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Key Takeaways Alto Ingredients' Q2 gross profit rose to $16.6M from a $1.9M loss despite higher maintenance costs.Stronger industry crush margins added about $17M of incremental gross profit in the quarter.Repairs and maintenance rose about $2M year over year for planned outages and Carbonic reliability work. Alto Ingredients, Inc. (ALTO - Free Report) faced higher repairs and maintenance costs in the second quarter of 2026, partially offsetting the improvement in gross profit. The company incurred approximately $2 million more in repairs and maintenance expenses year over year, reflecting the planned outage at the Pekin dry mill, the routine spring outage at ICP and continued work at its Carbonic facility. The latter was aimed at ensuring reliable operations to support increased demand for premium CO2 during the seasonally strong summer months.

The higher spending came during a quarter in which Alto Ingredients’ gross profit improved to $16.6 million from a gross loss of $1.9 million a year earlier. Stronger industry crush margins were the biggest contributor to the improvement, adding about $17 million of incremental gross profit. Lower utility costs also helped, with natural gas and electricity expenses declining nearly $600,000 year over year.

However, these gains were partly offset by higher repairs and maintenance expenses. The added costs reflected planned work at the Pekin dry mill and ICP, along with continued reliability work at the Carbonic facility to support increased demand for premium CO2 during the seasonally strong summer months.

Even with the higher repairs and maintenance expense, Alto Ingredients’ Western facilities remained profitable on a gross-profit basis in the second quarter. The results indicate that stronger crush economics and lower utility costs were sufficient to absorb the added maintenance burden during the period, although the higher spending still acted as a partial offset to the broader improvement in gross profit.

What Do the Latest Metrics Say About Alto Ingredients?Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and Aemetis, Inc. (AMTX - Free Report) , has seen its shares fall 16.3% in the past month, underperforming the industry’s 5.6% growth. Shares of Aemetis have risen 22.4%, while Green Plains has declined 11.9% during the same period.

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From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.32 is lower than the industry’s average of 3.36. The company is also trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.54) and Aemetis (0.40).

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Key Takeaways Alto Ingredients' renewable fuel export gallons fell 2.2 million due to freight costs and vessel availability.Export revenues rose $800,000 as Alto Ingredients' gallons commanded a higher premium than a year earlier.Strong U.S. ethanol markets helped Alto Ingredients shift its product mix toward domestic fuel-grade sales. Alto Ingredients, Inc.’s (ALTO - Free Report) renewable fuel exports faced pressure in the second quarter of 2026 as geopolitical disruption in the Middle East affected shipping economics between the United States and Europe. Although European demand remained robust, higher freight costs and reduced certainty around vessel availability from the Gulf Coast compressed the U.S.-to-Europe arbitrage. This made Brazilian exports more competitive in Europe and contributed to lower renewable fuel export volumes compared with the year-ago quarter.

The impact was visible in Alto Ingredients’ sales mix. Renewable fuel export gallons declined 2.2 million from the prior-year period because of freight costs and availability. However, export revenues increased $800,000, as the gallons sold commanded a significantly higher premium to domestic renewable fuel than a year earlier.

The export disruption did not prevent Alto Ingredients from placing its renewable fuel production. Strong domestic ethanol markets allowed the company to shift its product mix toward U.S. fuel-grade ethanol sales. Total renewable fuel gallons sold were 65 million in the second quarter, down from 66.8 million a year earlier, while total gallons sold, including specialty alcohol, increased to 88.5 million from 86.7 million.

Export conditions therefore remain an important variable for Alto Ingredients’ renewable fuel business, with freight costs, vessel availability and competition from Brazil affecting the economics of U.S. shipments to Europe.

What Do the Latest Metrics Say About Alto Ingredients?Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and Aemetis, Inc. (AMTX - Free Report) , has seen its shares decline 24.1% over the past month, underperforming the industry’s 2.9% growth. During the same period, shares of Green Plains have declined 7.4%, while Aemetis has gained 21.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.33 is lower than the industry’s average of 3.32. The company is also trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.57) and Aemetis (0.39).

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The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share has declined 27.8% and 66.3% to 39 cents and 28 cents, respectively, in the past 30 days.

Image Source: Zacks Investment Research

Q2 2026 Gross Profit of $16.6 Million Increased $18.6 Million
Q2 2026 Net Income of $11.4 Million, or $0.15 per Share, Improved $22.7 Million
Q2 2026 Adjusted EBITDA of $23.7 Million Improved $23.9 Million

PEKIN, Ill., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of renewable fuels, essential ingredients and specialty alcohols, reported its financial results for the quarter ended June 30, 2026.

“Alto’s second quarter results mark the fourth consecutive quarter of positive gross profit, income from operations, net income and adjusted EBITDA.  We have maintained consistent profitability over this period even before the contribution of earnings from 45Z tax credits. These results demonstrate the benefits of our diversification strategy, which gives us the flexibility to shift production toward the most attractive end markets and capture premium-value opportunities,” said President and Chief Executive Officer Bryon McGregor. 

“Having begun a strategic realignment three years ago, we now have a diversified product portfolio, a leaner cost structure and an operating model capable of generating positive adjusted EBITDA through commodity cycles while providing meaningful upside when market conditions are favorable,” added Mr. McGregor. “In addition, we have numerous initiatives in process and ahead of us to expand capacity, optimize CO2 production, improve efficiencies and increase our earnings from 45Z tax credits.”  

Mr. McGregor concluded, “Our second quarter and latest 12-month financial results, combined with our ability to execute on high-return opportunities, reinforce our confidence in Alto’s ability to generate sustainable earnings and create long-term shareholder value.”

Rob Olander, Chief Financial Officer, added that, “Today, we established a $50 million at-the-market equity program. Alongside our available borrowing capacity and operating cash flow, the ATM program provides additional financial flexibility and a prudent, low-cost tool to effectively access equity capital. We see a number of attractive, high-return organic opportunities across our platform. Having the ATM program in place allows us to remain prepared to pursue those opportunities when expected returns, market conditions and shareholder interests align. Any use of the program would be disciplined, measured and evaluated against other sources of available capital.”

Financial Results for the Three Months Ended June 30, 2026 Compared to 2025

Net sales were $245.7 million, compared to $218.4 million.Cost of goods sold was $229.1 million, compared to $220.4 million.Gross profit was $16.6 million, compared to a gross loss of $1.9 million.Selling, general and administrative expenses were $8.0 million, compared to $6.2 million.Interest expense was $2.0 million, compared to $2.8 million.Net income attributable to common stockholders was $11.4 million, or $0.15 per diluted share, compared to a net loss of $11.3 million, or $0.15 per share.Adjusted EBITDA was $23.7 million, compared to negative $0.2 million, an increase of $23.9 million. Cash and cash equivalents at June 30, 2026 were $24.0 million, compared to $23.4 million at December 31, 2025. The company’s borrowing availability at June 30, 2026 was $106 million, including $41 million under the company’s operating line of credit and $65 million under its term loan facility.

Second Quarter 2026 Results Conference Call
Management will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on Wednesday, August 5, 2026, and will deliver prepared remarks via webcast followed by a question-and-answer session.

To receive a number and unique PIN by email, register here. To dial directly up to 20 minutes prior to the scheduled call time, please dial (833) 630-0017 domestically and (412) 317-1806 internationally. Alternatively, the webcast for the conference call can be accessed from Alto Ingredients’ website at www.altoingredients.com and will be available for one year.

Use of Non-GAAP Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. The company defines Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision (benefit) for income taxes, asset impairments, unrealized derivative gains and losses, acquisition-related expense, excess insurance proceeds and depreciation and amortization expense. A table is provided at the end of this release that provides a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss). Management provides this non-GAAP measure so that investors will have the same financial information that management uses, which may assist investors in properly assessing the company's performance on a period-over-period basis. Adjusted EBITDA is not a measure of financial performance under GAAP and should not be considered as an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of the company's results as reported under GAAP.

About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of renewable fuels, essential ingredients and specialty alcohols. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients’ estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients’ current perspective of existing trends and information as of the date of the communication. Forward-looking statements generally will be accompanied by words such as “anticipate,” “believe,” “plan,” “could,” “should,” “estimate,” “expect,” “forecast,” “outlook,” “guidance,” “intend,” “may,” “might,” “will,” “possible,” “potential,” “predict,” “project,” or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients’ expectations around expanding production capacity; profitability and executing on opportunities to grow earnings, including through improved utilization and reliability, optimization and capital projects, and monetizing additional Section 45Z tax credits; the use and benefits of its ATM program, including returns that Alto Ingredients may generate from using funds, if any, from the program to make capital investments; and Alto Ingredients’ other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients’ plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. These factors include, among others, adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company’s products; 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; prevailing market prices and trading volumes of Alto Ingredients’ stock; Alto Ingredients’ ability, if desirable, to execute on its ATM program; Alto Ingredients’ ability to timely and within budget execute on its optimization and capital projects; regulatory developments and Alto Ingredients’ ability to successfully pursue and secure opportunities, and realize the expected results, under existing and new legislation, including the Section 45Z regulations, and to successfully apply for and receive anticipated credit amounts. These factors also include, among others, the inherent uncertainty associated with financial and other projections; the anticipated size of the markets and continued demand for Alto Ingredients’ products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients’ facilities, products and/or businesses; changes in laws, regulations and governmental policies; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients’ filings with the Securities and Exchange Commission including, specifically, those factors set forth in the “Risk Factors” section contained in Alto Ingredients’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 8, 2026.

Company IR and Media Contact:              
Michael Kramer, Alto Ingredients, Inc., 916-403-2755
[email protected]

IR Agency Contact:
Jody Burfening, Alliance Advisors Investor Relations, 212-838-3777, 
[email protected] 

ALTO INGREDIENTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data) Three Months Ended
June 30,Six Months Ended
June 30,  2026  2025  2026  2025      Net sales$245,698 $218,436 $470,378 $444,976 Cost of goods sold 229,062  220,373  444,523  448,720 Gross profit (loss) 16,636  (1,937) 25,855  (3,744)Selling, general and administrative expenses 8,017  6,171  14,716  13,361 Income (loss) from operations 8,619  (8,108) 11,139  (17,105)Interest expense, net (1,960) (2,811) (4,158) (5,540)Transferable tax credits, net 5,112  —  9,012  — Other expense, net (70) (78) (21) (31)Income (loss) before provision for income taxes 11,701  (10,997) 15,972  (22,676)Provision for income taxes —  —  —  — Net income (loss)$11,701 $(10,997)$15,972 $(22,676)Preferred stock dividends$(315)$(315)$(627)$(627)Net income (loss) attributable to common stockholders$11,386 $(11,312)$15,345 $(23,303)Net income (loss) per share, basic$0.15 $(0.15)$0.20 $(0.31)Net income (loss) per share, diluted$0.15 $(0.15)$0.20 $(0.31)Weighted-average shares outstanding, basic 75,588  74,611  75,191  74,232 Weighted-average shares outstanding, diluted 77,071  74,611  76,609  74,232  ALTO INGREDIENTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 (unaudited, in thousands, except par value)
ASSETS  June 30,
2026  December 31,
2025
Current Assets:   Cash and cash equivalents$         23,962 $         23,415Restricted cash —  2,258Accounts receivable, net 67,889  55,069Inventories 51,609  61,676Transferable tax credits, net 8,265  7,500Derivative instruments 4,173  525Other current assets            4,926             5,474Total current assets 160,824  155,917Property and equipment, net 197,479  198,501Other Assets: Right of use operating lease assets, net          21,492     16,931Intangible assets, net          7,264  7,574Other assets            10,011            9,863Total other assets 38,767  34,368Total Assets$       397,070 $    388,786 ALTO INGREDIENTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(unaudited, in thousands, except par value)
LIABILITIES AND STOCKHOLDERS’ EQUITY
June 30,
2026
 December 31,
2025Current Liabilities:
  Accounts payable
$24,219 $14,509 Accrued liabilities
 16,424  16,691 Current portion – long-term debt
 —  16,600 Current portion – operating leases
 4,916  4,958 Derivative instruments
 277  1,067 Other current liabilities
 4,561  5,246 Total current liabilities
 50,397  59,071     Long-term debt, net
 60,469  63,027 Operating leases, net of current portion
 17,553  13,012 Other liabilities
 8,774  8,435 Total Liabilities
 137,193  143,545     Stockholders’ Equity:
  Preferred stock, $0.001 par value; 10,000 shares authorized;
Series A: no shares issued and outstanding as of
June 30, 2026 and December 31, 2025
Series B: 927 shares issued and outstanding as of
June 30, 2026 and December 31, 2025
 1  1 Common stock, $0.001 par value; 300,000 shares authorized; 77,576 and 77,307 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
 78  77 Non-voting common stock, $0.001 par value; 3,553 shares authorized; 1 share issued and outstanding as of June 30, 2026 and December 31, 2025
 —  — Additional paid-in capital
 1,051,085  1,051,795 Accumulated other comprehensive income
 5,461  5,461 Accumulated deficit
 (796,748) (812,093)Total Stockholders’ Equity
 259,877  245,241 Total Liabilities and Stockholders’ Equity
$397,070 $388,786  Reconciliation of Adjusted EBITDA to Net Income (Loss) Three Months Ended
June 30,Six Months Ended
June 30,(in thousands) (unaudited) 2026  2025  2026  2025 Net income (loss)$11,701 $(10,997)$15,972 $(22,676)Adjustments:    Interest expense 1,960  2,811  4,158  5,540 Interest income (87) (67) (165) (150)Unrealized derivative losses (gains) 3,634  2,117  (4,439) 483 Acquisition-related income —  (460) —  (460)Depreciation and amortization expense 6,452  6,365  12,819  12,631 Total adjustments 11,959  10,766  12,373  18,044 Adjusted EBITDA$23,660 $(231)$28,345 $(4,632) Segment Financials(in thousands) (unaudited) Three Months Ended
June 30,
 Six Months Ended
June 30,  2026  2025  2026  2025Net Sales     Alcohol sales$114,370 $94,155 $222,321  $201,390  Essential ingredient sales 45,071  39,565  89,064   84,183  Intersegment sales 229  183  492   481  Total Pekin Campus sales 159,670  133,903  311,877   286,054  
Marketing and distribution:     Alcohol sales, gross$54,612 $58,106 $101,889  $107,101  Alcohol sales, net 60  80  109   142  Intersegment sales 2,512  2,334  4,962   4,840  Total marketing and distribution sales 57,184  60,520  106,960   112,083        Western production:     Alcohol sales$20,798 $16,604 $37,479  $32,798  Essential ingredient sales 8,843  8,250  16,123   16,058  Intersegment sales 449  505  848   769  Total Western production sales 30,090  25,359  54,450   49,625  Corporate and other 1,944  1,676  3,393   3,304  Intersegment eliminations (3,190) (3,022) (6,302)  (6,090) Net sales as reported$245,698 $218,436 $470,378  $444,976  
Cost of goods sold:     Pekin Campus production$148,148 $139,748 $292,918  $294,974  Marketing and distribution 53,404  56,518  99,442   104,167  Western production 27,955  23,501  52,707   49,024  Corporate and other 1,010  1,705  2,046   3,386  Intersegment eliminations (1,455) (1,099) (2,590)  (2,831) Cost of goods sold as reported$229,062 $220,373 $444,523  $448,720  
Gross profit (loss):     Pekin Campus production$11,522 $(5,845)$18,959  $(8,920) Marketing and distribution 3,780  4,002  7,518   7,916  Western production 2,135  1,858  1,743   601  Corporate and other 934  (29) 1,347   (82) Intersegment eliminations (1,735) (1,923) (3,712)  (3,259) Gross profit (loss) as reported$16,636 $(1,937)$25,855  $(3,744)  Sales and Operating Metrics (unaudited) Three Months Ended
June 30,Six Months Ended
June 30,  2026 2025 2026 2025Alcohol Sales (gallons in millions)    Pekin Campus renewable fuel gallons sold 31.6 28.8 62.8 61.4Western production renewable fuel gallons sold 9.4 8.3 17.6 16.6Third-party renewable fuel gallons sold 24.0 29.7 47.5 54.1Total renewable fuel gallons sold 65.0 66.8 127.9 132.1Specialty alcohol gallons sold 23.5 19.9 46.5 44.2Total gallons sold 88.5 86.7 174.4 176.3     Sales Price per Gallon    Pekin Campus production$2.09$1.95$2.05$1.92Western production$2.20$2.00$2.13$1.98Marketing and distribution$2.27$1.96$2.14$1.98Average sales price per gallon$2.15$1.95$2.08$1.94     Alcohol Production (gallons in millions)    Pekin Campus production 51.8 50.9 103.0 105.2Western production 9.0 8.3 16.9 16.6Total production gallons 60.8 59.2 119.9 121.8     Corn Cost per Bushel    Pekin Campus production$4.58$4.86$4.51$4.75Western production$5.59$5.71$5.57$5.83Average cost per bushel$4.73$4.98$4.65$4.89 Average Market Metrics    PLATTS Ethanol price per gallon$1.92 $1.72 $1.82 $1.72CME Corn cost per bushel$4.44 $4.51 $4.41 $4.62Board corn crush per gallons (1)$0.33 $0.11 $0.25 $0.07     Essential Ingredients Sold (thousand tons)    Pekin Campus production:    Distillers grains 68.2  70.2  148.6  160.9CO2 45.2  45.1  88.5  90.4Corn wet feed 26.3  28.7  56.2  63.2Corn dry feed 24.7  21.4  45.7  45.2Corn oil and germ 19.1  18.9  37.2  38.5Syrup and other 11.9  11.7  21.1  19.9Corn meal 8.2  8.3  17.7  17.7Yeast 5.9  5.7  12.0  12.1Total Pekin Campus essential ingredients sold 209.5  210.0  427.0  447.9     Western production:    Distillers grains 67.0  61.8  127.1  119.9CO2 14.5  14.4  27.3  27.0Corn oil 0.9  1.0  1.7  2.4Syrup and other 0.6  1.2  1.4  2.0Total Western production essential ingredients sold 83.0  78.4  157.5  151.3     Total Essential Ingredients Sold 292.5  288.4  584.5  599.2          Essential ingredients return % (2)     Pekin Campus return 51.7% 44.2% 52.8%  46.1%Western production return 51.4% 50.8% 50.7%  49.9%Consolidated total return 51.6% 45.2% 52.5%  46.7%       ________________

(1)  Assumes corn conversion of 2.80 gallons of alcohol per bushel of corn.
(2)  Essential ingredients revenues as a percentage of total corn costs consumed.

Key Takeaways ALTO sees year-round E15 sales as a potential long-term catalyst for ethanol demand.Expanded E15 access could help absorb added low-carbon ethanol output and support industry margins.Nationwide E15 adoption, including California, could add roughly 1 billion gallons of ethanol demand. Alto Ingredients, Inc. (ALTO - Free Report) could benefit from expanding year-round E15 gasoline sales, which may become an important long-term demand catalyst for its ethanol business. While the company has been improving operations and benefiting from Section 45Z production tax credits, broader E15 adoption could strengthen domestic ethanol demand and provide a larger market for low-carbon renewable fuels. In its first-quarter 2026 earnings call, management highlighted California’s AB 30, which provides a pathway for year-round E15 sales, and noted growing momentum for similar legislation at the federal level.

Stronger demand is becoming increasingly important for ethanol producers. While production incentives encourage higher output, Alto Ingredients believes demand growth is necessary to prevent excess supply from weighing on industry margins. Management described expanded E15 access as an important complement to 45Z incentives by helping the market absorb additional low-carbon ethanol production over time while complementing demand from export markets.

The opportunity could become even more meaningful as Alto Ingredients continues improving production efficiency and operational performance. In its first-quarter earnings call, management cited industry estimates implying that nationwide year-round E15 adoption, including California, could add roughly 1 billion gallons of ethanol demand. While the pace of adoption remains dependent on policy implementation and market acceptance, broader E15 availability could represent a meaningful long-term growth catalyst for Alto Ingredients and the broader ethanol industry.

How ALTO's Ethanol Growth Story Compares With PeersGevo, Inc. (GEVO - Free Report) also sees expanding ethanol demand as an important long-term industry catalyst. In its first-quarter 2026 earnings call, Gevo said year-round E15 adoption could increase ethanol demand while highlighting growing export demand and the emergence of new low-carbon fuel markets. Gevo believes these demand drivers could support additional ethanol consumption and strengthen the growth opportunity for its low-carbon ethanol platform.

Green Plains Inc. (GPRE - Free Report) also views strong ethanol demand as an important long-term industry driver. In its first-quarter 2026 earnings call, Green Plains highlighted solid domestic and international demand, including healthy export markets, and said the structural backdrop for ethanol remains as positive as it has been in years. Green Plains believes sustained demand, combined with operational execution and its carbon strategy, supports the long-term cash-generation outlook and reinforces a constructive industry backdrop.

ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 374.8% over the past year compared with the industry’s growth of 20.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.45, lower than the industry’s average of 3.3.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.

Image Source: Zacks Investment Research

Alto Ingredients currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Alto Ingredients plans to raise Pekin dry mill capacity by about 5 million gallons, or roughly 8%. ALTO expects higher output to improve asset utilization and expand Section 45Z tax credit eligibility. ALTO expects the higher production run rate to be fully realized beginning in the fourth quarter. Alto Ingredients, Inc. (ALTO - Free Report) is betting that a targeted operational upgrade can unlock meaningful production gains without the expense of building new capacity. In the first-quarter 2026 earnings call, management announced plans to debottleneck its Pekin dry mill during a scheduled June maintenance outage. The project is expected to increase the plant's annual production capacity by about 5 million gallons, or roughly 8%, with the higher run rate expected to be fully realized beginning in the fourth quarter.

The significance of the initiative extends beyond simply producing more gallons. By removing operational constraints at one of its most efficient facilities, Alto Ingredients aims to improve asset utilization and spread fixed costs over higher production volumes. That approach could enhance operating efficiency while requiring far less capital than constructing new production capacity.

The project could also provide an additional financial benefit. Higher output from the Pekin dry mill is expected to increase the number of gallons eligible for Section 45Z clean fuel tax credits, creating another source of incremental earnings alongside the added production. The debottlenecking project is part of Alto Ingredients’ near-term strategy to maximize the value of its existing assets while capturing greater benefits from the clean fuel incentive program.

 The project is scheduled alongside a planned maintenance outage, helping limit additional disruption. If completed on time, it could improve capacity and operating efficiency through targeted upgrades to existing assets.

How ALTO's Capacity Expansion Strategy Compares With PeersGevo, Inc. (GEVO - Free Report) is also advancing a debottlenecking project at its Gevo North Dakota facility to boost low-carbon ethanol output. In the first quarter of 2026, Gevo completed the necessary equipment tie-ins during a planned shutdown, enabling the project to progress without disrupting planned production. Gevo continues to target an annual low-carbon ethanol production capacity of about 75 million gallons beginning next year.

Green Plains Inc. (GPRE - Free Report) is prioritizing incremental improvements across its ethanol network through efficiency and reliability projects. To improve plant performance and lower carbon intensity, Green Plains is investing in low-energy distillation upgrades, grain storage and yield-enhancement projects. Green Plains is focused on optimizing operations across its broader production footprint.

ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 346.8% over the past year compared with the industry’s growth of 14.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.43, lower than the industry’s average of 3.31.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.

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Alto Ingredients currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Alto Ingredients is expanding Pekin dry mill capacity by about 8%, adding roughly 5 million gallons annually.ALTO expects higher production from Q4 2026, increasing gallons eligible for Section 45Z tax credits.Alto Ingredients is adding logistics infrastructure to improve shipment flexibility and plant efficiency. Alto Ingredients, Inc. (ALTO - Free Report) is investing in additional production capacity at the Pekin dry mill as it looks to improve operational efficiency while capturing greater value from favorable industry incentives. Rather than building new facilities, the company is focusing on debottlenecking its most efficient plant, a move designed to increase output with relatively modest capital investment while strengthening profitability.

The project will be completed during a planned outage in June and is expected to increase the Pekin dry mill's annual production capacity by about 8%, or roughly 5 million gallons. Alto Ingredients expects the higher production rates to begin contributing from the fourth quarter of 2026. The additional volumes are expected to do more than boost production. These are expected to help improve plant utilization and create additional margin opportunities by increasing the number of gallons eligible for Section 45Z clean fuel production tax credits.

The company is also investing in supporting infrastructure at Pekin. In the first quarter, Alto Ingredients started repairs on its original dock and began construction of a second alcohol loadout facility, which is expected to improve logistics and provide added flexibility for shipments.

The expansion highlights Alto Ingredients’ strategy of generating more value from existing assets rather than pursuing large-scale expansion projects. With higher output, better logistics and greater access to clean fuel incentives, Pekin is becoming a central part of the company's operational improvement efforts in 2026.

How ALTO's Strategy Compares With PeersGreen Plains Inc. (GPRE - Free Report) has been prioritizing efficiency and carbon-intensity reduction projects across its ethanol network. In the first quarter of 2026, Green Plains highlighted investments in grain storage, low-energy distillation and other upgrades aimed at improving plant economics and lowering operating costs. Green Plains also expects these projects to increase eligibility for 45Z-related benefits over time.

MGP Ingredients, Inc. (MGPI - Free Report) has also been focused on improving asset utilization and operational efficiency across its production network. In the first quarter of 2026, MGP Ingredients highlighted initiatives to improve reliability, throughput and production efficiency while reducing waste and disposal costs. MGP Ingredients is also undertaking targeted maintenance and capital projects designed to enhance operational performance and generate better returns from existing assets.

ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 415.5% over the past year compared with the industry’s growth of 5.4%.

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From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.46, lower than the industry’s average of 3.14.

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The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.

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Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Alto Ingredients returned to profitability in Q1 2026 as adjusted EBITDA improved to $4.7 million.Alto Ingredients expects about $15 million in annual net proceeds from qualifying 45Z production volumes.Green Plains produced 174 million gallons of ethanol in Q1 2026 while operating at 97% of capacity. Alto Ingredients, Inc. (ALTO - Free Report) and Green Plains Inc. (GPRE - Free Report) are two prominent players in the U.S. biofuels industry, with business models centered on producing ethanol and other value-added agricultural products. While Alto Ingredients has increasingly diversified into specialty alcohols and essential ingredients for industrial and consumer applications, Green Plains has focused on transforming itself into a higher-margin producer of sustainable ingredients, renewable corn oil and low-carbon products.

The comparison between ALTO and GPRE is especially relevant as investors reassess the outlook for ethanol producers amid volatile corn prices, evolving renewable fuel policies and growing demand for low-carbon energy solutions. Both companies are navigating the same macroeconomic and regulatory environment but pursuing different strategic paths, making them an intriguing pair for evaluating growth potential, profitability and long-term positioning in the energy transition.

Let's discuss in detail.

The Case for Alto Ingredients StockAlto Ingredients operates as a diversified producer of renewable fuels, specialty alcohols and essential ingredients, supplying customers across health, beauty, food, beverage, industrial and agricultural markets. The company's diversified portfolio and focus on higher-value products are contributing to a meaningful improvement in operating performance. In the first quarter of 2026, Alto Ingredients returned to profitability with earnings of 5 cents per share, against a loss of 16 cents a year earlier, while adjusted EBITDA improved to $4.7 million from negative $4.4 million, reflecting the benefits of its strategic realignment, stronger export demand and improved crush margins.

Another major catalyst has been stronger industry fundamentals and a more favorable product mix. Robust export demand, higher export premiums relative to domestic renewable fuel sales and improving corn oil prices supported margins. The company's crush margins increased to 17 cents per gallon from just 2 cents a year ago, while essential ingredients returns improved to 53.4% from 48.2%. Management also remains optimistic about demand growth from export markets and year-round E15 adoption.

Operational improvements and expansion projects are further supporting the company’s long-term outlook. Alto Ingredients is investing in projects to improve reliability, increase utilization and expand capacity. A debottlenecking project at the Pekin dry mill is expected to raise annual production capacity by about 5 million gallons, while additional CO2 infrastructure investments are expected to enhance operational flexibility and support higher-value opportunities. The company is also evaluating carbon capture and sequestration initiatives that could provide additional earnings opportunities over time.

Alto Ingredients is benefiting from growing opportunities tied to Section 45Z tax credits and improving financial flexibility. The company recognized $3.9 million in tax-credit earnings in the first quarter and expects roughly $15 million in annual net proceeds from qualifying production volumes. Positive operating cash flow, lower debt and more than $94 million in borrowing capacity have further strengthened the company's balance sheet and financial flexibility.

The Case for Green Plains StockGreen Plains has established itself as a prominent player in the U.S. biofuels industry, operating a network of eight ethanol plants and maintaining a significant presence in domestic biofuel production. The company produced 174 million gallons of ethanol in the first quarter of 2026 while operating at 97% of capacity, underscoring the scale, utilization rates and efficiency of its production platform.

The business has evolved beyond conventional ethanol manufacturing into a diversified portfolio of value-added products and services. Alongside ethanol, Green Plains generates revenues from renewable corn oil, ultra-high protein ingredients, grain handling, commodity marketing and carbon-related activities. This broader product mix expands the company's exposure across agricultural, feed, energy and low-carbon markets.

Green Plains continues to focus on improving plant reliability, increasing processing yields and lowering carbon intensity across its facilities. The company is directing capital toward grain storage expansion, low-energy distillation upgrades and yield-enhancement technologies designed to improve efficiency and strengthen operating performance. Benchmarking initiatives and data-driven analytics are also helping identify productivity gains across the production network.

Green Plains is also benefiting from the growing contribution of its carbon platform and Section 45Z production tax credits. Net production tax credits contributed $55.2 million to adjusted EBITDA in the first quarter, supported by the first full quarter of carbon sequestration operations at its three Nebraska facilities. The company expects its carbon strategy to contribute between $200 million and $225 million of EBITDA in 2026, while strong liquidity provides additional financial flexibility.

Valuation & Price Performance of ALTO & GPREAlto Ingredients currently trades at a forward price-to-sales ratio of 0.38, representing a modest discount to Green Plains, which trades at 0.52.

P/S Ratio (Forward 12 Months)
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Over the last three months, Alto Ingredients has emerged as the stronger performer, rising 10.4% while Green Plains lost 11.8%.

Three Months Price Performance
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Bottom Line: ALTO Appears Better Positioned for GrowthBoth Alto Ingredients and Green Plains are evolving beyond traditional ethanol production, but the former currently offers a more compelling turnaround and valuation story. Its improving profitability, stronger crush margins, growing specialty alcohol and ingredients business, and exposure to Section 45Z incentives provide multiple avenues for earnings growth. While Green Plains continues to advance its low-carbon and carbon capture initiatives and benefits from greater scale, ALTO's improving operational execution, strengthening balance sheet and leverage to improve industry fundamentals could position the stock to deliver stronger upside potential over the near to medium term.

Both ALTO and GPRE sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.