Alto Ingredients Soars 40.59% on Q3 Earnings, Renewable Fuel and CO₂ Market Gains

The share price rose to its highest level so far this month today, with an intraday gain of 37.93%.

Alto Ingredients (ALTO) has surged 40.59% over four days, driven by robust Q3 2025 financial results and strategic gains in renewable fuels and CO₂ markets. The company reported $241 million in net sales, $21 million in adjusted EBITDA, and $14 million in net income, outperforming estimates. Ethanol export profits and liquid CO₂ demand, particularly on the West Coast, fueled growth. Cost-cutting measures, including exiting unprofitable segments and streamlining operations, boosted gross profit by $18 million year-over-year. ALTO is also expanding CO₂ utilization and carbon capture projects to qualify for Section 45Z tax credits, which could generate $18 million in tax benefits over two years.

Regulatory tailwinds, such as California’s AB 30 allowing E15 fuel use year-round, and global demand for low-carbon fuels are amplifying ALTO’s strategic advantages. While risks like project delays and operational costs persist, institutional investor confidence and favorable policy trends position the stock for continued momentum. Analysts highlight potential upside, though mixed ratings underscore the need for execution on carbon credit monetization and cost discipline to sustain long-term growth.