FutureFuel Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues increased 361.3% to $104.7 million in Q3 2026, up from $22.7 million in Q3 2025, driven by a $36.3 million increase from volume/product mix and $45.7 million from pricing.
• GAAP net loss was $8.4 million ($0.19 per diluted share) in Q3 2026, an improvement of $0.8 million and $0.02 per share compared to a $9.2 million loss in Q3 2025.
• Adjusted EBITDA was a loss of $4.9 million in Q3 2026, an improvement of $0.4 million compared to a $5.3 million loss in Q3 2025.
• Consolidated gross loss narrowed to $5.4 million in Q3 2026 from $6.5 million in Q3 2025.
• Chemicals segment gross profit turned positive at $4.4 million in Q3 2026, compared to a $4.0 million gross loss in Q3 2025.
• Biofuels segment gross loss widened to $9.8 million in Q3 2026 from $2.4 million in Q3 2025, impacted by elevated feedstock costs and derivatives losses.
• Net cash used in operating activities was $10.3 million in Q3 2026, compared to $1.1 million in Q3 2025.
• Capital expenditures were $3.3 million in Q3 2026, including $0.6 million for maintenance and $2.7 million for discretionary programs.
• Cash and cash equivalents decreased to $21.3 million as of September 30, 2026, from $34.3 million at June 30, 2026.
• The Company holds a $35 million revolving credit facility with no outstanding borrowings as of September 30, 2026.
• Total assets were $204.0 million as of September 30, 2026, compared to $200.3 million as of December 31, 2025.
• Total liabilities increased to $59.6 million as of September 30, 2026, from $37.7 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company anticipates positive Adjusted EBITDA for the fourth quarter of 2026 and for the full year 2026.
• Fourth quarter Adjusted EBITDA is expected to be approximately $7 million.
• The Company expects to sell $1.5 million of RINs generated from Q3 biodiesel production in Q4 and recover $2.3 million in derivative losses tied to physical inventory sales.
• Full-year 2026 capital expenditures are expected to be $25.8 million, including $10.2 million of customer-funded growth investments.
• More than $26 million of customer-funded growth investments are expected in 2027.
• No major planned maintenance is anticipated at the Batesville facility through the first quarter of 2027.
• Demand conditions are expected to strengthen entering 2027 due to regulatory changes narrowing the RIN-equivalence advantage for renewable diesel producers.
• Sales volume orders for Q4 biodiesel production exceed 90% of capacity as of early November.

Business Segments and Product Lines:

• Chemicals segment revenue was $16.9 million in Q3 2026, an 8.6% increase from $15.6 million in Q3 2025.
• Custom Chemical revenue was $13.3 million in Q3 2026, down 8.0% from $14.5 million in Q3 2025 due to delayed shipments and production downtime.
• Performance Chemical revenue was $3.6 million in Q3 2026, up 223% from $1.1 million in Q3 2025, driven by a new customer and higher glycerin sales.
• Chemicals segment capacity utilization was 32% in Q3 2026, down from 55% in Q3 2025, but is expected to exceed prior-year levels in Q4.
• Biofuels segment revenue was $87.8 million in Q3 2026, up from $7.1 million in Q3 2025.
• Biofuels sales volume increased 11.3 million gallons versus the prior year quarter.
• Biofuel production utilization reached 83% in Q3 2026, up from 56% in Q2 2026.
• A new relationship was established with a large European chemicals customer reshoring production to the U.S., with initial production expected in Q1 2027 and full rates by mid-2027.
• A customer has committed $41 million of customer-funded capital investment at Batesville over the next two years.
• A productivity initiative aims to re-refine glycerin waste streams into higher-value products, potentially increasing annual profit by $5 million to $10 million starting in 2027.

Market and Competitive Landscape:

• Strong biodiesel demand and improved production economics were observed in Q3 2026.
• Regulatory clarity around domestic renewable fuel blending obligations, tax incentives, and the treatment of domestically produced biofuels has improved market conditions.
• Reshoring trends are benefiting the Company as European chemicals producers evaluate the cost advantages of the U.S. manufacturing footprint due to substantially lower natural gas costs.
• Recent regulatory changes are expected to improve the competitive position of biodiesel producers like FutureFuel relative to renewable diesel producers.

Risks and Challenges:

• Extended maintenance on two dedicated chemicals production units reduced sales volumes, operating leverage, and profitability in Q3 2026.
• Elevated feedstock costs for soybean oil and other raw materials are expected to impact Biofuels segment gross profit per gallon in the near term.
• Derivative losses of $8.7 million (including $8.3 million realized and $0.4 million unrealized) impacted Q3 results, though $2.3 million associated with unsold physical inventory is expected to be recovered in Q4.
• Customer disruptions included a turnaround at a dedicated customer process unit and a pause in order cadence by another customer to rebalance inventory levels.

Management Commentary and Tone:

• Roeland Polet, Chairman and CEO, stated that while Q3 results were weighed down by maintenance, chemicals production has returned to normalized rates and biodiesel demand remains robust.
• Management expressed confidence in delivering a solid finish to 2026, citing favorable market conditions and improved plant reliability.
• The Company emphasized a multi-year value creation roadmap focused on accelerating quote-to-order conversion, expanding production volumes, capitalizing on reshoring, upgrading waste streams, and restoring optimal biodiesel production rates.
• Management noted that capital allocation priorities remain disciplined, prioritizing customer-funded investments and working capital while maintaining flexibility for share repurchases and quarterly cash dividends.

Other Key Points:

• The Company continues to pay a quarterly cash dividend.
• Approximately 74% of discretionary capital expenditures in the first nine months of 2026 were customer-funded investments related to capacity expansions and new customer programs.
• The Company held approximately 0.7 million internally generated RINs valued at $1.5 million as of September 30, 2026, for delivery in the fourth quarter.
• A conference call and webcast were scheduled for November 10, 2026, to review results and conduct a Q&A session.
• The Company reported a gross loss of $6.3 million for the nine months ended September 30, 2026, compared to a $34.1 million loss in the same period in 2025.
• Adjusted EBITDA for the nine months ended September 30, 2026, was a loss of $6.9 million, compared to a loss of $32.8 million in the prior year period.