REX American Resources (REX) - 2026 Q2 - Quarterly Results

Company Overview and Fiscal Second Quarter 2025 Highlights REX American Resources, a leading ethanol producer, reported $0.43 diluted EPS for Q2 '25, announced a 2-for-1 stock split, and advanced its One Earth Energy expansion Company Profile REX American Resources Corporation is a leading ethanol producer with interests in six facilities, two consolidated and four equity, effectively owning 300 million gallons annually - REX American Resources Corporation is a leading ethanol production company with interests in six ethanol production facilities, totaling approximately 730 million gallons per year capacity[2][3][16] - REX's effective ownership is about 300 million gallons annually[2][3][16] - Two facilities (One Earth, NuGen) are consolidated, while four others are equity investments[2][3][16] Fiscal Second Quarter 2025 Highlights REX reported $0.43 diluted net income per share for Q2 '25, announced a 2-for-1 stock split, achieved $158.6 million in net sales, and advanced the One Earth Energy expansion Fiscal Q2 2025 Key Financial Highlights | Metric | Q2 '25 Value | | :----- | :----------- | | Net Income Per Share Attributable to REX Common Shareholders | $0.43 | | Gross Profit | $14.3 million | | Net Sales and Revenue | $158.6 million | | Consolidated Ethanol Sales Volumes | 70.6 million gallons | - Company announced a 2-for-1 stock split for shareholders of record as of September 8, 2025[1][2] - Ethanol expansion project at One Earth Energy is moving forward with completion still expected in 2026[8] Financial Performance REX's Q2 '25 saw net sales rise to $158.6 million due to higher volumes, but gross profit and net income attributable to shareholders decreased year-over-year Second Quarter 2025 Results Summary REX's Q2 '25 net sales increased to $158.6 million due to higher volumes, but gross profit and net income attributable to shareholders declined compared to Q2 '24 Q2 2025 vs. Q2 2024 Financial Summary | Metric | Q2 '25 (Millions) | Q2 '24 (Millions) | Change (YoY) | | :----- | :---------------- | :---------------- | :----------- | | Net Sales and Revenue | $158.6 | $148.2 | +$10.4 (+7.0%) | | Gross Profit | $14.3 | $19.8 | -$5.5 (-27.8%) | | Interest and Other Income | $3.1 | $4.4 | -$1.3 (-29.5%) | | Income Before Income Taxes and Noncontrolling Interests | $12.1 | $19.5 | -$7.4 (-37.9%) | | Net Income Attributable to REX Shareholders | $7.1 | $12.4 | -$5.3 (-42.7%) | | Diluted Net Income Per Share | $0.43 | $0.70 | -$0.27 (-38.6%) | - Net sales and revenue increase primarily reflects higher volumes, despite lower ethanol and dried distiller grain pricing[4] Consolidated Statements of Operations For the three months ended July 31, 2025, net sales and revenue increased to $158.563 million, while gross profit decreased to $14.319 million, resulting in diluted EPS of $0.43 Consolidated Statements of Operations (Three Months Ended July 31, in thousands) | Metric | July 31, 2025 | July 31, 2024 | YoY Change | | :-------------------- | :------------ | :------------ | :--------- | | Net sales and revenue | $158,563 | $148,155 | +$10,408 | | Cost of sales | $144,244 | $128,382 | +$15,862 | | Gross profit | $14,319 | $19,773 | -$5,454 | | Income before income taxes and noncontrolling interests | $12,097 | $19,496 | -$7,399 | | Net income attributable to REX common shareholders | $7,111 | $12,378 | -$5,267 | | Diluted net income per share attributable to REX common shareholders | $0.43 | $0.70 | -$0.27 | Consolidated Statements of Operations (Six Months Ended July 31, in thousands) | Metric | July 31, 2025 | July 31, 2024 | YoY Change | | :-------------------- | :------------ | :------------ | :--------- | | Net sales and revenue | $316,903 | $309,386 | +$7,517 | | Cost of sales | $288,242 | $275,162 | +$13,080 | | Gross profit | $28,661 | $34,224 | -$5,563 | | Income before income taxes and noncontrolling interests | $25,723 | $35,459 | -$9,736 | | Net income attributable to REX common shareholders | $15,789 | $22,569 | -$6,780 | | Diluted net income per share attributable to REX common shareholders | $0.95 | $1.28 | -$0.33 | Consolidated Balance Sheets As of July 31, 2025, total assets decreased to $700.596 million, cash increased to $240.962 million, short-term investments declined, and the company reported no bank debt Consolidated Balance Sheet Highlights (in thousands) | Metric | July 31, 2025 | January 31, 2025 | Change | | :----- | :------------ | :--------------- | :----- | | Cash and cash equivalents | $240,962 | $196,255 | +$44,707 | | Short-term investments | $69,490 | $162,820 | -$93,330 | | Total current assets | $390,516 | $435,819 | -$45,303 | | Total assets | $700,596 | $720,008 | -$19,412 | | Total current liabilities | $37,085 | $50,443 | -$13,358 | | Total REX shareholders' equity | $545,766 | $560,337 | -$14,571 | - REX had no bank debt as of July 31, 2025[13] Consolidated Statements of Cash Flows For the six months ended July 31, 2025, net cash from operations increased to $12.808 million, investing activities rose, and financing activities used $35.634 million, mainly for treasury stock Consolidated Statements of Cash Flows (Six Months Ended July 31, in thousands) | Cash Flow Activity | July 31, 2025 | July 31, 2024 | YoY Change | | :----------------- | :------------ | :------------ | :--------- | | Net cash provided by operating activities | $12,808 | $5,708 | +$7,100 | | Net cash provided by investing activities | $67,533 | $33,772 | +$33,761 | | Net cash used in financing activities | -$35,634 | -$1,837 | -$33,797 | | Net increase in cash and cash equivalents | $44,707 | $37,643 | +$7,064 | - Treasury stock acquired was a significant factor in net cash used in financing activities for the six months ended July 31, 2025, totaling $33.382 million[22] Non-Cash Investing and Financing Activities (Six Months Ended July 31, in thousands) | Non-Cash Activity | July 31, 2025 | July 31, 2024 | | :---------------- | :------------ | :------------ | | Accrued capital expenditures | $694 | $4,573 | | Finance right-of-use assets acquired and liabilities incurred upon lease commencement | $3,381 | $- | Operational Developments REX is progressing with its One Earth Energy ethanol expansion, with energy efficiency completed and project completion expected in 2026, while carbon capture permitting anticipates a March 2026 decision One Earth Energy Ethanol Production Expansion REX is progressing with the One Earth ethanol expansion, completing energy efficiency, anticipating project completion in 2026, and incurring $126.7 million in capital expenditures - Expansion of ethanol production at the One Earth facility is progressing, with the energy efficiency initiative completed[6] - Project completion for ethanol expansion is still anticipated in 2026[6] One Earth Project Capital Expenditures | Metric | Value | | :----- | :---- | | Capital expenditures related to One Earth carbon capture and ethanol expansion (end of Q2) | $126.7 million | | Combined budget for project completion | $220-$230 million | Carbon Capture and Sequestration Project The One Earth carbon capture project's capture and compression were substantially completed in FY2024, with EPA Class VI permitting ongoing and a final sequestration decision expected in March 2026 - Capture and compression portions of the One Earth carbon capture and sequestration project were substantially completed in Fiscal Year 2024[7] - EPA Class VI injection well permitting process is ongoing for the sequestration project[7] - Final permitting decision for the sequestration portion is now expected in March 2026, moved forward from April 2026[7] Corporate Actions & Strategy REX's Board declared a 2-for-1 stock split, doubling outstanding shares, reflecting management's confidence in the core ethanol business, strategic projects, and future shareholder value Stock Split Announcement REX's Board declared a 2-for-1 stock split as a 100% Common Stock dividend, doubling outstanding shares to 33,057,574, payable September 15, 2025 - Board of Directors declared a 2-for-1 split of its Common Stock, effected as a 100% Common Stock dividend[10] - Dividend payable September 15, 2025, to shareholders of record as of September 8, 2025[11] Impact of Stock Split | Metric | Before Split | After Split | | :----- | :----------- | :---------- | | Outstanding Shares of Common Stock | 16,528,787 | 33,057,574 | | Authorized Shares for Repurchase | (Original amount) | Doubled | Management Commentary CEO Zafar Rizvi highlighted 20 consecutive quarters of positive earnings, expressed confidence in the core ethanol business and strategic projects, and stated the stock split reflects future shareholder value creation - Q2 '25 marked the 20th consecutive quarter of positive earnings for REX[14] - Management is confident in market forces supporting the core ethanol business and committed to expanding value proposition for investors[14] - Extension of 45Z and 45Q tax credits in the One Big Beautiful Bill Act is expected to have a potential positive impact on the business[14][15] - The stock split reflects confidence in REX's go-forward business position and its ability to create shareholder value over the near and long-term[15] Supplementary Information This section outlines forward-looking statements subject to risks and uncertainties, which the company will not publicly update unless legally required, and provides investor contact and conference call details Forward-Looking Statements Forward-looking statements are subject to risks including legislative changes, commodity price volatility, operational efficiency, and carbon sequestration permitting success, with no public updates intended unless legally required - Forward-looking statements are subject to risks and uncertainties, including legislative/regulatory changes, commodity price volatility (corn, ethanol, natural gas), operational efficiency, and success in permitting carbon sequestration facilities[17] - The Company does not intend to update publicly any forward-looking statements except as required by law[17] Investor Information REX hosted a conference call on August 27, 2025, to discuss Q2 results, providing live access and replay details, and lists Douglas Bruggeman and Caldwell Bailey as investor contacts - REX hosted a conference call on August 27, 2025, at 11:00 a.m. ET to discuss fiscal second quarter results, with replay information available[15] - Investor contacts include Douglas Bruggeman (CFO) and Caldwell Bailey (ICR, Inc.)[18]