Alto Ingredients (NASDAQ:ALTO) Releases Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• Alto Ingredients reported Q3 EPS of $0.16, beating the $0.09 consensus, while revenue of $257.89 million also exceeded estimates of $250.97 million.
• The company posted a fifth straight quarter of positive net income and adjusted EBITDA, with Q3 adjusted EBITDA of $21 million. However, gross profit declined $8.7 million year over year to $14.8 million as industry crush margins weakened.
• Management expects at least $20 million in net 2026 45Z tax-credit earnings and plans to monetize the credits in the first half of 2027; it also expects to spend $25 million on capital projects in 2026.

Alto Ingredients (NASDAQ:ALTO - Get Free Report) issued its earnings results on Wednesday. The company reported $0.16 EPS for the quarter, topping analysts' consensus estimates of $0.09 by $0.07, FiscalAI reports. The firm had revenue of $257.89 million for the quarter, compared to the consensus estimate of $250.97 million. Alto Ingredients had a return on equity of 18.54% and a net margin of 5.51%.

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

• Alto reported a fifth consecutive quarter of positive gross profit, operating income, net income, and adjusted EBITDA, with adjusted EBITDA of $21 million in Q3. Management attributed the results to core operations, with 45Z credits providing additional support.
• Gross profit fell $8.7 million year over year to $14.8 million, primarily as the industry crush margin declined to $0.30 per gallon from $0.41; SG&A also rose $1.3 million. The lower margin reflects an $0.11-per-gallon decline in market crush.
• Management expects at least $20 million in net 2026 45Z tax credit earnings, with 90 million or more qualifying gallons, and plans to monetize the credits in the first half of 2027. A new three-year farmer cooperative agreement covering up to 20 million bushels of low-carbon corn is expected to contribute modestly in 2026, with greater potential in 2027.
• Cash from operations was $13 million in Q3, and Alto paid down $6.5 million on its line of credit; year-to-date, it reduced total debt by $26.5 million. The company remains on track for $25 million in 2026 capital spending, including projects to lift Pekin capacity by about 8% and improve logistics and CO₂ storage.
• Management sees potential demand and margin support from California’s new E15 legislation, estimating adoption could add 600 million or more gallons of annual ethanol demand over time. Alto shifted sales toward the domestic market, which currently offers better economics than Europe, while saying export opportunities may improve in 2027.

Alto Ingredients Price Performance

Shares of ALTO stock traded down $0.05 during trading hours on Wednesday, hitting $3.50. 1,261,080 shares of the company's stock were exchanged, compared to its average volume of 902,575. Alto Ingredients has a fifty-two week low of $1.10 and a fifty-two week high of $6.11. The firm has a market cap of $271.50 million, a P/E ratio of 5.22 and a beta of 0.13. The company has a quick ratio of 2.17, a current ratio of 3.19 and a debt-to-equity ratio of 0.23. The firm has a 50 day moving average of $3.79 and a two-hundred day moving average of $4.27.

Insider Transactions at Alto Ingredients

In related news, Director Gilbert Nathan purchased 10,000 shares of the business's stock in a transaction that occurred on Monday, September 14th. The stock was bought at an average price of $3.93 per share, with a total value of $39,300.00. Following the acquisition, the director owned 866,393 shares in the company, valued at $3,404,924.49. The trade was a 1.17% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 4.28% of the company's stock.

Analyst Ratings Changes

ALTO has been the subject of a number of analyst reports. Weiss Ratings reissued a "hold (c)" rating on shares of Alto Ingredients in a report on Thursday, October 29th. Scotiabank set a $10.00 price objective on Alto Ingredients in a research report on Thursday, August 6th. Benchmark raised shares of Alto Ingredients to a "strong-buy" rating in a research note on Wednesday, September 30th. Finally, HC Wainwright reaffirmed a "buy" rating on shares of Alto Ingredients in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $10.00.

About Alto Ingredients

Alto Ingredients, Inc NASDAQ: ALTO is a renewable fuels and specialty ingredients company that produces low-carbon ethanol and other products derived primarily from corn. Its ethanol is used as a transportation fuel and as a blending component in gasoline, while the company's operations support markets focused on renewable energy and lower-carbon fuel alternatives.

In addition to ethanol, Alto Ingredients produces and markets co-products such as dried distillers grains, wet distillers grains and renewable corn oil.

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