We last wrote about Future Fuel Corp. ( FF ) in October 2024, when we maintained our bullish stance on the Biofuels and Chemicals-related outfit. As outlined in previous commentary, the company's generous dividend (which, in real terms, was significantlyIndividual investor with a keen interest in deriving income from investment setups. We do this by buying undervalued profitable stocks with strong balance sheets & minimal debt. Furthermore, when the opportunity arises, we like to write calls against our pos ...

Core Viewpoint - FutureFuel Corp. has declared a cash dividend of $0.06 per share for the first quarter of 2026 and extended its share repurchase program for an additional 24 months [1] Company Overview - FutureFuel is a leading manufacturer of diversified chemical products, specialty chemical products, and biofuels [2] - The company produces custom chemicals for specific customers and performance chemicals for multiple customers [2] - FutureFuel's custom chemicals include proprietary intermediates and chlorinated polyolefin adhesion promoters [2] - The performance chemicals portfolio includes polymer modifiers and small-volume specialty chemicals [2] - The biofuels segment primarily focuses on the production and sale of biodiesel [2]

Company Overview - FutureFuel Corp. is a manufacturer of custom and performance chemicals and biofuels [6] - The company produces specialty chemicals for specific customers and multi-customer specialty chemicals, as well as biodiesel in its biofuels segment [6] Board Changes - As of December 4, 2025, the Board of Directors increased its size to nine members and appointed Roeland Polet as a Class A member [1] - Roeland Polet, who has been the Chief Executive Officer since September 3, 2024, will also serve as the Chairman of the Board, replacing Donald C. Bedell, who will remain a Board member [4][5] - G. Bruce Greer has been appointed as Lead Independent Director to work alongside Mr. Polet [5] Leadership Background - Roeland Polet has extensive experience in senior leadership roles, including his previous position as CEO of DSM Materials Businesses from 2019 to 2023 [2] - His background includes leadership roles at Valspar Corporation, Celanese Corporation, and Carbolite Foods, with global business experience across the United States, Asia, and Europe [2]

Core Insights - Future Fuels Inc. has initiated the permitting process for drilling at its 100%-owned Hornby Basin Uranium Project located approximately 95 kilometers southwest of Kugluktuk, Nunavut [1] Company Developments - The company has begun submitting the required documentation for an exploration program at the Hornby Project, which is set to commence in summer 2026 [1]

Revenue and Profitability - Revenue for the three months ended September 30, 2025, was $22,689, a decrease of $28,451 or 56% compared to $51,140 in the same period of 2024[85] - Net loss for the three months ended September 30, 2025, was $9,327, representing an increase in loss of $8,132 or 681% compared to a net loss of $1,195 in the same period of 2024[85] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(32,715), a decrease of $45,757 compared to $13,042 in the same period of 2024[85] - Gross profit for the three months ended September 30, 2025, decreased by $7,214 compared to the same period in 2024, primarily due to reduced throughput from adverse market conditions[93] - Revenues for the three months ended September 30, 2025, decreased by 13% or $2,350 to $15,578 compared to $17,928 in the same period of 2024[100] - Chemical revenue for the nine months ended September 30, 2025, decreased by 25% or $13,661 to $41,562 compared to $55,223 in the same period of 2024[100] - Biofuels revenue for the three months ended September 30, 2025, decreased by 79% or $26,101 to $33,212 compared to $7,111 in the same period of 2024[105] - Biofuels revenue for the nine months ended September 30, 2025, decreased by 73% or $92,269 to $34,338 compared to $126,607 in the same period of 2024[106] - Gross loss for the chemical segment was $4,412 for the three months ended September 30, 2025, worsening by $7,819 compared to the same period in 2024[104] - Gross loss for the biofuel segment was $2,419 for the three months ended September 30, 2025, a decrease in gross loss of $605 from the comparative period in 2024[108] Cash Flow and Financing - Cash used in operating activities was $1,299 for the nine months ended September 30, 2025, compared to cash provided of $41,415 in the same period of 2024[120] - Cash used in investing activities increased to $14,426 for the nine months ended September 30, 2025, from $10,176 in the same period of 2024[121] - Cash used in financing activities was $8,256 for the nine months ended September 30, 2025, significantly lower than $117,285 in the same period of 2024[122] - The company believes existing cash balances and cash flow from operating activities will be sufficient to fund operations and capital requirements for the foreseeable future[119] - The company has a credit agreement with a syndicated group of commercial banks for $75 million, which terminates on February 21, 2030[124] - The company intends to fund future capital requirements from cash flow and existing cash, without the need to issue securities[125] - The company has accumulated excess working capital, some of which has been distributed as dividends[127] Dividends - Regular cash dividends of $0.06 per share were paid in each quarter of 2025 and 2024, totaling $2,628 thousand and $2,626 thousand respectively[126] - A special dividend of $2.50 per share was paid on April 9, 2024, amounting to $109,408 thousand[126] Market Conditions and Risks - The biofuel segment was significantly impacted by uncertainty surrounding the Clean Fuel Production Credit (CFPC), leading to idling of the biodiesel production line[92] - Other income decreased by $1,309 in the three months ended September 30, 2025, primarily due to a reduction in interest income[96] - The EPA proposed a rule that could increase RINs for biomass-based diesel from 5.36 billion in 2025 to 7.12 billion in 2026 and 2027, which may materially affect the company's operations[82] - The Budget Reconciliation Act of 2025 reduced the tax credit for sustainable aviation fuel from $1.75 per gallon to $1.00 per gallon effective January 1, 2026[83] - A hypothetical adverse 10% change in the average price of biodiesel feedstocks would result in a gross profit decrease of $2,839 thousand, representing a 9.4% decrease[137] - The company had no borrowings at September 30, 2025, indicating no exposure to interest rate risk for that period[138] - The company engages in transactions to mitigate market risks associated with commodity prices, including futures contracts and options[129] - The company has not experienced material adverse impacts from general economic inflation, passing some price increases to customers[130] Derivative Instruments - The fair value of derivative instruments was a net asset of $169 thousand at September 30, 2025, compared to a net liability of $235 thousand at December 31, 2024[134]

Financial Performance - Revenues for Q3 2025 were $22.7 million, a decrease of 56% or $28.5 million compared to $51.1 million in Q3 2024[9] - Net loss for Q3 2025 was $9.3 million, or $0.21 per diluted share, down from net income of $1.2 million, or $0.03 per diluted share in Q3 2024[9] - Adjusted EBITDA for Q3 2025 was ($6.8) million, down from ($1.0) million in Q3 2024[9] - For the first nine months of 2025, revenues were $75.9 million, a decrease of 58% or $105.9 million compared to $181.8 million in the same period of 2024[9] - Net loss for the nine months ended September 30, 2025, was $(37.386) million, a significant decline from net income of $12.706 million for the same period in 2024[35] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(32.715) million, compared to $13.042 million for the same period in 2024[37] - The company reported a basic loss per share of $(0.21) for the three months ended September 30, 2025, compared to a loss of $(0.03) for the same period in 2024[33] Cash and Liquidity - Cash and cash equivalents totaled $85.6 million as of September 30, 2025, down from $109.5 million as of December 31, 2024[23] - Cash and cash equivalents decreased to $85.560 million as of September 30, 2025, down from $109.541 million at the beginning of the period[35] - Total current liabilities decreased to $25.321 million as of September 30, 2025, from $33.307 million as of December 31, 2024[31] - Total stockholders' equity decreased to $169.123 million as of September 30, 2025, from $205.821 million as of December 31, 2024[31] Capital Expenditures and Investments - Capital expenditures for the first nine months of 2025 were $14.8 million, an increase from $10.6 million in the same period of 2024[22] - A major capital project was completed in Q3 2025, enabling backward integration into a key raw material, with production coming online in Q4 2025[8] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $3.179 million, compared to $2.803 million for the same period in 2024, reflecting a 13.4% increase[33] Future Outlook - The company has achieved a third consecutive quarter of reduced net losses, improving from $17.6 million in Q1 to $9.3 million in Q3 2025[4] - FutureFuel has built a strong backlog of new projects in its chemicals business, expected to ramp up production in 2026[7] Dividends - The company paid a regular quarterly cash dividend of $0.06 per share in Q3 2025, with another $0.06 per share expected in December 2025[12] Market and Asset Valuation - The company held 0.4 million RINs with a fair market value of $361 as of September 30, 2025, down from 5.0 million RINs valued at $2.556 million in the previous year[39] Revenue Breakdown - Total revenue for the three months ended September 30, 2025, was $22.689 million, a decrease of 55.7% compared to $51.140 million for the same period in 2024[33] - Gross loss for the three months ended September 30, 2025, was $(6.831) million, compared to a gross profit of $0.383 million in the same period of 2024[33]

Financial Performance - FutureFuel Corp. reported a net loss of $9.3 million or $0.21 per diluted share for Q3 2025, a significant decline from a net income of $1.2 million or $0.03 per diluted share in Q3 2024 [1][10] - Revenues for Q3 2025 were $22.7 million, down 56% from $51.1 million in Q3 2024 [10][41] - Adjusted EBITDA for Q3 2025 was ($6.8) million, compared to ($1.0) million in Q3 2024 [10][37] Strategic Initiatives - The company has achieved three consecutive quarters of reduced net losses, decreasing from $17.6 million in Q1 to $10.4 million in Q2, and further to $9.3 million in Q3 2025 [3] - FutureFuel is focusing on managing its cost structure amidst challenges in the biodiesel market while investing in plant reliability and other critical areas to drive market share and sustainable revenue growth [3][8] Market Conditions - The U.S. is experiencing a record soybean oil harvest, which may lead to decreased input costs for biodiesel production [4] - The company is gaining a clearer understanding of regulatory support under IRA 45Z for biodiesel, which is expected to positively impact operations [3] Chemical Segment Performance - The chemicals business has shown improvement in demand during Q3 2025, with several processes ramping up to full capacity [5] - FutureFuel has built a strong backlog of new projects in its chemicals business, expected to lead to increased production at its Batesville site in 2026 [6] Operational Changes - The company idled its biodiesel production line in July 2025 due to weak market conditions [16] - FutureFuel completed a major capital project that will enable backward integration into a key raw material, with production expected to come online in Q4 2025 [7] Financial Position - Cash and cash equivalents totaled $85.6 million as of September 30, 2025, down from $109.5 million at the end of 2024 [21] - Capital expenditures increased to $14.8 million in the first nine months of 2025, compared to $10.6 million in the same period in 2024, primarily due to the construction of a custom chemical plant [20]

Core Viewpoint - FutureFuel Corp. is set to release its third quarter 2025 financial results on November 10, 2025, after market close [1] Company Overview - FutureFuel is a leading manufacturer of diversified chemical products, specialty chemical products, and biofuel products [2] - The chemicals business includes custom chemicals for specific customers and performance chemicals for multiple customers [2] - Custom chemicals include proprietary intermediates for major chemical companies and chlorinated polyolefin adhesion promoters [2] - Performance chemicals consist of polymer (nylon) modifiers and various small-volume specialty chemicals for diverse applications [2] - The biofuels segment primarily focuses on the production and sale of biodiesel [2]

Core Insights - FutureFuel Corp. has announced updates regarding its business operations, including new production capabilities and strategic decisions related to biodiesel and corporate structure [1]. Chemicals - The company has initiated a new specialty chemical production investment, which will enhance vertical integration and provide products to the market. Production volume is expected to increase throughout Q4 2025, contributing significantly to sales starting in Q1 2026 [2]. Biodiesel - In June 2025, FutureFuel decided to idle its biodiesel production due to regulatory uncertainties and high input costs. However, recent clarity regarding support under IRA 45Z and improved input market conditions have led to optimism about restarting biodiesel production in Q4 2025 [3]. Headquarters Location - FutureFuel will close its remote headquarters in St. Louis, Missouri, consolidating all corporate activities and key personnel at its Batesville, Arkansas production facility to streamline operations [4]. Company Overview - FutureFuel is a manufacturer of diversified chemical products, including custom and performance chemicals, as well as biofuels. Its product portfolio includes specialty chemicals for specific customers and multi-customer applications, with a focus on biodiesel production in its biofuels segment [5].

Core Insights - FutureFuel Corp. has significantly underperformed the broader market across various time frames, with a decline of 71% over the last decade compared to a 229% increase in the S&P 500 [1] - Over the past five years, FutureFuel's stock has decreased by 67%, while the S&P 500 has risen by 96% [1] Company Performance - The stock's long-term performance indicates a substantial gap between FutureFuel Corp. and the S&P 500, highlighting potential concerns regarding the company's competitiveness and market positioning [1]