Alto Ingredients (ALTO) investor relations material

Executive summary

• Adjusted EBITDA improved by $5.7M year-over-year, driven by cost savings, productivity initiatives, and operational efficiencies, despite a wider net loss and lower sales.

• Western assets and production segment turned profitable, aided by the acquisition of a CO2 facility and idling of Magic Valley, with gross profit up $5.6M year-over-year.

• Corporate reorganization and overhead rightsizing exceeded $8M in annualized savings.

• Focus remains on short-term, high-return projects, carbon intensity reduction, and asset monetization.

• Net loss widened to $11.3M for Q2 2025, primarily due to derivative losses, lower crush margins, and operational disruptions.

Financial highlights

• Q2 2025 net sales were $218.4M, down from $236.5M in Q2 2024; six-month net sales were $445.0M, down from $477.1M year-over-year.

• Q2 2025 gross loss was $1.9M versus $7.6M gross profit in Q2 2024, impacted by derivative losses and lower crush margins.

• Adjusted EBITDA for Q2 2025 was $(0.2)M, a $5.7M improvement year-over-year.

• Net loss attributable to common stockholders was $11.3M ($0.15/share) in Q2 2025, compared to $3.4M ($0.05/share) in Q2 2024.

• Cash and cash equivalents at June 30, 2025, were $29.8M, with $70M borrowing availability.

Outlook and guidance

• Management expects regulatory credits and carbon intensity projects to improve earnings and support a path to profitability.

• Anticipates $18M in 45Z regulatory credits over the next two years for two plants.

• Focused on short-term, high-return projects, including cost reduction, asset monetization, and CO2 utilization.

• Expects further operational improvements and cost reductions through ongoing efficiency initiatives.

• Evaluating further projects to monetize Western assets and increase CO2 utilization at Pekin and Columbia.