FutureFuel Corp. reported a sharp decline in financial results for the first quarter ended March 31, 2025. Consolidated sales revenue plummeted to $17.538 million, a decrease of $40.743 million compared to $58.281 million in Q1 2024. This led to a net loss of $17.643 million, or $0.40 per diluted share, a significant reversal from the net income of $4.330 million, or $0.10 per diluted share, in the prior year.
The primary cause for the reduced performance was an extended plant turnaround of the main production facilities in Batesville, Arkansas, which ran from December through March. This turnaround, aimed at enhancing reliability and quality, significantly reduced sales volumes in both the biofuel segment ($29.856 million decrease) and the chemical segment ($7.949 million decrease). Lower prices in the biofuel segment also contributed a $2.193 million reduction in revenue.
Income from operations decreased by $21.036 million, driven by reduced throughput, increased spending on parts and contract labor for the turnaround, and a less favorable LIFO inventory adjustment. Chemical operations resumed in mid-March, and biodiesel production restarted at the end of March.
The renewable fuel market continues to be negatively impacted by the expiration of the Blenders Tax Credit (BTC) and the ongoing lack of clarity on the new Clean Fuel Production Credit (CFPC). Capital expenditures increased to $4.003 million in Q1 2025, primarily for the construction of a custom chemical plant expected to be completed by mid-2025. A new backward-integrated capacity project is also on track to come online in late summer 2025, with revenue contributions anticipated by the end of the third quarter.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.