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Key Takeaways ALTO posted a fourth straight profitable quarter while advancing capacity and efficiency projects.GPRE recognized $58.7M of 45Z tax-credit value as Q2 revenues and ethanol volumes declined.ALTO trades at a 0.31 forward P/S, below GPRE's 0.54, while both stocks fell over the past month. Alto Ingredients, Inc. (ALTO - Free Report) and Green Plains Inc. (GPRE - Free Report) are notable participants in the U.S. biofuels and biorefining industry, with operations built around processing corn into ethanol and other value-added products. Alto Ingredients has broadened its portfolio toward specialty alcohols and essential ingredients serving food, beverage, pharmaceutical and industrial markets, while Green Plains has been reshaping the business around low-carbon fuels, renewable corn oil and higher-value protein ingredients.

The comparison between ALTO and GPRE is timely as ethanol producers contend with fluctuating corn costs, changing fuel margins and evolving renewable-energy policies. Although both companies operate under similar industry conditions, their strategic priorities differ, giving investors a useful way to assess which business is better positioned for margin improvement, earnings growth and long-term opportunities in the transition toward lower-carbon fuels.

Let's discuss in detail.

The Case for Alto Ingredients StockAlto Ingredients operates a diversified production platform spanning renewable fuels, specialty alcohols and essential ingredients, serving customers across health and beauty, food and beverage, industrial, agricultural and renewable-fuel markets. In the second quarter of 2026, the company posted its fourth consecutive quarter of positive gross profit, operating income, net income and adjusted EBITDA, while selling 88.5 million gallons of ethanol and specialty alcohols.

The company is also focusing on high-return capacity and efficiency projects. During the quarter, it completed a Pekin dry-mill debottlenecking project expected to raise annual production capacity by about 8%, or 5 million gallons. Management also expects at least 90 million gallons of qualifying 2026 production to support a minimum of $15 million in net Section 45Z tax-credit income after monetization costs.

However, Alto Ingredients continues to face headwinds in the export business. Geopolitical disruptions in the Middle East increased freight costs and reduced certainty of vessel availability, while compression in the U.S.-to-Europe arbitrage increased the competitiveness of Brazilian ethanol exports into Europe. These factors contributed to lower renewable-fuel export volumes from the year-ago period, prompting Alto Ingredients to shift more production toward the stronger domestic fuel-grade ethanol market.

The company also incurred higher operating expenses during the quarter, partially offsetting the benefit of stronger industry conditions. Repairs and maintenance expenses increased approximately $2 million year over year, reflecting the Pekin dry mill and ICP spring outages and continued work at the Carbonic facility. SG&A expenses rose $1.8 million, partly due to performance compensation accruals and the absence of a prior-year one-time gain.

The Case for Green Plains StockGreen Plains operates a biorefining platform centered on ethanol, distillers grains, Ultra-High Protein, renewable corn oil and carbon capture, with eight operating ethanol plants. In the second quarter of 2026, Green Plains sold 160.7 million gallons of ethanol, while its eight operating ethanol plants ran at 88% utilization. Its scale across ethanol production, carbon capture and value-added coproducts gives Green Plains a broad operating presence across the biofuels and agricultural-products markets.

Green Plains is focusing on operational excellence, lower carbon intensity and higher-value coproducts. In the second quarter of 2026, 45Z production tax credits contributed $58.7 million to adjusted EBITDA, net of discounts and other costs. The company is also using benchmarking, process chemistry and targeted technology upgrades to improve yields and efficiency across its operating network.

However, Green Plains reported lower revenues and production volumes in the second quarter of 2026. Revenues fell 19.3% year over year to $446.2 million, primarily reflecting lower ethanol volumes following the Obion, Tennessee, plant disposition. Ethanol volumes sold declined 17% to 160.7 million gallons, while total debt stood at $483.7 million and cash and restricted cash totaled $243.1 million.

Green Plains also remains exposed to seasonal demand and commodity volatility. Management expects lower driving demand to create normal seasonal pressure later in 2026, while U.S. ethanol exports must remain competitive with Brazil. Corn prices have been volatile, corn oil prices were supported by renewable-diesel demand and distillers-grain values were trending lower in the third quarter due to seasonal factors.

Valuation & Price Performance of ALTO & GPREAlto Ingredients currently trades at a forward price-to-sales ratio of 0.31, representing a discount to Green Plains, which trades at 0.54.

P/S Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Over the past month, Alto Ingredients and Green Plains have declined 11.3% and 10.9%, respectively.

One Month Price Performance
Image Source: Zacks Investment Research

Bottom LineAlto Ingredients appears to have a slight edge over Green Plains, supported by its lower forward price-to-sales multiple, improving profitability and targeted capacity investments. The expected contribution from Section 45Z tax credits also provides additional earnings support. However, ALTO still faces export-market uncertainty, higher operating costs and commodity-related risks. GPRE, meanwhile, benefits from scale and value-added products but is contending with lower volumes and a sizable debt load. With both ALTO and GPRE stocks carrying a Zacks Rank #4 (Sell), caution remains warranted, though the former looks relatively better positioned.

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

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).

Image Source: Zacks Investment Research

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

Posted by Defense World Staff on Aug 13th, 2026

Dimensional Fund Advisors LP raised its holdings in shares of Alto Ingredients, Inc. (NASDAQ:ALTO – Free Report) by 74.7% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 659,268 shares of the company’s stock after acquiring an additional 281,833 shares during the quarter. Dimensional Fund Advisors LP owned approximately 0.85% of Alto Ingredients worth $3,190,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in the business. Peapod Lane Capital LLC grew its position in shares of Alto Ingredients by 0.7% during the fourth quarter. Peapod Lane Capital LLC now owns 1,244,198 shares of the company’s stock worth $3,583,000 after purchasing an additional 9,074 shares in the last quarter. Hsbc Holdings PLC raised its position in shares of Alto Ingredients by 36.8% during the first quarter. Hsbc Holdings PLC now owns 37,471 shares of the company’s stock valued at $183,000 after buying an additional 10,070 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Alto Ingredients during the first quarter valued at approximately $49,000. Vontobel Holding Ltd. purchased a new position in shares of Alto Ingredients in the fourth quarter worth $33,000. Finally, XTX Topco Ltd boosted its position in shares of Alto Ingredients by 34.2% during the fourth quarter. XTX Topco Ltd now owns 52,753 shares of the company’s stock worth $152,000 after acquiring an additional 13,431 shares during the last quarter. 42.44% of the stock is currently owned by hedge funds and other institutional investors.

Alto Ingredients Trading Down 2.6% ALTO opened at $4.06 on Thursday. The firm has a market cap of $314.61 million, a P/E ratio of 6.06 and a beta of 0.17. Alto Ingredients, Inc. has a 12 month low of $0.92 and a 12 month high of $6.11. The company has a current ratio of 3.81, a quick ratio of 2.54 and a debt-to-equity ratio of 0.29. The stock has a 50-day moving average of $5.17 and a 200 day moving average of $4.49.

Alto Ingredients (NASDAQ:ALTO – Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.15 earnings per share for the quarter, beating analysts’ consensus estimates of $0.08 by $0.07. Alto Ingredients had a net margin of 5.51% and a return on equity of 18.94%. The business had revenue of $245.70 million for the quarter, compared to analysts’ expectations of $231.24 million. As a group, research analysts forecast that Alto Ingredients, Inc. will post 0.39 EPS for the current year.

Insider Buying and Selling at Alto Ingredients In other Alto Ingredients news, Director Gilbert E. Nathan bought 50,000 shares of the firm’s stock in a transaction dated Tuesday, August 11th. The stock was acquired at an average cost of $4.15 per share, for a total transaction of $207,500.00. Following the completion of the transaction, the director owned 856,393 shares in the company, valued at $3,554,030.95. This trade represents a 6.20% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 4.28% of the company’s stock.

Wall Street Analyst Weigh In A number of brokerages have issued reports on ALTO. Zacks Research downgraded shares of Alto Ingredients from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Scotiabank set a $10.00 price objective on Alto Ingredients in a research report on Thursday, August 6th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Alto Ingredients in a report on Friday, July 31st. Finally, HC Wainwright reiterated a “buy” rating on shares of Alto Ingredients in a research report on Thursday, August 6th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Alto Ingredients presently has a consensus rating of “Hold” and a consensus target price of $10.00.

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About Alto Ingredients (Free Report)

Alto Ingredients, Inc (NASDAQ: ALTO) is a diversified producer of alcohol-based products and specialty ingredients for industrial, food, beverage and personal care applications. The company’s core offering centers on ethanol produced for fuel markets, as well as an expanding portfolio of natural and organic alcohols, glycerin and other ingredient solutions. Alto’s product lines serve a range of end markets, including renewable fuels, confectionery, flavorings, cosmetics and sanitizers.

Headquartered in Dallas, Texas, Alto Ingredients operates a network of production facilities across the United States.

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Alto Ingredients reported strong second quarter results, with better-than-expected profitability and impressive cash generation. ALTO's results would have been even better without some unexpected headwinds in the company's high-margin export business and hedging losses. Despite strong results, shares have sold off by more than 15% in recent sessions likely due to the company's unfortunate decision to establish a $50 million at-the-market offering ("ATM").

Key Takeaways Alto Ingredients posted $23.7 million in adjusted EBITDA, up from negative $0.2 million a year ago.ALTO benefited from higher alcohol prices, lower corn costs and a stronger board corn crush margin.Alto Ingredients logged a fourth straight quarter of positive gross profit, operating income and net income. Alto Ingredients, Inc. (ALTO - Free Report) delivered a sharp improvement in second-quarter 2026 adjusted EBITDA, providing further evidence of a recovery in its operating and financial performance. Adjusted EBITDA reached $23.7 million, in contrast with negative $0.2 million in the prior-year quarter, marking an improvement of $23.9 million. The quarter also marked the company's fourth consecutive period of positive gross profit, income from operations, net income and adjusted EBITDA, reflecting sustained improvement in operating performance.

The improvement was supported primarily by stronger gross profitability and the contribution of transferable tax-credit earnings. Gross profit rose to $16.6 million from a gross loss of $1.9 million in the prior-year period. Alto Ingredients also recognized $5.1 million in net transferable tax credits in the quarter, which contributed to the year-over-year increase in adjusted EBITDA.

Operating metrics reflected a more favorable production environment. The average alcohol selling price increased 10.3% to $2.15 per gallon from $1.95, while the average corn cost declined 5% to $4.73 per bushel from $4.98. The board corn crush margin also improved to 33 cents per gallon from 11 cents a year earlier, supported by stronger ethanol pricing and lower feedstock costs.

Consolidated essential-ingredients return increased to 51.6% from 45.2%, indicating improved value realization from corn processing. The company reported earnings of 15 cents per share, against a loss of 15 cents in the prior-year quarter. Taken together, the results suggest Alto Ingredients’ operational recovery continued in the quarter, although future performance will still depend on ethanol margins, feedstock costs and the contribution of transferable tax credits.

What Do the Latest Metrics Say About Alto Ingredients?Alto Ingredients, which competes with Green Plains Inc. (GPRE - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) , has seen its shares rally 386.5% in the past year, way higher than the industry’s 14.8% growth. Shares of Green Plains have risen 124.6%, while MGP Ingredients has declined 36.1% during the same period.

Image Source: Zacks Investment Research

From a valuation standpoint, Alto Ingredients’ forward price-to-sales ratio of 0.39 is lower than the industry’s average of 3.34. The company is trading at a discount to Green Plains (with a forward price-to-sales ratio of 0.58) and MGP Ingredients (0.75).

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.

Penny Picks: The Top Penny Stocks of 2021 and BeyondAlto Ingredients NASDAQ: ALTO reported a fourth consecutive quarter of positive gross profit, operating income, net income and adjusted EBITDA in the second quarter of 2026, citing stronger ethanol market conditions, improved essential ingredient pricing and contributions from federal 45Z tax credits.

President and CEO Bryon McGregor said the company remained profitable during the four-quarter period even without the contribution of 45Z credits, which are tied to qualifying low-carbon fuel production. He said Alto’s diversified operating model has enabled it to shift production toward more attractive end markets and capture higher-value opportunities.

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“Our results for the past four quarters demonstrate the success to date of the strategic realignment we began three years ago,” McGregor said. “With a diversified product portfolio [and] a leaner cost structure, we have positioned Alto to capture higher value revenue opportunities to enhance profitability and drive shareholder value.”

Second-Quarter Financial Results Consolidated net sales rose $27 million year over year to $246 million. Alto sold 88.5 million gallons of ethanol and specialty alcohols, up 1.8 million gallons from the prior-year quarter, while its average sales price increased 10% to $2.15 per gallon.

Gross profit increased $19 million from a year earlier to $17 million. Chief Financial Officer Rob Olander said the improvement was primarily driven by stronger industry crush margins, which increased to $0.33 per gallon from $0.11 per gallon in the second quarter of 2025. The higher margins contributed approximately $17 million of incremental gross profit, according to the company.

Alto also benefited from nearly $600,000 in lower natural-gas and electricity costs. Those gains were partly offset by approximately $2 million in additional repair and maintenance expense related to planned spring outages at the Pekin dry mill and ICP facilities, as well as ongoing work at its carbonic facility.

Net income attributable to common stockholders was $11.4 million, or $0.15 per share, compared with a net loss of $11.3 million, or negative $0.15 per share, in the prior-year period. Adjusted EBITDA improved by $23.9 million to $23.7 million.

The company recognized $5.1 million in 45Z tax-credit earnings during the quarter, including $4 million of credits earned in the second quarter and $1.1 million in final adjustments related to 2025 credit-sale proceeds. Alto said it had accrued $7.9 million in net 2026 45Z credits through the first half of the year and expects to monetize the credits in the future.

Market Conditions and Product Mix McGregor said domestic ethanol demand was supported by export demand, domestic blending activity, tighter ethanol inventories following industry-wide spring maintenance outages and stronger renewable volume obligation requirements. Favorable crop conditions and larger projected grain supplies also contributed to lower corn costs.

While European demand remained robust, Alto said geopolitical disruption in the Middle East increased freight costs and reduced vessel availability from the Gulf Coast, compressing the arbitrage for U.S. ethanol exports to Europe. The company’s renewable fuel export volume declined year over year, though export revenue increased $800,000 because of higher premiums to domestic renewable fuel.

In response, Alto shifted more of its production and sales mix toward domestic fuel-grade ethanol. McGregor said the company’s commercial platform provided flexibility to redirect product into domestic markets when export economics were less favorable.

High-quality alcohol volumes increased by 3.6 million gallons. Although average premiums over ethanol narrowed, reducing revenue by about $2.9 million, Olander said realized derivative gains largely offset the impact. Essential ingredient sales increased to $6.1 million, aided by higher average sales prices for dried distillers grains, corn oil and germ. Alto’s essential ingredients return improved to 51.6% from 45.2% a year earlier, alongside a 5% reduction in corn costs.

Capital Projects, Debt Reduction and 45Z Outlook At Alto’s Pekin campus, the company completed a planned outage and a dry-mill debottlenecking project expected to increase annual production capacity by about 8%, or 5 million gallons. McGregor said Alto is ramping toward the new production levels and expects to realize the full benefit of the added capacity in the fourth quarter.

The company is also repairing an existing dock and installing a second alcohol loadout at ICP, with completion expected by year-end. At its Columbia facility, Alto is adding a third carbon dioxide storage tank that is expected to be operational in the fourth quarter to support premium CO2 demand in the Pacific Northwest.

Alto said it remains on track to qualify 90 million gallons or more of combined production for 45Z credits in 2026, supporting its expectation for at least $15 million in income from tax credits after monetization costs. Management said it is also working with farmer partners to explore lower-carbon-intensity corn practices that could improve future credit generation, though it did not quantify the expected benefit.

As of June 30, Alto had $24 million in cash and generated $28.5 million in operating cash flow during the quarter. Capital expenditures totaled $10.6 million in the second quarter and $11.5 million year to date, with the company maintaining a $25 million annual capital-expenditure target.

Alto repaid $8.5 million of term debt during the quarter, bringing year-to-date principal payments to $25.1 million and term debt outstanding to $29.9 million. Total borrowing availability at quarter-end was $106 million. The company also established a $50 million at-the-market equity program, which Olander said provides additional flexibility to pursue high-return organic opportunities when market conditions and expected returns support doing so.

E15 Demand Opportunity Management also pointed to growing support for year-round E15 gasoline blending as a potential long-term demand driver. McGregor cited Renewable Fuels Association polling showing that about 72% of U.S. voters support year-round E15 blending. He said progress in Midwestern states and California’s Assembly Bill 30 could provide a framework for expanded adoption.

According to McGregor, broader E15 adoption could increase ethanol demand, improve industry capacity utilization and support a more favorable margin environment over time.

About Alto Ingredients (NASDAQ:ALTO)Alto Ingredients, Inc NASDAQ: ALTO is a diversified producer of alcohol-based products and specialty ingredients for industrial, food, beverage and personal care applications. The company’s core offering centers on ethanol produced for fuel markets, as well as an expanding portfolio of natural and organic alcohols, glycerin and other ingredient solutions. Alto’s product lines serve a range of end markets, including renewable fuels, confectionery, flavorings, cosmetics and sanitizers.

Headquartered in Dallas, Texas, Alto Ingredients operates a network of production facilities across the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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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.

Alto Neuroscience maintains a 'Buy' rating, driven by the potential of ALTO-207 for treatment-resistant depression [TRD] and robust cash reserves. ALTO-207, a pramipexole/ondansetron combination, targets TRD with phase 2b topline data expected in 2H 2027 and possible phase 3 initiation by early 2027. Despite ALTO-100's phase 2b failure in MDD, ANRO's diversified pipeline and biomarker-driven strategies support continued optimism.

Key Takeaways ALTO returned to profit as stronger margins and tax credits lifted first-quarter 2026 results.AMTX grew revenues 27% as Dairy RNG volumes rose 55% and operating losses narrowed.ALTO faces ethanol margin risks, while AMTX must manage financing and project execution. Alto Ingredients, Inc. (ALTO - Free Report) and Aemetis, Inc. (AMTX - Free Report) operate in the renewable fuels and low-carbon energy industry, a sector benefiting from growing demand for cleaner transportation fuels and sustainable industrial solutions. Both companies are positioned within the broader bioenergy market, where government policies, decarbonization goals and evolving energy needs continue to shape competitive dynamics and long-term growth opportunities.

While Alto Ingredients has expanded beyond conventional ethanol production into specialty alcohols and essential ingredients for food, beverage and industrial markets, Aemetis has built a broader renewable energy platform that includes ethanol, biodiesel, renewable natural gas and sustainable aviation fuel projects. Their contrasting strategic priorities and operating models make them an interesting comparison for investors seeking to evaluate their competitive strengths, execution capabilities and prospects for long-term value creation.

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, serving customers across the health, beauty, food, beverage, industrial and agricultural markets. Its diversified portfolio and focus on higher-value products have contributed to a notable improvement in operating performance. In the first quarter of 2026, the company reported earnings of 5 cents per share, against a loss of 16 cents in the year-ago quarter. Adjusted EBITDA improved to $4.7 million from negative $4.4 million, while gross profit swung to $9.2 million from a gross loss of $1.8 million, reflecting improved operating conditions, the company's strategic realignment and unrealized derivative gains.

Favorable industry conditions also supported performance during the quarter. Strong export demand, higher export premiums relative to domestic renewable fuel sales and improving corn oil prices boosted margins. Board corn crush margins increased to 17 cents per gallon from just 2 cents a year earlier, while essential ingredients returns improved to 53.4% from 48.2%. The company also expects demand support from export markets and the potential expansion of year-round E15 adoption.

Alto Ingredients continues to invest in initiatives aimed at enhancing long-term profitability. A debottlenecking project at the Pekin dry mill is expected to increase annual production capacity by about 5 million gallons, while additional CO2 infrastructure investments are designed to improve operational flexibility and support higher-value opportunities. The company is also evaluating carbon capture and sequestration initiatives and expanding its participation in Section 45Z tax credits, having recognized $3.9 million in tax-credit earnings during the first quarter and expecting roughly $15 million in annual net proceeds from qualifying production volumes.

However, Alto Ingredients remains exposed to the risk of weaker industry margins if production outpaces demand. Management acknowledged that strong spring crush margins have historically encouraged higher ethanol production, often leading to oversupply and margin compression in the second half of the year. While export demand and the potential expansion of year-round E15 could help absorb additional volumes, their impact remains uncertain.

The Case for Aemetis StockAemetis has built a diversified renewable fuels platform spanning California ethanol, Dairy Renewable Natural Gas (“RNG”) and India biodiesel operations. Its multi-segment business model contributed to a notable improvement in financial performance during the first quarter of 2026. Revenues increased 27% year over year to $54.6 million, while gross profit improved to $2.8 million from a gross loss of $5.1 million. Operating loss narrowed by approximately 60%, reflecting stronger execution across all three operating segments and the contribution from Section 45Z production tax credits.

The company's growth strategy is centered on expanding production capacity while increasing the value of its low-carbon fuel portfolio. In the quarter, Dairy RNG sales volumes climbed 55% year over year to 110,000 MMBtu, supported by seven approved Low Carbon Fuel Standard (“LCFS”) pathways with an average carbon intensity score of negative 380. Aemetis is also expanding its dairy digester network, which is expected to support higher renewable natural gas production and additional LCFS credit generation.

The company continues to invest in projects aimed at strengthening long-term earnings and improving its competitive position in low-carbon fuels. Construction is progressing on the mechanical vapor recompression project at the Keyes ethanol plant, which is expected to reduce fossil natural gas consumption by about 80% while enhancing cash flow through lower operating costs and additional tax-credit opportunities. The company is also advancing its India biodiesel business, planned IPO and sustainable aviation fuel project to diversify growth opportunities.

However, Aemetis continues to face execution and financing risks as it advances several large-scale growth projects. In addition, the pace of project development and expected returns remain dependent on regulatory approvals, financing availability and the continued evolution of low-carbon fuel incentive programs.

Valuation & Price Performance of ALTO & AMTXAlto Ingredients currently trades at a forward price-to-sales (P/S) ratio of 0.34, slightly above Aemetis' forward P/S ratio of 0.32.

P/S Ratio (Forward 12 Months)
Image Source: Zacks Investment Research

Over the past year, Alto Ingredients has significantly outperformed Aemetis. ALTO gained 287.9%, while AMTX declined 52.3%.

One Year Price Performance
Image Source: Zacks Investment Research

ALTO vs. AMTX: Which Stock Comes Out Ahead?Both Alto Ingredients and Aemetis are expanding beyond conventional ethanol production to capitalize on opportunities in the low-carbon fuels market. However, Alto Ingredients currently presents the stronger investment case, supported by its return to profitability, improving margins, growing specialty alcohol and ingredients business, and expected benefits from Section 45Z tax credits and ongoing capacity expansion initiatives.

While Aemetis offers significant long-term potential through the Dairy RNG, sustainable aviation fuel and India biodiesel initiatives, much of its growth depends on successful project execution and financing. With stronger operating momentum, lower execution risk and a clearer path to near-term earnings growth, ALTO emerges as the more compelling investment opportunity.

Both ALTO and AMTX carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong buy) stocks here.

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.

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.

The Consumer Products-Discretionary industry is navigating a mixed operating environment, with resilient consumer demand tempered by persistent macroeconomic uncertainty. Inflationary pressures have eased from their recent peaks, and consumer confidence has shown signs of stabilization. Still, households remain selective in their spending as elevated living costs, an uneven labor market and lingering interest-rate pressures continue to influence purchasing decisions. While higher-income consumers have largely remained resilient, lower and middle-income households are prioritizing value, leading to a bifurcated spending environment across discretionary categories.

Against this backdrop, companies are relying less on broad-based demand and more on execution to drive growth. Investments in omnichannel capabilities, AI-powered personalization, retail media, loyalty programs and supply-chain efficiencies are taking precedence. At the same time, companies continue to contend with promotional competition, tariffs and cautious inventory management, making pricing discipline and operational efficiency critical to protecting margins. As consumers gravitate toward brands that offer compelling value and convenience, industry players with strong digital ecosystems, diversified sourcing strategies and disciplined cost structures remain better positioned to outperform the broader consumer discretionary industry.

Central Garden & Pet Company (CENT - Free Report) , Alto Ingredients, Inc. (ALTO - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) and ACCO Brands Corporation (ACCO - Free Report) stand out as strong contenders in this evolving marketplace.

About the Industry The Consumer Products-Discretionary industry has a direct correlation with the economy, making it cyclical. Discretionary products command high prices, with middle-to-higher-income groups being the targeted customers. The industry comprises companies that offer product categories, including fashion, jewelry and watches, and other home and art products. Quite a few players develop, manufacture, market and sell over-the-counter health and personal care products. Some even manufacture and distribute party goods. Some companies design, source and distribute licensed pop culture products, too. Some industry participants also produce and distribute various products for the lawn and garden and pet supplies markets. Companies sell products to specialty retailers, mass-market retailers and e-commerce sites. 

4 Key Trends to Watch in the Industry Consumers Remain Selective as Value Becomes the Primary Driver: Consumer spending remains resilient but selective as households continue to balance discretionary purchases against higher living costs, elevated borrowing expenses and lingering economic uncertainty. While easing inflation has provided some relief, shoppers remain value-conscious and are prioritizing essential and experience-led purchases. Promotional activity remains elevated across many retail categories, compelling companies to compete through sharper pricing, exclusive assortments and loyalty programs. Companies that successfully combine compelling value with differentiated merchandise and strong brand positioning are expected to be better placed to sustain demand.

Digital Innovation and AI Continue to Reshape Industry: Industry participants are accelerating investments in digital capabilities to improve customer engagement, operational efficiency and profitability. Artificial intelligence is increasingly being deployed across merchandising, pricing, inventory planning, customer service and personalized marketing, helping companies make faster and more informed decisions. Omnichannel strategies remain central to growth as consumers expect seamless shopping experiences across stores, websites and mobile platforms. Faster fulfillment, enhanced convenience and data-driven personalization are becoming key competitive advantages, allowing leading companies to strengthen customer loyalty while improving productivity and long-term margin potential.

Margin Expansion Depends on Operational Discipline: Although supply-chain disruptions have largely eased, industry players continue to face pressure from labor costs, tariffs, transportation expenses and ongoing technology investments. As a result, margin expansion will depend less on pricing and more on disciplined execution. Companies are focusing on inventory optimization, sourcing diversification, automation and expense control to improve profitability while limiting markdowns. Industry participants that maintain healthy inventory levels, strengthen supply-chain flexibility and preserve pricing discipline are likely to navigate cost pressures more effectively and deliver stronger earnings quality despite a challenging operating environment.

Brand Innovation to Fuel Growth: Consumer preferences continue to shift toward wellness, beauty, athleticwear and experience-driven spending, creating growth opportunities across select discretionary categories. At the same time, shoppers remain selective, with stronger demand concentrated among brands that offer clear value, innovation or premium differentiation. Companies with differentiated product portfolios, compelling merchandising and strong brand equity are expected to capture a larger share of consumer spending. Continued investments in customer experience and international expansion should further support long-term growth.

Zacks Industry Rank Indicates Bright Prospects The Zacks Consumer Products-Discretionary industry is a group within the broader Consumer Discretionary sector. The industry currently carries a Zacks Industry Rank #91, which places it in the top 37% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.

Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Since the beginning of 2026, the industry’s earnings estimate has risen 5.3%.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Versus Broader Market The Zacks Consumer Products-Discretionary industry has outperformed the broader Zacks Consumer Discretionary sector but underperformed the Zacks S&P 500 composite over the past year.

The industry has advanced 4.5% over this period compared with the S&P 500’s rise of 22.8%. Meanwhile, the broader sector has fallen 16%.

One-Year Price Performance

Industry's Current Valuation Based on the forward 12-month price-to-sales (P/S), which is commonly used for valuing consumer discretionary stocks, the industry is currently trading at 3.16X compared with the S&P 500’s 5.05X and the sector’s 2.30X.

Over the last five years, the industry has traded as high as 14.10X and as low as 2.35X, with the median being at 3.00X, as the chart below shows.

Price-to-Sales Ratio (Past 5 Years)
  4 Stocks to Watch Central Garden & Pet Company: Central Garden & Pet continues to strengthen its competitive position through a balanced portfolio of leading pet and garden brands, disciplined execution and a growing focus on innovation. The company is streamlining operations, enhancing distribution capabilities and investing in new products, digital initiatives and targeted acquisitions to drive sustainable, profitable growth. Supported by a resilient operating model, healthy customer relationships and a strong balance sheet, CENT remains well-positioned to capitalize on evolving consumer preferences and market opportunities. Its continued emphasis on operational excellence, strategic investments and portfolio optimization should support sustained long-term success.

The Zacks Consensus Estimate for Central Garden & Pet Company’s current financial-year EPS suggests growth of 5.9% from the year-ago period. CENT delivered a trailing four-quarter earnings surprise of 45.4%, on average. Shares of this Zacks Rank #1 (Strong Buy) company have advanced 20.5% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price and Consensus: CENT

Alto Ingredients: Alto Ingredients is strengthening its long-term growth profile through a more diversified operating model, a disciplined cost structure and a growing focus on higher-value product streams. The company is investing in optimization projects, production efficiency, logistics infrastructure and carbon reduction initiatives while expanding opportunities tied to renewable fuels, biogenic CO2 and low-carbon incentives. Supported by operational improvements, strong capital discipline and a flexible asset base, Alto is well-positioned to capitalize on favorable industry trends and evolving market demand. Its continued emphasis on innovation, value-added products and strategic execution should reinforce its foundation for sustainable long-term growth.

This leading producer of specialty alcohols, renewable fuels and essential ingredients delivered a trailing four-quarter earnings surprise of 361.5%, on average. The Zacks Consensus Estimate for Alto Ingredients’ current financial-year sales and EPS calls for growth of 8.6% and 671.4%, respectively, from the year-ago period. Shares of this Zacks Rank #1 company have soared 348.4% over the past year.

Price and Consensus: ALTO

Lifetime Brands: Lifetime Brands continues to strengthen its market position through a portfolio of well-known kitchenware and home products brands, supported by disciplined pricing, operational efficiency and a steady pipeline of new product innovation. The company is benefiting from strong momentum in key categories, expanding brand partnerships, improving international operations and strategic investments in its distribution network, positioning it for enhanced profitability and growth. With a more diversified sourcing strategy, disciplined cost management and a healthy pipeline of acquisition opportunities, Lifetime is well equipped to navigate an evolving retail environment. Its continued focus on innovation, execution and operational excellence positions the company for sustained long-term success.

This global designer, developer and marketer of branded kitchenware, tableware and home solutions has a trailing four-quarter earnings surprise of 50%, on average. The Zacks Consensus Estimate for Lifetime Brands’ current financial-year sales suggests growth of 3.6% from the year-ago period. Shares of this Zacks Rank #1 company have rallied 57.7% over the past year.

Price and Consensus: LCUT

ACCO Brands: ACCO Brands is strengthening its long-term growth profile by expanding its presence in faster-growing technology peripherals while leveraging its portfolio of trusted workplace, gaming and computer accessory brands. The company is executing on strategic initiatives, including the integration of EPOS, new product innovation, cost optimization and footprint improvements, to enhance operational efficiency and support profitable growth. Supported by disciplined cost management, a diversified global footprint and a healthy product pipeline, ACCO is well-positioned to capitalize on evolving market opportunities and strengthen its competitive position. Its continued focus on innovation, strategic execution and portfolio transformation should support sustainable long-term growth and shareholder value creation.

The Zacks Consensus Estimate for ACCO Brands’ current financial-year sales and EPS suggests growth of 2.1% and 3.6%, respectively, from the year-ago period. ACCO delivered a trailing four-quarter earnings surprise of 33%, on average. Shares of this Zacks Rank #2 (Buy) company have risen 5.3% over the past year.

Price and Consensus: ACCO

Shares of Alto Ingredients (ALTO - Free Report) have been strong performers lately, with the stock up 8.1% over the past month. The stock hit a new 52-week high of $6.11 in the previous session. Alto Ingredients has gained 107.6% since the start of the year compared to the -8.8% gain for the Zacks Consumer Discretionary sector and the 7.1% return for the Zacks Consumer Products - Discretionary industry.

What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 6, 2026, Alto Ingredients reported EPS of $0.05 versus consensus estimate of -$0.08 while it missed the consensus revenue estimate by 2.07%.

For the current fiscal year, Alto Ingredients is expected to post earnings of $0.54 per share on $996.46 in revenues. This represents a 671.43% change in EPS on a 8.56% change in revenues. For the next fiscal year, the company is expected to earn $0.83 per share on $1.03 in revenues. This represents a year-over-year change of 53.7% and 3.1%, respectively.

Valuation MetricsAlto Ingredients may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Alto Ingredients has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 11.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 16.2X. On a trailing cash flow basis, the stock currently trades at 13.7X versus its peer group's average of 8.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Alto Ingredients currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Alto Ingredients fits the bill. Thus, it seems as though Alto Ingredients shares could still be poised for more gains ahead.

How Does ALTO Stack Up to the Competition?Shares of ALTO have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Central Garden & Pet Company (CENTA - Free Report) . CENTA has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of D.

Earnings were strong last quarter. Central Garden & Pet Company beat our consensus estimate by 19.44%, and for the current fiscal year, CENTA is expected to post earnings of $2.89 per share on revenue of $2.95 billion.

Shares of Central Garden & Pet Company have gained 16% over the past month, and currently trade at a forward P/E of 13.41X and a P/CF of 9.28X.

The Consumer Products - Discretionary industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ALTO and CENTA, even beyond their own solid fundamental situation.

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Alto Ingredients (ALTO - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Alto Ingredients is one of 246 companies in the Consumer Discretionary group. The Consumer Discretionary group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Alto Ingredients is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ALTO's full-year earnings has moved 184.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that ALTO has returned about 80.2% since the start of the calendar year. Meanwhile, stocks in the Consumer Discretionary group have lost about 9.4% on average. This means that Alto Ingredients is performing better than its sector in terms of year-to-date returns.

One other Consumer Discretionary stock that has outperformed the sector so far this year is Central Garden (CENT - Free Report) . The stock is up 39.7% year-to-date.

For Central Garden, the consensus EPS estimate for the current year has increased 2.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Alto Ingredients belongs to the Consumer Products - Discretionary industry, which includes 26 individual stocks and currently sits at #65 in the Zacks Industry Rank. On average, this group has gained an average of 5.4% so far this year, meaning that ALTO is performing better in terms of year-to-date returns. Central Garden is also part of the same industry.

Investors interested in the Consumer Discretionary sector may want to keep a close eye on Alto Ingredients and Central Garden as they attempt to continue their solid performance.

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)
Image Source: Zacks Investment Research

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
Image Source: Zacks Investment Research

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.

DALLAS--(BUSINESS WIRE)--ALTO Real Estate Funds is pleased to announce the successful execution of a full-building lease with a major 3rd party logistics company at ALTO Pinto 45, a 586,919 SF Class A industrial facility in South Dallas.

The lease marks a major milestone for the project, delivering 100% occupancy and securing a global logistics leader as the long-term tenant. With lease execution completed in May 2026 and operations expected to commence in August 2026, this transaction reinforces the strength of the Dallas logistics market and the continued demand for well-located, institutional-quality industrial product.

ALTO Pinto 45 is strategically positioned to serve regional and national distribution needs, benefiting from proximity to key transportation corridors and intermodal infrastructure. The lease with a major 3rd party logistics company, a globally recognized leader in supply chain and logistics further validates the asset’s design, location, and execution.

“This success was the result of a highly coordinated effort across ALTO’s investment, development, and operating teams, alongside strong collaboration with our partners, consultants, and leasing team” said Yaniv Melamud, CEO at ALTO. “We are proud to bring a best-in-class tenant to the project and deliver a fully leased outcome for our investors”.

ALTO continues to actively develop and invest in Class A industrial properties across Dallas-Fort Worth, Houston, and Austin, focusing on locations that benefit from long-term population growth, infrastructure investment, and evolving supply chain demand.

About ALTO Real Estate Funds

ALTO Real Estate Funds is an investment firm focused on the acquisition and development of logistics assets in Texas and open-air shopping centers throughout the U.S. Sun Belt. Over its 16-year track record, ALTO has invested in 83 properties totaling 15 million square feet. The firm focuses on institutional-quality assets in high-growth markets and seeks to create value through operational expertise, disciplined execution, and active asset management.

DALLAS--(BUSINESS WIRE)--ALTO Real Estate Funds is pleased to announce the successful execution of a full-building lease with a major 3rd party logistics company at ALTO Pinto 45, a 586,919 SF Class A industrial facility in South Dallas.

The lease marks a major milestone for the project, delivering 100% occupancy and securing a global logistics leader as the long-term tenant. With lease execution completed in May 2026 and operations expected to commence in August 2026, this transaction reinforces the strength of the Dallas logistics market and the continued demand for well-located, institutional-quality industrial product.

ALTO Pinto 45 is strategically positioned to serve regional and national distribution needs, benefiting from proximity to key transportation corridors and intermodal infrastructure. The lease with a major 3rd party logistics company, a globally recognized leader in supply chain and logistics further validates the asset’s design, location, and execution.

“This success was the result of a highly coordinated effort across ALTO’s investment, development, and operating teams, alongside strong collaboration with our partners, consultants, and leasing team” said Yaniv Melamud, CEO at ALTO. “We are proud to bring a best-in-class tenant to the project and deliver a fully leased outcome for our investors”.

ALTO continues to actively develop and invest in Class A industrial properties across Dallas-Fort Worth, Houston, and Austin, focusing on locations that benefit from long-term population growth, infrastructure investment, and evolving supply chain demand.

About ALTO Real Estate Funds

ALTO Real Estate Funds is an investment firm focused on the acquisition and development of logistics assets in Texas and open-air shopping centers throughout the U.S. Sun Belt. Over its 16-year track record, ALTO has invested in 83 properties totaling 15 million square feet. The firm focuses on institutional-quality assets in high-growth markets and seeks to create value through operational expertise, disciplined execution, and active asset management.

Alto Ingredients has rallied more than 300% over the last year, but the stock still trades at a discount to the sector. Gross profit improved sharply year over year, helped by stronger crush margins, export demand, 45Z tax credits, and derivative gains. Scenario analysis shows ALTO trades at a 33–40% P/E discount to peers, with 2027 base and bull cases offering 73–98% upside; I rate it Strong Buy.

June 15, 2026 08:30 ET  | Source: Alto Ingredients, Inc.

PEKIN, Ill., June 15, 2026 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, announced that it has completed a sale transaction with a third-party corporate buyer for all of Alto Ingredients’ 2025 Section 45Z Clean Fuel Production Tax Credits generated from its low-carbon ethanol production.

These credits relate to the company’s 2025 low-carbon transportation fuels produced at both its Pekin Dry Mill and Columbia facilities. The company sold its 2025 tax credits for approximately $8.9 million in cash proceeds, before broker fees and other transaction costs, in line with the company’s previous expectations.

“We are pleased to execute on our strategy to monetize our low-carbon fuel tax credits under Section 45Z,” said Rob Olander, Alto Ingredients’ Chief Financial Officer. “The ability to monetize these credits provides a meaningful source of cash to support our initiatives and increase shareholder value.”

The company expects to continue to benefit significantly from its 2026 and future years’ Section 45Z Clean Fuel Production Tax Credits.

About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ: ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. 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’ expectation to benefit from and to monetize its 2026 and future years’ Section 45Z Clean Fuel Production Tax Credits. Actual results may differ materially from Alto Ingredients’ current expectations depending upon a number of factors affecting Alto Ingredients’ business and plans. Forward-looking statements are based on current expectations, estimates, assumptions and projections and involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, among others, changes in applicable tax laws and regulations or related guidance (including with respect to Section 45Z), Alto Ingredients’ ability to continue to qualify for and generate Section 45Z Clean Fuel Production Tax Credits at anticipated levels, actual operating performance and production volumes, fluctuations in feedstock and energy costs, market conditions and pricing for low-carbon fuels, the availability of and demand from third-party buyers for such tax credits on acceptable terms, 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]

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Is Alto Ingredients (ALTO - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.

Alto Ingredients is a member of our Consumer Discretionary group, which includes 246 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Alto Ingredients is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ALTO's full-year earnings has moved 184.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ALTO has moved about 96.2% on a year-to-date basis. In comparison, Consumer Discretionary companies have returned an average of -8%. This means that Alto Ingredients is outperforming the sector as a whole this year.

Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Central Garden (CENT - Free Report) . The stock has returned 31.8% year-to-date.

The consensus estimate for Central Garden's current year EPS has increased 2.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Alto Ingredients belongs to the Consumer Products - Discretionary industry, which includes 26 individual stocks and currently sits at #94 in the Zacks Industry Rank. On average, this group has gained an average of 2.8% so far this year, meaning that ALTO is performing better in terms of year-to-date returns. Central Garden is also part of the same industry.

Investors with an interest in Consumer Discretionary stocks should continue to track Alto Ingredients and Central Garden. These stocks will be looking to continue their solid performance.

Q1 2026 Gross Profit of $9.2 Million Increased $11.0 Million
Q1 2026 Net Income of $4.0 Million, or $0.05 per Share, Improved $16.0 Million
Q1 2026 Adjusted EBITDA of $4.7 Million Improved $9.1 Million Compared to Q1 2025

PEKIN, Ill., May 06, 2026 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ: ALTO), a producer and distributor of renewable fuels, essential ingredients and specialty alcohols, reported its financial results for the quarter ended March 31, 2026.

“In a seasonally weak period for Alto and the industry, we delivered profitability on an adjusted EBITDA and net income basis through the contributions of strong export sales, higher crush margins and incremental earnings from Section 45Z tax credits. Even without the contribution of the tax credits we were profitable,” said President and Chief Executive Officer Bryon McGregor. “Our strategic realignment, combined with our efforts to improve our operational model and the stability of our business have enhanced our earnings power.”

Added Mr. McGregor, “Looking ahead, our priorities are straightforward: improve utilization and reliability; execute our 2026 optimization and capital projects on time and on budget; and leverage the flexibility we have with multiple revenue streams to respond to market shifts and perform profitably through commodity cycles. In addition, we are focused on expanding the value we capture from 45Z tax credits and on optimally monetizing the value of our biogenic CO2 production across our facilities to lower our carbon footprint. Through our focus on these priorities, we remain committed to enhancing the value of our assets.”

Financial Results for the Three Months Ended March 31, 2026 Compared to 2025

Net sales were $224.7 million, compared to $226.5 million.Cost of goods sold was $215.5 million, compared to $228.3 million.Gross profit was $9.2 million, compared to a gross loss of $1.8 million. Gross profit was positively impacted by an $8.1 million net unrealized gain on derivatives.Selling, general and administrative expenses were $6.7 million, compared to $7.2 million.Interest expense was $2.2 million, compared to $2.7 million.Net income attributable to common stockholders was $4.0 million, or $0.05 per diluted share, compared to a net loss of $12.0 million, or $0.16 per share.Adjusted EBITDA was $4.7 million, compared to negative $4.4 million, an increase of $9.1 million. Cash and cash equivalents at March 31, 2026 were $20.3 million, compared to $23.4 million at December 31, 2025. The company’s borrowing availability at March 31, 2026 was $94.3 million, including $29.3 million under the company’s operating line of credit and $65 million under its term loan facility.

First 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, May 6, 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 specialty alcohols, renewable fuels and essential ingredients. 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 profitability and executing on opportunities to grow earnings, including through improved utilization and reliability, optimization and capital projects, monetizing additional Section 45Z tax credits and monetizing the value of its biogenic CO2 to lower its carbon footprint; 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; Alto Ingredients’ ability to timely and within budget execute on its optimization and capital projects; Alto Ingredients’ ability to expand and monetize the value of its CO2 production to lower its carbon footprint; 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’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 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.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share data)   Three Months Ended
March 31,  2026  2025 Net sales$224,680 $226,540 Cost of goods sold 215,461  228,347 Gross profit (loss) 9,219  (1,807)Selling, general and administrative expenses 6,699  7,190 Income (loss) from operations 2,520  (8,997)Interest expense, net (2,198) (2,729)Transferable tax credits, net 3,900  — Other income, net 49  47 Income (loss) before provision for income taxes 4,271  (11,679)Provision for income taxes —  — Net income (loss)$4,271 $(11,679)Preferred stock dividends$(312)$(312)Net income (loss) attributable to common stockholders$3,959 $(11,991)Net income (loss) per share, basic$0.05 $(0.16)Net income (loss) per share, diluted$0.05 $(0.16)Weighted-average shares outstanding, basic 74,789  73,836 Weighted-average shares outstanding, diluted 76,639  73,836  ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value)        
ASSETS March 31,
2026  December 31,
2025 Current Assets:      Cash and cash equivalents$20,309 $23,415 Restricted cash 1,334  2,258 Accounts receivable, net 59,700  55,069 Inventories 52,831  61,676 Derivative instruments 7,831  525 Transferable tax credits, net 11,530  7,500 Other current assets 5,017  5,474 Total current assets 158,552  155,917 Property and equipment, net 193,199  198,501 Other Assets:     Right of use operating lease assets, net 17,215  16,931 Intangible assets, net 7,419  7,574 Other assets 9,908  9,863 Total other assets 34,542  34,368 Total Assets$386,293 $388,786  ALTO INGREDIENTS, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(unaudited, in thousands, except par value)       
LIABILITIES AND STOCKHOLDERS’ EQUITY March 31,
2026  December 31,
2025 Current Liabilities:     Accounts payable$19,303 $14,509 Accrued liabilities 12,332  16,691 Current portion – long-term debt —  16,600 Current portion – operating leases 4,975  4,958 Derivative instruments 301  1,067 Other current liabilities 4,741  5,246 Total current liabilities 41,652  59,071        Long-term debt 73,056  63,027 Operating leases, net of current portion 13,240  13,012 Other liabilities 8,467  8,435 Total Liabilities 136,415  143,545        Stockholders’ Equity:      Preferred stock, $0.001 par value; 10,000 shares authorized;
   Series A: no shares issued and outstanding as of
   March 31, 2026 and December 31, 2025
   Series B: 927 shares issued and outstanding as of
   March 31, 2026 and December 31, 2025 1  1 Common stock, $0.001 par value; 300,000 shares
   authorized; 77,946 and 77,307 shares issued and
   outstanding as of March 31, 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 March 31, 2026 and December 31, 2025 —  — Additional paid-in capital 1,052,472  1,051,795 Accumulated other comprehensive income 5,461  5,461 Accumulated deficit (808,134) (812,093)Total Stockholders’ Equity 249,878  245,241 Total Liabilities and Stockholders’ Equity$386,293 $388,786  Reconciliation of Adjusted EBITDA to Net Income (Loss)

 Three Months Ended
March 31,(in thousands) (unaudited) 2026  2025 Net income (loss)$4,271 $(11,679)Adjustments:  Interest expense 2,198  2,729 Interest income (77) (84)Unrealized derivatives gains (8,073) (1,634)Depreciation and amortization expense 6,366  6,266 Total adjustments 414  7,277 Adjusted EBITDA$4,685 $(4,402) Segment Financials

(in thousands) (unaudited)Three Months Ended
March 31,
  2026  2025 Net sales             Pekin Campus production:      Alcohol sales$107,952 $107,234 Essential ingredient sales 43,993  44,618 Intersegment sales 262  297 Total Pekin Campus sales 152,207  152,149        Marketing and distribution:      Alcohol sales$47,326 $49,058 Intersegment sales 2,450  2,506 Total marketing and distribution sales 49,776  51,564        Western production:      Alcohol sales$16,680 $16,194 Essential ingredient sales 7,280  7,808 Intersegment sales 399  264 Total Western production sales 24,359  24,266        Corporate and other 1,449  1,628 Intersegment eliminations (3,111) (3,067)Net sales as reported$224,680 $226,540        Cost of goods sold:    Pekin Campus production$144,021 $155,222 Marketing and distribution 46,037  47,650 Western production 25,502  25,524 Corporate and other 1,036  1,681 Intersegment eliminations (1,135) (1,730)Cost of goods sold as reported$215,461 $228,347        Gross profit (loss):      Pekin Campus production$8,186 $(3,073)Marketing and distribution 3,739  3,914 Western production (1,143) (1,258)Corporate and other 413  (53)Intersegment eliminations (1,976) (1,337)Gross profit (loss) as reported$9,219 $(1,807) Sales and Operating Metrics (unaudited)

(in thousands) (unaudited)Three Months Ended
March 31,
  2026  2025 Alcohol Sales (gallons in millions)    Pekin Campus renewable fuel gallons sold 31.2  32.6 Western production renewable fuel gallons sold 8.2  8.3 Third party renewable fuel gallons sold 23.5  24.4 Total renewable fuel gallons sold 62.9  65.3 Specialty alcohol gallons sold 23.0  24.3 Total gallons sold 85.9  89.6      Sales Price per Gallon    Pekin Campus$2.00 $1.90 Western production$2.03 $1.95 Marketing and distribution$2.01 $2.01 Average sales price per gallon$2.00 $1.93      Alcohol Production (gallons in millions)    Pekin Campus 51.2  54.3 Western production 7.9  8.3 Total 59.1  62.6      Corn Cost per Bushel    Pekin Campus$4.45 $4.65 Western production$5.54 $5.95 Total$4.58 $4.81       Average Market Metrics  PLATTS Ethanol price per gallon$1.73 $1.71 CME Corn cost per bushel$4.38 $4.72 Board corn crush per gallons (1)$0.17 $0.02    Essential Ingredients Sold (thousand tons)  Pekin Campus:  Distillers grains 80.4  90.7 CO2 43.3  45.3 Corn wet feed 29.9  34.5 Corn dry feed 21.0  23.8 Corn oil and germ 18.1  19.6 Corn meal 9.5  9.4 Syrup and other 9.2  8.2 Yeast 6.1  6.4 Total Pekin Campus essential ingredients sold 217.5  237.9    Western production:  Distillers grains 60.1  58.1 CO2 12.8  12.6 Corn oil 0.8  1.4 Syrup and other 0.8  0.8 Total Western production essential ingredients sold 74.5  72.9    Total Essential Ingredients Sold 292.0  310.8       Essential ingredients return % (2)  Pekin Campus return 54.0% 48.0%Western production return 49.9% 49.0%Consolidated total return 53.4% 48.2%    ________________
            (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.

Alto Ingredients, Inc. (ALTO) Q1 2026 Earnings Call Transcript

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 11:

Alto Ingredients, Inc. (ALTO - Free Report) : This specialty alcohols and essential ingredients company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 184.2% over the last 60 days.

Alto’s shares gained 69% over the last three months compared with the S&P 500’s advance of 8.3%. The company possesses a Momentum Score  of A.

Sterling Infrastructure, Inc. (STRL - Free Report) : This e-infrastructure, transportation, and building solutions company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 22.8% over the last 60 days.

Sterling’s shares gained 95.8% over the last three months compared with the S&P 500’s advance of 8.3%. The company possesses a Momentum Score of A.

Lattice Semiconductor Corporation (LSCC - Free Report) : This developer of semiconductor products has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days.

Lattice’s shares gained 27.5% over the last three months compared with the S&P 500’s advance of 8.3%. The company possesses a Momentum Score of A.

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

Learn more about the Momentum score and how it is calculated here.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 15:

Alto Ingredients, Inc. (ALTO - Free Report) : This specialty alcohols and essential ingredients company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 184.2% over the last 60 days.

Alto’s shares gained 73.9% over the last three months compared with the S&P 500’s advance of 9.8%. The company possesses a Momentum Score  of A.

Lattice Semiconductor Corporation (LSCC - Free Report) : This developer of semiconductor products has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 16.3% over the last 60 days.

Lattice’s shares gained 27.9% over the last three months compared with the S&P 500’s advance of 9.8%. The company possesses a Momentum Score of A.

inTEST Corporation (INTT - Free Report) : This company that provides test and process solutions for use in automotive, defense/aerospace, industrial, life sciences, security, and semiconductor markets has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 104.6% over the last 60 days.

inTEST’s shares gained 80% over the last three months compared with the S&P 500’s advance of 9.8%. The company possesses a Momentum Score of B.

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

Learn more about the Momentum score and how it is calculated here.

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Alto Ingredients (ALTO - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.

Alto Ingredients is a member of the Consumer Discretionary sector. This group includes 243 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Alto Ingredients is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ALTO's full-year earnings has moved 237.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, ALTO has returned 81.3% so far this year. Meanwhile, stocks in the Consumer Discretionary group have lost about 8.4% on average. This shows that Alto Ingredients is outperforming its peers so far this year.

Hugo Boss (BOSSY - Free Report) is another Consumer Discretionary stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 5.5%.

For Hugo Boss, the consensus EPS estimate for the current year has increased 4.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Alto Ingredients belongs to the Consumer Products - Discretionary industry, a group that includes 25 individual stocks and currently sits at #96 in the Zacks Industry Rank. Stocks in this group have lost about 0.3% so far this year, so ALTO is performing better this group in terms of year-to-date returns.

On the other hand, Hugo Boss belongs to the Textile - Apparel industry. This 22-stock industry is currently ranked #52. The industry has moved -7.2% year to date.

Investors with an interest in Consumer Discretionary stocks should continue to track Alto Ingredients and Hugo Boss. These stocks will be looking to continue their solid performance.