Alto Ingredients (NASDAQ:ALTO) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Alto Ingredients (NASDAQ:ALTO) released its earnings results on Wednesday. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.07, FiscalAI reports. Alto Ingredients had a return on equity of 17.53% and a net margin of 5.29%. The firm had revenue of $257.89 million for the quarter, compared to the consensus estimate 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 CO₂ 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 0.4%

Shares of NASDAQ ALTO traded down $0.01 during midday trading on Friday, hitting $3.65. The company’s stock had a trading volume of 1,735,095 shares, compared to its average volume of 1,775,075. The company has a current ratio of 3.19, a quick ratio of 2.17 and a debt-to-equity ratio of 0.23. The business’s 50 day moving average is $3.78 and its two-hundred day moving average is $4.27. Alto Ingredients has a 12-month low of $1.30 and a 12-month high of $6.11. The firm has a market cap of $283.51 million, a P/E ratio of 5.70 and a beta of 0.13.

Wall Street Analyst Weigh In

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

Insider Activity

In other Alto Ingredients news, Director Gilbert Nathan acquired 10,000 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The stock was bought at an average price of $3.93 per share, for a total transaction of $39,300.00. Following the acquisition, the director directly owned 866,393 shares in the company, valued at $3,404,924.49. The trade was a 1.17% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 4.28% of the company’s stock.

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.