Executive Summary

Q2 2025 revenue was $35.7M and diluted EPS was -$0.24; Adjusted EBITDA was -$9.8M. Sequentially, revenue improved vs Q1 ($17.5M) and Adjusted EBITDA loss narrowed (from -$16.1M), but results were sharply lower year-over-year due to biodiesel margin compression and the June idling of the biodiesel plant .
Management cited “historically high” feedstock prices and lack of Clean Fuel Producer Credit (IRA 45Z) clarity as key drivers; despite some legislative progress, biodiesel production was idled in June until economics improve, with a potential restart later in 2025 or early 2026 .
Chemicals segment pipeline expanded, with multiple projects expected to commercialize by Q4 2025/Q1 2026; a new production facility enabling backward integration is nearing final commissioning in Q3 2025 .
No formal quantitative guidance was provided; the company reiterated regular dividends ($0.06 per share quarterly) and emphasized strong liquidity ($95.2M cash) to navigate biodiesel downturn while investing for future growth .
Near-term stock reaction catalysts: confirmation of IRA 45Z mechanics/timing, feedstock price normalization, commissioning of the new chemical facility, and chemicals pipeline commercialization milestones .

What Went Well and What Went Wrong

What Went Well

Chemicals pipeline expanded; “several new projects with substantial volume potential” and some commercializations expected to begin by end of Q4 and in Q1 2026 .
New production facility near completion; management expects “final commissioning in Q3” enabling backward integration and new product capacity .
Liquidity intact; cash and cash equivalents stood at $95.2M at June 30, supporting dividends and investment despite biodiesel headwinds .

What Went Wrong

Biodiesel margins deteriorated; management cited “historically high pricing on inputs” and lack of IRA 45Z clarity, leading to idling of biodiesel production in June .
YoY deterioration: revenue down 51% to $35.7M, net income shifted to a -$10.4M loss, and Adjusted EBITDA fell to -$9.8M versus +$6.9M in Q2 2024 .
Operational impacts: extended turnaround reduced throughput; LIFO inventory adjustment benefit was smaller than prior year; workforce reduction announced in July due to weak market conditions .

Financial Results

Headline Results vs Prior Year and Prior Quarter

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$72.4	$17.5	$35.7
Diluted EPS ($USD)	$0.22	-$0.40	-$0.24
Adjusted EBITDA ($USD Millions)	$6.9	-$16.1	-$9.8

Notes: No S&P Global Wall Street consensus for Q2 2025 EPS/revenue was available (see Estimates Context).

Margins

Metric	Q2 2024	Q1 2025	Q2 2025
Gross Profit Margin %	12.0%*	-83.0%*	-24.6%*
EBITDA Margin %	10.5%*	-94.1%*	-26.7%*
Net Income Margin %	13.2%*	-100.6%*	-29.2%*

Values retrieved from S&P Global.*

Segment Breakdown

Metric	Q2 2024	Q1 2025	Q2 2025
Custom Chemicals Revenue ($M)	$15.6	$8.4	$14.3
Performance Chemicals Revenue ($M)	$3.7	$1.0	$2.4
Chemical Revenue Total ($M)	$19.2	$9.4	$16.6
Biofuel Revenue ($M)	$53.2	$8.2	$19.1
Chemical Segment Gross Profit ($M)	$4.7	-$5.7	$1.7
Biofuel Segment Gross Profit ($M)	$4.0	-$8.8	-$10.4
Total Gross Profit ($M)	$8.7	-$14.6	-$8.8

KPIs and Balance Sheet Highlights

KPI	Q4 2024	Q1 2025	Q2 2025
RINs Held (million units)	3.1; FV $1.831M	2.3; FV $2.077M	0.5; FV $0.604M
Cash & Cash Equivalents ($M)	$109.5	$97.1	$95.2
CapEx ($M)	$14.7 (FY 2024)	$4.0 (Q1 2025)	$9.5 (YTD 2025)
Weighted Avg Diluted Shares (M)	43.77 (Q4 2024)	43.80 (Q1 2025)	43.80 (Q2 2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividends	FY 2025	$0.06/share quarterly (announced Q4 2024)	$0.06/share paid in Q2; next $0.06 in Sept and Dec 2025	Maintained
Biodiesel Production	H2 2025	Operations resumed end of March (post-turnaround)	Plant idled in June; potential restart later 2025 or early 2026	Lowered (near-term)
Chemical Facility Commissioning	Q3 2025	New capacity “on track” for late summer 2025	“Final commissioning in Q3”	Maintained/Confirmed timeline
Chemicals Project Commercialization	Q4 2025–Q1 2026	Robust pipeline; investment in new capacity	Multiple projects commercializing; production expected by end of Q4 and in Q1 2026	Raised pipeline visibility
Revenue/Margins/OpEx/Tax	Q3–Q4 2025	None	None	No formal guidance provided

Earnings Call Themes & Trends

(Company did not provide a Q2 2025 earnings call transcript in the available document set; themes based on management remarks across quarters.)

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Regulatory: IRA 45Z / CFPC	BTC expired 12/31/24; IRA 45Z details undefined; advocacy ongoing	“Greater clarity” now, viewed as positive; still insufficient economics given feedstock prices	Improving clarity, economics still challenged
Biodiesel Margins & Feedstock	Advanced turnaround to address anticipated margin weakness; flexible feedstock processing emphasized	“Historically high” feedstock pricing; plant idled in June pending normalization	Worsened in Q2
Plant Reliability & Turnaround	Turnaround Dec–Mar; aimed at reliability, quality, capacity	Continuing investments in reliability and efficiency during biodiesel lull	Execution ongoing
Chemicals Pipeline & Capacity	New backward-integrated capacity “on track” late summer 2025	Expanded pipeline; multiple projects to commercialize by Q4/Q1; commissioning Q3	Strengthening
Working Capital/RINs & LIFO	Lower RIN holdings improved prior-year comps; LIFO benefited prior periods	RINs down to 0.5M; smaller LIFO benefit, partial offset from inventory liquidation	Neutral to slight headwind
Capital Allocation	$0.06 quarterly dividend affirmed	Dividend paid; schedule maintained	Stable

Management Commentary

“As part of the reconciliation bill passed by the Senate and signed into law, there is now greater clarity on the IRA 45Z support... However, due to the on-going abnormally high feedstock prices... we decided to temporarily idle our biodiesel plant in June. We hope feedstock prices will eventually return to normal, allowing us to resume production later in 2025 or early 2026.” — Roeland Polet, CEO .
“We have successfully expanded our chemicals business opportunity pipeline... commercialize multiple projects... production expected to begin by the end of Q4 and in Q1 2026.” — Roeland Polet, CEO .
“We previously announced that we are nearing completion of a new production facility... We expect to complete the final commissioning in Q3.” — Roeland Polet, CEO .
“FutureFuel experienced lower biofuel volumes in the first quarter, primarily due to the turnaround... advanced to align with anticipated weakness in biodiesel margins.” — Roeland Polet, CEO (Q1 commentary) .
“Our focus continues to be on maintaining cost control with a solid balance sheet and ample cash which enables us to endure the BioDiesel downturn, while continuing to invest in future growth.” — Roeland Polet, CEO .

Q&A Highlights

Q2 2025 earnings call transcript was not available in the document set; no Q&A highlights could be retrieved from company transcripts .

Estimates Context

S&P Global Wall Street consensus estimates for Q2 2025 EPS and revenue were not available in our data pull; therefore, we cannot assess beat/miss versus consensus for this quarter. Actuals: Revenue $35.7M; Adjusted EBITDA -$9.8M .

Key Takeaways for Investors

Near-term biodiesel pause: The June idling underscores unsustainable biodiesel economics under high feedstock costs and evolving IRA 45Z mechanics; watch for regulatory clarity and feedstock normalization as re-start triggers .
Sequential operational improvement: Q2 showed revenue recovery to $35.7M and narrower Adjusted EBITDA loss (-$9.8M) versus Q1, as chemicals activity improved and biodiesel fulfilled obligations pre-idling .
Chemicals-driven thesis: Expanded pipeline plus Q3 commissioning of a backward-integration facility positions chemicals to partially offset biodiesel cyclicality and drive revenue beginning Q4/Q1 .
Liquidity supports optionality: $95.2M cash and continued $0.06/share quarterly dividends indicate balance sheet flexibility to invest through the biodiesel downturn and sustain shareholder returns .
Watch inventory/RINs/LIFO dynamics: RIN holdings fell to 0.5M; LIFO and derivative mark-to-market effects remain meaningful quarter-to-quarter drivers of reported profit/loss .
Cost focus and workforce actions: Management executed cost controls and a July reduction in force to align capacity with market conditions; monitor potential margin recovery once biodiesel resumes .
Catalysts: Confirmation of IRA 45Z implementation details, feedstock price normalization, commissioning milestones in Q3, and chemical project commercialization at year-end could drive narrative and stock reaction .

Appendix: Non-GAAP Adjusted EBITDA Reconciliation Highlights

Adjusted EBITDA reconciles from net income by adding back depreciation and non-cash items and adjusting for interest/dividends and derivative instrument marks; Q2 2025 reconciliation shows adds for depreciation ($2.41M), stock comp ($0.24M), tax ($0.04M) and adjustments for interest/dividends (-$1.07M), derivative marks (-$0.54M), other income (-$0.51M) .

Prior Two Quarters’ Earnings Documents Reviewed

Q1 2025: 8-K 2.02 press release with full financials and segment detail .
Q4 2024 (baseline context): press release with quarterly and full-year detail .

Additional Relevant Q2 2025 Press Releases

June 17, 2025: FutureFuel idles biodiesel production due to IRA 45Z uncertainty and unfavorable economics; flexible capacity will support chemicals growth while regulatory clarity evolves .

FutureFuel Corp. (FF)·Q2 2025 Earnings Summary