Alto Ingredients (ALTO) Q2 2026 earnings summary

Executive summary

• Achieved fourth consecutive quarter of positive gross profit, operating income, net income, and adjusted EBITDA, reflecting consistent profitability and successful diversification, driven by strong domestic demand, improved margins, and strategic initiatives.

• Strategic focus on a diversified operating model and product portfolio enabled flexibility to shift production, capture premium value, and support resilience through commodity cycles.

• Completed key capital projects, including Pekin dry mill debottlenecking (8% capacity increase), and advanced CO2 monetization initiatives, positioning for additional 45Z credits.

• Management remains confident in sustainable earnings and long-term shareholder value, supported by disciplined execution and a new $50 million at-the-market equity program.

• Robust export and domestic demand, improved essential ingredient values, and favorable crop conditions contributed to strong results.

Financial highlights

• Net sales for Q2 2026 were $245.7 million, up from $218.4 million year-over-year; ethanol and specialty alcohol sales totaled 88.5 million gallons at an average price of $2.15 per gallon.

• Gross profit reached $16.6 million (6.8% margin), reversing a $1.9 million loss in Q2 2025; essential ingredients return improved to 51.6%.

• Net income attributable to common stockholders was $11.4 million ($0.15/share), compared to a net loss of $11.3 million (-$0.15/share) in Q2 2025.

• Adjusted EBITDA was $23.7 million, up from negative $0.2 million, an improvement of $23.9 million year-over-year.

• Ended Q2 with $24 million in cash and $106 million in borrowing availability; capital expenditures were $10.6 million for the quarter.

Outlook and guidance

• On track to increase production volumes in 2026 over 2025, with full benefit of Pekin capacity expansion expected in Q4.

• Expect to generate a minimum of $15 million in 45Z tax credit income for 2026, with potential upside from additional qualifying volumes and low-carbon initiatives.

• Continued focus on high-return, low-capital projects, disciplined capital allocation, and leveraging the $50 million ATM equity program for growth.