Q1 2025 INVESTOR PRESENTATION reported on May 7, 2025 Elevating Essential Products Leading producer of specialty alcohols and high quality ingredients 1 Safe Harbor Statement Statements and information contained in this communication that refer to or include Alto Ingredients' estimated or anticipated future results or other non- historical expressions of fact are forward-looking statements that reflect Alto Ingredients' current perspective of existing trends and information as of the date of the communicati ...

First Quarter 2025 Results Overview The company reported improved gross margin and Adjusted EBITDA, driven by strategic acquisitions and cost-saving initiatives [CEO Statement](index=1&type=section&id=CEO%20Statement) The CEO highlighted that the first quarter of 2025 saw year-over-year improvements in gross margin and Adjusted EBITDA, primarily driven by the acquisition of the Alto Carbonic CO2 processing plant and a corporate reorganization. The company is capitalizing on strong European demand for ISCC renewable fuel to offset domestic market softness and is actively exploring new revenue streams, including opportunities from E15 adoption and the Illinois Clean Transportation Standard Act - **Gross margin** and **Adjusted EBITDA** improved year-over-year, driven by the acquisition of the Alto Carbonic CO2 processing plant, which lowered costs and increased productivity[2](index=2&type=chunk) - A corporate rightsizing initiative is expected to generate approximately **$8 million** in annual savings starting in the second quarter of 2025[2](index=2&type=chunk) - The company increased sales of ISCC renewable fuel to European markets, where demand and premiums are strong, to offset softening domestic markets for high-quality alcohol[3](index=3&type=chunk) - Alto Ingredients is monitoring potential growth from the year-round adoption of E15 and opportunities under the Illinois Clean Transportation Standard Act (SB41)[3](index=3&type=chunk) Financial Results The company's first quarter financial performance showed a decrease in net sales but improved gross loss and Adjusted EBITDA year-over-year [Financial Highlights (Q1 2025 vs. Q1 2024)](index=1&type=section&id=Financial%20Results%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20Compared%20to%202024) For the first quarter of 2025, Alto Ingredients reported a decrease in net sales to $226.5 million compared to $240.6 million in the prior year. Despite lower sales, the company narrowed its gross loss to $1.8 million from $2.4 million and improved its Adjusted EBITDA to a loss of $4.4 million from a loss of $7.1 million year-over-year. The net loss attributable to common stockholders was flat at $12.0 million Q1 2025 vs. Q1 2024 Financial Comparison | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $226.5 million | $240.6 million | | Gross Loss | ($1.8 million) | ($2.4 million) | | SG&A Expenses | $7.2 million | $7.9 million | | Net Loss Attributable to Common Stockholders | ($12.0 million) | ($12.0 million) | | Net Loss per Share | ($0.16) | ($0.17) | | Adjusted EBITDA | ($4.4 million) | ($7.1 million) | - Cash and cash equivalents decreased to **$26.8 million** at March 31, 2025, from **$35.5 million** at December 31, 2024[6](index=6&type=chunk) - As of March 31, 2025, the company had total borrowing availability of **$76.7 million**, comprising **$11.7 million** under its operating line of credit and **$65.0 million** under its term loan facility[6](index=6&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=ALTO%20INGREDIENTS%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The consolidated statement of operations for the three months ended March 31, 2025, details a net loss of $11.7 million on net sales of $226.5 million. This is compared to a net loss of $11.7 million on net sales of $240.6 million in the same period of 2024. The loss from operations improved to $9.0 million from $10.3 million year-over-year Consolidated Statements of Operations (unaudited, in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | Net sales | $ 226,540 | $ 240,629 | | Cost of goods sold | 228,347 | 243,029 | | **Gross loss** | **(1,807)** | **(2,400)** | | Selling, general and administrative expenses | (7,190) | (7,932) | | **Loss from operations** | **(8,997)** | **(10,332)** | | Interest expense, net | (2,729) | (1,634) | | **Net loss** | **$ (11,679)** | **$ (11,725)** | | Net loss per share, basic and diluted | $ (0.16) | $ (0.17) | [Consolidated Balance Sheets](index=5&type=section&id=ALTO%20INGREDIENTS%2C%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Alto Ingredients' balance sheet showed total assets of $402.2 million, a slight increase from $401.4 million at year-end 2024. Total liabilities increased to $188.3 million from $176.4 million, primarily due to a rise in long-term debt. Consequently, total stockholders' equity decreased to $213.9 million from $225.1 million over the quarter Consolidated Balance Sheet Highlights (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$ 153,461** | **$ 153,118** | | Cash and cash equivalents | $ 26,778 | $ 35,469 | | **Total Assets** | **$ 402,209** | **$ 401,438** | | **Total Current Liabilities** | **$ 53,116** | **$ 57,804** | | Long-term debt | $ 110,664 | $ 92,904 | | **Total Liabilities** | **$ 188,289** | **$ 176,375** | | **Total Stockholders' Equity** | **$ 213,920** | **$ 225,063** | [Reconciliation of Adjusted EBITDA to Net Loss](index=7&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA%20to%20Net%20Loss) The company reconciled its GAAP net loss of $11.7 million for Q1 2025 to a non-GAAP Adjusted EBITDA of negative $4.4 million. Key adjustments included adding back interest expense ($2.7 million) and depreciation and amortization ($6.3 million), and subtracting unrealized derivative gains ($1.6 million). This represents an improvement from an Adjusted EBITDA of negative $7.1 million in Q1 2024 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net loss** | **$ (11,679)** | **$ (11,725)** | | Adjustments: | | | | Interest expense | 2,729 | 1,634 | | Unrealized derivatives gains | (1,634) | (3,190) | | Depreciation and amortization expense | 6,266 | 5,728 | | Acquisition-related expense | — | 675 | | **Adjusted EBITDA** | **$ (4,402)** | **$ (7,053)** | [Segment Financials](index=8&type=section&id=Segment%20Financials) In Q1 2025, the Pekin Campus segment's gross profit swung to a loss of $3.1 million from a $4.3 million profit in Q1 2024. In contrast, the Western production segment significantly narrowed its gross loss to $1.3 million from $8.5 million. The Marketing and distribution segment saw its gross profit increase to $3.9 million from $3.5 million year-over-year Segment Gross Profit (Loss) (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Pekin Campus production | $ (3,073) | $ 4,268 | | Marketing and distribution | $ 3,914 | $ 3,532 | | Western production | $ (1,258) | $ (8,460) | | **Total Gross Loss** | **$ (1,807)** | **$ (2,400)** | [Sales and Operating Metrics](index=9&type=section&id=Sales%20and%20Operating%20Metrics) Total alcohol gallons sold in Q1 2025 decreased to 89.6 million from 99.0 million in Q1 2024, driven by lower renewable fuel sales. However, the average sales price per gallon rose to $1.93 from $1.86. Total essential ingredients sold were nearly flat at 310.8 thousand tons. The essential ingredients return as a percentage of corn cost for the Pekin Campus decreased to 48.0%, while the Western production return improved significantly to 49.0% Alcohol Gallons Sold (in millions) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total renewable fuel gallons sold | 65.3 | 72.7 | | Specialty alcohol gallons sold | 24.3 | 26.3 | | **Total gallons sold** | **89.6** | **99.0** | Key Operating Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Average sales price per gallon | $1.93 | $1.86 | | Total corn cost per bushel | $4.81 | $4.92 | | Total Essential Ingredients Sold (thousand tons) | 310.8 | 313.4 | | Consolidated essential ingredients return % | 48.2% | 49.8% | Additional Information This section provides details on the upcoming conference call, the company's use of non-GAAP financial measures, and important safe harbor statements regarding forward-looking information [Conference Call Information](index=2&type=section&id=First%20Quarter%202025%20Results%20Conference%20Call) Alto Ingredients will host a conference call on Wednesday, May 7, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its first-quarter 2025 financial results. The announcement provides details for accessing the live webcast and a telephonic replay, which will be available until May 14, 2025 - A conference call to discuss Q1 2025 results is scheduled for May 7, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time[7](index=7&type=chunk) - Access to the webcast is available on the company's website, and a telephonic replay will be available from May 7 to May 14, 2025, with pass code 8723820[8](index=8&type=chunk) [Use of Non-GAAP Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Measures) The company explains its use of Adjusted EBITDA, a non-GAAP financial measure. It is defined as net income (loss) before interest, taxes, depreciation, amortization, asset impairments, unrealized derivative gains and losses, and acquisition-related expenses. Management believes this measure helps investors assess the company's performance on a period-over-period basis, but cautions it should not be considered in isolation - The company uses **Adjusted EBITDA**, a non-GAAP measure, to provide investors with the same financial information that management uses for performance assessment[9](index=9&type=chunk) - **Adjusted EBITDA** is defined as net income (loss) adjusted for interest, taxes, depreciation & amortization, asset impairments, unrealized derivative gains/losses, and acquisition-related expenses[9](index=9&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement%20under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) This section serves as a legal disclaimer, noting that the report contains forward-looking statements about the company's future performance, cost-saving initiatives, and market opportunities. It warns that actual results could differ materially from these projections due to a variety of risk factors, including economic conditions, raw material costs, regulatory changes, and other risks disclosed in the company's SEC filings - The report contains forward-looking statements concerning projected outlook, performance, cost savings initiatives, and opportunities like E15 adoption and the Illinois Clean Transportation Standard Act[11](index=11&type=chunk) - Actual results may differ materially due to various risk factors, including adverse economic and market conditions, raw material costs, inflation, and regulatory developments, as detailed in the company's Form 10-K[11](index=11&type=chunk)

Core Viewpoint - Alto Ingredients, Inc. reported improved year-over-year gross margin and Adjusted EBITDA for Q1 2025, driven by operational efficiencies from its recent acquisition of Alto Carbonic and a corporate reorganization aimed at cost savings [2][4]. Financial Performance - Net sales for Q1 2025 were $226.5 million, down from $240.6 million in Q1 2024 [8][14]. - Cost of goods sold decreased to $228.3 million from $243.0 million, resulting in a gross loss of $1.8 million compared to a gross loss of $2.4 million in the previous year [8][14]. - Selling, general and administrative expenses were reduced to $7.2 million from $7.9 million [8][14]. - The net loss attributable to common stockholders was $12.0 million, or $0.16 per share, compared to a net loss of $12.0 million, or $0.17 per share, in the prior year [8][14]. Operational Highlights - The acquisition of Alto Carbonic has led to lower combined costs and improved operational coordination, contributing to an expected annual savings of approximately $8 million starting Q2 2025 [2][3]. - The company shifted production to ISCC renewable fuel for European markets, which is experiencing strong demand, partially offsetting the domestic softening of premiums on high-quality alcohol and essential ingredients [3][4]. Cash and Liquidity - Cash and cash equivalents were reported at $26.8 million as of March 31, 2025, down from $35.5 million at the end of 2024 [5][16]. - The company's borrowing availability stood at $76.7 million, including $11.7 million under the operating line of credit and $65.0 million under its term loan facility [5][16]. Market Metrics - Total renewable fuel gallons sold decreased to 65.3 million in Q1 2025 from 72.7 million in Q1 2024 [19]. - The average sales price per gallon for alcohol increased to $1.93 from $1.86 year-over-year [20]. - Essential ingredients sold totaled 310.8 thousand tons, slightly down from 313.4 thousand tons in the previous year [20].

Group 1 - Alto Ingredients, Inc. will release its first quarter 2025 financial results on May 7, 2025, after market close [1] - A conference call will be held at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time, featuring prepared remarks and a Q&A session [1] - The webcast will be archived for one year on the Alto Ingredients website, with a telephonic replay available from May 7 to May 14, 2025 [1] Group 2 - Alto Ingredients, Inc. is a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients [2] - The company serves a diverse range of markets including Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels [2] - More information about the company can be found on its website [2]

Core Points - Alto Ingredients, Inc. announced that two long-standing directors, Douglas L. Kieta and Michael D. Kandris, will not stand for reelection at the 2025 Annual Meeting of Stockholders scheduled for June 25, 2025 [1] - The President and CEO of Alto Ingredients praised the contributions of the departing directors, highlighting their exceptional service and positive impact on the company's culture and operations [2] Company Overview - Alto Ingredients, Inc. is a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, serving various markets including Health, Home & Beauty, Food & Beverage, Industry & Agriculture, Essential Ingredients, and Renewable Fuels [3]

Core Points - Alto Ingredients, Inc. has entered into a letter agreement with the Radoff/Torok Group, which includes provisions for the group to vote in favor of the Board's nominated directors during a specified standstill period [1][2] - The standstill period lasts from the date of the letter agreement until either 30 days before the 2026 Annual Meeting or 120 days before the first anniversary of the 2025 Annual Meeting [1] - The Radoff/Torok Group has also agreed to customary standstill and other provisions as part of the agreement [2] Company Overview - Alto Ingredients, Inc. is a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients [3] - The company serves a diverse range of markets, including Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-21467 ALTO INGREDIENTS, INC. (Exact name of registrant as specified in its charter) | Delaware | 41-2170618 | | --- | --- | | (State ...

Financial Data and Key Metrics Changes - For Q4 2024, the company reported a consolidated net loss of $41.7 million, which included $30.5 million in asset impairments and acquisition-related expenses, compared to a net loss of $18.9 million in Q4 2023 [39] - Adjusted EBITDA for Q4 2024 was negative $7.7 million, a decline from positive $3.5 million in Q4 2023 [39] - The company sold 95.1 million gallons in Q4 2024, an increase from 92.5 million gallons in Q4 2023, but the average sales price per gallon dropped to $1.88 from $2.24 year-over-year [34] Business Line Data and Key Metrics Changes - The company cold idled the Magic Valley facility, leading to a significant impairment charge of $21.4 million for this plant in Q4 2024 [38] - The Eagle Alcohol operations were rationalized, resulting in a reduction of headcount and a focus on turning remaining operations into a profitable service center [16][31] - The Pekin campus production volume increased by 3.8 million gallons over the prior year, demonstrating the effectiveness of maintenance programs [27] Market Data and Key Metrics Changes - Market crush margins declined nearly $0.18, resulting in an $8.7 million adverse impact to gross profit [35] - Low carbon fuel credit prices were down compared to the previous year but showed improvement from Q3 2024 [35] - The company began exporting certified renewable fuel to European markets in Q4 2024, anticipating further expansion in 2025 [29] Company Strategy and Development Direction - The company is considering a range of strategic options, including asset sales and mergers, to maximize shareholder value [12][57] - The acquisition of Kodiak Carbonic for over $7 million is expected to bolster economics and increase asset valuation at the Columbia facility [19] - The company aims to balance production levels between specialty alcohol and ISCC products to maximize margins [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenging market conditions in Q4 2024, with crush margins down compared to the prior quarter and year [12] - The company is optimistic about 2025, citing improved performance at the Pekin wet mill and the synergistic acquisition of the CO2 processing facility [42] - Management emphasized the importance of exceeding customer expectations and maximizing the value of specialty alcohol and essential ingredients [43] Other Important Information - The company expects to save approximately $8 million annually from cost-cutting initiatives, which will improve the bottom-line run rate and manage liquidity [18] - The company recorded $34.6 million in repairs and maintenance expenses in line with its 2024 estimate [41] - The company has a cash balance of $35 million and total loan borrowing availability of $88 million as of December 31, 2024 [41] Q&A Session Summary Question: How is the company planning to balance carbon sequestration versus high-premium carbon dioxide for the beverage industry? - Management indicated that while there are opportunities for carbon sequestration, the unique market conditions in the Pacific Northwest make the carbonic structure beneficial for long-term contracts [48] Question: Is the site certified for the 45Q incentives? - Management stated that the facility is very close to qualifying for the 45Q incentives, with ongoing work needed [50] Question: What is the expected ratio of specialty alcohol sent to the EU versus domestic markets? - Management explained that the pricing varies by country in the EU, and the goal is to continue achieving high volumes while optimizing profitability [52][54] Question: How far along are discussions regarding asset sales or mergers? - Management confirmed that all options are being considered to maximize shareholder value, but specific details on M&A activities were not disclosed [56] Question: What is the timeline for the CCUS project and its potential contributions? - Management indicated that the EPA permit process could take two years, followed by an additional one to two years for construction, potentially leading to contributions by 2029 or 2030 [66]

Financial Data and Key Metrics Changes - The consolidated net loss for Q4 2024 was $41.7 million, compared to a net loss of $18.9 million in Q4 2023, reflecting significant asset impairments and acquisition-related expenses [39] - Adjusted EBITDA for Q4 2024 was negative $7.7 million, a decline from positive $3.5 million in Q4 2023 [39] - The company sold 95.1 million gallons in Q4 2024, an increase from 92.5 million gallons in Q4 2023, but the average sales price per gallon dropped to $1.88 from $2.24 [34] Business Line Data and Key Metrics Changes - The company cold idled the Magic Valley facility, leading to a significant impairment charge of $21.4 million related to this plant [38] - The Eagle Alcohol operations were rationalized, resulting in a 16% reduction in headcount and a focus on turning remaining operations into a profitable service center [16][31] - The Pekin campus production volume increased by 3.8 million gallons over the prior year, demonstrating the effectiveness of maintenance programs [27] Market Data and Key Metrics Changes - Market crush margins declined nearly $0.18, adversely impacting gross profit by $8.7 million [35] - Low carbon fuel credit prices decreased compared to the previous year but showed improvement from Q3 2024 [35] - The company began exporting certified renewable fuel to European markets in Q4 2024, anticipating further expansion in 2025 [29] Company Strategy and Development Direction - The acquisition of Alto Carbonic is expected to bolster economics and increase asset valuation at the Columbia facility, providing a stronger financial foundation [19][43] - The company is considering a range of strategic options, including asset sales and mergers, to maximize shareholder value [12][57] - Ongoing efforts include optimizing CO2 production and pursuing carbon capture and storage (CCS) projects, with a focus on securing financing and community support [22][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenging market conditions in Q4 2024, with a focus on cost-saving initiatives expected to save approximately $8 million annually [18][32] - The company is optimistic about 2025, citing improved performance at the Pekin wet mill and the synergistic acquisition of the CO2 processing facility [42] - Management emphasized the importance of exceeding customer expectations and maximizing the value of specialty alcohol and essential ingredients [43] Other Important Information - The company recorded $34.6 million in repairs and maintenance expenses in line with estimates for 2024 [41] - The cash balance as of December 31, 2024, was $35 million, with total loan borrowing availability of $88 million [41] Q&A Session Summary Question: How is the company planning to balance carbon sequestration versus high-premium CO2 for the beverage industry? - Management indicated that while there are opportunities for carbon sequestration, the unique market conditions in the Pacific Northwest present a significant advantage for CO2 production [48] Question: Is the site certified for 45Q incentives? - Management stated that the facility is close to qualifying for 45Q incentives, with ongoing efforts to meet requirements [50][51] Question: What is the expected ratio of specialty alcohol sent to the EU versus domestic markets? - Management explained that pricing varies by country in the EU, and the flexibility in production allows for optimization of profitability [52][54] Question: How far along are discussions regarding asset sales or mergers? - Management confirmed that all options are being considered to maximize shareholder value, but specific details on M&A activities were not disclosed [56][57] Question: What is the timeline for the CCS project and its potential contributions? - Management indicated that the EPA permit process could take two years, with construction timelines potentially extending to 2029 or 2030 [64][66]

Elevating Essential Products Leading producer of specialty alcohols and high quality ingredients. Q4 2024 INVESTOR PRESENTATION reported on MARCH 5, 2025 1 Safe Harbor Statement Statements and information contained in this communication that refer to or include Alto Ingredients' estimated or anticipated future results or other non- historical expressions of fact are forward-looking statements that reflect Alto Ingredients' current perspective of existing trends and information as of the date of the communic ...