Loading...
FutureFuel Q4 2024 Earnings Report
FutureFuel reported a decrease in revenue and net income for the fourth quarter of 2024, primarily due to lower sales in the biofuel segment.
Key Takeaways
FutureFuel Corp. announced a significant decline in financial results for the fourth quarter of 2024, with revenues decreasing by 33% to $61.5 million and net income falling by 88% to $2.8 million. This downturn was largely attributed to reduced volumes and prices in the biofuel segment, alongside operational challenges including plant downtime for turnaround maintenance.
Fourth quarter 2024 revenues decreased by 33% to $61.5 million from $92.0 million in the prior year.
Net income for Q4 2024 was $2.8 million, or $0.06 per diluted share, down from $23.4 million, or $0.53 per diluted share in Q4 2023.
Adjusted EBITDA for the quarter was $4.6 million, a decrease from $16.8 million in the same period last year.
The decline was primarily driven by lower prices and sales volumes in the biofuel segment, and operational downtime for plant turnaround.
FutureFuel
FutureFuel
FutureFuel Revenue by Segment
Revenue by Segment
Custom chemicals Revenue
CapyFin.comPerformance chemicals Revenue
CapyFin.comChemical Revenue
CapyFin.comBiofuel Revenue
CapyFin.com Forward Guidance
FutureFuel anticipates improved reliability in biodiesel production following a temporary plant shutdown for turnaround maintenance, which is expected to circumvent later scheduled turnarounds. The company also plans to bring new production capacity online in 2025 to support new chemical products and customers. However, the details regarding the new Inflation Reduction Act, Section 45Z, which replaced the blenders tax credit, remain undefined, creating uncertainty for the biofuels segment.
Positive Outlook
- Temporary plant shutdown for turnaround expected to enhance biodiesel production reliability.
- Turnaround work completed is anticipated to circumvent normally scheduled turnarounds later in the year for both segments.
- Robust new customer and product pipeline within the chemical segment.
- New production capacity expected to come online in 2025 to support new chemical products.
- Collaboration with industry groups and representatives to advocate for clarity on the Inflation Reduction Act.
Challenges Ahead
- Notable volume decline in Q4 partly due to destocking among chemical customers.
- Lower-than-expected yields from biodiesel production in Q4.
- Turnaround extended through the majority of Q1 for biodiesel and, to some extent, reduced chemicals production.
- Blenders tax credit expired December 31, 2024.
- Details surrounding credits and support levels for the Inflation Reduction Act, Section 45Z, remain mostly undefined by the Department of the Treasury.
Revenue & Expenses
Visualization of income flow from segment revenue to net income