Despite losses, biodiesel manufacturer FutureFuel continues to invest in growth

Photo: FutureFuel Corp.

Chemical manufacturer and biodiesel producer FutureFuel Corp., which owns and operates a biodiesel plant in Batesville, Arkansas, scaled at nearly 60 million gallons per year, announced that its first-quarter (Q1) revenue of $17.5 million was down 70 percent compared to the same three-month period in 2024.

It reported a net loss of $17.6 million, down from a net income of $4.3 million during the same period last year.

Adjusted EBITDA was minus $16.1 million, down from $7.1 million in Q1 2024.

FutureFuel experienced lower biofuel volumes in the first quarter primarily due to the turnaround of its main production facilities in Batesville, Arkansas.

This strategic maintenance period, which was originally scheduled for later in the year, was pushed forward to align with anticipated weakness in biodiesel margins, the company stated.

The turnaround, which ran from December through March, was aimed at significantly enhancing plant reliability, quality capabilities and usable capacity.

Following the turnaround, chemical operations resumed in mid-March and biodiesel production restarted at the end of March.

“Unlike newer entrants to the market, FutureFuel has been producing renewable fuels since 2005,” the company stated. “With two decades of experience, we have developed deep expertise in navigating the inherent cyclicality of the biodiesel business. Historically, periods of low biodiesel margins have proven temporary—economic pressures force less-efficient capacity offline, which improves both credit pricing and feedstock costs, ultimately restoring biodiesel profitability.”

The company said throughout these cycles, it has remained focused on maintaining advantaged margins and emphasizing operational efficiency during downturns.

FutureFuel noted in its Q1 financials that it is actively engaging with biodiesel industry groups like the Sustainable Advanced Biofuel Refiners Coalition in advocating for clarity regarding section 45Z—the clean fuel production credit passed in the Inflation Reduction Act of 2022—and the reinstatement of the blenders tax credit (40A).

“The biodiesel industry is a critical component of the nation’s fuel supply and plays an integral role in achieving our national renewable fuel goals and obligations,” FutureFuel stated. “While we are not immune to the industry’s headwinds, our plant’s ability to process a wide range of feedstocks gives us a structural advantage over many peers. These flexible operating conditions, combined with the steady contribution from our chemicals segment, allow us to sustain through challenging markets and capture superior economics during recovery.”

As the industry and regulators work to clarify and put forth regulations for 45Z, which replaced the blenders tax credit as of Jan. 1, FutureFuel said it continues to invest in growth.

“Our new backward-integrated capacity project remains on track and is expected to come online in late summer,” the company stated. “We anticipate it will begin contributing revenue by the end of the third quarter.”

FutureFuel’s capital expenditures were just over $4 million in 2025, compared with nearly $2.3 million in the same period in 2024.

The company said its 2025 capital expenses have increased so far this year primarily from construction of a custom chemical plant that is expected to be completed in the middle of the year.

As of March 31, FutureFuel held 2.3 million renewable identification number (RIN) credits with a fair market value of nearly $2.1 million and no cost.

Comparatively, at March 31, 2024, FutureFuel held 2 million RINs with a fair market value of more than $1.6 million and no cost.