9 in New York City. I hope to see some of you there. With that, operator, we’re ready to begin the Q and A with sell side analysts.
Conference Operator: Thank you. The first question comes from Eric Stine with Craig Hallum. Please go ahead.
Luke, Analyst, Craig Hallum: Hey, this is Luke on for Eric. Appreciate you guys taking the questions. So first, with the Carbonic acquisition of Columbia already paying off in a big way in terms of profitability, what’s your outlook for further operational benefits there? Do you think there’s still substantial synergies yet to have been not realized and how early are we just in the process of realizing some of these benefits?
Brian McGregor, President and CEO, Alto Ingredients: Luke it’s a good question. We certainly haven’t peaked yet with regards to our overall capacity at the Carbonic facility. We produce you know if you want to round numbers out you’re looking at over 100,000 tons of CO2 that’s produced at the Columbia facility on an annual basis and about 70,000 capacity and we’re producing on average or sell about 50,000 metric tons. There’s clearly room for growth and we’re working with our core customer to make sure we place that product there is interest but it takes time to build that infrastructure and support around that. So we think that’s a really a nice positive for us without really much lifting that would be required.
It would certainly require more capital expend if you wanted to expand the capacity of the carbonic facility but it’s mostly vessels and the likes of the general light lift to the extent that the demand increases there for that need.
Luke, Analyst, Craig Hallum: Great. That’s helpful. And switching gears a little bit for the second question. On the export strategy to Europe, how equipped are you to make this a substantial revenue stream out of Pecken? And does the dock damage recently impede any progress on that front materially or is that not really a factor?
Brian McGregor, President and CEO, Alto Ingredients: So I’ll answer that in maybe reverse order. The dock we have certainly developed workarounds and are working and grateful for the support that we received from from long standing relationships. That said it’s not as effective as if we were to run it as we have historically with our own dock. So it’s imperative that we get our dock repaired and replaced and we’re working diligently to that end as Robin mentioned. That said we have found that as we think back to what we originally projected and expected around European sales that are significantly exceeding that and that there continues to be demand for the product.
And it’s unique in regards to what we can produce because of the high quality products that we produce at the ICP and the wet mill that make that product unique and eligible for sale there. We would expect that to continue to improve as well.
Luke, Analyst, Craig Hallum: It. That’s helpful. Okay, thank you. I’ll turn it over.
Conference Operator: The next question comes from Sameer Joshi with H. C. Wainwright. Please go ahead.
Rob Olander, CFO, Alto Ingredients: Yeah, good afternoon. Thanks for taking my question.
Sameer Joshi, Analyst, H.C. Wainwright: I just want a clarification on the HGNA improvement. Was the 1,100,000 Eagle Alcohol improvement a one time thing, or should we expect that going forward as well?
Rob Olander, CFO, Alto Ingredients: No, that was a one time. That was just the change in the deferred acquisition costs associated with acquired deal.
Sameer Joshi, Analyst, H.C. Wainwright: Okay, okay. And those are the
Rob Olander, CFO, Alto Ingredients: final acquisition costs, so you won’t see that going forward. Yeah,
Sameer Joshi, Analyst, H.C. Wainwright: yeah, that’s what I thought. So going forward, it will be 6.1 plus 1.1 or around about those levels, the H and A on a quarterly basis. Yes, that’s fair. Okay. Are there any further reductions specifically on the H and A front that you can, not at the COGS, but at the H and A level that you can realize?
Rob Olander, CFO, Alto Ingredients: Yeah, that’s a good question. You know, we took, you know, pretty significant efforts to right size our staffing levels to better align with our current organizational footprint, And we’ve seen the benefit of that. You annualize the impact of that Q2, we’re exceeding our $8,000,000 targeted savings goal, which impacts SG and A and COGS alike. But, you know, in regards to SG and A and some other areas, as mentioned in our remarks, you know, we are looking across the board and we’re scrutinizing all spend. We’re trying to be very wise with our liquidity.
You know, we’ve negotiated better terms with some of our key suppliers, both in respect to payment terms and in pricing. You know, we’ve spoken with our property tax assessors and lowered some of our real estate taxes. And we’ve also taken the opportunity to in source some activities that historically we use contractors for. So, you know, a lot of these efforts individually aren’t significant, but collectively, you know, we think that they’ll make a pretty meaningful impact moving forward.
Sameer Joshi, Analyst, H.C. Wainwright: Yeah, it is really good to see improvement on that front. Thanks for that. On the 45Z, 18,000,000 estimated benefit over the next two years, are those based on the CI improvements that you are targeting, or are those based on existing facilities generating those SPI scores and 18,000,000 in savings or other benefits?
Rob Olander, CFO, Alto Ingredients: Yeah, no, that’s a good question. That number is based on what our current CI scores are anticipated to be under the Greek calculations. You know, it improves for Columbia and will qualify in 2025. And then with ILUC standard change being removed, that will double the impact for 2026, the anticipation at Columbia. The dry mill we don’t anticipate will qualify in 2025, but again with the ILOC change we believe they will qualify in 2026.
Sameer Joshi, Analyst, H.C. Wainwright: Understood. No. So that’s good to see.
Rob Olander, CFO, Alto Ingredients: So any additional changes to reduce our carbon score would be above and beyond these targets.
Sameer Joshi, Analyst, H.C. Wainwright: Right. Right. And and they will come with associated capex which you have indicated you will deploy based on your ROI calculation.
Brian McGregor, President and CEO, Alto Ingredients: Yeah and some will have capex implications but others may not. It just has to do with ways to you know continue to be more energy efficient and to some degree it may include sourcing feedstock as I mentioned in my prepared remarks. We’re still evaluating it but certainly sourcing feedstock that has a lower carbon footprint and if you do so effectively there’s significant benefit
Sameer Joshi, Analyst, H.C. Wainwright: as
Brian McGregor, President and CEO, Alto Ingredients: you can see. Mean there’s an additional 80¢ to be had between you know between where we will be in 2026 and if you can get to zero, now that’s an incredible lift, but still something to aspire to and achieve.
Sameer Joshi, Analyst, H.C. Wainwright: Yeah. Yeah. And just a clarification on that, it just struck me. You have been using only American sourced feedstock, right? There was nothing being imported for feedstock?
Brian McGregor, President and CEO, Alto Ingredients: That’s correct.
Sameer Joshi, Analyst, H.C. Wainwright: Got it. Just last one, is there any color or insight into the Western asset monetization process or it’s being worked on but no more detail?
Rob Olander, CFO, Alto Ingredients: Yeah, I’ll take that one. Yeah, we’re continuing to work with Guggenheim. We’re having conversations with prospective buyers and we’re evaluating the opportunities. You know, the process for transactions of this size and for unique assets, being destination plants, tends to take a little bit longer to get through the diligence process. Each plant is nuanced in its own way.
It takes time to discuss in diligence, you know, the high protein technology at Magic Valley, and then also the recent acquisition of the carbonic CO2 liquid processing facility. Now with the positive regulatory changes that we’ve seen around 45Z, that’s also going to, you know, increase our valuations, which is going to impact the diligence process as well. You know, but also point out that, we’re considering all options as part of our ongoing efforts to maximize shareholder value. And that’s including asset sales, you know, in addition to Western assets, the merger, or, you know, really any strategic transactions that better align the long term value potential of our company.
Sameer Joshi, Analyst, H.C. Wainwright: Understood. Got it.
Rob Olander, CFO, Alto Ingredients: And I guess with that, you know, we’ll report when appropriate.
Sameer Joshi, Analyst, H.C. Wainwright: Got it. Thanks for that color. And thanks for taking my question.
Rob Olander, CFO, Alto Ingredients: Yeah, thank you. This
Conference Operator: concludes our question and answer session. I would like to turn the conference back over to Brian McGregor for any closing remarks. Please go ahead.
Brian McGregor, President and CEO, Alto Ingredients: Thank you operator and thank you all again for joining us today. We appreciate your ongoing feedback and support. Please have a good day.
Conference Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
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