Q2 2026 Gross Profit of $16.6 Million Increased $18.6 Million
Q2 2026 Net Income of $11.4 Million, or $0.15 per Share, Improved $22.7 Million
Q2 2026 Adjusted EBITDA of $23.7 Million Improved $23.9 Million
PEKIN, Ill., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of renewable fuels, essential ingredients and specialty alcohols, reported its financial results for the quarter ended June 30, 2026.
"Alto's second quarter results mark the fourth consecutive quarter of positive gross profit, income from operations, net income and adjusted EBITDA. We have maintained consistent profitability over this period even before the contribution of earnings from 45Z tax credits. These results demonstrate the benefits of our diversification strategy, which gives us the flexibility to shift production toward the most attractive end markets and capture premium-value opportunities," said President and Chief Executive Officer Bryon McGregor.
"Having begun a strategic realignment three years ago, we now have a diversified product portfolio, a leaner cost structure and an operating model capable of generating positive adjusted EBITDA through commodity cycles while providing meaningful upside when market conditions are favorable," added Mr. McGregor. "In addition, we have numerous initiatives in process and ahead of us to expand capacity, optimize CO(2) production, improve efficiencies and increase our earnings from 45Z tax credits."
Mr. McGregor concluded, "Our second quarter and latest 12-month financial results, combined with our ability to execute on high-return opportunities, reinforce our confidence in Alto's ability to generate sustainable earnings and create long-term shareholder value."
Rob Olander, Chief Financial Officer, added that, "Today, we established a $50 million at-the-market equity program. Alongside our available borrowing capacity and operating cash flow, the ATM program provides additional financial flexibility and a prudent, low-cost tool to effectively access equity capital. We see a number of attractive, high-return organic opportunities across our platform. Having the ATM program in place allows us to remain prepared to pursue those opportunities when expected returns, market conditions and shareholder interests align. Any use of the program would be disciplined, measured and evaluated against other sources of available capital."
Financial Results for the Three Months Ended June 30, 2026 Compared to 2025
-- Net sales were $245.7 million, compared to $218.4 million.
-- Cost of goods sold was $229.1 million, compared to $220.4 million.
-- Gross profit was $16.6 million, compared to a gross loss of $1.9 million.
-- Selling, general and administrative expenses were $8.0 million, compared
to $6.2 million.
-- Interest expense was $2.0 million, compared to $2.8 million.
-- Net income attributable to common stockholders was $11.4 million, or
$0.15 per diluted share, compared to a net loss of $11.3 million, or
$0.15 per share.
-- Adjusted EBITDA was $23.7 million, compared to negative $0.2 million, an
increase of $23.9 million.
Cash and cash equivalents at June 30, 2026 were $24.0 million, compared to $23.4 million at December 31, 2025. The company's borrowing availability at June 30, 2026 was $106 million, including $41 million under the company's operating line of credit and $65 million under its term loan facility.
Second Quarter 2026 Results Conference Call
Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, August 5, 2026, and will deliver prepared remarks via webcast followed by a question-and-answer session.
To receive a number and unique PIN by email, register here. To dial directly up to 20 minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. Alternatively, the webcast for the conference call can be accessed from Alto Ingredients' website at www.altoingredients.com and will be available for one year.
Use of Non-GAAP Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision (benefit) for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense, excess insurance proceeds and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company's performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company's results as reported under GAAP.
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of renewable fuels, essential ingredients and specialty alcohols. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients' estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients' current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as "anticipate," "believe," "plan," "could," "should," "estimate," "expect," "forecast," "outlook," "guidance," "intend," "may," "might," "will," "possible," "potential," "predict," "project," or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients' expectations around expanding production capacity; profitability and executing on opportunities to grow earnings, including through improved utilization and reliability, optimization and capital projects, and monetizing additional Section 45Z tax credits; the use and benefits of its ATM program, including returns that Alto Ingredients may generate from using funds, if any, from the program to make capital investments; and Alto Ingredients' other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients' plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients' current expectations depending upon a number of factors affecting Alto Ingredients' business and plans. These factors include, among others, adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company's products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints, including from tariffs; prevailing market prices and trading volumes of Alto Ingredients' stock; Alto Ingredients' ability, if desirable, to execute on its ATM program; Alto Ingredients' ability to timely and within budget execute on its optimization and capital projects; regulatory developments and Alto Ingredients' ability to successfully pursue and secure opportunities, and realize the expected results, under existing and new legislation, including the Section 45Z regulations, and to successfully apply for and receive anticipated credit amounts. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients' products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients' facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients' filings with the Securities and Exchange Commission including, specifically, those factors set forth in the "Risk Factors" section contained in Alto Ingredients' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 8, 2026.
Company IR and Media Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755
Investorrelations@altoingredients.com
IR Agency Contact:
Jody Burfening, Alliance Advisors Investor Relations, 212-838-3777,
Investorrelations@altoingredients.com
ALTO INGREDIENTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ------------------------------
2026 2025 2026 2025
------- ------- ------- -------
Net sales $ 245,698 $ 218,436 $ 470,378 $ 444,976
Cost of goods
sold 229,062 220,373 444,523 448,720
------- ------- ------- -------
Gross profit
(loss) 16,636 (1,937) 25,855 (3,744)
Selling, general
and
administrative
expenses 8,017 6,171 14,716 13,361
------- ------- ------- -------
Income (loss)
from operations 8,619 (8,108) 11,139 (17,105)
Interest expense,
net (1,960) (2,811) (4,158) (5,540)
Transferable tax
credits, net 5,112 -- 9,012 --
Other expense,
net (70) (78) (21) (31)
------- ------- ------- -------
Income (loss)
before provision
for income
taxes 11,701 (10,997) 15,972 (22,676)
Provision for
income taxes -- -- -- --
------- ------- ------- -------
Net income (loss) $ 11,701 $ (10,997) $ 15,972 $ (22,676)
Preferred stock
dividends $ (315) $ (315) $ (627) $ (627)
------- ------- ------- -------
Net income (loss)
attributable to
common
stockholders $ 11,386 $ (11,312) $ 15,345 $ (23,303)
======= ======= ======= =======
Net income (loss)
per share,
basic $ 0.15 $ (0.15) $ 0.20 $ (0.31)
======= ======= ======= =======
Net income (loss)
per share,
diluted $ 0.15 $ (0.15) $ 0.20 $ (0.31)
======= ======= ======= =======
Weighted-average
shares
outstanding,
basic 75,588 74,611 75,191 74,232
======= ======= ======= =======
Weighted-average
shares
outstanding,
diluted 77,071 74,611 76,609 74,232
======= ======= ======= =======
ALTO INGREDIENTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)
June 30, December 31,
ASSETS 2026 2025
------------------------- ----------------- ----------------
Current Assets:
Cash and cash
equivalents $ 23,962 $ 23,415
Restricted cash -- 2,258
Accounts receivable,
net 67,889 55,069
Inventories 51,609 61,676
Transferable tax
credits, net 8,265 7,500
Derivative instruments 4,173 525
Other current assets 4,926 5,474
----------------- ----------------
Total current assets 160,824 155,917
----------------- ----------------
Property and equipment,
net 197,479 198,501
----------------- ----------------
Other Assets:
Right of use operating
lease assets, net 21,492 16,931
Intangible assets, net 7,264 7,574
Other assets 10,011 9,863
----------------- ----------------
Total other assets 38,767 34,368
----------------- ----------------
Total Assets $ 397,070 $ 388,786
================= ================
ALTO INGREDIENTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(unaudited, in thousands, except par value)
LIABILITIES AND June 30, December 31,
STOCKHOLDERS' EQUITY 2026 2025
----------------------------- ----------------- -----------------
Current Liabilities:
Accounts payable $ 24,219 $ 14,509
Accrued liabilities 16,424 16,691
Current portion --
long-term debt -- 16,600
Current portion --
operating leases 4,916 4,958
Derivative instruments 277 1,067
Other current liabilities 4,561 5,246
--------- ---------
Total current liabilities 50,397 59,071
Long-term debt, net 60,469 63,027
Operating leases, net of
current portion 17,553 13,012
Other liabilities 8,774 8,435
---------- ---------
Total Liabilities 137,193 143,545
---------- ---------
Stockholders' Equity:
Preferred stock, $0.001 par value;
10,000 shares authorized; Series
A: no shares issued and
outstanding as of June 30, 2026
and December 31, 2025 Series B:
927 shares issued and outstanding
as of June 30, 2026 and December
31, 2025 1 1
Common stock, $0.001 par value;
300,000 shares authorized; 77,576
and 77,307 shares issued and
outstanding as of June 30, 2026
and December 31, 2025,
respectively 78 77
Non-voting common stock, $0.001
par value; 3,553 shares
authorized; 1 share issued and
outstanding as of June 30, 2026
and December 31, 2025 -- --
Additional paid-in capital 1,051,085 1,051,795
Accumulated other comprehensive
income 5,461 5,461
Accumulated deficit (796,748) (812,093)
--------- ---------
Total Stockholders' Equity 259,877 245,241
--------- ---------
Total Liabilities and Stockholders'
Equity $ 397,070 $ 388,786
========= =========
Reconciliation of Adjusted EBITDA to Net Income (Loss)
--------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------------
(in thousands)
(unaudited) 2026 2025 2026 2025
-------------------- ------ ------- ------ -------
Net income (loss) $11,701 $(10,997) $ 15,972 $(22,676)
Adjustments:
Interest expense 1,960 2,811 4,158 5,540
Interest income (87) (67) (165) (150)
Unrealized
derivative losses
(gains) 3,634 2,117 (4,439) 483
Acquisition-related
income -- (460) -- (460)
Depreciation and
amortization
expense 6,452 6,365 12,819 12,631
------ ------- ------ -------
Total adjustments 11,959 10,766 12,373 18,044
------ ------- ------ -------
Adjusted EBITDA $23,660 $ (231) $ 28,345 $ (4,632)
====== ======= ====== =======
Segment Financials(in thousands) (unaudited)
---------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ----------------------
2026 2025 2026 2025
------- ------- ------- -----------
Net Sales
-------------------
Alcohol sales $ 114,370 $ 94,155 $222,321 $201,390
Essential
ingredient
sales 45,071 39,565 89,064 84,183
Intersegment
sales 229 183 492 481
------- ------- ------- -------
Total Pekin
Campus
sales 159,670 133,903 311,877 286,054
Marketing and
distribution:
Alcohol sales,