Alto Ingredients (NASDAQ:ALTO – Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.08 by $0.07, FiscalAI reports. Alto Ingredients had a net margin of 5.51% and a return on equity of 18.94%. The business had revenue of $245.70 million during the quarter, compared to the consensus estimate of $231.24 million.
Here are the key takeaways from Alto Ingredients’ conference call:
- Profitability improved sharply in Q2, with net income of $11.4 million, or $0.15 per share, versus a $11.3 million loss a year earlier. Adjusted EBITDA rose to $23.7 million, supported by stronger ethanol margins, higher essential-ingredient values, lower corn costs, and $5.1 million of 45Z tax-credit earnings.
- Management expects to generate at least $15 million in net 45Z tax-credit proceeds this year, with $7.9 million accrued through the first half and discussions underway to monetize the 2026 credits.
- Alto completed an approximately 8% Pekin dry-mill capacity expansion, or about 5 million additional annual gallons, and expects the full earnings benefit in Q4. The company also cited additional high-return projects in CO2 monetization, capacity expansion, and efficiency improvements, with average paybacks of just over one year.
- The company redirected renewable-fuel volumes toward stronger U.S. domestic markets as Middle East disruptions increased freight costs and reduced vessel availability, compressing the U.S.-to-Europe arbitrage and making Brazilian exports more competitive in Europe.
- Alto established a $50 million at-the-market equity program to provide capital flexibility for future projects. Although management said any issuance would be disciplined, using the program could dilute existing shareholders.
Alto Ingredients Trading Down 10.9%
NASDAQ ALTO opened at $4.51 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.81 and a quick ratio of 2.54. The firm’s 50-day moving average is $5.28 and its two-hundred day moving average is $4.45. Alto Ingredients has a 12 month low of $0.92 and a 12 month high of $6.11. The stock has a market capitalization of $349.48 million, a P/E ratio of 6.73 and a beta of 0.17.
Analyst Upgrades and Downgrades
Read Our Latest Research Report on ALTO
Insider Buying and Selling
In related news, Director Gilbert E. Nathan bought 20,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The stock was purchased at an average cost of $4.61 per share, with a total value of $92,200.00. Following the purchase, the director directly owned 769,741 shares of the company’s stock, valued at $3,548,506.01. This trade represents a 2.67% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. 4.28% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Several institutional investors have recently added to or reduced their stakes in the company. Vontobel Holding Ltd. acquired a new position in Alto Ingredients during the 4th quarter worth about $33,000. XTX Topco Ltd lifted its position in shares of Alto Ingredients by 34.2% during the fourth quarter. XTX Topco Ltd now owns 52,753 shares of the company’s stock worth $152,000 after purchasing an additional 13,431 shares in the last quarter. CreativeOne Wealth LLC acquired a new position in shares of Alto Ingredients during the fourth quarter worth approximately $46,000. Empowered Funds LLC grew its stake in shares of Alto Ingredients by 8.5% during the first quarter. Empowered Funds LLC now owns 275,552 shares of the company’s stock valued at $314,000 after purchasing an additional 21,626 shares during the last quarter. Finally, Bridgeway Capital Management LLC increased its holdings in shares of Alto Ingredients by 5.9% in the second quarter. Bridgeway Capital Management LLC now owns 487,059 shares of the company’s stock valued at $560,000 after purchasing an additional 27,007 shares in the last quarter. Institutional investors and hedge funds own 42.44% of the company’s stock.
About Alto Ingredients
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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