Alto Ingredients (ALTO) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 profitability with net income between $4.0 million and $4.3 million ($0.05 per share), reversing a prior-year loss, driven by higher export sales, improved crush margins, and Section 45Z tax credits.

• Adjusted EBITDA improved to $4.7 million from negative $4.4 million year-over-year.

• Gross profit rose to $9.2 million from a loss of $1.8 million, with margin improving to 4.1% from -0.8%.

• Strategic realignment, operational improvements, and capital projects enhanced earning power and sustainability.

• Profitability achieved even excluding tax credits, supported by operational upgrades and diversification.

Financial highlights

• Net sales were $224.7 million, down slightly year-over-year due to lower volumes, partially offset by higher average sales prices.

• Cash and equivalents at quarter-end ranged from $20 million to $21.6 million; working capital improved to $116.9 million.

• Long-term debt was $73.1 million, with $16.6 million in principal repaid during the quarter.

• Borrowing availability at quarter-end was $94.3 million, including $29.3 million under the operating line and $65 million under the term loan.

• Cash flow from operations was $4.2 million, reversing a prior-year outflow.

Outlook and guidance

• Expect to spend $25 million on capital expenditures in 2026, focused on maintenance, optimization, and capacity projects.

• Anticipate qualifying ~90 million gallons for Section 45Z credits, targeting ~$15 million in net proceeds.

• Focus on improving utilization, reliability, and monetizing biogenic CO2, while monitoring macroeconomic and geopolitical risks.

• Optimism for continued strong margins, supported by export demand and E15 adoption, but cautious due to potential oversupply and market volatility.

• Advancing commercial strategy to capture premiums and maximize 45Z value.