Alto Ingredients (NASDAQ:ALTO) Announces Quarterly Earnings Results

Alto Ingredients (NASDAQ:ALTO) posted its quarterly earnings data on Wednesday. The company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.09 by $0.07, FiscalAI reports. Alto Ingredients had a return on equity of 18.54% and a net margin of 5.51%. The company had revenue of $257.89 million during the quarter, compared to analyst estimates of $250.97 million.

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 CO? 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 Trading Down 1.4%

Alto Ingredients stock traded down $0.05 during midday trading on Wednesday, hitting $3.50. 1,261,080 shares of the 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 stock has a market capitalization of $271.50 million, a price-to-earnings ratio of 5.22 and a beta of 0.13. The stock’s 50-day simple moving average is $3.79 and its 200 day simple moving average is $4.27. The company has a current ratio of 3.19, a quick ratio of 2.17 and a debt-to-equity ratio of 0.23.

Insider Buying and Selling

In other news, Director Gilbert Nathan bought 50,000 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were bought at an average cost of $4.15 per share, for a total transaction of $207,500.00. Following the acquisition, the director directly owned 856,393 shares of the company’s stock, valued at $3,554,030.95. This trade represents a 6.20% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. 4.28% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ALTO. Scotiabank set a $10.00 target price on Alto Ingredients in a research report on Thursday, August 6th. HC Wainwright reaffirmed a “buy” rating on shares of Alto Ingredients in a research note on Thursday, August 6th. Benchmark upgraded Alto Ingredients to a “strong-buy” rating in a research report on Wednesday, September 30th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Alto Ingredients in a research note on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price 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.