Alto Ingredients Posts $4.0M Net Income and $9.2M Q1 Gross Profit
Alto Ingredients delivered Q1 2026 gross profit of $9.2 million, reversing a $1.8 million loss in Q1 2025, and reported net income of $4.0 million ($0.05 per share) versus a $12.0 million loss. Adjusted EBITDA rose to $4.7 million from negative $4.4 million, supported by strong export sales and Section 45Z tax credits.
1. Q1 Financial Highlights
Alto Ingredients reported net sales of $224.7 million for Q1 2026, slightly below $226.5 million a year earlier. The company achieved a gross profit of $9.2 million reversing a $1.8 million loss, delivered net income of $4.0 million ($0.05 per share) and posted adjusted EBITDA of $4.7 million versus negative $4.4 million.
2. Profitability Drivers
Profit improvement was driven by an $8.1 million net unrealized gain on derivatives, higher crush margins, strong export volume, and incremental earnings from Section 45Z biofuel tax credits, with the company remaining profitable even excluding tax credits.
3. Liquidity and Capital Structure
Cash and cash equivalents totaled $20.3 million at quarter end, down from $23.4 million, while borrowing availability stood at $94.3 million, including $29.3 million under its operating line and $65 million under its term loan facility, as interest expense fell to $2.2 million.
4. Strategic Outlook and Priorities
Management plans to improve utilization and reliability, execute 2026 optimization and capital projects on schedule, expand monetization of Section 45Z credits and biogenic CO2 production, and leverage multiple revenue streams to sustain profitability through commodity cycles.