Summary of Alto Ingredients Conference Call - October 21, 2025 Company Overview - **Company**: Alto Ingredients (NasdaqCM:ALTO) - **Industry**: Renewable fuels, ethanol production, and related products Key Points and Arguments Company Evolution and Strategy - Alto Ingredients began as a small ethanol brokering firm 25 years ago and evolved into a renewable fuel ethanol producer with multiple plants on the West Coast [5][6] - The company faced challenges due to increased corn costs, leading to the sale of two California facilities and idling the Burley, Idaho plant [6][8] - A shift towards high protein and corn oil expansion technology was initiated, but market conditions led to idling the facility [7][9] - The acquisition of a liquid CO2 processing facility has stabilized earnings and contributed positively to the portfolio [10][12] Diversification and Product Portfolio - Alto Ingredients diversified its operations by acquiring plants in the Midwest, allowing entry into various markets such as industrial, pharmaceutical, and beverage [11][12] - The PEAKIN campus includes facilities capable of producing renewable fuels, high-quality alcohols, and various protein products, enhancing product mix and market flexibility [12][13] - The company rebranded in 2021 to reflect its broader product offerings beyond ethanol [13] Financial Performance and Cost Management - The company has focused on improving profitability by reducing expenses, including an $8 million annual reduction through staffing adjustments [14] - Integration of Eagle Alcohol's distribution center with Kennergy marketing segment has eliminated redundancies and improved customer service [15] Growth Opportunities - CO2 utilization is a significant growth opportunity, with the Columbia facility capable of processing 170,000 tons of CO2 annually [16][17] - Regulatory changes, such as the 45Z tax credits, are expected to enhance profitability, with potential earnings of $4 million to $8 million from the Columbia facility starting in 2025 [22][23] - The shift to E15 blends could increase demand for ethanol by 50%, providing a substantial market opportunity [25][26] Regulatory Environment - Positive regulatory changes, including support for E15 and 45Z credits, are seen as tailwinds for the industry [21][25] - The company is assessing the impact of recent regulations on carbon capture projects, particularly in Illinois [20][30] Market Dynamics - The demand for CO2 is increasing, particularly in the beverage sector, with limited competition in the West Coast market [31] - The company is exploring opportunities to maximize the value of its CO2 production through investments in capture and compression equipment [18][19] Additional Important Information - The company has shifted production focus from renewable fuels to high-quality alcohols, which currently yield higher margins [29] - Alto Ingredients is dedicated to operational excellence and strategic diversification to capture market opportunities [29] This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, financial performance, growth opportunities, and the regulatory landscape affecting its operations.

Core Viewpoint - Air T, Inc. (AIRT) reported mixed financial results for the fiscal year ended June 30, 2025, with revenue growth but increased net losses, highlighting both strengths in certain segments and weaknesses in others [1][2][7]. Revenue and Earnings Performance - AIRT reported revenues of $70.9 million for Q1 fiscal 2026, a 6.7% increase from $66.4 million in the prior-year quarter [2] - The company posted a net loss of $1.6 million, compared to a loss of $0.3 million in the same quarter last year, with loss per share widening to $0.61 from $0.12 [2] - Operating income improved to $0.4 million from a loss of $0.6 million in the prior-year quarter [2] Segment Results - Ground Support Equipment and Digital Solutions showed strong contributions, while Commercial Aircraft, Engines, and Parts experienced weakness [3] - Overnight Air Cargo revenues increased by 0.7% to $30.6 million, but adjusted EBITDA decreased by 17.2% to $1.6 million due to lower maintenance margins [5] - Ground Support Equipment revenues surged by 104.9% to $15.1 million, with adjusted EBITDA turning positive at $1.4 million from a loss of $0.5 million [5] - The Commercial Aircraft, Engines, and Parts segment saw revenues decline by 16.3% to $21.9 million, primarily due to weaker component sales, with adjusted EBITDA down 54.7% to $0.8 million [6] - Digital Solutions revenues rose by 24.9% to $2.1 million, narrowing adjusted EBITDA loss to $0.1 million from $0.3 million [6] Key Business Metrics - Adjusted EBITDA was $1.5 million, up 71.1% from $0.9 million in the prior year [4] - Investment balance in equity method investees increased to $19.9 million from $19 million at the end of March 2025 [4] Management Commentary - Chairman and CEO Nick Swenson expressed satisfaction with the company's performance and highlighted strategic initiatives for long-term value creation, particularly in Ground Support Equipment and Digital Solutions [7] Factors Influencing Performance - Revenue growth was driven by strong demand for deicing trucks in Ground Support Equipment, which more than doubled sales compared to the prior year [8] - Overnight Air Cargo performance remained steady, supported by FedEx-related operations, although profitability declined due to lower-margin maintenance activities [8] - Digital Solutions benefited from customer acquisition momentum in subscription software [8] Expense and Non-Operating Results - Consolidated operating expenses increased by 5.1% year over year, mainly due to higher costs in Ground Support Equipment [9] - Non-operating results were less favorable, with a non-operating loss of $1.3 million compared to income of $0.7 million in the prior year, attributed to higher interest expenses and weaker contributions from equity method investments [9] Strategic Developments - On May 15, 2025, AIRT's subsidiary Mountain Air Cargo acquired Royal Aircraft Services for $1.2 million, integrating it into the Overnight Air Cargo segment [12] - On July 15, 2025, Contrail's subsidiary sold two Airbus A321 aircraft for over $18 million, transferring lease obligations to the buyer, reflecting ongoing portfolio restructuring [12]