Ethanol Production and Revenue - As of April 30, 2025, the company holds majority ownership interests in two ethanol entities: One Earth Energy, LLC (75.9%) and NuGen Energy, LLC (99.7%) [103] - The company expects its ethanol plants to produce approximately 2.9 gallons of denatured ethanol for each bushel of corn processed, with the realized yield being critical for profitability [104] - Ethanol revenue increased by 4% in the first quarter of fiscal year 2025, driven by a 10% increase in the average selling price per gallon, despite a 5% decrease in gallons sold [133] Capital Expenditures and Investments - The company has budgeted capital expenditures for carbon sequestration and plant expansion projects to be approximately $220 million to $230 million, with $56.3 million already spent as of April 30, 2025 [112] - The company plans to spend $60 million to $80 million on projects during the remainder of FY 2025 [155] - The company is working on a carbon sequestration project and has applied for a Class VI injection well permit, expecting a draft permit by November 2025 and a final decision by April 2026 [107] Financial Performance - Net sales and revenue for the first quarter of fiscal year 2025 were approximately $158.3 million, a decrease of 2% compared to $161.2 million in the first quarter of fiscal year 2024 [131] - Gross profit for the first quarter of fiscal year 2025 was approximately $14.3 million, a slight decrease compared to $14.5 million in the prior year [138] - Net income attributable to REX common shareholders for the first quarter of fiscal year 2025 was approximately $8.7 million, down from approximately $10.2 million in the first quarter of fiscal year 2024 [146] Commodity Prices and Risk Management - Estimated decrease in pre-tax income from a 10% adverse change in commodity prices includes $51,422 for ethanol (295,000 gallons), $42,626 for corn (102,100 bushels), and $8,588 for distillers grains (718 tons) [160] - The company is exposed to market fluctuations associated with commodity prices and manages risk through fixed-price contracts and commodity futures [160] Operational Changes and Challenges - The company ceased operations at its refined coal facility on November 18, 2021, after receiving approximately $58.2 million in federal production tax credits [115] - The EPA has issued Renewable Fuel Standard volume obligations for conventional biofuels at 15.0 billion gallons for 2023 through 2025, with ongoing legal challenges affecting the enforcement of these standards [119] Cash Flow and Investments - Net cash used in operating activities was approximately $3.5 million for the first quarter of fiscal year 2025, compared to $2.3 million in the prior year [147] - Cash provided by investing activities in Q1 FY 2025 was approximately $1.8 million, a decrease from $11.9 million in Q1 FY 2024, with capital expenditures of approximately $6.9 million primarily for ethanol plant projects [151] - The company purchased U.S. Treasury Bills of approximately $41.4 million in Q1 FY 2025, while $50.0 million matured, indicating active management of short-term investments [151] Stock Buyback and Shareholder Returns - The company has a stock buyback program with 1,181,963 shares remaining authorized as of April 30, 2025, and repurchased approximately $32.7 million worth of stock in Q1 FY 2025 [154][156] Revenue from By-products - Dried distillers grains revenue decreased by 27% in the first quarter of fiscal year 2025, with a 22% drop in average price per ton and a 6% decrease in tons sold [134] - Distillers corn oil revenue increased by approximately 1% in the first quarter of fiscal year 2025, with a 2% increase in pounds sold, offset by a 2% decrease in average price per pound [135] - Modified distillers grains revenue increased by 36% in the first quarter of fiscal year 2025, with a 52% increase in pounds sold, despite an 11% decrease in average selling price per ton [136]

REX American Resources (REX) Q1 2026 Earnings Call May 28, 2025 11:00 AM ET Company Participants Douglas Bruggeman - VP of Finance, CFO & TreasurerStuart Rose - Executive Chairman & Head of Corporate DevelopmentZafar Rizvi - CEO, President & Director Conference Call Participants Peter Gastreich - Managing Director - Energy and Sustainability Analyst Operator Greetings, and welcome to the REX American Resources Corporation's First Quarter twenty twenty five Earnings Call. At this time, all participants are i ...

Financial Data and Key Metrics Changes - In Q1 2025, ethanol sales volumes were 70.9 million gallons, down from 74.5 million gallons in Q1 2024, with an average selling price of $1.76 per gallon [10] - Gross profit for Q1 2025 was $14.3 million, slightly down from $14.5 million in Q1 2024, primarily due to lower sales prices for dry distiller grains [11] - Net income attributable to REX shareholders was $8.7 million or $0.51 per diluted share, compared to $10.2 million or $0.58 per diluted share in Q1 2024 [12] - Cash, cash equivalents, and short-term investments at the end of Q1 were $315.9 million, reflecting ongoing capital investments and share repurchases [12] Business Line Data and Key Metrics Changes - Dry distiller grain sales volumes were approximately 153,000 tons with an average selling price of $145.65 per ton [10] - Modified distillery grain volumes totaled approximately 22,000 tons with an average selling price of $73.44 per ton [11] - Corn oil sales volumes were approximately 21.4 million pounds during the quarter with an average selling price of $0.46 per pound [11] Market Data and Key Metrics Changes - U.S. ethanol exports through March 2025 were nearly 19% higher than the same period in 2024, with March 2025 exports up 23% compared to March 2024 [16][17] - The company anticipates stable performance in Q2 2025, expecting another profitable result [16] Company Strategy and Development Direction - The company is focused on organic growth initiatives, including carbon capture and expansion of ethanol production capacity, with a combined budget range of $220 million to $230 million for both projects [5][9] - REX continues to evaluate potential acquisition opportunities that meet strict operational and financial criteria [5] - The company is committed to delivering consistent value to shareholders through share buybacks, having repurchased approximately 822,000 shares for $32.7 million in Q1 2025 [6][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertain regulatory and market conditions, highlighting the strength of the balance sheet [4] - The company is closely monitoring potential changes to the Inflation Reduction Act and other regulatory developments that could impact future economic decisions [8] - Management remains optimistic about the ethanol sector's favorable market conditions and expects record corn production to boost profits for the rest of the year [29] Other Important Information - The company has maintained a strong financial position with no bank debt [13] - The ongoing technical review of the ethanol facility expansion is expected to enhance long-term operational efficiencies [7] Q&A Session Summary Question: What drives REX's ability to consistently deliver performance? - Management attributed consistent profitability to strong leadership, effective monitoring of market conditions, and a dedicated team [20][22] Question: What specific deregulation measures would help smooth the runway? - Management noted that regulatory developments are currently in limbo and emphasized the importance of monitoring changes closely [24][27] Question: Thoughts on industry fundamentals and ethanol margins? - Management expects positive trends in ethanol margins due to strong corn production and favorable export conditions, while also monitoring natural gas prices closely [29]

Financial Performance - REX reported Q1 2025 net sales and revenue of $158.3 million, a decrease of 5.4% from $161.2 million in Q1 2024[3] - Gross profit for Q1 2025 was $14.3 million, slightly down from $14.5 million in Q1 2024[3] - Net income attributable to REX shareholders in Q1 2025 was $8.7 million, compared to $10.2 million in Q1 2024, resulting in diluted net income per share of $0.51, down from $0.58[4] - Net income for the three months ended April 30, 2025, was $10,672 million, a decrease of 13.1% from $12,273 million in the same period of 2024[22] - Net cash used in operating activities was $3,476 million, compared to $2,263 million in the prior year, indicating a decline in operational cash flow[22] - Capital expenditures for the period were $6,900 million, significantly lower than $24,832 million in the previous year[22] - Net cash provided by investing activities was $1,809 million, down from $11,895 million year-over-year[22] - Cash and cash equivalents at the end of the period were $159,913 million, a decrease from $231,200 million at the end of the previous year[22] Shareholder Actions - REX repurchased approximately 822,000 shares for a total consideration of $32.7 million in Q1 2025, representing about 4.7% of outstanding shares[9] - Treasury stock acquired amounted to $32,670 million, reflecting a new strategy in capital management[22] Capital Expenditures and Investments - Capital expenditures related to the One Earth Energy carbon capture and ethanol production expansion project totaled $122.7 million, with a combined budget of $220-$230 million for completion[8] - Non-cash investing activities included accrued capital expenditures of $2,717 million, down from $3,938 million in the prior year[22] Ethanol Production - REX achieved consolidated ethanol sales volumes of 70.9 million gallons in Q1 2025[7] - The expansion of ethanol production at the One Earth facility is ongoing, with project completion anticipated in 2026[5] - REX's effective ownership of annual ethanol production volumes is approximately 300 million gallons across six facilities[13] Carbon Capture Project - The permitting process for the carbon capture project at the Gibson City location is ongoing, with final decisions expected in January 2026[6]

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Has REX (REX) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.REX is one of 245 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different gr ...

One stock that might be an intriguing choice for investors right now is REX American Resources Corporation (REX) . This is because this security in the Biofuels space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective. This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the ...

Core Viewpoint - REX (REX) is showing solid improvement in earnings estimates, which may lead to continued short-term price momentum and an improving earnings outlook [1][2]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding REX's earnings prospects, which is expected to positively impact its stock price [2]. - The current-quarter earnings estimate is $0.34 per share, representing a decrease of 41.38% from the previous year, but has increased by 30.77% over the last 30 days due to one upward revision [5]. - For the full year, the earnings estimate stands at $1.55 per share, a decline of 53.03% from the year-ago figure, yet the trend remains encouraging with one upward revision and no negative revisions in the past month [6]. Zacks Rank and Performance - REX has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong agreement among analysts in revising earnings estimates upward [3][7]. - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting a positive outlook for REX [7]. Investment Outlook - REX's stock has increased by 5.3% over the past four weeks due to strong estimate revisions, indicating potential for further upside, making it a candidate for investment [8].

Financial Performance - Net income attributable to REX common shareholders was $58.2 million in fiscal 2024, a decrease from approximately $60.9 million in fiscal 2023, primarily due to lower selling prices despite a decrease in corn and natural gas prices [161]. - Net sales and revenue for fiscal year 2024 decreased to $642.5 million, down 23% from $833.4 million in fiscal year 2023 [184]. - Ethanol sales decreased by 23% in average price per gallon, resulting in a total revenue of $496.4 million in fiscal year 2024 compared to $635.4 million in fiscal year 2023 [186]. - Gross profit for fiscal year 2024 was approximately $91.5 million, a decrease of 7% from $98.2 million in fiscal year 2023, representing 14.2% of net sales [192]. - SG&A expenses for fiscal year 2024 were approximately $27.1 million, a decrease of 8% from $29.4 million in fiscal year 2023 [194]. - Net cash provided by operating activities for fiscal year 2024 was approximately $64.2 million, a decrease from approximately $128.0 million in fiscal year 2023 [210][211]. - Net cash used in financing activities was approximately $18.5 million during fiscal year 2024, compared to approximately $4.3 million in fiscal year 2023 [215][216]. Production and Operations - Ethanol production yield is expected to be approximately 2.9 gallons of denatured ethanol per bushel of corn processed, with the "crush spread" being a critical factor for profitability [159]. - The One Earth ethanol plant is set to expand production from 150 million gallons per year to 175 million gallons per year, with plans to apply for a permit to increase to 200 million gallons per year thereafter [166]. - The company has secured sufficient subsurface easements for the first injection well to allow for carbon sequestration for a minimum of 15 years [162]. - The company is reviewing its investment opportunities in ethanol and energy-related ventures, with no assurances of success in finding such opportunities [170]. - The three entities owned by the company shipped approximately 727 million gallons of ethanol over the twelve-month period ended January 31, 2025, with REX's effective ownership of ethanol gallons shipped being approximately 294 million gallons [172]. Market Conditions - Chicago Board of Trade corn prices fluctuated between a low of $3.62 per bushel in August 2024 and a high of $4.97 in January 2025, while S&P Global Platts ethanol prices ranged from $1.38 per gallon in February 2024 to $2.12 in June 2024 [161]. - The EPA has issued Renewable Fuel Standard volume obligations for 2023-2025, maintaining the volume of conventional biofuels at 15.0 billion gallons [174]. Capital Expenditures and Investments - The budget for the carbon sequestration project has increased to approximately $220 million to $230 million due to permitting delays and inflation, with $55.7 million already spent as of January 31, 2025 [168]. - The company plans to spend $50 million to $70 million during fiscal year 2025 on various projects, including carbon sequestration and plant expansion [207]. - Capital expenditures in fiscal year 2024 totaled approximately $71.3 million, primarily for capital projects at ethanol plants, compared to approximately $37.7 million in fiscal year 2023 [212][214]. - The company recognized income of approximately $9.4 million from its equity investment in Big River Resources, LLC for fiscal year 2024 [195]. - The company is investigating various uses of excess cash, with a budget of approximately $220 million to $230 million for carbon sequestration and plant expansion projects [206]. Financial Position and Commitments - Accounts receivable decreased approximately $1.7 million in fiscal year 2024, while inventory increased approximately $4.7 million [210]. - The company had purchase commitments for approximately 24.4 million bushels of corn and 0.8 million MmBtu of natural gas as of January 31, 2025 [230]. - Long-term taxes payable increased by $4.3 million, reflecting uncertain tax positions exceeding remaining unused credits [210]. - Approximately 2.7% of net assets are restricted due to loan agreements as of January 31, 2025 [218]. - Aggregate minimum lease payments under operating lease agreements total $24.0 million, with $6.8 million payable in the next twelve months [219]. - Management believes cash flow from operating activities will be sufficient to meet liquidity needs, barring any material adverse changes [217]. Risk Assessment - Estimated decrease in pre-tax income from a 10% adverse change in ethanol price is approximately $48.9 million, based on a volume of 295,000 gallons for the next 12 months [230]. Stock and Shareholder Actions - The company has a stock buyback program, purchasing 372,567 shares for $15.5 million in fiscal year 2024, with an additional 281,709 shares repurchased for approximately $11.9 million post-January 31, 2025 [208].

Financial Data and Key Metrics Changes - Fiscal 2024 saw ethanol sales volume increase to 289.7 million gallons, up from 285.9 million gallons in fiscal 2023 [20] - Gross profit for fiscal year 2024 was $91.5 million, down from approximately $98.2 million in fiscal year 2023 [24] - Net income attributable to REX shareholders for the year was $58.2 million compared to $60.9 million in fiscal year 2023 [27] - Total cash, cash equivalents, and short-term investments at year-end were $359.1 million, down from $378.7 million at the end of fiscal year 2023 [29] Business Line Data and Key Metrics Changes - Dry distillers grain sales volumes decreased by 3% to 632,000 tons in fiscal 2024 compared to 652,000 tons in fiscal 2023 [21] - Modified distillers grains sales volumes increased to 70,000 tons in fiscal 2024 from approximately 54,000 tons in fiscal 2023 [22] - Corn oil sales volume increased by approximately 1% to 88.1 million pounds in fiscal 2024 compared to 87.5 million pounds in fiscal 2023 [23] Market Data and Key Metrics Changes - Total ethanol exports from the US reached a record high of 1.9 billion gallons in 2024, supporting pricing throughout the year [33] - Canada accounted for approximately 36% of US ethanol exports, while Mexico represented about 21% of US DDG exports in 2024 [33] Company Strategy and Development Direction - The company is focused on efficient and profitable operations while pursuing growth projects, including carbon capture and ethanol facility expansion [8][14] - REX is actively monitoring policy changes that could impact the business, particularly regarding tariffs on ethanol and co-product exports [32][33] - The company has a commitment to shareholder value through a selective share repurchase program [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a profitable Q1 2025, which would mark the nineteenth consecutive profitable quarter [30] - The company is closely watching regulatory developments and market conditions to make informed decisions [32][33] - Management highlighted the importance of maintaining communication with the EPA regarding permitting processes [49][50] Other Important Information - REX repurchased approximately 373,000 shares in Q4 2024 and an additional 282,000 shares in Q1 2025 [28] - The total budget for the carbon capture and ethanol production capacity expansion projects has increased to $222-$230 million due to ongoing reviews and inflation [18] Q&A Session Summary Question: Can you provide detail on the higher capital budget for the expansion project? - Management explained that the increase in budget is due to the need for energy-efficient equipment capable of handling future production increases, which necessitated additional investment [39] Question: Can you discuss the regulatory side and permitting updates? - Management noted that communication with the EPA has resumed after initial delays, and they are optimistic about moving forward with the permitting process [49][50] Question: Have there been any changes in dialogue with the EPA since the new administration took over? - Management confirmed that communication with the EPA has restarted and they are addressing previous questions from the agency [49][50]

REX American Resources (REX) Q4 2025 Earnings Call March 26, 2025 04:31 PM ET Company Participants Douglas Bruggeman - VP of Finance, CFO & TreasurerStuart Rose - Executive Chairman & Head of Corporate DevelopmentZafar Rizvi - CEO, President & DirectorJordan Levy - Vice President - Sustainability Equity Research Operator welcome to Rex American Resources Fourth Quarter and Full Fiscal Year twenty twenty four Earnings Conference Call. At this time, all participants are in a listen only mode. A question and a ...