Alto Ingredients(ALTO) - 2025 Q3 - Quarterly Results

Financial Performance - Gross profit for Q3 2025 was $23 million, an increase of $18 million compared to Q3 2024[1][2] - Net income for Q3 2025 was $14 million, improving by $17 million from a net loss of $2.8 million in Q3 2024, resulting in earnings of $0.19 per share[1][10] - Adjusted EBITDA for Q3 2025 was $21 million, growing by $9 million compared to Q3 2024[1][2] - Net income for the three months ended September 30, 2025, was $14.2 million, compared to a loss of $2.4 million in the same period of 2024[20] - Adjusted EBITDA for the nine months ended September 30, 2025, was $16.7 million, a significant improvement from a loss of $0.8 million in the same period of 2024[20] Sales and Revenue - Net sales for Q3 2025 were $241 million, down from $251.8 million in Q3 2024, representing a decrease of approximately 4.5%[4] - Total net sales reported for the three months ended September 30, 2025, were $240.99 million, down from $251.81 million in Q3 2024, reflecting a decrease of about 4.5%[24] - Total renewable fuel gallons sold decreased to 66.8 million gallons in Q3 2025 from 74.3 million gallons in Q3 2024, representing a decline of approximately 10.5%[21] Costs and Expenses - Cost of goods sold decreased to $217.5 million in Q3 2025 from $245.9 million in Q3 2024, a reduction of about 11.5%[4] - Selling, general and administrative expenses were reduced to $6.5 million in Q3 2025 from $7.5 million in Q3 2024, a decrease of approximately 13.3%[4] - The consolidated cost per bushel of corn was $4.55 in Q3 2025, down from $4.68 in Q3 2024, reflecting a decrease of about 2.8%[21] Market and Production - The average market price for ethanol per gallon rose to $1.84 in Q3 2025, compared to $1.81 in Q3 2024, indicating a slight increase[22] - Total essential ingredients sold decreased to 319.1 thousand tons in Q3 2025 from 391.4 thousand tons in Q3 2024, a decline of approximately 18.4%[22] - Gross profit for the Pekin Campus production segment increased to $18.92 million in Q3 2025 from $6.17 million in Q3 2024, showing a substantial improvement[24] Cash and Debt - Cash and cash equivalents at September 30, 2025, were $32.5 million, down from $35.5 million at December 31, 2024[6] - The company has $85 million in borrowing availability as of September 30, 2025, including $20 million under its operating line of credit[6] - Long-term debt increased to $100.6 million as of September 30, 2025, compared to $92.9 million as of December 31, 2024, representing an increase of approximately 8.3%[19] - The total stockholders' equity as of September 30, 2025, was $222.4 million, a slight decrease from $225.1 million as of December 31, 2024[19] Strategic Initiatives - The 2025 Carbonic acquisition is expected to enhance CO2 utilization to meet growing demand for premium liquid CO2[3] - The company is focused on generating Section 45Z tax credits on domestic renewable fuel sales and is exploring additional methods to lower carbon intensity[3]