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Alto Ingredients Q1 2025 Earnings Report
Alto Ingredients, Inc. reported improved year-over-year gross margin and Adjusted EBITDA for the first quarter of 2025, driven by the acquisition of a beverage-grade liquid CO2 processor and corporate reorganization.
Key Takeaways
Alto Ingredients, Inc. reported a net loss of $12.0 million for the first quarter of 2025, consistent with the prior year, on net sales of $226.5 million, a decrease from $240.6 million in Q1 2024. Despite the sales decline, the company improved its gross loss to $1.8 million from $2.4 million and Adjusted EBITDA to negative $4.4 million from negative $7.1 million year-over-year, attributed to operational uptime, carbon optimization, and cost savings from corporate reorganization.
Net sales for Q1 2025 were $226.5 million, a decrease from $240.6 million in Q1 2024.
Gross loss improved to $1.8 million in Q1 2025 from $2.4 million in Q1 2024.
Adjusted EBITDA improved to negative $4.4 million in Q1 2025 from negative $7.1 million in Q1 2024.
Net loss attributable to common stockholders was $12.0 million, or $0.16 per share, consistent with $12.0 million, or $0.17 per share, in Q1 2024.
Alto Ingredients
Alto Ingredients
Alto Ingredients Revenue by Segment
Revenue by Segment
Pekin Campus production Revenue
CapyFin.comMarketing and distribution Revenue
CapyFin.comWestern production Revenue
CapyFin.comCorporate and other Revenue
CapyFin.com Forward Guidance
Alto Ingredients is focused on leveraging its recent acquisition and corporate reorganization to drive continued improvements in gross margin and Adjusted EBITDA, with an emphasis on cost savings and exploring new revenue streams.
Positive Outlook
- Corporate reorganization is on track to save approximately $8 million annually starting in Q2 2025.
- Reorganization is yielding additional efficiencies.
- Shifting production to ISCC renewable fuel for European markets is experiencing solid demand at a premium.
- Growing state and potentially national year-round adoption of E15.
- Opportunities under the Illinois Clean Transportation Standard Act (SB41).
Challenges Ahead
- Domestic industry softening of premiums on high quality alcohol and essential ingredients.
- Adverse economic and market conditions for renewable fuels, specialty alcohols, and essential ingredients.
- Fluctuations in the price of and demand for oil and gasoline.
- Raw material costs, including production input costs such as corn and natural gas.
- Adverse impacts of inflation and supply chain constraints, including from tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income