FutureFuel Restores Biodiesel Run-Rate After Chemical Turnarounds

The Tip Desk · November 9, 2026 · 4 min read

Third-quarter revenue reached $104.7 million as the company guided fourth-quarter Adjusted EBITDA to about $7 million.

FutureFuel Corp. (FF), a manufacturer of custom and performance chemicals and biofuels, reported third-quarter 2026 revenue of $104.7 million, up 361.3% from $22.7 million a year earlier, after a 120.6% year-over-year increase to $78.7 million in the second quarter.

The company said strong biodiesel demand and improved production economics were offset by extended maintenance on two dedicated chemicals units. GAAP net loss was $8.4 million, or $0.19 a share, compared with a $9.2 million loss, or $0.21 a share, a year earlier. Adjusted EBITDA was a loss of $4.9 million, versus a $5.3 million loss in the year-ago quarter.

Biofuels carried the top line. Segment revenue was $87.8 million, compared with $7.1 million a year earlier. Sales volume increased 11.3 million gallons versus the prior-year quarter. Capacity utilization rose to 83% from 56% in the second quarter. The company attributed the volume gain to strong demand and efficient plant utilization.

Gross profit did not follow. Biofuels posted a gross loss of $9.8 million, versus a $2.4 million gross loss a year earlier, after $10.1 million of gross profit in the second quarter. The company said significantly higher sales volumes and stronger pricing realization were more than offset by elevated input costs. The third-quarter gross loss included $2.3 million of hedging losses expected to be offset when related physical commodity positions are sold, and excluded $1.5 million of RIN inventory valuation generated in the third quarter and sold in the fourth.

Chemicals revenue was $16.9 million, up 8.6% from $15.6 million a year earlier, after 55.5% year-over-year growth in the second quarter. Sales volume declined 27% on a year-over-year basis because of turnaround activity at two customer process units. Together, those turnarounds reduced third-quarter Adjusted EBITDA by approximately $4.3 million. Chemicals capacity utilization was 32%, compared with 55% a year earlier.

Custom Chemical revenue fell 8.0% to $13.3 million from $14.5 million a year earlier, primarily due to delayed shipments as a large customer rebalanced inventory and production downtime for a second customer during an extended, scheduled turnaround. Performance Chemical revenue rose 223% to $3.6 million from $1.1 million, primarily due to higher volumes from a new customer that began production in the fourth quarter of 2025 and higher glycerin sales. Chemicals gross profit was $4.4 million, compared with a $4.0 million gross loss a year earlier.

Consolidated results included $8.7 million of net derivative losses, comprising $8.3 million of realized losses and $0.4 million of unrealized losses. Included in realized derivative losses is $2.3 million associated with physical inventory not yet sold, which the company said is expected to be recovered in the fourth quarter. At September 30, 2026, FutureFuel held approximately 0.7 million internally generated RINs with a value of $1.5 million for delivery in the fourth quarter.

Cash and cash equivalents were $21.3 million at September 30, 2026, down from $34.3 million at June 30, 2026, with a $35 million revolving credit facility and no outstanding borrowings. The company said the decrease related to the operating loss, increased working capital requirements and capital expenditures to support growth. Net cash used in operations was $10.3 million in the third quarter, compared with $1.1 million a year earlier. Capital expenditures were $3.3 million in the quarter.

The company now expects fourth-quarter Adjusted EBITDA of approximately $7 million and positive Adjusted EBITDA for full-year 2026, excluding unrealized gains and losses on derivative instruments and inventory valuation adjustments. Through early November, it had booked orders for more than 90% of fourth-quarter biodiesel production capacity. It expects to sell $1.5 million of RINs generated from third-quarter biodiesel production and to recover $2.3 million of derivative losses tied to the corresponding sale of physical inventory.

A customer that has committed $41 million of customer-funded capital investment at Batesville over the next two years expects to resume a normal order cadence during the fourth quarter. FutureFuel said it established a new relationship with a large European chemicals customer reshoring production to the United States, with initial production batches expected in the first quarter of 2027 and full production rates by mid-2027. The company said it does not anticipate major planned maintenance at Batesville through the first quarter of 2027. Full-year 2026 capital expenditures are expected at $25.8 million, including $10.2 million of customer-funded growth investments.