10-Q · May 11, 2026
FutureFuel Corp. reported significant growth in revenue driven primarily by the chemical segment. While the company continues to face challenges with operating losses and increasing cash outflows, management remains…
Earnings analysis · 10-Q
FF earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
FutureFuel delivered a substantial Q2 turnaround, with revenue up 121% year over year to $78.726 million, a 19.1% gross margin, operating income of $11.251 million and diluted EPS of $0.25. Both Chemicals and Biofuels…
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FutureFuel delivered a substantial Q2 turnaround, with revenue up 121% year over year to $78.726 million, a 19.1% gross margin, operating income of $11.251 million and diluted EPS of $0.25. Both Chemicals and Biofuels generated positive gross profit, supported by energy-market demand, regulatory clarity and improved utilization. However, first-half gross profit and Adjusted EBITDA remained negative, operating cash flow was negative $1.227 million and capital expenditures drove estimated six-month free cash flow of negative $14.605 million. The outlook is therefore improved but dependent on sustained commodity economics, tax-credit monetization and operational reliability.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.25
What stood out
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Revenue More Than Doubled
Q2 revenue rose to $78.726 million from $35.673 million, an increase of $43.053 million or 121% year over year. Volume/product mix contributed $14.451 million and price contributed $28.602 million.
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Sharp Profitability Rebound
Gross profit was $15.023 million versus a $12.393 million gross loss in the prior-year quarter, producing a 19.1% gross margin versus negative 34.7%. Operating income was $11.251 million versus a $15.554 million loss, and diluted EPS improved to $0.25 from $(0.32).
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Chemicals Returned to Growth
Chemical revenue increased 56% to $25.849 million, while chemical gross profit grew to $4.937 million from $1.114 million. Management attributed the improvement to energy-market volume and a new product brought online in the fourth quarter of 2025.
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Biofuels Gross Profit Recovered
Biofuel revenue increased 178% to $52.877 million, and gross profit improved by $23.594 million to $10.087 million. Management cited CFPC regulatory clarity, record-high final RVO levels and improved equipment utilization.
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Working Capital Supports Volume
Accounts receivable increased to $20.104 million from $9.405 million and inventory increased to $40.692 million from $29.334 million at December 31, 2025, supporting the higher production and sales activity. Accounts payable rose to $23.351 million from $10.633 million, partly offsetting the working-capital build.
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Liquidity Facility Remains Available
The company had no borrowings at June 30, 2026 and retained a $35.000 million revolving credit facility expiring February 21, 2030. Contracted remaining performance obligations were $26.272 million, with 11% expected to be recognized over the next 12 months.
What to watch
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Cash Flow Remains Negative
Cash used in operating activities was $1.227 million for the first six months, compared with $0.183 million used in the prior year. Capital expenditures were $13.378 million, implying six-month free cash flow of approximately negative $14.605 million before other investing items.
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Cash Declined as Liabilities Rose
Cash and cash equivalents declined to $34.366 million from $51.316 million at December 31, 2025, while total liabilities increased to $61.959 million from $37.679 million. The increase included $12.500 million of refundable customer deposits classified in other noncurrent liabilities.
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Year-to-Date Profitability Is Still Weak
Six-month gross profit remained negative at $(0.835) million and six-month net loss was $(9.212) million, despite the Q2 rebound. Six-month Adjusted EBITDA was negative $2.003 million versus negative $27.471 million in the prior-year period.
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Commodity and Derivative Volatility
Derivative timing remains material: six-month realized derivative losses were $10.523 million, partially offset by a $0.735 million unrealized gain. A 10% adverse change in biodiesel feedstock prices would reduce gross profit by $2.844 million, or 340.6% of six-month gross profit.
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Operational Reliability Events
The plant incurred $1.617 million of incremental non-recurring Winter Storm Fern costs and $0.281 million of fire-related costs in the first six months. The storm caused a 30-day shutdown for the majority of the manufacturing plant.
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RIN Rule Changes Pressure Economics
The EPA reduced the renewable diesel RIN equivalency factor from 1.7 to 1.6 in 2026 and to 1.5 by 2027. Management stated this reduces the revenue advantage from 13% to 6% and represents a fundamental shift in biodiesel’s competitive landscape.
Management's outlook
The 10-Q provides no numeric revenue or EPS guidance. Management states existing cash, operating cash flow and borrowing capacity should fund operations, dividends and capital requirements for the foreseeable future. The filing says 2026 tax credits totaled $6.733 million at June 30, 2026 and are committed for monetization at fiscal year-end; the prior 8-K maintained positive full-year 2026 Adjusted EBITDA expectations.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.