Alto Ingredients, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Net sales for the three months ended September 30, 2026, were $257.9 million, compared to $241.0 million in the same period of 2025.
• Gross profit was $14.8 million for the quarter, down from $23.5 million in Q3 2025.
• Net income attributable to common stockholders was $12.7 million ($0.16 per diluted share), compared to $13.9 million ($0.19 per share) in Q3 2025.
• Adjusted EBITDA was $21.0 million for the quarter, compared to $21.4 million in Q3 2025.
• Cost of goods sold increased to $243.1 million from $217.5 million in the prior year period.
• Selling, general and administrative expenses were $7.8 million, up from $6.5 million in Q3 2025.
• Interest expense was $1.5 million, down from $2.8 million in Q3 2025.
• Cash and cash equivalents were $23.6 million at September 30, 2026, compared to $23.4 million at December 31, 2025.
• Borrowing availability was $108 million at September 30, 2026.
• Transferable tax credits generated, net, were $7.6 million for the quarter, compared to $0 in Q3 2025.
• For the nine months ended September 30, 2026, net sales were $728.3 million compared to $686.0 million in 2025, and net income attributable to common stockholders was $28.0 million compared to a net loss of $9.4 million in 2025.

Guidance and Future Outlook

• Management expects to generate a minimum of $20 million in 45Z tax credit earnings, net of monetization costs, for the full year 2026.
• The company is on track to exit 2026 with higher production capacity following the debottlenecking project at its Pekin dry mill.
• Management anticipates that increased production capacity will allow the company to qualify more gallons and drive additional gross margin.
• Industry tailwinds, including improved outlook for year-round adoption of E15 in California, are expected to support healthy ethanol demand and positive crush margins.
• The company is executing plans to grow, drive profitability, and build shareholder value through its diversified product portfolio.

Business Segments and Product Lines

• Signed its first multi-year agreement with a local farmer cooperative to supply a meaningful portion of Pekin campus low carbon intensity corn needs, sharing resulting 45Z benefits with members.
• Working on additional agreements with farmer cooperatives to secure low carbon intensity corn.
• Executed actions to lower carbon scores at the Columbia facility and Pekin dry mill to increase 45Z tax credit earnings.
• Pekin Campus production sales increased to $164.5 million in Q3 2026 from $154.9 million in Q3 2025.
• Marketing and distribution sales were $64.7 million in Q3 2026, up from $61.2 million in Q3 2025.
• Western production sales were $30.3 million in Q3 2026, up from $25.9 million in Q3 2025.
• Total renewable fuel gallons sold were 67.5 million in Q3 2026, compared to 66.8 million in Q3 2025.
• Specialty alcohol gallons sold were 21.5 million in Q3 2026, down from 22.4 million in Q3 2025.
• Total gallons sold were 89.0 million in Q3 2026, compared to 89.2 million in Q3 2025.
• Average sales price per gallon increased to $2.23 in Q3 2026 from $2.09 in Q3 2025.
• Consolidated essential ingredients return was 53.5% in Q3 2026, up from 52.5% in Q3 2025.

Market and Competitive Landscape

• The renewable fuels industry is experiencing tailwinds supporting healthy ethanol demand.
• Crush margins are positive, driven by improved outlook for year-round E15 adoption in California.
• The company serves customers in Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets.
• Total essential ingredients sold increased to 325.1 thousand tons in Q3 2026 from 319.1 thousand tons in Q3 2025.

Risks and Challenges

• Risks include adverse economic and market conditions, fluctuations in oil and gasoline prices, and the pace of E15 adoption.
• Raw material costs, including corn and natural gas, and inflation or supply chain constraints pose risks.
• Execution risks involve the ability to timely complete optimization and capital projects within budget.
• Regulatory risks include the ability to apply for and receive Section 45Z credit amounts, achieve anticipated carbon intensity scores, and monetize credits at anticipated costs.
• Risks also include the ability of farmer partners to supply low carbon intensity corn and the ability to enter into additional agreements.
• Potential loss of key senior management or staff is identified as a risk.

Management Commentary and Tone

• President and CEO Bryon McGregor stated the company delivered positive gross profit, income from operations, net income, and adjusted EBITDA, demonstrating the earnings power of core operations.
• Management highlighted that 45Z tax credit earnings added to an already solid foundation.
• The tone was confident, citing a disciplined operating model and a diversified product portfolio unlocking premium values.
• Management noted the company is positioned to take advantage of favorable industry fundamentals today.

Other Key Points

• The company paid down $6.5 million on its line of credit during the quarter.
• Total debt reduction on a year-to-date basis reached $26.5 million.
• The company continues to execute on high return capital projects to expand production capacity, improve process efficiencies, and optimize CO2.
• Transferable tax credits, net, on the balance sheet increased to $15.8 million at September 30, 2026, from $7.5 million at December 31, 2025.
• Current portion of long-term debt was $0 at September 30, 2026, compared to $16.6 million at December 31, 2025.
• Long-term debt, net, decreased to $54.5 million at September 30, 2026, from $63.0 million at December 31, 2025.
• A conference call was scheduled for November 4, 2026, at 2:00 p.m. Pacific Time to discuss results.