Aemetis Q2 2026 earnings: Tax credits restore operating profit

Aemetis (NASDAQ: AMTX) reported Q2 2026 revenue of $62.7 million, up 20% from $52.2 million a year earlier, while diluted loss per share narrowed to $0.13 from $0.41. Gross profit reached $13.5 million and operating income turned positive at $5.8 million, helped by Section 45Z tax credits, lower delivered corn costs, and higher Dairy RNG production, although interest expense kept the company in a net loss.

Core financial results

The $10.5 million increase in revenue included $8.6 million of Section 45Z production tax credits: $6.5 million in California Ethanol and $2.1 million in Dairy RNG. These credits represented approximately 14% of reported quarterly revenue, making them a material contributor alongside higher ethanol and RNG volumes.

Gross margin improved to approximately 21.6% from negative 6.4%. Aemetis attributed the change to the tax credits, lower delivered corn costs, increased RNG production, higher LCFS credit prices, and additional approved LCFS pathways. SG&A expense rose by $423,000 to $7.7 million, primarily because of compensation incentives.

Adjusted EBITDA is a non-GAAP measure that excludes items including interest, depreciation and amortization, preferred-unit accretion, and share-based compensation.

Business and segment performance

California Ethanol and Dairy RNG supported the consolidated revenue increase, while India Biodiesel weakened because oil marketing company customers did not place new orders. The ethanol operation benefited from both higher production and pricing, while Dairy RNG combined volume growth with increased sales of environmental credits.

California Ethanol operated at 113% of nameplate capacity, compared with 100% a year earlier. Wet distillers grain sales also increased to 106,800 tons from 91,000 tons, with the average selling price rising to $91 from $86 per ton.

Dairy RNG’s average commodity selling price declined, but the segment sold more RNG, RINs, and LCFS credits. RIN volume increased to 1.26 million from 763,600, while its average price edged down to $2.54 from $2.60. The company said higher production, rising LCFS prices, and seven approved provisional pathways improved segment profitability.

India Biodiesel revenue fell to $2.5 million as biodiesel plant utilization dropped to 3.6% from 25.2%. Refined glycerin partially offset the decline, with volume rising to 700 metric tons from 100 metric tons and the average selling price increasing to $1,541 from $879 per metric ton.

Tax credits restored operating profit, but interest kept the bottom line negative

The improvement in gross profit came from both operating factors and government incentives. Section 45Z revenue was significant relative to consolidated revenue, while lower corn costs widened the California Ethanol production spread and increased Dairy RNG output supported environmental-credit generation.

Below the operating line, total interest expense increased to $15.2 million from $14.4 million. That amount included $1.5 million of accretion related to Aemetis Biogas Series A preferred units. Because total interest expense substantially exceeded operating income, the company still recorded a $9.4 million GAAP net loss despite positive operating income and adjusted EBITDA.

Liquidity and financing

Cash declined while current debt and short-term borrowings increased. The comparison below is with December 31, 2025, rather than the prior-year quarter.

Aemetis invested $8.6 million in carbon-intensity reduction projects at the Keyes ethanol plant and in dairy digester construction during Q2. The company is pursuing potential long-term financing for the Keyes plant, financing for additional Dairy RNG digesters, and a possible initial public offering of its India subsidiary to address near-term obligations and fund expansion.

Management outlook

Management expects two additional dairy digesters to be commissioned in Q3 2026, and the company has received ten digester cleanup skids. Seven LCFS provisional pathways have been fully approved with an average negative carbon-intensity score of 380, while six additional pathways are nearing approval.

The mechanical vapor recompression project at the Keyes ethanol plant is expected to begin operating in 2026. According to management, the project is designed to use on-site solar and local grid electricity to replace approximately 80% of the plant’s fossil natural gas consumption, with the goal of improving California Ethanol cash flow.

Recent insider transactions

The six-month insider summary reports 310,000 shares acquired in two transactions and 10,000 shares sold in one transaction, producing a net increase of 300,000 shares, equal to 6.4% of total insider holdings of 5.02 million shares. The detailed records identify the two acquisitions as stock awards rather than open-market purchases, so they should be interpreted separately from discretionary insider buying.

All ten listed transactions were reported as direct holdings. The records are dominated by compensation-related stock awards, with two sales among the latest ten transactions.

Risks investors need to watch

• Dependence on tax credits and environmental attributes: Section 45Z credits accounted for approximately 14% of Q2 revenue, while Dairy RNG profitability also benefited from LCFS pricing and pathway approvals. Changes in credit values, eligibility, or policy could affect revenue and margins.
• Liquidity and refinancing requirements: Aemetis ended the quarter with $1.0 million in cash, compared with $415.0 million of current liabilities. Its ability to complete planned financing initiatives is important for meeting near-term obligations and funding projects.
• India Biodiesel order volatility: The absence of new oil marketing company purchases reduced quarterly biodiesel revenue to $2.5 million and plant utilization to 3.6%.
• Commodity spread exposure: California Ethanol benefited from higher selling prices and lower delivered corn costs. A reversal in either factor could pressure the segment’s profitability.
• Project execution and capital needs: The planned digester additions and Keyes MVR project require capital and timely completion before their anticipated operating and cash-flow benefits can be realized.

Summary

Aemetis moved from an operating loss to operating income in Q2 2026 as Section 45Z credits, lower corn costs, and higher ethanol and Dairy RNG volumes improved gross profit. However, interest expense continued to outweigh operating income, and the combination of low cash, rising current debt, and ongoing capital spending keeps financing central to the outlook. The next operating milestones are the planned Q3 dairy digester additions and the expected 2026 start-up of the Keyes MVR project.