FutureFuel Corp. Reports 51% Revenue Decline in Q2 2025, Faces Operational Challenges

FutureFuel Corp. reported significant declines in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company generated revenue of $35.7 million, a decrease of 51% from $72.4 million in the same period of 2024. The six-month revenue also fell by 59% to $53.2 million from $130.7 million year-over-year. The company experienced a gross loss of $8.8 million for the quarter, compared to a gross profit of $8.7 million in the prior year, and a gross loss of $23.3 million for the first half of 2025, down from a profit of $13.7 million in 2024.

The decline in revenue and profitability was attributed to several factors, including unfavorable market conditions and uncertainty surrounding the Clean Fuel Production Credit (CFPC). The company had to idle its biodiesel production due to these market challenges, which also led to a reduction in force of 75 employees in July 2025. FutureFuel's biodiesel segment was particularly affected, with revenues dropping 64% in the second quarter and 71% in the first half of 2025 compared to the previous year. The chemical segment also saw a revenue decline of 14% and 30% for the respective periods.

Operationally, FutureFuel's customer base remained stable, with no significant changes in the number of major customers. However, the company reported a decrease in the volume of biodiesel sold, which was exacerbated by the extended plant turnaround aimed at improving reliability and product quality. The company held 0.5 million Renewable Identification Numbers (RINs) valued at $604,000 as of June 30, 2025, down from 2.1 million RINs valued at $1.1 million a year earlier. The company’s employee headcount was reduced to retain only those with expertise necessary for a potential restart of biodiesel production.

Looking ahead, FutureFuel's management expressed cautious optimism regarding the potential for recovery as market conditions improve. The recent passage of the Budget Reconciliation Act of 2025, which extends the CFPC and reinstates the Small Agri-Biodiesel Producers Tax Credit, may provide some relief. However, the company remains vigilant about the ongoing volatility in feedstock prices and the overall economic environment, which could continue to impact its operations and financial results. FutureFuel's management is focused on leveraging its existing resources and credit facilities to navigate these challenges and position the company for future growth.