Alto Ingredients (ALTO) Q3 2026 earnings summary

Executive summary

• Fifth consecutive quarter of positive gross profit, operating income, net income and Adjusted EBITDA; Q3 Adjusted EBITDA was $20.953M vs. $21.368M YoY.

• Core operations and $7.6M of Q3 net Section 45Z credit earnings supported Q3 net income attributable to common stockholders of $12.7M, or $0.16 diluted EPS.

Financial highlights

• Q3 net sales rose to $257.9M from $241.0M; gross profit declined to $14.8M from $23.5M, and operating income was $7.0M vs. $17.0M.

• Q3 net income attributable to common stockholders was $12.7M vs. $13.9M; diluted EPS was $0.16 vs. $0.19.

• 9M net sales were $728.3M vs. $686.0M; net income attributable to common stockholders was $28.0M vs. a $9.4M loss, and reported net income was $29.0M vs. an $8.5M loss.

• 9M Adjusted EBITDA increased to $49.3M from $16.7M.

• Q3 sales were 89.0M gallons; average price was $2.23 per gallon, up $0.14 YoY.

Outlook and guidance

• 2026 Section 45Z earnings are expected to reach at least $20M net of estimated monetization costs; 90M+ production gallons are targeted to qualify, with credit sale proceeds expected in H1 2027.

• Section 45Z earnings recognized YTD were $16.6M net of transaction costs; transferable tax credits, net, totaled $15.8M at September 30.

• Pekin dry mill capacity is targeted to increase ~8%, or 5M gallons, to an annual run rate of ~65M gallons exiting 2026.

• 2026 CapEx is targeted at ~$25M, including more than $10M for capacity and efficiency projects, funded with cash and operating cash generation.

• Section 45Z is extended through 2029; credit amounts and timing depend on regulations, qualifying gallons, carbon-intensity scores and monetization.