Alto Ingredients Q3 sales and adjusted EBITDA beat estimates on 45Z tax credit growth
ALTO•Alto Ingredients reported Q3 sales of $257.9 million and adjusted EBITDA of $21 million, beating analyst estimates of $250.97 million and $17.27 million, respectively. The company expects at least $20 million in 45Z tax credit earnings, net of monetization costs, in 2026.
1. Quarterly results
Alto Ingredients reported Q3 sales of $257.9 million, above the $250.97 million analyst consensus, and adjusted EBITDA of $21 million, above the $17.27 million consensus. Q3 EPS was $0.16 and gross profit was $14.8 million.
2. Credit and capacity outlook
The company said Section 45Z tax credit earnings contributed to Q3 results and expects at least $20 million in such earnings, net of monetization costs, in 2026. It expects higher production capacity by year-end following debottlenecking at its Pekin dry mill.
3. Operations and debt
Alto said it paid down $6.5 million in debt during Q3 and has capital projects underway to expand production capacity and improve process efficiencies. It cited industry tailwinds supporting healthy ethanol demand and positive crush margins.
