Overview

* Alto Ingredients ( ALTO ) Q2 sales fell 8% yr/yr, missing analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 was negative, missing analyst expectations, per LSEG data

* Company attributes financial challenges to market conditions and operational disruptions

Outlook

* Alto Ingredients ( ALTO ) expects 45Z credit extension to improve earnings profile

* Company plans to apply for credits up to $18 mln in two years

* Alto Ingredients ( ALTO ) to increase CO2 utilization at Pekin and Columbia

Result Drivers

* OPERATIONAL DISRUPTIONS - Loading dock outage at Pekin partially offset by selling higher-margin ISCC export products into Europe

* STRATEGIC DECISIONS - Cold-idling Magic Valley facility due to adverse market factors and acquiring liquid CO2 facility positively impacted Western assets

* REGULATORY DEVELOPMENTS - Extension of 45Z credit through 2029 improves earnings profile and offers potential credits for two plants

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $218.40 $223.60

mln mln (2

Analysts

)

Q2 EPS -$0.15

Q2 Net -$11.30

Income mln

Q2 Miss -$200,00 $4.27

Adjusted 0 mln (2

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the renewable fuels peer group is "buy"

* Wall Street's median 12-month price target for Alto Ingredients Inc ( ALTO ) is $4.00, about 74% above its August 5 closing price of $1.04

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)