Alto Ingredients (NASDAQ:ALTO) Posts Earnings Results, Beats Expectations By $0.07 EPS

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

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 Stock Down 1.4%

ALTO stock traded down $0.05 during trading on Wednesday, hitting $3.50. 1,261,080 shares of the company’s stock traded hands, compared to its average volume of 902,575. The business has a fifty day simple moving average of $3.79 and a two-hundred day simple moving average of $4.27. The company has a quick ratio of 2.17, a current ratio of 3.19 and a debt-to-equity ratio of 0.23. The firm has a market capitalization of $271.50 million, a P/E ratio of 5.22 and a beta of 0.13. Alto Ingredients has a 1 year low of $1.10 and a 1 year high of $6.11.

Insiders Place Their Bets

In other news, Director Gilbert Nathan bought 10,000 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The stock was bought at an average price of $3.93 per share, with a total value of $39,300.00. Following the completion of the transaction, the director directly owned 866,393 shares of the company’s stock, valued at approximately $3,404,924.49. The trade was a 1.17% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 4.28% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several brokerages have weighed in on ALTO. Weiss Ratings reissued a “hold (c)” rating on shares of Alto Ingredients in a research note on Thursday, October 29th. Scotiabank set a $10.00 price target on shares of Alto Ingredients in a research note on Thursday, August 6th. Benchmark raised shares of Alto Ingredients to a “strong-buy” rating in a research note on Wednesday, September 30th. Finally, HC Wainwright reissued a “buy” rating on shares of Alto Ingredients in a research report on Thursday, August 6th. One equities research 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 stock. According to data from MarketBeat.com, Alto Ingredients has an average rating of “Moderate Buy” and a consensus price target 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.