FutureFuel Corp. of Batesville (NYSE: FF) on Monday reported a wider loss in the third quarter as the company paused production of biofuel, its largest revenue source, due to regulatory uncertainty.
The company, which also produces specialty chemicals, said it’s preparing to resume biofuel production late in the fourth quarter. That move comes after President Donald Trump’s “One Big Beautiful Bill Act” addressed questions surrounding the implementation and benefits of a federal tax credit known as the 45Z Clean Fuel Production Credit.
Lower input costs also factored into the decision. Soybean oil is a key input for biodiesel production and U.S. soybean yields are at record levels with weak demand.
FutureFuels’s third-quarter loss was $9.3 million, compared to a loss of $1.2 million a year ago. Per share, the loss came to 21 cents.
Revenue was $22.7 million, down 56% from $51.1 million a year ago.
Some of the loss was offset by falling operating expenses, which totaled $2.9 million compared to $3.3 million in the third quarter of 2024. A reduction in workforce contributed to the 11% expense decrease.
In a statement, CEO Roeland Polet said the company has narrowed its losses for three consecutive quarters.
“We are committed to maintaining this momentum as we focus on managing our cost structure in the headwinds of the biodiesel market while continuing to invest in plant reliability and other critical areas that we believe will drive chemical segment market share and sustainable revenue growth,” he said.
The company paused biofuel production in June. In the third quarter, the segment posted a $2.4 million loss, which improved on a loss of $3.02 million a year ago. Revenue plunged 79% to $7.1 million.
FutureFuel expects its chemical products to account for a larger portion of revenue in the future. New production using a key raw material is scheduled to come online in the fourth quarter.
The chemical segment posted a third-quarter loss of $4.4 million, compared to a profit of $3.4 million a year ago. Revenue fell 13% to $15.6 million due to lower sales of polymer coatings, custom products and reduced volumes of glycerin, a chemically refined byproduct of biodiesel.
FutureFuel announced in October that it’s closing its remote headquarters in Clayton, Missouri, and consolidating operations in Batesville, where its main production site has been located for nearly 20 years.
Shares of the company closed Monday at $3.88, up nearly 2%, but the gain was erased in after-hours trading. Over the past 12 months, shares were down more than 36%.
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