Alto Ingredients (NASDAQ:ALTO) Issues Quarterly Earnings Results

Key Points

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Alto Ingredients (NASDAQ:ALTO - Get Free Report) announced its earnings results on Wednesday. The company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.08) by $0.13, Zacks reports. Alto Ingredients had a net margin of 1.45% and a return on equity of 2.99%.

Here are the key takeaways from Alto Ingredients' conference call:

• Alto reported a measurable turnaround in Q1 — adjusted EBITDA of $4.7 million and net income of $4.0 million, a swing from prior-year losses driven by stronger crush margins and export premiums.
• The company recognized $3.9 million of 45Z tax-credit proceeds in Q1 and expects to qualify ~90 million gallons annually, targeting approximately $15 million net proceeds from 45Z if monetized as planned.
• Management is investing in operational upgrades under a $25 million 2026 CapEx plan — including a second alcohol loadout, Pekin dock repairs, a Columbia CO2 tank, and a Pekin dry‑mill debottleneck to add ~5 million gallons (~8%) annual capacity — to boost utilization, logistics and higher‑value sales.
• Cost and operational headwinds persisted: higher natural gas/electricity costs (+$5.3 million), increased repair & maintenance (+$2.4 million), and weather-driven curtailments reduced volumes ~4% and produced a Q1 gross loss in the Western segment.
• Outlook remains cautiously optimistic but uncertain due to macro risks (Middle East unrest, export/logistics) and the pace of E15 adoption, which together could materially affect demand and industry margins.

Alto Ingredients Price Performance

ALTO traded down $0.43 on Wednesday, hitting $5.56. 3,192,223 shares of the company's stock were exchanged, compared to its average volume of 1,579,161. The firm has a 50-day moving average price of $4.39 and a 200-day moving average price of $3.03. The company has a current ratio of 2.64, a quick ratio of 1.60 and a debt-to-equity ratio of 0.26. The stock has a market cap of $429.73 million, a price-to-earnings ratio of 34.75 and a beta of 0.14. Alto Ingredients has a fifty-two week low of $0.80 and a fifty-two week high of $5.99.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ALTO. Marshall Wace LLP acquired a new position in shares of Alto Ingredients during the 4th quarter valued at about $3,324,000. Goldman Sachs Group Inc. boosted its position in shares of Alto Ingredients by 169.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 715,180 shares of the company's stock valued at $2,060,000 after acquiring an additional 449,697 shares during the last quarter. Millennium Management LLC boosted its position in shares of Alto Ingredients by 2,967.5% during the 4th quarter. Millennium Management LLC now owns 369,513 shares of the company's stock valued at $1,064,000 after acquiring an additional 357,467 shares during the last quarter. Truffle Hound Capital LLC acquired a new position in shares of Alto Ingredients during the 4th quarter valued at about $864,000. Finally, Corsair Capital Management L.P. acquired a new position in shares of Alto Ingredients during the 4th quarter valued at about $721,000. Institutional investors and hedge funds own 42.44% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on ALTO shares. Wall Street Zen raised shares of Alto Ingredients from a "buy" rating to a "strong-buy" rating in a research note on Monday, March 23rd. Zacks Research cut shares of Alto Ingredients from a "strong-buy" rating to a "hold" rating in a research note on Monday. Finally, Weiss Ratings raised shares of Alto Ingredients from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of "Hold".

Alto Ingredients Company Profile

Alto Ingredients, Inc NASDAQ: ALTO is a diversified producer of alcohol-based products and specialty ingredients for industrial, food, beverage and personal care applications. The company’s core offering centers on ethanol produced for fuel markets, as well as an expanding portfolio of natural and organic alcohols, glycerin and other ingredient solutions. Alto’s product lines serve a range of end markets, including renewable fuels, confectionery, flavorings, cosmetics and sanitizers.

Headquartered in Dallas, Texas, Alto Ingredients operates a network of production facilities across the United States.

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