grepcent public filings, reorganized for comparison

FutureFuel Corp. (FF) Business

Verbatim Item 1 Business section from FutureFuel Corp.'s latest 10-K. Filing date: 2026-03-16. Accession: 0001437749-26-008411.

This page reproduces the company's own Item 1 Business text from the linked SEC filing. It is filer text, not grepcent analysis, scoring, or investment advice.

Informational only - not investment advice. See Disclaimer.

Extracted from Item 1 Business to the first Item 1A/1B/1C/2 boundary after HTML sanitization. Confidence: high. Source form: 10-K. Character span: 27241-79930.

Back to FF company profile

Item 1. Business

OVERVIEW

FutureFuel Corp. (“FutureFuel,” the “Company,” “we,” “us,” or “our,” and includes our wholly-owned subsidiaries) is a Delaware corporation operating primarily through our subsidiary, FutureFuel Chemical Company.  We manufacture a diverse portfolio of inorganic chemicals, bio-based specialty chemicals, and biofuels in our integrated facility in Batesville, Arkansas.

FutureFuel is publicly traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “FF”.  Our headquarters are located at our facility in Batesville, Arkansas.

Unless noted otherwise, all financial figures in this report are presented in thousand United States dollars, excluding per-share data.

Financial Highlights & Dividends

We maintained a consistent commitment to returning value to our shareholders.

Column 1Column 2Column 3
●2025: Distributed quarterly cash dividends totaling $0.24 per share.
Column 1Column 2Column 3
●2026: Declared an initial quarterly dividend of $0.06 per share for the first quarter of 2026.

Segment Operations

Our operations are organized into two primary segments: Chemicals and Biofuels.

Chemicals Segment

Our Chemicals segment is a premier provider of custom manufacturing solutions, serving a diverse portfolio of third-party customers. By combining high-barrier technical expertise with a sophisticated integrated infrastructure, we deliver mission-critical chemistry at scale.

Column 1Column 2Column 3
●Strategic Roadmap: Integration and Market Expansion: We are aggressively expanding our market footprint through a dual-track strategy of diversification and vertical integration. Most notably, by backward integrating into the production of key intermediate raw materials, we have secured our internal supply chain while creating the opportunity for a new revenue stream through external sales. Our growth is anchored by an unwavering commitment to an ingrained culture of safety. We simultaneously invest in process automation and lean methodologies to enhance manufacturing reliability and throughput.
Column 1Column 2Column 3
●Competitive Edge: The Chemicals segment leverages a "moat" built on technical complexity and cost leadership. As a premier integrated manufacturing site, we offer a unique value proposition that balances sophistication with fiscal discipline. Our facility is equipped to handle intricate chemical syntheses, providing customers with superior quality and technical precision. Through rigorous operational excellence and proactive cost management, we provide a high-quality, low-cost manufacturing environment that remains resilient in a fluctuating global marketplace. Our scale allows partners to achieve significant production efficiencies, reducing their time-to-market and overall supply chain risk.

1

Table of Contents

Biofuels Segment

This segment leverages chemical manufacturing know-how with cost effective infrastructure to produce biodiesel (fatty acid mono-alkyl esters) sustainable fuel solutions.

●Capacity & Production: Our facility has a demonstrated capacity of approximately 59 million gallons per year (“MMgy”). In 2025, the plant had limited throughput of biodiesel due to the absence of regulatory guidance regarding certain government support for the sustainable fuel industry. In 2025, we produced 9 million gallons, following a 2024 output of 45 million gallons.
●Operational Synergy: Our plant design supports a wide variety of feedstocks ensuring high yields. By sharing infrastructure with our chemical operations, we benefit from significant cost synergies that allow us to thrive in a competitive landscape.

NARRATIVE DESCRIPTION OF OUR BUSINESS

Principal Executive Offices and Facility Location

FutureFuel maintains its principal executive offices in Batesville, Arkansas. Our 2,200-acre site serves as the hub for our operations, with approximately 500 acres dedicated to:

Column 1Column 2Column 3
●State-of-the-art manufacturing facilities and laboratories.
Column 1Column 2Column 3
●Advanced infrastructure, including on-site liquid hazardous and non-hazardous waste treatment.
Column 1Column 2Column 3
●Ample land reserves to support future business expansion.
Column 1Column 2Column 3
●Our plant is an International Organization for Standardization (“ISO”) 9001 accredited production facility for both chemicals and biofuels, meeting international standards for quality management systems. The ISO 9000 family of standards represents an international consensus on good quality management practices. It consists of standards and guidelines relating to quality management systems and related supporting standards. ISO 9001 provides a set of standardized requirements for a quality management system, regardless of what the user organization does, its size, or whether it is in the private or public sector. It is the only international standard against which organizations can be certified, although certification is not a compulsory requirement of the standard.
Column 1Column 2Column 3
●Safety First. We maintain a "safety-first" operational philosophy that protects our human capital and brand equity. We are dedicated to maintaining a healthy and injury-free workplace. To benchmark our performance and advance our efforts, we actively participate in leading safety programs, including the American Chemistry Council’s Responsible Care program and the Society of Chemical Manufacturers and Affiliates' Chem Stewards initiative, alongside programs from numerous other safety-focused organizations.

Operations and Revenue Mix

For the year ended December 31, 2025, our revenue was distributed across three primary categories:

Column 1Column 2Column 3
●Custom Manufacturing (54%): Producing unique specialty chemicals for strategic customers, typically under long-term contracts (e.g., biocides, specialty polymers, and dyes).
Column 1Column 2Column 3
●Biofuels (38%): Producing and selling biodiesel and petrodiesel blends.
Column 1Column 2Column 3
●Performance Chemicals (8%): Multi-customer specialty chemicals, such as polymer modifiers for stain resistance and various solvents.

Please see below for additional information regarding these segments and offerings.

2

Table of Contents

Chemicals Segment (62% of Total 2025 Revenue)

Our Chemicals segment is comprised of two distinct business models: Custom Manufacturing (manufacturing specialty chemicals for specific customers) and Performance Chemicals (multi-customer specialty chemicals).  We operate as a strategic, full-service partner, leveraging our technical expertise and integrated infrastructure to serve a diverse client base.  For both chemical models, we are pursuing development and commercialization of building block chemicals and intermediate chemicals essential to the manufacture of pharmaceuticals.  The manufacture of pharmaceuticals requires compounds produced under ISO certified quality systems as well as compounds produced in accordance with Good Manufacturing Practices (“GMP”). The manufacture of both non-GMP and GMP products provides the Company with more growth opportunities to serve customers active in the pharmaceutical intermediate, food ingredient, and other fine chemicals segment. While pursuing this strategy, we continue our efforts to establish a name identity for both chemical business models.

Custom Manufacturing (54% of Total 2025 Revenue)

Custom manufacturing is a service-based business focused on producing unique, proprietary molecules for strategic customers, typically under long-term or multi-year contracts.

Column 1Column 2Column 3
●Intellectual Property & Confidentiality: Most products are manufactured under strict confidentiality agreements to protect our customers’ proprietary formulations and intellectual property.
Column 1Column 2Column 3
●Production Versatility: Depending on customer needs and volume requirements, we utilize continuous production, dedicated batch, or general-purpose batch models.
Column 1Column 2Column 3
●Value Proposition: Our customers prioritize our proven track record in dependability, regulatory compliance, technical agility, and environmental stewardship.
Column 1Column 2Column 3
●Collaborative Innovation: Our commercial, engineering, and technology teams work in lockstep with customers to drive continuous process improvements and scale new business opportunities.

We offer a diversified portfolio serving the following markets:

Column 1Column 2Column 3
●Agrochemicals and Oilfield Chemicals
Column 1Column 2Column 3
●Industrial Intermediates and Fabric Care
Column 1Column 2Column 3
●Coatings and Specialty Polymers

Performance Chemicals (8% of Total 2025 Revenue)

Performance chemicals include specialty products available to the open market and sold to multiple customers based on technical specifications for specific end-use applications. This portfolio includes:

Column 1Column 2Column 3
●Polymer Modifiers: Enhancing nylon and polyester for stain resistance and durability.
Column 1Column 2Column 3
●Specialty Solvents & Surfactants: Used in industrial and consumer cleaning.
Column 1Column 2Column 3
●Glycerin Products: High-purity byproducts refined for diverse specialty applications.

Future Strategy

We have established a robust reputation as a safe, reliable, and technology-driven producer within the global chemical and biofuels markets. To drive shareholder value and maximize earnings, our strategy focuses on leveraging our integrated infrastructure and technical core competencies to capture high-margin growth opportunities.

3

Table of Contents

Key Strategic Pillars

Column 1Column 2Column 3
●Operational Excellence and Cost Leadership: We utilize large-scale batch and continuous production processes, paired with a relentless focus on process improvement. This enables us to remain cost-competitive—and for certain product lines, cost-advantaged—relative to global competitors.
Column 1Column 2Column 3
●Integrated Infrastructure Advantage: Our 2,200-acre site features fully integrated utilities and advanced waste treatment facilities. This “complete package” approach provides a significant barrier to entry for competitors and a seamless experience for our custom manufacturing partners.
Column 1Column 2Column 3
●Expansion into Regulated Markets: By integrating GMP capabilities alongside our existing ISO 9001 and Biodiesel Quality (“BQ”)-9000 certifications, we are positioned to expand into higher-value segments, including pharmaceutical intermediates and food-grade ingredients.
Column 1Column 2Column 3
●Bio-Based Expertise: We possess a specialized core competency in the chemical processing of bio-based feedstocks. As global demand for sustainable products increases, our expertise in specialty chemical synthesis and renewable process development positions us as a preferred manufacturer in green chemistry markets.

Growth and Margin Improvement

We intend to continue to improve operating margins through a disciplined approach to business development:

Column 1Column 2Column 3
●Customer Diversification: Actively expanding our footprint across new market segments to reduce historical reliance on legacy contracts.
Column 1Column 2Column 3
●Strategic Product Mix: Carefully managing our pipeline with respect to capital efficiency, time-to-market, and the optimal matching of market opportunities to our existing asset base.
Column 1Column 2Column 3
●Customer Relationship Development: Transitioning from a transactional supplier to a full-service strategic partner to secure long-term, high-volume manufacturing agreements.

Customers and Markets

Our chemical products serve a diverse array of end-use markets, including detergents, agrochemicals, automotive, oil and gas, coatings, nutrition, and polymer additives. While this broad reach provides stability, certain product lines are subject to cyclicality driven by fluctuations in global macroeconomic demand.

Custom Manufacturing Dynamics

In our custom manufacturing segment, our customers are typically the primary brand owners. Consequently, they maintain control over the key drivers of production demand, including:

Column 1Column 2Column 3
●Market Development: The speed and success of their end-product penetration.
Column 1Column 2Column 3
●Intellectual Property: The timing of patent expirations and subsequent generic competition.
Column 1Column 2Column 3
●Sourcing Strategy: Shifts in their internal or external manufacturing requirements.

Because these factors are outside of our direct control, we may face challenges in maintaining or increasing sales levels for specific custom products if a customer’s strategy or market position shifts.

Three chemical customers each represented greater than 10% of total sales revenue in 2025 for a total of 48%. No chemical customer represented greater than 10% of total sales revenue in 2024.

4

Table of Contents

Competition

The specialty chemicals industry has historically been characterized by high barriers to entry, driven by the concentration of proprietary technology and complex manufacturing capabilities among a limited number of established suppliers. However, the competitive landscape has evolved as technology and capital investment have shifted globally

Global Competitive Dynamics: We face intensifying competition from international multinational chemical manufacturers, particularly those based in India and China. Our competition is generally categorized into two groups:

Column 1Column 2Column 3
●Large Multinational Corporations: Competitors that maintain internal specialty chemical divisions. While these entities possess significant resources, they are often challenged by slower responsiveness and less personalized customer service.
Column 1Column 2Column 3
●Small Independent Producers: Boutique firms that may offer agility but frequently lack the necessary technical infrastructure, scale, and financial depth to compete for large-scale strategic contracts.

Our Competitive Advantages: We compete primarily on the basis of price, quality, technical innovation, and reliability. We believe FutureFuel is uniquely positioned for growth by bridging the gap between large-scale capacity and mid-market agility. Key differentiators include:

Column 1Column 2Column 3
●Scale and Infrastructure: Our expansive manufacturing footprint and integrated on-site utilities and wastewater treatment allow for cost-efficient, large-scale production.
Column 1Column 2Column 3
●Technical Sophistication: Our ability to handle complex chemical syntheses and maintain rigorous ISO and GMP standards sets us apart from smaller producers.
Column 1Column 2Column 3
●Operational Reliability: A proven reputation for responsiveness and consistent delivery, which is a critical factor for brand owners in the custom manufacturing space.
Column 1Column 2Column 3
●Financial Strength: A solid balance sheet that provides the stability required to invest in long-term customer partnerships and facility upgrades.

Supply and Distribution

Our specialty chemicals are generally high-unit-value products sold either in bulk or as low-volume packaged goods. Due to their high value relative to weight, distribution expenses typically represent a relatively minor component of our total cost structure.

Column 1Column 2Column 3
●Global Distribution: Most of our chemical products are sold Free on Board (“FOB”) from our Batesville facility. This allows for streamlined global distribution to our international customer base.
Column 1Column 2Column 3
●Raw Material Sourcing: The raw materials required for our chemical syntheses are high-value components sourced from a diverse, global supplier network. This ensures we maintain the specific technical standards required for our custom and performance portfolios.
Column 1Column 2Column 3
●Biofuels Co-products: Unlike our chemical lines, biofuels co-products (such as glycerin and distillation residue) are recovered directly from our on-site processing. These materials are primarily distributed to more localized industrial and agricultural markets.

Cyclicality and Seasonality

While our Chemicals segment benefits from a diversified portfolio, several product lines are subject to cyclicality driven by fluctuations in global energy and agricultural markets.

Column 1Column 2Column 3
●Market Drivers: Demand for chemicals utilized in energy exploration and transportation is closely tied to global oil prices. Similarly, products sold into the agrochemical space are influenced by the pricing of agricultural commodities.
Column 1Column 2Column 3
●Economic Dynamics: Profitability within these cycles is determined by broader supply and demand dynamics, while the duration of these cycles is often dictated by shifting global economic conditions.
Column 1Column 2Column 3
●Stability: Despite the inherent sensitivity to these industry-specific cycles, a significant portion of our chemical portfolio—particularly those under long-term custom manufacturing agreements—continues to provide a consistent and stable earnings base.

5

Table of Contents

Backlog

The nature of our Chemicals segment revenue, which is primarily derived from long-term custom manufacturing agreements, relies on a collaborative planning model rather than a traditional order-book system.

Column 1Column 2Column 3
●Demand Forecasting: Our strategic customers typically provide us with rolling monthly or quarterly demand forecasts. These projections allow us to synchronize our supply chain and optimize the efficiency of our production processes.
●Order Structure: Because these forecasts represent anticipated needs rather than firm, non-cancelable sales orders, they are not categorized as backlog.
●Reporting Policy: Consequently, we do not monitor or report backlog as a metric for assessing future performance, as our revenue realization is more accurately reflected through long-term contract stability and execution against customer forecasts.

Biofuels Segment (38% of Total 2025 Revenue)

Established in 2005, our biofuels segment focuses on biodiesel, a renewable energy product made from fatty acid mono-alkyl esters which are typically produced from vegetable oil, fat, or grease feedstocks.

Production Capabilities

Column 1Column 2Column 3
●Infrastructure: Our Batesville plant features a continuous production line with a demonstrated capacity of 59 MMgy.
Column 1Column 2Column 3
●Feedstock Flexibility: We can process a wide array of feedstocks, including soy oil, poultry fat, used cooking oil, beef tallow, and choice white grease.
Column 1Column 2Column 3
●Quality Standards: All fuel meets the American Society for Testing & Materials (“ASTM”) D6751 standard. We are a BQ-9000 accredited producer and ISO 9001 certified.

Regulatory Environment

The biofuel industry is heavily influenced by federal mandates:

Column 1Column 2Column 3
●Renewable Fuel Standard (“RFS2”): Managed by United States Environmental Protection Agency (the “USEPA”), this program requires specific volumes of renewable fuels to be blended into the United States (“U.S.”) fuel pool. The discussion of how the USEPA monitors the requirements is discussed below.
Column 1Column 2Column 3
●Tax Credits: We transitioned from the Blenders’ Tax Credit (“BTC”) which expired December 31, 2024 to the Clean Fuel Production Credit (“CFPC”) effective January 1, 2025. This new technology-neutral credit subsidizes fuels based on their greenhouse gas (“GHG”) emission levels as proposed by the United States Treasury Department (the “U.S. Treasury”).

The table below outlines the finalized and proposed volume requirements established by the USEPA, indicating increased volumes under RFS2 and growth for biomass-based diesel and other renewable fuels.

Renewable Fuel Volumes (billion Renewable Identification Number (“RINs”))
20252026**2027**
Cellulosic biofuel1.381.301.36
Biomass-based diesel*3.357.127.50
Advanced biofuel7.339.029.46
Renewable fuel22.3324.0224.46
Note on Measurement:
*Biomass-based diesel volumes are expressed in physical gallons. All other categories are represented in ethanol-equivalent units.
Source & Status:
Data for 2025 is based on the finalized USEPA RFS2 standards.
**Figures for 2026 and 2027 reflect the proposed rule announced by the USEPA on June 13, 2025.

6

Table of Contents

Renewable Identification Numbers (“RINs”)

RFS2 utilizes RINs as a regulatory tracking mechanism to ensure that U.S. refiners, blenders, and importers meet mandatory renewable fuel blending requirements.

The RIN Lifecycle

Column 1Column 2Column 3
●Generation: When a producer like FutureFuel manufactures or imports biodiesel, we report the activity to the USEPA’s Moderated Transaction System. The USEPA then assigns a RIN to the product. Currently, biodiesel is assigned 1.5 RINs per physical gallon.
Column 1Column 2Column 3
●Transfer: RINs remain attached to the biofuel as it moves through the supply chain. When ownership of the fuel passes to refiners or blenders, the associated RINs are transferred as well.
Column 1Column 2Column 3
●Separation: RINs are typically “separated” from the fuel at the point of blending with petrodiesel. Once separated, the RIN acts as a standalone credit that the blender can use to demonstrate compliance with USEPA mandates or sell on the open market.

Our Strategy for RIN Management

As a biodiesel producer, we generate RINs as an integral part of our production process. Our approach to selling these credits is flexible and market-driven:

Column 1Column 2Column 3
●Attached Sales: We frequently sell biodiesel with the associated RINs still attached to the fuel.
Column 1Column 2Column 3
●Separated Sales: In instances where we blend the biodiesel with petrodiesel (at ratios of B80 or less, such as B5 or B20), we have the option to separate the RINs from the fuel. We can then sell the fuel and the RINs as distinct products.
Column 1Column 2Column 3
●Decision Factors: The choice to separate or attach RINs depends on specific customer requests and prevailing market prices for separated credits.

Market Risk

While RINs are currently traded through market makers, we cannot guarantee the long-term sustainability of a separate RIN market or the future valuation of these credits upon sale.

Byproducts of Biodiesel Production

The manufacturing of biodiesel generates valuable secondary products, primarily glycerin and distillation residue, the sale of which contribute to our overall revenue stream.

Glycerin

Glycerin is a natural byproduct of the transesterification process used in biodiesel production, generated at a rate of approximately 10% by mass of the total biodiesel produced. We manage this byproduct in two ways:

Column 1Column 2Column 3
●Crude Glycerin: This unrefined product is sold for industrial and agricultural applications that do not require high purity, such as construction materials and animal feed. Its market price is generally sensitive to supply and demand of energy and agricultural commodities like corn and soy.
Column 1Column 2Column 3
●Refined Glycerin: To capture higher margins, we process a significant portion of our crude glycerin into a high-purity form of glycerin. This refined glycerin serves premium markets, including specialty chemical production and agricultural formulations.

Our strategy is to maximize the production of refined glycerin whenever refining capacity and market pricing provide a favorable return.

7

Table of Contents

Biodiesel Residue

The final stage of the biodiesel production process leaves behind a distillation residue. While this is a lower-value commodity, we aggregate and market it to various industrial customers. Its primary applications include use as:

Column 1Column 2Column 3
●an additive for Bunker C #6 fuel oil; and
Column 1Column 2Column 3
●a specialized asphalt release agent used in road construction.

2025 Biodiesel Market & Production Trends

Data from the U.S. Energy Information Administration (“EIA”) highlights a shifting landscape in the biofuels sector. As of late 2024, domestic biodiesel production capacity saw a slight contraction, decreasing to 1,995 MMgy from 2,083 MMgy the previous year. Conversely, capacity for renewable diesel and other biofuels experienced robust growth, surging to 4,580 MMgy from 3,897 MMgy. Despite the rapid expansion of renewable diesel, the conventional biodiesel industry continues to demonstrate significant operational resilience.

Current Industry Challenges and 2025 Performance

The industry faced a complex start to 2025, largely due to regulatory ambiguity. The lack of timely guidance from the U.S. Treasury regarding the CFPC, combined with delays in finalized Renewable Fuel Obligations (“RVO”) for 2026, created a cautious market environment.

According to USEPA reporting, these factors contributed to a sharp year-over-year decline in production volumes during the first month of 2025:

Fuel TypeJan 2024 ProductionJan 2025 Production
Biodiesel160.6 Million Gallons68.7 Million Gallons
Renewable Diesel200.9 Million Gallons175.9 Million Gallons
Sustainable Aviation Fuel (SAF)9.7 Million Gallons16.4 Million Gallons

Source: USEPA RIN Generation Summary

While biodiesel and renewable diesel volumes softened in early 2025, Sustainable Aviation Fuel (“SAF”) emerged as a growth leader, nearly doubling its output in the same period while it enjoyed a higher CFPC during 2025 which was reduced effective January 1, 2026 to the same level of credit as biodiesel and renewable diesel.

Customers and Markets

Market Reach and Applications

Biodiesel and its various blends serve nearly all traditional petroleum diesel end markets. In the United States, consumption is primarily driven by the on-road transportation sector. However, our products are also utilized in significant off-road applications, including:

Column 1Column 2Column 3
●Agriculture: Powering farming equipment.
Column 1Column 2Column 3
●Heating: Residential and commercial heating oil.
Column 1Column 2Column 3
●Energy: Stationary power generation.

Logistics and Distribution

We maintain a robust distribution network to reach customers across the United States. Our logistics capabilities include:

Column 1Column 2Column 3
●Direct Transport: Shipping via truck and rail directly from our facilities.
Column 1Column 2Column 3
●Barge Access: Utilizing a terminal in Little Rock, Arkansas, for waterborne shipments.
Column 1Column 2Column 3
●Strategic Storage: Leveraging liquid bulk storage facilities to ensure a consistent supply for the domestic transportation market.

8

Table of Contents

Customer Concentration and Sales Strategy

Our biofuel sales are characterized by a varying but occasionally concentrated customer base.

The following table details the revenue concentration for our top two customers within the Biofuels segment and their impact on total Company revenue.

Fiscal YearBiofuel Segment Revenue (Top 2 Customers)Total Company Revenue (Top 2 Customers)
2025*32%12%
2024*37%25%
202344%35%
202234%27%

*During 2024 and 2025, our customer base was more diversified, with significant revenue distributed across five distinct entities rather than concentrated in the top two.

Contractual Framework and Risk Mitigation

We do not typically enter into long-term supply contracts for our biofuels. Instead, sales are conducted through monthly or short-term purchase orders at prevailing market prices. We believe the potential loss of any single customer would not result in a material adverse effect on the Company because:

Column 1Column 2Column 3
●Commodity Demand: Biofuels have a broad and active global customer base.
Column 1Column 2Column 3
●Market Fungibility: Our products can be readily redirected to alternative buyers.
Column 1Column 2Column 3
●Flexible Terms: Sales are not tied to fixed-term obligations, and customers have no minimum purchase requirements beyond individual short-term orders.
Column 1Column 2Column 3
●Market-Based Pricing: Revenue is consistently aligned with current market rates.

Competition in the Biofuels Sector

Our biofuels segment operates in a highly competitive environment, primarily contending with renewable diesel, other biodiesel producers, and the traditional petroleum industry.

Renewable Diesel and Sustainable Aviation Fuel (SAF)

Renewable diesel has emerged as a significant competitor to conventional biodiesel. While both utilize similar feedstocks (fats, vegetable oils, and waste oils), their production methods and chemical properties differ substantially:

Column 1Column 2Column 3
●Production Process: We utilize transesterification to produce biodiesel. In contrast, renewable diesel is produced through hydro-processing.
Column 1Column 2Column 3
●Fungibility: Unlike biodiesel, which is typically blended with petrodiesel, renewable diesel meets ASTM D975 specifications. This allows it to serve as a 100% direct substitute (“drop-in” fuel) without blending.
Column 1Column 2Column 3
●Market Advantage: Renewable diesel often commands a premium price due to its superior cold-weather performance, seamless integration into existing infrastructure, and higher RIN generation per gallon.
Column 1Column 2Column 3
●Capacity Growth: U.S. renewable diesel capacity reached approximately 4,580 million gallons per year by the end of 2024, surpassing conventional biodiesel production in 2023. Additionally, SAF capacity has grown to 16.4 million gallons per year.

9

Table of Contents

Competitive Landscape

We compete across regional, national, and international markets based on several key factors:

Column 1Column 2Column 3
●Price and Reliability: Maintaining cost-competitiveness and a stable supply chain.
Column 1Column 2Column 3
●Product Quality: Ensuring strict adherence to fuel standards.
Column 1Column 2Column 3
●RIN Integrity: Maintaining high market confidence in the validity of our generated RINs.

While the number of operational biodiesel plants has declined—primarily affecting smaller facilities with limited feedstock access—we continue to face competition from large-scale producers, foreign imports, and emerging cellulosic technologies.

Industry Risks and Barriers

Column 1Column 2Column 3
●Technological Shift: The manufacturing processes for biodiesel and renewable diesel are fundamentally different. It is not economically feasible to retrofit our existing operations for renewable diesel production.
Column 1Column 2Column 3
●Petroleum Industry Dominance: We compete against massive petroleum companies that possess significantly greater financial and operational resources.
Column 1Column 2Column 3
●Regulatory Reliance: The economic viability of the biodiesel industry remains heavily dependent on government incentives and mandates. Without these requirements, the impact on processing economics and market demand remains uncertain.

Supply and Distribution

Feedstock Sourcing and Flexibility

Our production process is engineered for high feedstock flexibility, allowing us to remain agile in a shifting market. We source raw materials from a diverse, multi-channel supplier base that includes:

Column 1Column 2Column 3
●Vegetable Oils: Degummed soybean oil and distilled crude corn oil from national and regional producers.
Column 1Column 2Column 3
●Waste and Recycled Fats: Reclaimed used cooking oil.
Column 1Column 2Column 3
●Animal Rendering: Pork, poultry, and beef fats (tallow and choice white grease).

All feedstocks are currently delivered to our facility via rail or truck. As the biofuels industry expands, competition for economically attractive, low-carbon feedstocks has intensified. Our ability to process a wide variety of these materials is a key factor in mitigating supply risks and managing input costs.

Logistics and Sales Channels

We utilize an integrated distribution network to ensure our products reach customers efficiently across the United States:

Column 1Column 2Column 3
●Direct Plant Sales: We fulfill orders directly from our Batesville facility via railcar and tank truck.
Column 1Column 2Column 3
●Strategic Storage: Finished biodiesel is transported—using both Company-owned trucks and third-party carriers—to leased liquid bulk storage facilities.
Column 1Column 2Column 3
●Multi-Modal Distribution: From these regional hubs, we distribute product via tank truck or barge, allowing us to serve large-scale transportation and fuel-blending markets.

Cyclicality and Seasonality

The biodiesel industry is subject to periodic fluctuations driven by both environmental conditions and regulatory cycles.

10

Table of Contents

Weather-Related Seasonality

Historically, biodiesel demand decreases during the winter months, particularly in the Northern and Midwestern United States. This trend is driven by operational concerns regarding fuel performance in cold temperatures.

Column 1Column 2Column 3
●Cloud Point Variables: The “cloud point”—the temperature at which wax crystals begin to form and the fuel starts to gel—varies by feedstock.
Column 1Column 2Column 3
●Feedstock Impact: Biodiesel produced from animal fats and used cooking oils typically has a higher cloud point than vegetable-based biodiesels (such as those made from soy or corn oil). Consequently, demand for these specific blends often softens during colder periods to ensure vehicle performance.

Regulatory Cyclicality

The Renewable Fuel Standard (RFS2) introduces a secondary seasonal layer to our business.

Column 1Column 2Column 3
●Mandate Fulfillment: Demand is often tethered to annual blending requirements. Once the federally mandated volumes for a calendar year are achieved—or when the market anticipates that the mandate will soon be met—buying activity for biodiesel can decrease significantly in the latter part of the year.

Industry Outlook and Strategic Direction

The biofuels landscape is currently navigating a pivotal transition. With the expiration of the BTC at the end of 2024, the industry has shifted to the CFPC as of January 1, 2025. While this new credit framework is now in effect, the market continues to seek definitive guidance on its long-term interpretation and its ultimate effect on operating margins.

The Competitive Landscape

Small-scale conventional biodiesel producers currently face significant pressure due to a massive influx of investment into large-scale renewable diesel facilities. This growth has created intense competition for the same limited pool of feedstocks. To remain competitive, we believe producers must be proactive.

Key Pillars of Our Adaptability Strategy:

Column 1Column 2Column 3
●Technological Advancement: Implementing improved processes and exploring alternative high-yield feedstocks.
Column 1Column 2Column 3
●Operational Agility: Maintaining scalability and flexibility in production to respond to market shifts.
Column 1Column 2Column 3
●Logistical Efficiency: Optimizing our supply chain and distribution networks, including strategic co-location.
Column 1Column 2Column 3
●Monetization Strategies: Leveraging the sale of separated RINs as a standalone revenue stream.
Column 1Column 2Column 3
●Risk Management: Utilizing innovative hedging and risk-mitigation tools to protect margins.

Strategic Risks:

While our segment is geared toward these proactive responses, our future production levels remain subject to external forces. Our ability to operate could be constrained by:

Column 1Column 2Column 3
●Feedstock Scarcity: Continued competition from the expanding renewable diesel sector.
Column 1Column 2Column 3
●Legislative Changes: In a worst-case scenario, the total elimination of the RFS2 federal mandate by the U.S. Congress could render production non-viable.

Future Strategy

Despite these short-term headwinds and the lack of regulatory clarity at the start of the year, we remain confident in the long-term viability of our products. We believe biodiesel will remain a highly competitive and essential component of the renewable fuel mix, provided that established RFS2 pathways remain eligible for federal and state tax incentives.

11

Table of Contents

Intellectual Property

We consider our intellectual property portfolio to be a valuable corporate asset, which we intend to expand and protect globally through a combination of trade secrets, confidentiality and non-disclosure agreements, patents, trademarks, and copyrights. As a producer of a broad and diverse portfolio of chemicals, our intellectual property relates to a wide variety of products and processes acquired through the development and manufacture of over 300 specialty chemicals. Our primary strategy regarding our intellectual property portfolio is to appropriately protect all innovations and know-how in order to provide our business segments with a technology-based competitive advantage wherever possible. In the Chemicals segment, custom manufacturing projects are primarily conducted within the framework of confidentiality agreements with each customer to ensure that intellectual property rights are defined and protected. Performance chemicals in the Chemicals segment are protected utilizing patents, both United States patents and international patents, or maintained as trade secrets. In the Biofuels segment, innovations and process know-how are vigorously protected as appropriate.

As may be necessary, we seek to license technologies from third parties that complement our strategic business objectives. Neither our business as a whole, nor any particular segment, is materially dependent upon any one particular patent, copyright, or trade secret. As the laws of many foreign countries do not protect intellectual property to the same extent as the laws of the United States, we can make no assurance that we will be able to adequately protect all of our intellectual property assets.

Research and Development

We devote considerable resources to our research and development programs, which are primarily targeted towards three objectives:

●innovating, developing, and improving biofuels processes, in particular biodiesel and other biofuels, including value-up technology and applications for co-products;
●developing and improving processes for custom manufacturing products; and
●innovating, developing, and improving performance chemical products and manufacturing processes.

Our research and development capabilities comprise analytical chemistry competencies to assay and characterize raw materials and products, organic chemistry expertise applied across a breadth of reaction chemistries and materials, design and process engineering capabilities for batch and continuous processing of both solid and liquid materials, and proficiency in process safety and scale-up necessary to design safe chemical manufacturing processes. We believe that these core competencies, established in support of the legacy chemical business, are applicable to building a technology-based position in biofuels and associated bio-based specialty products and expanding our chemical segment product lines.

Research and development expense incurred by us for the years ended December 31, 2025, 2024 and 2023 were $3,866, $3,993, and $4,398, respectively. Substantially all of such research and development expense are related to the development of new products, services, and processes or the improvement of existing products, services, and processes.

Environmental Stewardship and Compliance

We are committed to operating our facilities in a manner that protects the environment and the health of our employees and the public. A key component of our strategy is the on-site treatment of over 97% of our generated waste, which significantly reduces greenhouse gas emissions otherwise associated with waste transportation.

12

Table of Contents

Environmental Protection Expenditures

Our annual expenditures for environmental protection—including operating costs for pollution control equipment, construction, and development—are reflected in our Cost of Goods Sold:

YearTotal Environmental Expenditures
2025$7,862
2024$11,991
2023$12,854

Note: The decrease in 2025 expenditures primarily reflects reduced waste treatment requirements following the idling of our biodiesel operations due to regulatory uncertainty.

Regulatory Framework

Our chemical and biofuel operations are subject to a complex web of federal and state laws. Compliance requires significant capital for permits, specialized waste handling, and the installation of pollution control technology.

Core Federal Mandates

Column 1Column 2Column 3
●Comprehensive Environmental Response Compensation and Liability Act, 42 USCA 9601, et. seq., as amended (“CERCLA”) (Superfund): Imposes strict, joint, and several liability for the cleanup of hazardous substance releases, regardless of fault.
Column 1Column 2Column 3
●Resource Conservation and Recovery Act (“RCRA”): Governs the “cradle-to-grave” management of hazardous and non-hazardous solid waste.
Column 1Column 2Column 3
●Clean Air Act: Restricts emissions and requires pre-operation permits and ongoing monitoring for chemical manufacturing.
Column 1Column 2Column 3
●Clean Water Act & Oil Pollution Act: Regulate discharges into navigable waters and impose liability for oil spills or pollutant leaks.
●Toxic Substances Control Act of 1976: Mandates the reporting, testing, and restriction of chemical substances to mitigate health and environmental risks.
●Endangered Species Act of 1973: May prohibit or delay activities in habitats of protected plant or animal species.

Risk Management and Reserves

Liability Accruals: We accrue environmental costs when a liability is probable and can be reasonably estimated. These estimates are based on remedial requirements, regulatory discussions, and the financial viability of other potentially responsible parties.

Asset Retirement Obligations: We maintain reserves for the closure and post-closure costs of environmental assets (e.g., waste destructors, storage tanks, and boilers). These costs are charged to earnings over the assets’ estimated useful lives, currently projected at up to 27 years.

Remediation: The prior owner of our Batesville warehouse remains responsible for remediating pre-existing environmental conditions. We continue to monitor their compliance with these indemnification obligations.

Climate Change and Sustainability

As a provider of renewable fuels, we actively work to reduce our carbon footprint. We address the rising costs of energy, transportation, and raw materials—driven by climate change—through:

Column 1Column 2Column 3
●Process Innovation: Streamlining manufacturing to reduce resource intensity.
Column 1Column 2Column 3
●Inventory Control: Optimizing supply chains to minimize waste.
Column 1Column 2Column 3
●Price Indexing: Mitigating volatility in climate-impacted markets.

13

Table of Contents

We believe we hold all material permits necessary for our current operations and are not aware of any environmental issues that would result in a material adverse effect on our financial standing.

To ensure operational continuity, the Company maintains robust emergency preparedness plans and on-site response equipment, with personnel specifically trained to manage severe weather events.

While our primary production facility is situated in a region generally insulated from hurricanes and major flooding, we recognize that shifting global weather patterns and the rising frequency of extreme weather could disrupt raw material supply chains, product distribution, and overall plant efficiency. To mitigate these risks, we maintain strategic reserves of critical raw materials and essential spare production equipment on-site.

Human Capital and Strategic Management

Our competitive advantage is rooted in a highly stable, technically elite workforce and a leadership team with deep global expertise. The following sections outline the strength of our management and the specialized nature of our operations.

Executive and Management Expertise

The Batesville executive team brings a combined 100+ years of multi-disciplinary experience, spanning technical innovation, large-scale operations, and strategic business management. This leadership is bolstered by significant international experience, including high-level assignments across Europe and Asia.

Supporting this team is an operational and commercial management group of educated professionals, each averaging more than 30 years of industry experience.

Workforce Composition and Technical Caliber

We employ approximately 493 full- and part-time non-union personnel. Our staff includes a high concentration of specialized talent, ensuring we remain at the forefront of chemical manufacturing:

Column 1Column 2Column 3
●Advanced Science: Our team includes chemists holding PhDs and specialized research degrees.
Column 1Column 2Column 3
●Licensed Engineering: We maintain a staff of licensed professional engineers across electrical, mechanical, and chemical disciplines.
Column 1Column 2Column 3
●Highly Skilled Operators: Our operations personnel undergo extensive, continuous technical training to manage complex chemical processes safely and efficiently.

Operational Self-Sufficiency and Automation

Because of the unique regional landscape and the absence of local process industry infrastructure, we have cultivated a substantially self-sufficient workforce. Our team possesses the full range of operational and maintenance skills required to manage our facility mostly independently of external specialized contractors.

To further enhance precision and safety, critical portions of our site manufacturing and infrastructure are automated and computer-controlled, allowing for real-time monitoring and rapid response to operational variables.

The Company remains focused on maintaining its highly automated manufacturing environment through computer-controlled infrastructure. To maintain the security of our proprietary synthesis formulas and intellectual property, the Company is developing a Responsible Artificial Intelligence (“AI”) & large language models (“LLM”) Governance Policy. This framework utilizes a 'Responsible AI by Design' philosophy to govern the current individual use of third-party tools while establishing the safety protocols and human-in-the-loop verification standards necessary to evaluate any future application of emerging technologies within our manufacturing or financial systems.

14

Table of Contents

Retention and Stability

Our commitment to our employees is reflected in our strong retention rates. Despite broader labor market volatility, our voluntary attrition has averaged just 11.7% over the past five years. This stability ensures that critical institutional knowledge remains within the Company, fostering a reliable and safe production environment.

ACCESS TO COMPANY INFORMATION

We maintain a high standard of transparency by providing the public and our shareholders with timely access to our regulatory filings and corporate governance documents.

SEC Filings and Reports

The Company files annual, quarterly, and current reports, along with proxy statements and other required information, with the SEC. These electronic filings are available to the public through the SEC’s official website at www.sec.gov.

Online Investor Resources

Our corporate website is located at www.futurefuelcorporation.com. Through the “Investors” section of our site (https://futurefuel-corporation.ir.rdgfilings.com), we provide free access to the following documents as soon as reasonably practicable after they are filed with or furnished to the SEC:

Column 1Column 2Column 3
●Annual Reports on Form 10-K;
Column 1Column 2Column 3
●Quarterly Reports on Form 10-Q;
Column 1Column 2Column 3
●Current Reports on Form 8-K; and
Column 1Column 2Column 3
●Amendments to reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act.

Corporate Governance

We are committed to ethical business practices and strong board oversight. The following documents are available in the “Investors - Corporate Governance” section of our website: