Alto Ingredients Books $7.6 Million in 45Z Tax Credits

The Tip Desk · November 4, 2026 · 2 min read

Net income attributable to common stockholders was $12.7 million, or $0.16 a share, as transferable tax credits generated, net, were $7.6 million.

Alto Ingredients, Inc. (ALTO), a producer and distributor of renewable fuels, essential ingredients and specialty alcohols, reported net income attributable to common stockholders of $12.7 million, or $0.16 a share, for the quarter ended September 30, 2026, including $7.6 million of transferable tax credits generated, net, versus zero a year earlier.

Net sales were $257.9 million, compared with $241.0 million a year earlier. Gross profit was $14.8 million, down from $23.5 million. Adjusted EBITDA was $21.0 million, compared with $21.4 million. Income from operations was $7.0 million. Interest expense was $1.5 million.

The company said it paid down $6.5 million on its line of credit in the quarter, bringing year-to-date debt reduction to $26.5 million. Cash and cash equivalents were $23.6 million at September 30, 2026. Borrowing availability was $108 million.

President and Chief Executive Officer Bryon McGregor said the company delivered positive gross profit, income from operations, net income and adjusted EBITDA, with 45Z tax credit earnings adding to core operations. He said Alto now expects to generate a minimum of $20 million, net of monetization costs, in 45Z tax credit earnings in 2026 after efforts to lower carbon scores at the Columbia facility and the Pekin dry mill.

McGregor said Alto signed its first multi-year agreement with a local farmer cooperative to supply a meaningful portion of Pekin campus low-carbon-intensity corn needs and share the resulting 45Z benefit with its members, and that it is working on additional agreements. He said a debottlenecking project at the Pekin dry mill puts the company on track to exit the year with higher production capacity, which he said positions Alto to qualify more gallons and drive additional gross margin.

Total renewable fuel gallons sold were 67.5 million, up from 66.8 million a year earlier. Pekin Campus gallons were 32.0 million, Western production 9.1 million, and third-party gallons 26.4 million. Specialty alcohol gallons sold were 21.5 million. Average sales price per gallon was $2.23. Average corn cost per bushel was $4.79. Total production gallons were 63.1 million.

Pekin Campus production net sales were $164.5 million. Marketing and distribution sales were $64.7 million. Western production sales were $30.3 million. Pekin Campus production gross profit was $9.5 million. Marketing and distribution gross profit was $3.9 million. Western production gross profit was $2.6 million.

Consolidated essential ingredients sold were 325.1 thousand tons. Consolidated essential ingredients return was 53.5%. Pekin Campus return was 54.5%. Western production return was 48.7%.

McGregor said industry tailwinds are supporting healthy ethanol demand and positive crush margins, notably the improved outlook for year-round adoption of E15 in California. He said Alto is executing plans to grow, drive profitability and build shareholder value.