FutureFuel(FF) - 2025 Q2 - Quarterly Results

Company Overview & Executive Summary FutureFuel Corp. provides an overview of its chemical and biofuel operations, detailing Q2 and YTD 2025 financial performance and strategic outlook Company Profile FutureFuel Corp. (NYSE: FF) manufactures custom and performance chemicals and biofuels, specializing in specialty chemicals and biodiesel - FutureFuel Corp. (NYSE: FF) specializes in manufacturing custom and performance chemicals and biofuels, with segments covering proprietary agrochemicals and biodiesel production[2][20] Second Quarter and Six Months 2025 Financial Highlights FutureFuel reported significant Q2 and H1 2025 financial declines, with net losses and negative Adjusted EBITDA, driven by BioDiesel challenges Q2 and Six Months 2025 Financial Highlights (YoY Comparison) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Dollar Change (in thousands) | % Change | Six Months 2025 (in thousands) | Six Months 2024 (in thousands) | Dollar Change (in thousands) | % Change | | :-------------------------- | :---------- | :---------- | :------------ | :------- | :-------------- | :-------------- | :------------ | :------- | | Revenues | $35,673 | $72,409 | $(36,736) | (51)% | $53,211 | $130,690 | $(77,479) | (59)% | | Net (Loss) Income | $(10,416) | $9,571 | $(19,987) | na | $(28,059) | $13,901 | $(41,960) | na | | (Loss) Earnings Per Diluted Share | $(0.24) | $0.22 | $(0.46) | na | $(0.64) | $0.32 | $(0.96) | na | | Adjusted EBITDA | $(9,823) | $6,907 | $(16,730) | na | $(25,880) | $14,015 | $(39,895) | na | CEO Commentary and Business Outlook CEO commentary addresses BioDiesel challenges, plant idling, Chemicals segment growth, and strategic investments for future expansion - BioDiesel segment faced expected downside due to challenging market conditions, historically high input pricing, and initial lack of clarity on IRA 45Z support, leading to a temporary plant idle in June[4][5] - Chemicals segment started slower due to weaker market demand and delayed production post-turnaround, but has successfully expanded its opportunity pipeline and commercialized multiple projects for production by Q4 2025 and Q1 2026[6] - A new production facility is nearing completion, expected to be commissioned in Q3, enabling backward integration and expanded market participation, while the company focuses on cost control and maintaining a strong balance sheet during the BioDiesel downturn[7][9][10] Consolidated Financial Results This section details FutureFuel's condensed consolidated statements of operations, balance sheets, and cash flows for Q2 and H1 2025 Condensed Consolidated Statements of Operations and Net Income FutureFuel reported significant gross and net losses for Q2 and H1 2025, a sharp decline from profits in the prior year periods Condensed Consolidated Statements of Operations and Net Income (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $35,673 | $72,409 | $53,211 | $130,690 | | Cost of goods sold and distribution | $44,440 | $63,752 | $76,541 | $117,026 | | Gross (loss) profit | $(8,767) | $8,657 | $(23,330) | $13,664 | | Selling, general, and administrative expenses | $2,228 | $2,290 | $5,112 | $4,193 | | Research and development expenses | $933 | $916 | $2,324 | $1,822 | | Total operating expenses | $3,161 | $3,206 | $7,436 | $6,015 | | (Loss) income from operations | $(11,928) | $5,451 | $(30,766) | $7,649 | | Interest and dividend income | $1,068 | $1,521 | $2,305 | $4,321 | | Other income, net | $479 | $2,605 | $443 | $2,569 | | (Loss) income before income taxes | $(10,381) | $9,577 | $(28,018) | $14,539 | | Income tax provision | $35 | $6 | $41 | $638 | | Net (loss) income | $(10,416) | $9,571 | $(28,059) | $13,901 | | (Loss) earnings per common share - Basic | $(0.24) | $0.22 | $(0.64) | $0.32 | | (Loss) earnings per common share - Diluted | $(0.24) | $0.22 | $(0.64) | $0.32 | Condensed Consolidated Balance Sheets Total assets decreased to $218.21 million by June 30, 2025, driven by lower cash, receivables, and inventory, with equity also declining Condensed Consolidated Balance Sheets (Dollars in thousands) | Asset/Liability/Equity | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $95,152 | $109,541 | | Accounts receivable, net | $10,946 | $21,896 | | Inventory, net | $9,620 | $20,643 | | Total current assets | $128,751 | $164,786 | | Property, plant and equipment, net | $84,610 | $78,538 | | Total Assets | $218,212 | $247,691 | | Total current liabilities | $30,939 | $33,307 | | Total liabilities | $39,988 | $41,870 | | Total Stockholders' Equity | $178,224 | $205,821 | Consolidated Statements of Cash Flows Net cash used in operating activities for H1 2025 was $0.18 million, a significant decrease, with overall cash declining by $14.39 million Consolidated Statements of Cash Flows (Six Months Ended June 30, Dollars in thousands) | Cash Flow Activity | 2025 | 2024 | | :------------------------------------------ | :--------- | :---------- | | Net cash (used in) provided by operating activities | $(183) | $15,588 | | Net cash used in investing activities | $(8,585) | $(5,312) | | Net cash used in financing activities | $(5,621) | $(114,660) | | Net change in cash and cash equivalents | $(14,389) | $(104,384) | | Cash and cash equivalents at end of period | $95,152 | $115,060 | Segment Performance This section details the financial performance of FutureFuel's Chemical and Biofuel segments for Q2 and H1 2025 Chemical Segment Performance The Chemicals segment faced slower Q2 2025 demand and production delays, but expanded its project pipeline, despite revenue and gross profit declines - The Chemicals segment started Q2 slower due to weaker market demand and delayed production following a turnaround[6] - The company has successfully expanded its chemicals business opportunity pipeline with new projects and commercialized multiple projects, with production expected to begin by the end of Q4 2025 and in Q1 2026[6] Chemical Segment Revenue and Gross Profit (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Chemical revenue | $16,619 | $19,236 | $25,984 | $3