Alto Ingredients | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 240.99 M

Revenue: As of FY2025 Q3, the actual value is USD 240.99 M, beating the estimate of USD 235.68 M.

EPS: As of FY2025 Q3, the actual value is USD 0.19, beating the estimate of USD -0.055.

EBIT: As of FY2025 Q3, the actual value is USD 19.78 M.

Pekin Campus Production Segment

• Net Sales: Alcohol sales increased by $2.8 million (3%) to $109.3 million for Q3 2025 compared to Q3 2024. Essential ingredient sales increased by $4.1 million (10%) to $45.3 million.
• Gross Profit: Improved by $12.8 million to $19.8 million for Q3 2025 compared to $7.0 million for Q3 2024.

Marketing and Distribution Segment

• Net Sales: Alcohol sales increased by $4.1 million (8%) to $58.7 million for Q3 2025 compared to Q3 2024.
• Gross Profit: Increased by $0.9 million to $2.2 million for Q3 2025 compared to $1.3 million for Q3 2024.

Western Production Segment

• Net Sales: Alcohol sales decreased by $19.0 million (52%) to $17.4 million for Q3 2025 compared to Q3 2024. Essential ingredient sales decreased by $2.4 million (23%) to $8.0 million.
• Gross Profit: Increased by $3.4 million to $1.3 million for Q3 2025 compared to a gross loss of $2.1 million for Q3 2024.

Corporate and Other

• Net Sales: Declined by $0.4 million (15%) to $2.3 million for Q3 2025 compared to Q3 2024.
• Gross Profit: Increased by $0.4 million to $0.2 million for Q3 2025 compared to a gross loss of $0.2 million for Q3 2024.

Cash Flow

• Operating Cash Flow: Generated $3.7 million for the nine months ended September 30, 2025, compared to $6.3 million for the same period in 2024.
• Investing Activities: Used $12.2 million in cash for acquisitions and capital expenditures.
• Financing Activities: Provided $5.4 million, reflecting net proceeds from Kinergy’s line of credit.

Future Outlook and Strategy

• Core Business Focus: The company plans to lower its carbon intensity score to capture Section 45Z tax credits and increase CO2 utilization at its facilities. It aims to earn $0.10 per gallon at its Columbia plant for 2025 and expects to increase available tax credits to $0.20 per gallon at its Columbia facility and $0.10 per gallon at its Pekin Campus dry mill for 2026.
• Non-Core Business: Evaluating options for the Magic Valley facility, including its sale and potential CO2 utilization, which may support restarting the facility.