10-K - Alto Ingredients, Inc. | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

Alto Ingredients reported FY 2025 net sales of $917.9M, a 4.9% decrease from $965.3M in FY 2024. Despite lower sales volume due to the cold-idling of the Magic Valley facility, the company achieved a significant turnaround in profitability. Gross profit increased 259.1% to $34.9M (3.8% margin) from $9.7M (1.0% margin), driven by stronger commodity crush margins, cost savings, and the acquisition of Kodiak Carbonic. Consolidated net income was $13.3M, a $72.3M improvement from a net loss of $59.0M in the prior year. Key drivers included $7.5M in Section 45Z transferable tax credits, $6.7M in excess insurance proceeds, and improved operational performance. The company generated $13.2M in operating cash flow, ending the year with $25.7M in cash and cash equivalents and restricted cash.

Key Takeaways

1Net income improved $72.3M to $13.3M from a $59.0M loss in FY 2024.

2Gross profit margin expanded to 3.8% from 1.0% due to stronger crush margins.

3Received $7.5M in Section 45Z transferable tax credits and $6.7M in excess insurance proceeds.

4Alcohol sales volume declined 9% to 350.1M gallons, primarily from idling Magic Valley.

5Operating cash flow was $13.2M, a $16.7M improvement from negative $3.5M in FY 2024.

Key Financial Metrics

EPS

$0.00

$0.00 prior year

Revenue

$917.9M

-4.9%

Net Income

$13.3M

+122.6%

Gross Margin

3.8%

1.0% prior year

Gross Profit

$34.9M

+259.1%

Operating Income

$7.4M

operating margin

0.8%

Business Segments

Pekin Campus ProductionAlcohol sales $415.8M, essential ingredients $174.6M

$590.4M+0.6% YoY

Marketing and DistributionThird-party renewable fuel sales

$221.3M+2.2% YoY

Western ProductionAlcohol sales $67.3M, essential ingredients $31.6M

$98.9M-42.3% YoY

Corporate and OtherEagle Alcohol business

$7.4M-35.1% YoY