ALTO 10-K & 10-Q changes, risk factors and insider trading

Our results of operations are highly impacted by commodity prices, including the cost of corn, natural gas and other production inputs that we must purchase, and the prices of alcohols and essential ingredients that we sell. Prices and supplies are subject to and determined by numerous market and other forces over which we have no control, such as inclement or favorable weather, domestic and global demand, supply excesses or shortages, import and export conditions conditions, (including tariffs), inflationary conditions, global geopolitical tensions and various governmental policies in the United States and throughout the world.

Historically, the spread between corn and fuel-grade fuel-grade ethanol prices has fluctuated significantly. Fluctuations are likely to continue to occur. A sustained negative or narrow spread, whether as a result of sustained high or increased corn prices or sustained low or decreased alcohol or essential ingredient prices, would adversely affect our results of operations and financial condition. Revenues from sales of alcohols, particularly fuel-grade ethanol, and essential ingredients have in the past and could in the future decline below the marginal cost of production, which have in the past and may again in the future force us to suspend production, particularly fuel-grade ethanol production, at some or all of our facilities. For example, we hot-idled our Magic Valley facility in early 2023 due to unfavorable market conditions and again hot-idled our Magic Valley facility in early 2024 in part due to unfavorable market conditions and to expedite the installation of additional equipment needed to achieve the intended production rate, quality and consistency from the corn oil and high protein system at the facility. We restarted the Magic Valley facility in July 2024, but due to challenging market economics, we cold-idled the plant at the end of 2024.2024, which remains idled.

-1515-- In addition, some of our fuel-grade ethanol marketing and distribution activities for third-party gallons will likely be unprofitable in a market of generally declining prices due to the nature of our business. For example, to satisfy customer demand, we maintain certain quantities of fuel-grade ethanol inventory for subsequent resale. Moreover, weWhen procurequantities muchin excess of our own production are needed to meet customer demand, we procure fuel-grade ethanol inventoryfrom outside of contracted third-party marketing and distribution arrangementsthird parties and therefore must buy fuel-grade ethanol at a price established at the time of purchase and sell fuel-grade ethanol at an index price established later at the time of sale that is generally reflective of movements in the market price of fuel-grade ethanol. As a result, our margins for fuel-grade ethanol sold in these transactions generally decline and may turn negative as the market price of fuel-grade ethanol declines.

Our fuel-grade ethanol sales are tied to prevailing spot market prices rather than long-term, fixed-price contracts. Fuel-grade ethanol prices, as reported by the Chicago Mercantile Exchange, ranged from $1.57 to $2.07 per gallon in 2025, $1.38 to $2.12 per gallon in 2024,2024 and from $1.58 to $2.67 per gallon in 2023 and from $2.00 to $2.88 per gallon in 2022.2023. In addition, addition, even under longer-term, fixed-price contracts for our specialty alcohols, our customers may seek to renegotiate prices under those contracts during periods of falling prices or high price volatility. Fluctuations in the prices of our products may cause our results of operations to fluctuate significantly.

To partially offset the effects of production input and product price volatility, in particular, corn and natural gas costs and fuel-grade ethanol prices, we may enter into contracts to purchase a portion of our corn or natural gas requirements on a forward basis or fixto lock in the salepremium priceto offuel-grade ethanol market prices on portions of our alcohol production. In addition, we may engage in other hedging transactions involving exchange-traded futures contracts for corn, natural gas and unleaded gasoline from time to time. The financial statement impact of these activities is dependent upon, among other things, the prices involved and our ability to sell sufficient products to use all of the corn and natural gas for which forward commitments have been made. We have recognized losses in the past, and may suffer losses in the future, from our hedging arrangements. For example, for the year ended December 31, 2023, we recognized net losses of $8.0 million related to the aggregate change in the fair values of hedging contracts.

For example, in late April 2025, during a period of rapidly rising river levels, our loadout dock at our Pekin Campus was damaged, negatively impacting production and logistics, and requiring our use of more costly third-party river transload vendors to minimize business interruption. In addition, in the first quarter of 2024, extreme cold weather conditions in January at our Pekin Campus restricted barge deliveries and increased standby fees. To manage inventory levels, we transported more product by rail, a higher cost mode of transportation. Cold weather conditions also required us to shift to lower margin feed products and reduced our production rates across our Pekin Campus, hindering our ability to produce specialty alcohol at full capacity. In the third quarter of 2023 we experienced unusually high unscheduled production downtime for repairs and maintenance maintenance which reduced sales volumes and profits. In 2022, a lightning strike at the utility servicing our Pekin Campus disrupted our operations, cutting power to our facilities and materially affecting our production, resulting in unexpected repair and maintenance costs, lost production and degradation in the quality of work-in-progress inventories.

We evaluate our long-lived assets annually for impairment or when circumstances indicate that the full carrying value of an asset may be unrecoverable. These evaluations rely on financial and other assumptions concerning the assets, any of which may not materialize in the future. For example, we recognized asset impairments of $0.8 million, $24.8 million and $6.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. We may recognize additional impairments of the values of our long-lived assets in the future based on then-prevailing financial and other circumstances. Impairments of our long-lived assets may materially and adversely affect our results of operations.

We produce our alcohols from corn.corn Moreover,and our plants plants are constructed and operate primarily as corn-based alcohol production facilities. Competitors and other third parties have undertaken research to develop competing products to corn-based alcohols, and ethanol in particular, as well as new process technologies. These research efforts seek alternatives to corn-based ethanol and traditional process technologies aimed at improving real or perceived problems with the fuel, such as the carbon and energy intensity of its production, its lower energy content compared to gasoline and its hydrophobic nature resulting in water separation in transit or at other times. Competitors and other third parties may develop new alcohols and processes that improve on any of these or other real or perceived problems with corn-based alcohols, including ethanol. If viable competing products or new process technologies are developed and attract widespread or even modest adoption, we may be forced to modify our production facilities, including our process technologies, if possible, to transition in full or in part to these other products or process technologies to remain competitive. Modifying our production facilities may require expertise that our personnel may not possess and would likely require significant capital expenditures the funding for which we may not have. An inability to remain competitive due to the introduction and adoption of competing products or new process technologies, or significant costs associated with the adoption of new products and process technologies, would materially and adversely affect our business, financial condition and results of operations.

We have experienced adverse inflationary impacts on key production inputs, wages and other costs of labor, equipment, services,services and other business expenses. In addition, we have experienced adverse inflationary impacts on our budgets and expenses for many of our in-process and planned capital projects. InflationInflation, including through tariffs, and its negative impacts could escalate in future periods. Even if inflation stabilizes or abates, the prices of key production inputs, wages and other costs of labor, equipment, services,services and other business expenses, and for our capital projects, will likely remain at elevated levels. We may not be able to include these additional costs in the prices of the products we sell. As a result, inflation and sustained higher prices may have a material adverse effect on our results of operations and financial condition.

We have incurred significant losses and negative operating cash flow in the past. For example, for the years ended December 31, 2024, 20232024 and 2022,2023, we incurred consolidated net losses of of approximately $59.0 million, $28.0 million and $41.6$28.0 million, respectively. For the year ended December 31, 2024, we incurred negative operating cash flow of $3.5 million. We may incur losses and negative operating cash flow in the future. We expect to rely on cash on hand, cash, if any, generated from our operations, borrowing availability under our lines of credit and proceeds from our future financing activities, activities, if any, to fund all of the cash requirements of our business. Additional losses and negative operating cash flow may hamper our operations and impede us from expanding our business.

We are engaged in multiple capital improvement initiatives and projects. These initiatives and projects, and their financing, costs, timing and effects, are based on our plans, expectations and various assumptions that may not eventuate. We may therefore be unable to timely achieve, or achieve at all, the results we expect, including as to projected additional EBITDA and Adjusted EBITDA.expect.

We are engaged in multiple capital improvement initiatives and projects to diversify and enhance our revenue streams and to expand margins and profitability by reducing costs. These initiatives and projects have different timelines, returns on investment and risk profiles.profiles, including regulatory risks. In addition, we mustmay have to raise significant additional capital to complete some of our projects,initiatives including our CCS project.and projects. Our expected financial and other results from these initiatives and projects are based on assumptions around many factors, including their costs, timing, operation and market prices prevailing at project completion and thereafter, as well as tax and other favorable environmental attributes associated with low carbon alcohol that may accrue to our benefit. For example, our assumptions around the anticipated results of our CCS project rely heavily on the tax benefits that may accrue to us under the Inflation Reduction Act of 2022 as well as other favorable environmental attributes associated with carbon capture and storage and low carbon alcohol production. These tax and other benefits may change, including as a result of new or repealed laws, new administrations and the implementation or interpretation of existing laws, or the exhaustion of funds or benefits available under a particular program. For example, in January 2025, the new administration suspended all Inflation Reduction Act spending for 90 days. In addition, certain provisions of the Inflation Reduction Act lack proposed or final regulations and guidance. Regulators could issue new regulations or guidance that significantly narrows the application of clean energy tax incentives, and could even defer or withdraw regulations, which could materially and adversely affect the economic outcome of our capital CCSimprovement project.initiatives and projects. We can provide no assurances that any particular benefit will be available to us upon completion completion of our CCS project, or thereafter, or any other capital improvement initiative or project.

Capital-2020-- improvement projects require significant outlays of capital and are often subject to material execution risks and delays. Our CCS project in particular requires Environmental Protection Agency, or EPA, approval but the EPA’s own projected timeline for approval has lengthened and may lengthen further. We may have insufficient financial resources, and we may be unable to raise sufficient capital, to complete our projects timely or at all. Although we intend to use reputable third-party contractors with expertise in their fields to implement our projects, adverse conditions and events as well as delays in capital projects are not uncommon. Moreover, the projects’ interaction with existing processes may result in the degradation of other plant operations. For example, operation of our corn oil and high protein system at our Magic Valley facility previously resulted in inconsistent product quality and degraded other operations at the plant, including production rates. In the past, we have extended our expected completion dates for various projects and, as circumstances require, may have to do so again.

We can provide no assurances that our projects will be completed, or if completed, will be completed timely or within budget. We also can provide no assurances that our project assumptions will reflect prevailing future conditions or that our projects will achieve the results we expect, including as to projected additional EBITDA and Adjusted EBITDA.expect. Failure to achieve our expected results may have a material adverse effect on our business, financial condition and results of operations.

We regularly incur significant expenses to repair, maintain and upgrade our production facilities and operating equipment, estimated at an average of $30.0 million per year. WeFor the years ended December 31, 2025, 2024 and 2023, we incurred $35.0 $30.1 million, $34.6 million ofand these$29.5 expensesmillion, for 2024.respectively. The machines and equipment we use to produce our alcohols and essential ingredients are complex, have many parts, and some operate on a continuous basis. We must perform routine equipment maintenance and must periodically replace a variety of parts such as motors, pumps, pipes and electrical parts, and engage in other repairs. In addition, our production facilities require periodic shutdowns to perform major maintenance and upgrades. Our production facilities also occasionally require unscheduled shutdowns to perform repairs. For example, we completed our biennial wet mill outage at our Pekin Campus in Spring 2024. The wet mill was offline for ten days, which negatively impacted sales and margins for the second quarter. In the first quarter of 2024, production at our ColombiaColumbia facility was hampered by equipment issues that extended the facility’s regularly scheduled outage. In the third quarter of 2023 we experienced unusually high unscheduled production downtime for repairs and maintenance at our Pekin Campus which reduced sales volumes and increased losses. These scheduled and unscheduled shutdowns result in lower sales and increased costs in the periods during which a shutdown occurs and could result in unexpected operational issues in future periods resulting from changes to equipment and operational and mechanical processes made during shutdown.

We have incurred,incurred and anticipate incurring additional, substantial indebtedness for our capital improvement projects. We expect that these projects, when completed, will generate financial returns sufficient to service and ultimately repay or refinance our indebtedness. However, the costs, timing, and effects of our capital improvement projects may not meet our projections. In addition, our indebtedness could:

Federal and state income tax laws impose restrictions on our ability to use of net operating loss, or NOL, and tax credit carryforwards in the event thatif an “ownership change” occurs for tax purposes, as defined byin sectionSection 382 of the Internal Revenue Code, or Code. In general, an ownership change occurs when one or more stockholders each owning 5% or more of a corporation entitled to use NOL or other loss carryforwards have increased their ownership by more than 50 percentage percentage points during any three-year period. The annual base limitation under section 382 of the Code is calculated by multiplying the corporation’s value at the time of the ownership change by the greater of the long-term tax-exempt rate determined by the Internal Revenue Service in the month of the ownership change or the two preceding months. OurAs a result, our ability to utilize our NOL and other loss carryforwards may be substantially limited. TheseAny limitationssuch limitation could result in increased future tax obligations, which could have a material adverse effect on our financial condition and results of operations.

We may be liable for the investigation and cleanup of environmental contamination at each of our production facilities and at off-site locations where we arrange for the disposal of hazardous substances or wastes. If these substances or wastes have been or are disposed of or released at sites that undergo investigation and/or remediation by regulatory agencies, we may be responsible under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, or other environmental laws for all or part of the costs of investigation and/or remediation, and for damages to natural resources. For example, our Pekin Campus used coal as its primary resources.source of fuel for steam production until 2016. We maymanaged alsoassociated waste in part through a coal ash pond, an engineered impoundment site used to store waste byproducts. We operated the pond under an Illinois state operating permit that included a special condition that any ash impoundments either be subjectcapped and closed in accordance with an Illinois EPA-approved closure plan or removed. Although we continue to relatedoperate claims by private parties alleging property damagepumps and personalmaintain injuryprotocols dueunder tooperating exposurepermit toconditions, our permit has expired, has hazardousnot been renewed and we are in discussions with the Illinois EPA regarding a closure plan or other materialsremediation. atThe orIllinois fromEPA previously thosedenied properties.our Someclosure ofplan thesefor mattersa maybeneficial requirere-use usthat would have utilized the ash as a structural fill. Although we continue to expendpursue significanta amountsclosure forplan investigation,that would involve beneficial re-use, including potential uses such as grain storage, cleanupcogeneration, CO2 utilization, a hydrogen facility or other costsbeneficial use, including third-party redevelopment, and that may offset all or a significant portion of any cleanup costs, we can provide no assurance that the Illinois EPA will allow any beneficial re-use and nor can we provide any assurance that the Illinois EPA will not coveredmandate bysite insurance.cleanup, the costs of which, while not estimable at this time, could be substantial and could have a material adverse effect on our business, financial condition and results of operations.

The domestic market for fuel-grade ethanol is significantly significantly impacted by federal mandates for volumes of renewable fuels (such as ethanol) required to be blended with gasoline. Future demand for fuel-grade ethanol will largely depend on incentives to blend ethanol into motor fuels, including the price of ethanol relative to the price of gasoline, the relative octane value of ethanol, constraints on the ability of vehicles to use higher ethanol blends, and the EPA’s, EPA’s established volumes from time to time, small refinery waivers, and other applicable environmental requirements.

-2424-- The EPA has implemented the Renewable Fuel Standard under the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007. The EPA, in coordination with the Secretary of Energy and the Secretary of Agriculture, determines annual quotas for the quantity of renewable fuels (such as fuel-grade ethanol) that must be blended into motor fuels consumed in the United States. The EPA finalized mandatory volumes of 15.015 billion gallons for each each of 2023,2025, 2024,2024 and 20252023 of conventional renewable fuels, or corn-based fuel-grade ethanol, and has proposed mandatory volumes of 15 billion gallons for each of 2026 and 2027, which could decline infor those or other future years.

The EPA may issuegrant small refinery waivers,exemptions, in whole full or in part, tothat reduce or eliminate annual renewable fuelRFS volume requirementsobligations for small refineries, which are defined as refineries thatwith processan average feweraggregate thandaily crude oil throughput not exceeding 75,000 barrelsbarrels. If granted, these exemptions can remove the affected refinery’s ofgasoline petroleumand daily.diesel from applicable RFS percentage standards for the relevant compliance year. In the past, the EPA has issuedgranted small refinery waiversexemptions that have materially and adversely affected overall demand for and the price of fuel-grade ethanol. The U.S. Court of Appeals for the Fifth Circuit, in the fourth quarter ofNovember 2023, struck down the EPA’s decision to deny numerous small refinery waivers,exemption findingpetitions, holding that the EPA’s denials were impermissibly retroactive, contrary to law and counter to evidence in the litigation record. In Accordingly,light of that decision and recent EPA actions granting full or partial exemptions to a substantial number of petitions, small refinery waivers from the EPA exemptions may continue to be moregranted likely inat theelevated futurelevels, andwhich could again materially and adversely affect overall demand forfor, and the price of of, fuel-grade ethanol.

-2525-- There are limited markets for fuel-grade ethanol beyond those established by federal mandates. Discretionary blending and E85 blending (i.e., gasoline blended with up to 85% fuel-grade ethanol by volume) are important secondary markets. Discretionary blending is often determined by the price of fuel-grade ethanol relative to the price of gasoline. In periods when discretionary blending is financially unattractive, the demand for fuel-grade ethanol may decline. Also, the demand for fuel-grade ethanol is affected by the overall demand for transportation fuel. Demand for transportation fuel is affected affected by the number of miles traveled by consumers and vehicle fuel economy. Lower demand for fuel-grade ethanol and essential ingredients, including through the transition by consumers to alternative fuel vehicles such as electric vehicles and hybrid vehicles, would reduce the value of our ethanol and related products, erode our overall margins and diminish our ability to generate revenue or to operate profitably. In addition, we believe that additional consumer acceptance of E15 and E85 fuels is necessary before fuel-grade ethanol can achieve any significant growth in market share relative to other transportation fuels.

The United States Supreme Court’s decision in in the case of ChevronLoper U.S.A.,Bright Inc.Enterprises v. Natural Resources Defense Council, Inc.Raimondo may result in less industry-favorable rulemaking and agency interpretations of laws and regulations, which could materially and adversely affect our results of operations, cash flows and financial condition as well as the business and financial prospects of certain capital improvement projects, such as CCS.projects.

TheIn June 2024, the United States Supreme Court, in theLoper landmarkBright Enterprises case of Chevron U.S.A., Inc. v. NaturalRaimondo, Resources Defense Council, Inc., recently overturnedoverruled its prior doctrineChevron ofdoctrine, judicialwhich deference had required courts to defer to reasonable administrative interpretations of ambiguous lawsfederal and regulations.statutes. This outcome could materiallyincrease litigation risk and adverselyuncertainty affectaround rulemaking and agencies’agency interpretations that interpretationsare favorable to the renewable fuels industry, such as the EPA’s administration of the RenewableRFS. Fuel Standard. This outcomeIt could also materially and adversely affect the Treasury Department’s ability to promulgate and sustain favorable regulations under the Inflation Reduction Act of 2022, including includingregulations implementing tax credits such as the sectionSection 45Q45Z carbonclean capturefuel and storageproduction tax credits and section 45Z low carbon fuel tax credits,credit, as well as other industry-favorable tax credits. Less industry-favorable rulemaking and agency interpretations of laws and regulations could materially and adversely affect our results of operations, cash flowsflows, and financial conditioncondition, as well as the financial prospects of certain capital improvement projects, such as CCS.projects.

-2828-- Further, if we fail to adequately maintain our information technology infrastructure, we may have outages and data loss. Excessive outages may affect our ability to timely and efficiently deliver products to customers or develop new products. Such disruptions and data loss may adversely impact our ability to fulfill orders and interrupt other processes. Delayed sales or lost customers resulting from these disruptions could adversely affect our financial results, results, stock price and reputation.

We operate five alcohol production facilities. Three of our production facilities are located in Illinois, one is located in OregonOregon, and another is located in Idaho. We have an annual alcohol production capacity of 350330 million gallons, including both renewable fuels and specialty alcohols ranging from industrial-, pharmaceutical-, and high-quality food- and beverage-grade alcohols. Of this amount, we can produce up to 110 million gallons annually of specialty alcohols, depending on our product mix among high-quality beverage-grade alcohol and other quality specification alcohols. We market and distribute all of the alcohols produced at our facilities as well as alcohols produced by third parties. In 2024,2025, we marketed and distributed approximately 386350 million gallons combined of our own produced alcohols as well as fuel-grade ethanol produced by third parties, and over 1.41.2 million tons of essential ingredients on a dry matter basis.ingredients.

We also own and operate a liquid CO2 production facility adjacent to our plant in Oregon for the offtake of CO2 gas from the plant for conversion to liquid CO2 and subsequent sale. In addition, we break bulk and distribute specialty alcohols, produced by us and third parties.

We produce specialty alcohols, renewable fuels and essential ingredients, focusing on five key markets: Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels. Products for Health, Home & Beauty markets include specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants and cleaners. Products for Food & Beverage markets include grain neutral spirits used in alcoholic beverages and vinegarvinegar, andas well as corn germ used for corn oils. Products for Industry & Agriculture markets include alcohols and other products for paint applicationsapplications, inks, vehicle fluids and fertilizers. Products for Essential Ingredients markets include dried yeast, corn protein meal, corn protein feed, corn germ, distillers grains, gas and liquid CO2 and liquid feed used in commercial animal feed and pet foods. We also sell yeast and gas and liquid CO2 for human consumption. Our products for the Renewable Fuels markets include fuel-grade ethanol and distillers corn oil used as a feedstock for renewable diesel and biodiesel fuels. Our specialty alcohols for the Industry & Agriculture, Food & Beverage and Health, Home & & Beauty markets represented approximately 12%,11%, 7%6% and 3%,2%, respectively, of our sales in 20242025 fromto customers in these three markets.

All of our production facilities, other than our Magic Valley plant, were operating for all of 2024,2025, subjectother tothan for scheduled and unscheduled downtimes to address facility repair and maintenance.

In January 2024, we temporarily hot-idled our Magic Valley facility to minimize losses from negative regional crush margins and to expedite the installation of additional equipment to achieve the intended production rate, quality and consistency from our corn oil and high protein system at the facility. We restarted our Magic Valley facility in July 2024 and by October 2024, the facility consistently achieved average ethanol production rates at full capacity, the protein content yield from the plant reached 50% or greater, and we were able to expand our corn oil yields. Increases in regional corn basis and declining market prices for protein and corn oil resulted in overall margin compression, outweighing the economic benefits of our plant improvements. As a consequence, we cold-idled our Magic Valley facility onfor Decemberall 31,of 20242025 and through the filing of this report to minimize financial losses. losses. We continue to provide terminalethanol terminaling services at the plant and intend tomay resume operations at the facility whenif the economic environment in the region sustainably improves. We believe that the cold-idling of our Magic Valley facility will have a positive impact on our overall financial results in 2025 compared to 2024.

-3434-- We market and distribute all the alcohols and essential essential ingredients we produce at our facilities. We also market and distribute alcohols produced by third parties.

Q4 Financial Review, Current Initiatives and Outlook

Management believes that certain financial measures not in accordance with generally accepted accounting principles, or GAAP, are useful measures of operations. Management provides EBITDA and Adjusted EBITDA as a non-GAAP financial measuresmeasure so that investors will have the same financial information that management uses, which may assist investors in properly assessing our performance on a period-over-period basis.

We define EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, provision for income taxes and depreciation and amortization expense. We define Adjusted EBITDA as unaudited consolidated net income (loss) before interest expense, interest income, unrealized derivative gains and losses, excess insurance proceeds, acquisition-related expense,expense (recoveries), provision or benefit for income taxes, asset impairments, and depreciation and amortization expense.

A table is provided below to reconcile Adjusted EBITDA to its most directly comparable GAAP measure, consolidated net income (loss). Adjusted EBITDA and Adjusted EBITDA areis not measuresa measure of financial performance under GAAP and should not be considered as alternativesan alternative to consolidated 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. EBITDA and Adjusted EBITDA havehas limitations as an analytical toolstool and you should not consider these measuresthis measure in isolation or as a substitute for analysis of our results as reported under GAAP.

-3636-- Information reconciling forward-looking EBITDA or Adjusted EBITDA to forward-looking consolidated net income (loss) would require a forward-looking statement of consolidated net income (loss) prepared in accordance with GAAP, which is unavailable to us without unreasonable effort. We are not able to provide a quantitative reconciliation of forward-looking EBITDA or Adjusted EBITDA to forward-looking consolidated net income (loss) because certain items required for reconciliation are uncertain, outside of our control and/or cannot reasonably be predicted, such as net sales, cost of goods sold, unrealized derivative gains and losses, asset impairments and provision (benefit) for income taxes, which we view as the most material components of consolidated net income (loss) that are not presently estimable.

Reconciliation of Adjusted Adjusted EBITDA to Consolidated Net Income (Loss)

Our consolidated net sales declined by $0.3$47.3 million to $0.9 billion to for 2025 from $1.0 billion for 2024 from $1.2 billion for 2023.2024. Our net income (loss) attributable to common stockholders increased by $31.0$72.4 million to $12.1 million tofor 2025 from a net loss of $60.3 million for 2024 from a net loss of $29.3 million for 2023.2024.

We generate sales by marketing all of the alcohols alcohols produced by our three production facilities in Illinois, all of the fuel-grade ethanol produced by our production facilities in Oregon and Idaho, and fuel-grade ethanol purchased from third-party suppliers throughout the United States. We also market essential ingredients produced by our production facilities, including dried yeast, corn protein meal, corn protein feed, corn germ, distillers corn oil and distillers grains and liquid feed used in commercial animal feed and pet foods. We also sell yeast and gas and liquid CO2 for human consumption.

Our consolidated average alcohol sales price declined improved by 21%4% to $2.02 per gallon for 2025 compared to $1.95 per gallon for 2024 compared to $2.47 per gallon for 2023.2024. The average price of fuel-grade ethanol as reported by the Chicago Mercantile Exchange, or CME, declinedalso improved by 24%4% to $1.76 per gallon for 2025 compared to $1.69 per gallon for 2024 compared to $2.22 per gallon for 2023.2024. Our consolidated average cost of corn declined by 28%1% to $4.72$4.68 per bushel for 20242025 from $6.58$4.72 per bushel for 2023.2024. The average price of corn as reported by the CME declinedincreased by 25%4% to $4.24$4.39 per bushel for 20242025 from $5.64$4.24 per bushel for 2023.2024.

-3838-- We believe that our gross profit margins depend primarily on the following key factors:

-3939-- Certain performance metrics that we believe are important indicators of our results of operations include the following:

The decline in our consolidated net sales for 2024 2025 as compared to 20232024 was due to a decrease in our volume of alcohol sold and lower volumes of essential ingredients sold, partially offset by an increase in our average alcohol sales price per gallongallon. forThe decreases in our alcohols and lower volumes of alcohol and essential ingredients sold atwere lowerprimarily prices,due partiallyto offsetthe bycold-idling of our Magic Valley facility for all of 2025 and a higher volume of alcohol sold. Our average sales price per gallon declined primarily due to lower fuel-grade ethanol prices largely driven by lower oil and gasoline pricesproduct in 2024transit compared toat the priorend of the year.

Net sales of alcohol from our Pekin Campus production segment declinedincreased by $86.5less than $0.1 million, or 17%,0%, to $415.8 million for 2025 as compared to $415.7 million for 2024 as compared to $502.2 million for 2023.2024. Our total volume of production gallons sold, however, increaseddecreased by 4.75.2 million gallons, or 2%, to 213.6208.4 million gallons for 20242025 as compared to 208.9213.6 million gallons for 2023,2024, due to productionthe benefits realized in second halftiming of theshipments yearat from our biennial maintenance performed in Spring 2024 resulting in higher production rates.year-end.

At the segment’s average sales price per gallon of $1.95$2.00 for 2024,2025, we generated $9.1$10.4 million less in additional net sales from the 4.75.2 million additionalfewer gallons of alcohol sold in 2024 2025 as compared to 2023.2024. However, aan decreaseincrease of $0.45,$0.05, or 19%,3%, in the segment’s average sales price per gallon in 20242025 as compared to 20232024 resulted in a $95.6$10.4 million declineincrease in net sales in 2025 as compared to 2023.2024.

Net sales of essential ingredients declinedincreased by $48.4$5.3 million, or 22%,3%, to $174.6 million for 2025 as compared to $169.3 million for 2024 as compared to $217.7 million for 2023.2024. Our total volume of essential ingredients sold increased by 27,90013,300 tons, or 3%,1%, to 919,600 tons for 2025 from 906,300 tons for 2024 from 878,400 tons for 2023.2024. Sales volumes of essential ingredients from our Pekin Campus were higher in 20242025 due to highertiming productionof ratesshipments. forAn theincrease year.of $3.05, or 2%, in our average sales price per ton in 2025 as compared to 2024 resulted in a $2.8 million increase in net sales as compared to 2024. At our average sales price per ton of $186.81$189.86 for 2025, 2024, we generated $5.2$2.5 million in additional net sales from the 27,90013,300 additional tons of essential ingredients sold in 20242025 as compared to 2023. A decrease of $61.03, or 25%, in our average sales price per ton in 2024 as compared to 2023 resulted in a $53.6 million decline in net sales as compared to 2023.2024.

-4141-- Net sales of renewable fuel from our marketing and distribution segment, excluding intersegment sales, decreasedincreased by $46.5$4.8 million, or 18%,2%, to $216.5$221.3 million for 20242025 as compared to $216.5 $263.0 million for 2023.2024.

-3030-- In addition, some of our fuel-grade ethanol marketing and distribution activities for third-party gallons will likely be unprofitable in a market of generally declining prices due to the nature of our business. For example, to satisfy customer demand, we maintain certain quantities of fuel-grade ethanol inventory for subsequent resale. When quantities in excess of our own production are needed to meet customer demand, we procure fuel-grade ethanol from third parties and therefore must buy fuel-grade ethanol at a price established at the time of purchase and sell fuel-grade ethanol at an index price established later at the time of sale that is generally reflective of movements in the market price of fuel-grade ethanol. As a result, our margins for fuel-grade ethanol sold in these transactions generally decline and may turn negative as the market price of fuel-grade ethanol declines.

-3131-- Hedging arrangements also expose us to the risk of financial loss in situations where our counterparty to the hedging contract defaults on its contract or, in the case of exchange-traded contracts, where there is a change in the expected differential between the underlying price in the hedging agreement and the actual prices paid or received by us. In addition, our open contract positions may require cash deposits to cover margin calls, negatively impacting our liquidity. As a result, our hedging activities and fluctuations in the price of corn, natural gas, fuel-grade ethanol and unleaded gasoline may adversely affect our results of operations, financial condition and liquidity.

We are engaged in multiple capital improvement initiatives and projects to diversify and enhance our revenue streams and to expand margins and profitability by reducing costs. These initiatives and projects have different timelines, returns on investment and risk profiles, including regulatory risks. In addition, we may have to raise significant additional capital to complete some of our initiatives and projects. Our expected financial and other results from these initiatives and projects are based on assumptions around many factors, including their costs, timing, operation and market prices prevailing at project completion and thereafter, as well as tax and other favorable environmental attributes associated with low carbon alcohol that may accrue to our benefit. These tax and other benefits may change, including as a result of new or repealed laws, new administrations and the implementation or interpretation of existing laws, or the exhaustion of funds or benefits available under a particular program. For example, the One Big Beautiful Bill Act, enacted in January2025, 2025,phases out certain Inflation Reduction Act clean energy tax credits, and the new administration previously suspended all Inflation Reduction Act spending for 90 days. In addition, certain provisions of the Inflation Reduction Act lack proposed or final regulations and guidance. Regulators could issue new regulations or guidance that significantly narrows the application of clean energy tax incentives, and could even defer or withdraw regulations, which could materially and adversely affect the economic outcome of our capital improvement initiatives and projects. We can provide no assurances that any particular benefit will be available to us upon completion of any capital improvement initiative or project.

Section 45Z of the Internal Revenue Code, as added by the Inflation Reduction Act of 2022 and amended by the One Big Beautiful Bill Act, provides a technology-neutral tax credit for the production of “clean transportation fuel” that is produced in the United States and sold to an unrelated person during calendar years 2025 through 2029, with the amount of the credit determined in part by the fuel’s carbon intensity relative to a statutory baseline. For fuel produced after 2025, the credit is available only if no feedstocks originating outside the United States, Mexico or Canada are used. In addition, transferability of Section 45Z credits is scheduled to terminate after December 31, 2027. We currently expect our Columbia plant and our Pekin Campus dry mill to be eligible to apply for and claim additional Section 45Z tax credits with respect to qualifying fuel theywe produce and sell. Our ability to qualify for and receive these tax credits will depend on, among other things, our ability to produce qualifying low carbon fuel in anticipated volumes, using qualifying domestic feedstocks, to achieve and document the carbon intensity levels required under Section 45Z and applicable Treasury and IRS guidance, and to comply with related registration, measurement, reporting and substantiation requirements. If we are unable to produce low carbon fuel in anticipated amounts (including as a result of plant outages or other operational issues), if our fuels do not achieve the required or expected carbon intensities under the applicable carbon intensity methodology, or if we fail to satisfy applicable tax, regulatory, or documentation requirements, we may be unable to qualify for and receive Section 45Z tax credits in the amounts we currently anticipate, or at all, which could materially and adversely affect our results of operations and financial condition. In addition, Section 45Z is scheduled to be available only for qualifying fuel produced after December 31, 2024 and sold before January 1, 2030, transferability of these credits is scheduled to end after December 31, 2027, and there can be no assurance that Congress will extend or replace this credit.credit or restore transferability.

Federal and state income tax laws impose restrictions on our ability to use net operating loss, or NOL, and tax credit carryforwards if an “ownership change” occurs for tax purposes, as defined in Section 382 of the Internal Revenue Code, or Code. In general, an ownership change occurs when one or more stockholders each owning 5% or more of a corporation entitled to use NOL or other loss carryforwards have increased their ownership by more than 50 percentage points during any three-year period. The annual base limitation under section 382 of the Code is calculated by multiplying the corporation’s value atimmediately the time ofbefore the ownership change by the greater of the long-term tax-exempt rate determined by the Internal Revenue Service in the month of the ownership change or the two preceding months. As a result, our ability to utilize our NOL and other loss carryforwards may be substantially limited. Any such limitation could result in increased future tax obligations, which could have a material adverse effect on our financial condition and results of operations.

-3737-- We may be liable for the investigation and cleanup of environmental contamination at each of our production facilities and at off-site locations where we arrange for the disposal of hazardous substances or wastes. If these substances or wastes have been or are disposed of or released at sites that undergo investigation and/or remediation by regulatory agencies, we may be responsible under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, or other environmental laws for all or part of the costs of investigation and/or remediation, and for damages to natural resources. For example, our Pekin Campus used coal as its primary source of fuel for steam production until 2016. We managed associated waste in part through a coal ash pond, an engineered impoundment site used to store waste byproducts. We operated the pond under an Illinois state operating permit that included a special condition that any ash impoundments either be capped and closed in accordance with an Illinois EPA-approved closure plan or removed. Although we continue to operate pumps and maintain protocols under operating permit conditions, our permit has expired, has not been renewed and we are in discussions with the Illinois EPA regarding a closure plan or other remediation. The Illinois EPA previously denied our closure plan for a beneficial re-use that would have utilized the ash as a structural fill. Although we continue to pursue a closure plan that would involve beneficial re-use, including potential uses such as grain storage, cogeneration, CO2 utilization, a hydrogen facility or other beneficial use, including third-party redevelopment, we can provide no assurance that the Illinois EPA will allow any beneficial re-use and nor can we provide any assurance that the Illinois EPA will not mandate site cleanup, the costs of which, while not estimable at this time, could be substantial and could have a material adverse effect on our business, financial condition and results of operations.

The EPA may grant small refinery exemptions, in whole or in part, that reduce or eliminate annual RFS volume obligations for small refineries, which are defined as refineries with an average aggregate daily crude oil throughput not exceeding 75,000 barrels. If granted, these exemptions can remove the affected refinery’s gasoline and diesel from applicable RFS percentage standards for the relevant compliance year. In the past, the EPA has granted small refinery exemptions that have materially and adversely affected overall demand for and the price of fuel-grade ethanol. TheFederal U.S.courts Court have repeatedly vacated EPA denials of Appeals for the Fifth Circuit, in November 2023, struck down the EPA’s decision to deny numerous small refinery exemption petitions, holdingpetitions. In June 2025, the U.S. Supreme Court in EPA v. Calumet Shreveport Refining held that thechallenges EPA’sto small refinery exemption denials weremust impermissiblybe retroactive, contrary to law and counter to evidencefiled in the litigationD.C. record. Circuit. Since then, the EPA has issued multiple rounds of decisions on small refinery exemption petitions, including actions in August 2025 and November 2025 granting full or partial exemptions for a number of refineries for the 2021-20242016-2024 compliance years. In April 2026, the U.S. Court of Appeals for the D.C. Circuit likewise vacated EPA’s denial of certain small refinery exemption petitions for the 2024 compliance year and remanded those petitions to EPA for further consideration. In light of these court decisions and the EPA’s recent actions granting full or partial exemptions to a substantial number of petitions, small refinery exemptions may continue to be granted at elevated levels, which could materially and adversely affect overall demand for, and the price of, fuel-grade ethanol.

Various bills in Congress introduced from time to time are also directed at altering existing renewable fuels energy legislation, but none have passeddirectly amended the RFS program in recent years. Some legislative bills are directed at halting or reversing expansion of, or even eliminating in its entirety, the renewable fuel program.

There are limited domestic markets for fuel-grade ethanol beyond those established by federal mandates. Discretionary blending and E85 blending (i.e., gasoline blended with up to 85% fuel-grade ethanol by volume) are important secondary markets. Discretionary blending is often determined by the price of fuel-grade ethanol relative to the price of gasoline. In periods when discretionary blending is financially unattractive, the demand for fuel-grade ethanol may decline. Also, the demand for fuel-grade ethanol is affected by the overall demand for transportation fuel. Demand for transportation fuel is affected by the number of miles traveled by consumers and vehicle fuel economy. LowerU.S. demandgasoline forconsumption fuel-gradehas ethanoldeclined from pre-pandemic levels and essentialis ingredients, includingprojected throughto continue declining due in part to improved vehicle fuel economy and the transition by consumers to alternative fuel vehicles such as electric vehicles and hybrid vehicles,vehicles. Lower demand for fuel-grade ethanol and essential ingredients, including through this transition, would reduce the value of our ethanol and related products, erode our overall margins and diminish our ability to generate revenue or to operate profitably. In addition, we believe that additional consumer acceptance of E15 and E85 fuels is necessary before fuel-grade ethanol can achieve any significant growth in market share relative to other transportation fuels.

Our bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Delaware Court of Chancery shall be the sole and exclusive forum for (a) any derivative action or proceeding brought on our behalf, (b) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of us to us or our stockholders, (c) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, or (d) any action asserting a claim governed by the internal affairs doctrine. The Delaware Court of Chancery forum provision does not apply to claims arising under the Securities Act or the Exchange Act.

-4141-- Our bylaws also provide that, unless we consent in writing to the selection of an alternative forum, to the fullest extent permitted by applicable law, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended, or the Securities Act, including all causes of action asserted against any defendant named in such complaint, including our officers and directors, underwriters for any offering giving rise to such complaint, and any other professional entity whose profession gives authority to a statement made by that person or entity and who has prepared or certified any part of the documents underlying the offering.

For the avoidance of doubt, the exclusive forum provisions described above do not apply to any claims arising under the Securities Act or the Securities Exchange Act of 1934, as amended, or the Exchange Act, to the extent federal law requires otherwise. Section 27 of the Exchange Act creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder, andthereunder. Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder. The federal forum provision described above does not restrict the concurrent jurisdiction of state and federal courts under the Securities Act to the extent federal law requires otherwise, and nothing in our bylaws is intended to override the exclusive federal jurisdiction established by the Exchange Act.

The choice of forum provisions in our bylaws may limit our stockholders’ ability to bring a claim in a judicial forum that they find favorable for disputes with us or our directors, officers, employees, agents or other third parties, which may discourage such lawsuits against us and our directors, officers, employees, agents and other third parties even though an action, if successful, might benefit our stockholders. The applicable courts may also reach different judgments or results than would other courts, including courts where a stockholder considering an action may be located or would otherwise choose to bring the action, and such judgments or results may be more favorable to us than to our stockholders. With respect to the provision making the Delaware Court of Chancery the sole and exclusive forum for certain types of actions, stockholders who do bring a claim in the Delaware Court of Chancery could face additional litigation costs in pursuing any such claim, particularly if they do not reside in or near Delaware. Finally,Although Delaware courts have upheld the enforceability of forum selection provisions of this type, including under Section 115 of the Delaware General Corporation Law, if a court, including a court in another jurisdiction, were to find these provisions of our bylaws inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could have a material adverse effect on us.

-4242-- Further, if we fail to adequately maintain our information technology infrastructure, we may have outages and data loss. Excessive outages may affect our ability to timely and efficiently deliver products to customers or develop new products. Such disruptions and data loss may adversely impact our ability to fulfill orders and interrupt other processes. Delayed sales or lost customers resulting from these disruptions could adversely affect our financial results, stock price and reputation.

The following discussion and analysis should be read in conjunction with our condensed consolidated financial statements and notes to condensed consolidated financial statements included elsewhere in this report. This report and our condensed consolidated financial statements and notes to condensed consolidated financial statements contain forward-looking statements, which generally include the plans and objectives of management for future operations, including plans and objectives relating to our future economic performance and our current beliefs regarding revenues we might generate and profits we might earn if we are successful in implementing our business and growth strategies.strategies, and statements of the assumptions underlying or relating to any of the foregoing. The forward-looking statements and associated risks may include, relate to or be qualified by other important factors, including:

Any of the factors described immediately above or referenced from time to time in our filings with the Securities and Exchange Commission or in the “Risk Factors” section below could cause our financial results, including our net income or loss or growth in net income or lossloss, to differ materially from prior results, which in turn could, among other things, cause the price of our common stock to fluctuate substantially.

We also own and operate a liquid carbon dioxide, or CO2, production facility adjacent to our plant in Oregon for the offtake of CO2 gas from the plant for conversion to liquid CO2 and subsequent sale. In addition, we break bulk and distribute specialty alcohols,alcohols produced by us and third parties.

Our mission is to produce the highest quality, sustainable ingredients that make everyday products better. We intend to accomplish this goal in part by investing in our specialized and higher valuehigher-value specialty alcohol production and distribution infrastructure, expanding production in high-demand essential ingredients, expanding and extending the sale of our products into new regional and international markets, building efficiencies and economies of scale and by capturing a greater portion of the value stream.

We produce specialty alcohols, renewable fuels and essential ingredients, focusing on five key markets: Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels. Products for Health, Home & Beauty markets include specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants and cleaners. Products for Food & Beverage markets include grain neutral spirits used in alcoholic beverages and vinegar, as well as corn germ used for corn oils. Products for Industry & Agriculture markets include alcohols and other products for paint applications, inks, vehicle fluids and fertilizers. Products for Essential Ingredients markets include dried yeast, corn protein meal, corn protein feed, corn germ, distillers grains, gas and liquid CO2 and liquid feed used in commercial animal feed and pet foods. We also sell yeastyeast, and gas and liquid CO2 for human consumption. Our products for the Renewable Fuels markets include fuel-grade ethanol and distillers corn oil used as a feedstock for renewable diesel and biodiesel fuels. Our specialty alcohols for the Industry & Agriculture, Food & Beverage and Health, Home & Beauty markets represented approximately 11%, 6% and 2%, respectively, of our sales in 2025 to customers in these three markets.

-1616-- We produce our alcohols and essential ingredients at our facilities described above. Our production facilities located in Illinois are in the heart of the Corn Belt, benefit from relatively low-cost and abundant feedstock and enjoy logistical advantages that enable us to provide our products to both domestic and international markets via truck, rail or barge. Our production facilities located in Oregon and Idaho are near their respective fuel and feed customers, offering significant timing, product transportation cost and logistical advantages.

Financial Review, Current Initiatives and Outlook

We define Adjusted EBITDA as unaudited consolidated net income or loss before interest expense, interest income, unrealized derivative gains and losses, excess insurance proceeds, acquisition-related expenseincome or recoveries,expense, provision or benefit for income taxes, asset impairments, and depreciation and amortization expense.

Our discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses for each period. We believe that of our critical accounting estimates, defined as those estimates that we believe are the most important to the portrayal of our financial condition and results of operations and that require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertainuncertain, are: impairment of long-lived assets and valuation allowance for deferred taxes. These critical accounting estimates are more fully described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to our critical accounting estimates as described in our Annual Report on Form 10-K for the year ended December 31, 2025.

-2020-- Certain performance metrics that we believe are important indicators of our results of operations:

The decreaseincrease in our consolidated net sales for the three months ended MarchJune 31,30, 2026 as compared to the same period in 2025 is primarily attributable to fewerhigher totalaverage gallonssales sold prices per gallon across all of our business segments as well as lower volumes and lowerhigher average sales prices of essential ingredients due to a lowerstronger commodity price environment,environment. partially offset by an increase in our averageNet sales pricesalso perimproved gallondue forto bothhigher specialtytotal volumes sold of alcohols and renewableessential fuel.ingredients.

Net sales of alcohol from our Pekin Campus production segment increased by $0.7$20.2 million, or 1%,21%, to $108.0$114.4 million for the three months ended MarchJune 31,30, 2026 as compared to $107.3 million for the same period in 2025. The segment’s average sales price per gallon increased by $0.10, or 5%, to $2.00 for$94.2 the three months ended March 31, 2026 from $1.90million for the same period in 2025. Our total volume of production gallons sold decreased increased by 2.66.5 million gallons, or 5%,14%, to 53.954.6 million gallons for the three months ended MarchJune 31,30, 2026 as compared to 56.548.1 million gallons for the same period in 2025. The increase of $0.10,$0.14, or 5%,7%, in the segment’s average sales price per gallon for the three months ended March 31,June 30, 2026 as compared to the same period in 2025 increasedimproved our net sales from the segment by $5.9$6.6 million. With the segment’s average sales price per gallon of $2.00$2.09 for the three months ended MarchJune 31,30, 2026, we generated $5.2$13.6 million more in fewer net sales from the 2.6 6.5 million feweradditional gallons of alcohol sold in the three months ended MarchJune 31,30, 2026 as compared to the same period in 2025.

Net sales of essential ingredients from our Pekin Campus production segment declinedimproved by $0.6$5.5 million, or 1%,14%, to $44.0$45.1 million for the three months ended MarchJune 31,30, 2026 as compared to $44.6$39.6 million for the same period in 2025. Our total volume of essential ingredients sold decreased by 20,400 tons, or 9%, to 217,500 tons for the three months ended March 31, 2026 from 237,900 tons for the same period in 2025. The increase of $14.72,$26.73, or 8%, 14%, in the segment’s average sales price per ton for the three months ended MarchJune 31,30, 2026 as compared to the same period in 2025 increased our net sales from the segment by $3.5$5.6 million. WithOur thetotal segment’s average sales price per tonvolume of $202.27essential ingredients sold slightly decreased to 209,500 tons for the three months ended March 31,June 2026,30, we2026 generatedas $4.1compared to 210,000 tons for the same period in 2025, which resulted in $0.1 million less in net sales from the 20,400 fewer tons of essential ingredients sold in the three months ended March 31, 2026 as compared to the same period in 2025.

Net sales of alcohol from our Western productionmarketing segmentand increaseddistribution segment, excluding intersegment sales, declined by $0.5$3.5 million, or 3%,6%, to $16.7$54.7 million for the three months ended MarchJune 31,30, 2026 as compared to $16.2 $58.2 million for the same period in 2025. Our total volume of third-party alcohol sold reported gross by the segment decreased by 0.15.7 million gallons, or 1%,19%, to 8.224.0 million gallons for the three months ended MarchJune 31,30, 2026 as compared to 8.329.7 million gallons for the same period in 2025. With the segment’s average sales price per gallon of $2.03$2.27 for the three months ended MarchJune 31,30, 2026, we generatedrealized $0.2$12.9 million less in net sales from the 0.15.7 million fewer gallons of third-party alcohol sold gross in the three months ended MarchJune 31,30, 2026 as compared to the same period in 2025.The2025. The $0.31 per gallon, or 16%, increase of $0.08, or 4%, in the segment’s average sales price per gallon for the three months ended MarchJune 31,30, 2026 as compared to the same period in 2025 increasedresulted in a $9.4 million increase in our net sales from thethird-party segmentrenewable fuel sold by $0.7the million.segment.

Net sales of essentialalcohol ingredients from our Western production segment declinedincreased by $0.5$4.2 million, or 6%,25%, to $7.3$20.8 million for the three months ended MarchJune 31,30, 2026 as compared to $7.8$16.6 million for the same period in 2025. Our total volume of essential ingredientsalcohol sold increased by 1,6001.1 tons,million gallons, or 2%,13%, to 74,500 tons9.4 million gallons for the three months ended MarchJune 31,30, 2026 fromas 72,900compared tonsto 8.3 million gallons for the same period in 2025. With the segment’s average sales price per tongallon of $97.72$2.20 for the three months ended MarchJune 31,30, 2026, we generatedrealized $0.2$2.5 million in increasedadditional net sales from the 1,6001.1 million additional tons gallons of essential ingredientsalcohol sold in the three months ended MarchJune 31,30, 2026 as compared to the same period in 2025. However,The increase of $0.20, or 10%, in the decrease of $9.39, or 9%, in oursegment’s average sales price per tongallon for the three months ended MarchJune 31,30, 2026 as compared to the same period in 2025 reduced increased our net sales of essential ingredients from the segment by $0.7$1.7 million.

Net sales of alcohol from corporate and other declinedincreased by $0.2 million, or 13%,12%, to $1.4$1.9 million for the three months ended MarchJune 31,30, 2026 as compared to $1.6$1.7 million for the same period in 2025. These sales are from Eagle Alcohol’s business.

Our Pekin Campus production segment’sconsolidated gross profit, netprofit of intercompany activity,(loss) improved by $11.2 million to a gross profit of $9.0$16.6 million for the three months ended MarchJune 31, 30, 2026 as compared tofrom a gross loss of $2.2$1.9 million for the same period in 2025.2025, Ofrepresenting thisa improvement,positive $11.7gross millionmargin isof attributable to higher margins, partially offset by $0.5 attributable to lower sales volumes6.8% for the three months ended MarchJune 31,30, 2026 as compared to a negative gross margin of 0.9% for the same period in 2025.