FutureFuel — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues reached $78.7 million in Q2 2026, a 120.6% increase from $35.7 million in Q2 2025.
• GAAP net income was $11.4 million ($0.25 per diluted share) in Q2 2026, compared to a net loss of $14.2 million in Q2 2025.
• Adjusted EBITDA was $11.8 million in Q2 2026, an increase of $23.2 million compared to a loss of $11.4 million in Q2 2025.
• Total gross profit improved to $15.0 million in Q2 2026 from a gross loss of $12.4 million in Q2 2025.
• Net cash flow from operations was $18.8 million in Q2 2026, up from $5.2 million in the prior-year period.
• Capital expenditures were $8.0 million in Q2 2026, including $2.9 million for maintenance and $5.1 million for discretionary programs.
• Total cash and equivalents were $34.4 million as of June 30, 2026, compared to $22.4 million at the end of Q1 2026.
• The company has no outstanding borrowings on its $35 million revolving credit facility.
• Deferred revenue increased to $11.978 million in long-term liabilities as of June 30, 2026, from $11.644 million at year-end 2025.
• Inventory increased to $40.7 million as of June 30, 2026, from $29.3 million at year-end 2025.

Guidance and Future Outlook

• The company anticipates positive Adjusted EBITDA for the full year 2026, excluding non-cash derivative timing differences related to physical commodity prices.
• Biofuels segment plant utilization is expected to increase in the second half of 2026, rising from 56% in Q2 2026.
• Biodiesel production rates are expected to exceed Q2 2026 levels in the third quarter.
• The company expects to receive $22 million in gross proceeds from the monetization of Section 45Z Clean Fuel Production and Small Producer Tax Credits in the second half of 2026 ($3 million in Q3 and $19 million in Q4).
• Management expects elevated input costs to remain a near-term headwind but believes the business is positioned for continued positive momentum.

Business Segments and Product Lines

• Chemicals Segment: Revenue increased 55.5% to $25.8 million in Q2 2026 from $16.6 million in Q2 2025. Gross profit was $5.0 million, up from $1.1 million in the prior year. Production volume increased 34% year-over-year. Capacity utilization improved to 65% from 54% in the prior year. Custom chemical revenue rose 30% to $18.5 million, while performance chemical revenue surged 209% to $7.3 million.
• Biofuels Segment: Revenue increased 177.5% to $52.9 million in Q2 2026 from $19.1 million in Q2 2025. Gross profit was $10.1 million, compared to a gross loss of $13.5 million in the prior year. Production volume increased 21% year-over-year despite a three-week plant outage. Biofuels production reached 8.4 million gallons in Q2 2026, up from 2.0 million gallons in Q1 2026.
• New customer wins were secured within the Chemicals segment to support improved asset optimization.
• A new customer began production in Q4 2025, driving the 209% increase in performance chemical revenue.

Market and Competitive Landscape

• Demand conditions remain robust across both specialty chemicals and biofuels end-markets.
• The company benefits from reshoring trends as customers seek to localize production and mitigate supply chain risks.
• Regulatory clarity regarding the Clean Fuel Production Credit and record-high Renewable Volume Obligations (RVOs) are driving biofuel production growth.
• The company maintains a 100% domestic production footprint, which is positioned as a competitive advantage.
• Input costs for soybean oil and other raw materials remain elevated, impacting biofuels gross profit per gallon.

Risks and Challenges

• Elevated input costs for raw materials may continue to represent a near-term headwind.
• The company faces variability in derivative instrument gains and losses, which can cause volatility in net income.
• Future results are subject to risks and uncertainties, including changes in regulatory environments, commodity prices, and economic conditions.

Management Commentary and Tone

• Roeland Polet, Chairman and CEO, stated that Q2 2026 marked a "return to profitable growth" driven by strengthening demand, improved production economics, and cost discipline.
• Polet noted the core business delivered its strongest financial performance since Q4 2024.
• CFO Rose Sparks highlighted the improvement in liquidity and the successful monetization of tax credits.
• Management expressed confidence in delivering positive Adjusted EBITDA for the full year 2026.

Other Key Points

• The company secured a four-year agreement with a third-party to monetize Section 45Z Clean Fuel Production and Small Producer Tax Credits.
• FutureFuel entered into a definitive agreement with an existing chemicals customer for a $25 million investment in the Batesville facility in 2026 and up to $17 million in 2027 to support incremental capacity expected to come online in early fiscal 2028.
• Approximately $1.9 million of discretionary capital expenditures in Q2 2026 were customer-funded investments related to capacity expansions.
• The company maintains a returns-focused capital allocation framework that includes share repurchases and a quarterly cash dividend.
• A conference call and webcast were scheduled for August 11, 2026, to review results.