FutureFuel Corp. Reports 70% Revenue Decline and $17.6 Million Net Loss in Q1 2025

FutureFuel Corp. reported significant declines in its financial performance for the first quarter of 2025, with total revenue falling to $17.5 million, a decrease of 70% from $58.3 million in the same period of 2024. The company experienced a gross loss of $14.6 million, compared to a gross profit of $5 million in the prior year. This downturn was primarily attributed to reduced sales volumes in both its biofuel and chemical segments, driven by an extended plant turnaround aimed at improving reliability and product quality, which was further complicated by severe weather conditions.

The company's operating expenses also increased, totaling $4.3 million for the quarter, up from $2.8 million a year earlier. This rise was largely due to higher compensation expenses and increased research and development costs. FutureFuel's net loss for the quarter was $17.6 million, translating to a loss of $0.40 per share, compared to a net income of $4.3 million, or $0.10 per share, in the first quarter of 2024. The substantial shift in profitability reflects the challenges faced in both segments, particularly in the biofuels market, which has been negatively impacted by the expiration of the Biodiesel Blenders' Tax Credit and uncertainty surrounding the Clean Fuel Production Credit.

In terms of operational metrics, the company reported a significant drop in customer engagement, with no significant customers in the biofuels segment during the first quarter of 2025, down from four in the same period of 2024. The chemical segment also saw a decline in revenue, with total sales of $9.4 million, a decrease of 48% from the previous year. The company held 2.3 million Renewable Identification Numbers (RINs) with a fair market value of $2.1 million as of March 31, 2025, compared to 2.0 million RINs valued at $1.6 million a year earlier.

Looking ahead, FutureFuel's management remains focused on navigating the current market challenges while leveraging its existing resources. The company has amended its credit agreement to provide a revolving credit facility of up to $75 million, which it plans to use for working capital and capital expenditures. FutureFuel anticipates that its existing cash balances and cash flow from operations will be sufficient to fund its operations and capital requirements in the foreseeable future. However, the company acknowledges the ongoing uncertainties in the renewable fuel market and the potential impact of regulatory changes on its business operations.