v3.26.1
Note 13 - Segment Information
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

13)

SEGMENT INFORMATION

 

FutureFuel has two reportable segments organized along similar product groups – chemicals and biofuels. The chief operating decision maker ("CODM”) is Roeland Polet, our chief executive officer. The CODM reviews the significant components for each of our segments. The CODM evaluates the performance of each reportable segment and decides how to allocate resources based on segment gross profit (loss), which includes the revenue and expenses that are directly attributable to management of each segment. The CODM uses segment gross profit (loss) to assess the income generated by each reportable segment and to decide which reportable segment to reinvest profits or pay dividends. Segment gross profit (loss) is also used to analyze performance against the budget and the Company’s competitors.

 

Chemicals

 

FutureFuel’s chemical segment manufactures diversified chemical products that are sold externally to third party customers. This segment is composed of two components: “custom manufacturing” (manufacturing chemicals for specific customers) and “performance chemicals” (multi-customer specialty chemicals).

 

Biofuels

 

FutureFuel’s biofuel segment primarily manufactures and markets biodiesel. Biodiesel revenues are generated through the sale of biodiesel to customers through the Company’s distribution network at the Batesville plant and through a network of remotely located tanks. Biofuel revenues also include the sale of biodiesel blends with petrodiesel, petrodiesel with no biodiesel added, internally generated RINs, biodiesel production byproducts, and revenue and profits from Legacy Regional Transport. Biodiesel selling prices and profitability can at times fluctuate based on the timing of unsold, internally generated RINs. FutureFuel does not allocate production costs to internally generated RINs. The benefit derived from the eventual sale of the RINs is not reflected in results of operations until such time as the RINs sale has been completed, which may lead to variability in reported operating results.

 

As of June 30, 2026, FutureFuel held 0.1 million RINs with a fair market value of $210. Comparatively, at June 30, 2025, FutureFuel held 0.5 million RINs with a fair market value of $604 and at December 31, 2025, 0.4 million RINs were held with a fair market value of $379. The fair value of RINs is considered a Level 1 input and has no cost.  

 

Summary of business by segment

 

   

Three Months Ended June 30, 2026

    

Six months ended June 30, 2026

  
   

Chemical

    

Biofuel

    

Total

    

Chemical

    

Biofuel

    

Total

  

Revenue

   $ 25,849     $ 52,877     $ 78,726     $ 45,481     $ 65,197     $ 110,678  
                                                 

Less:

                                                

Cost of goods sold

     20,593       42,029       62,623       42,387       67,247       109,635  

Distribution

     319       761       1,080       676       1,202       1,878  

Segment gross profit (loss)

   $ 4,937     $ 10,087     $ 15,023     $ 2,418     $ (3,252 )   $ (835 )
                                                 

Reconciliation of Segment gross profit (loss) to Net income (loss) before income taxes:

                                                

Selling, general, and administrative expenses

                   $ 3,080                     $ 7,225  

Research and development expenses

                     692                       1,532  

Other income, net

                     (188 )                     (457 )

Net income (loss) before income taxes

                   $ 11,439                     $ (9,135 )

 

   

Three Months Ended June 30, 2025 (As Adjusted (Note 1))

    

Six months ended June 30, 2025 (As Adjusted (Note 1))

  
    Chemical     Biofuel     Total     Chemical     Biofuel     Total  

Revenue

   $ 16,619     $ 19,054     $ 35,673     $ 25,984     $ 27,227     $ 53,211  
                                                 

Less:

                                                

Cost of goods sold

     15,211       32,177       47,388       30,351       49,224       79,575  

Distribution

     294       384       678       534       683       1,217  

Segment gross profit (loss)

   $ 1,114     $ (13,507 )   $ (12,393 )   $ (4,901 )   $ (22,680 )   $ (27,581 )
                                                 

Reconciliation of Segment gross profit (loss) to Net loss before income taxes:

                                                

Selling, general, and administrative expenses

                   $ 2,228                     $ 5,112  

Research and development expenses

                     933                       2,324  

Other income, net

                     (1,547 )                     (2,748 )

Net loss before income taxes

                   $ (14,007 )                   $ (32,269 )

 

Depreciation is allocated to segment cost of goods sold based on plant usage. The total assets and capital expenditures of FutureFuel have not been allocated to individual segments as large portions of these assets are shared to varying degrees by each segment, causing such an allocation to be of little value.