Alto Ingredients, Inc. ( (ALTO) ) has released its Q2 earnings. Here is a breakdown of the information Alto Ingredients, Inc. presented to its investors.
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Alto Ingredients, Inc. is a prominent producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, serving diverse markets including Health, Home & Beauty, Food & Beverage, Industry & Agriculture, and Renewable Fuels. The company recently released its second-quarter 2025 earnings report, highlighting a challenging financial period despite strategic initiatives aimed at improving productivity and efficiency.
In the second quarter of 2025, Alto Ingredients reported net sales of $218.4 million, a decrease from $236.5 million in the same period of 2024. The company faced a gross loss of $1.9 million compared to a gross profit of $7.6 million the previous year. Despite these challenges, the Western assets increased gross profit by $5.6 million, attributed to strategic decisions such as the acquisition of a liquid CO2 facility and the cold-idling of the Magic Valley facility.
The company’s marketing and distribution segment showed improvement by integrating bulk sales customers and focusing on profitable ethanol marketing relationships. However, the net loss attributable to common stockholders widened to $11.3 million, or $0.15 per share, compared to $3.4 million, or $0.05 per share, in the second quarter of 2024. Adjusted EBITDA improved to negative $0.2 million from negative $5.9 million in the previous year, reflecting realized gains on derivatives.
Looking forward, Alto Ingredients is optimistic about the extension of the 45Z credit through 2029, which could provide significant financial benefits. The company plans to continue evaluating projects to lower carbon intensity and capitalize on favorable regulations, aiming to enhance profitability and leverage its Western assets. Management remains focused on executing strategies that align with their short-term payback goals and long-term growth objectives.