REX: 21 Profitable Quarters in a Row and Expansion Momentum Ahead — Quarterly Update Report

Company Performance - REX American Resources Corp. has achieved 21 consecutive profitable quarters, with increased ethanol volumes and operational discipline helping to mitigate softer pricing [1] - The company maintains a strong balance sheet with over $335 million in cash and no bank debt, providing flexibility for growth initiatives [4] Growth Initiatives - The One Earth Energy expansion is on track to increase capacity to 200 million gallons, with a targeted completion date in 2026 [2] - REX is advancing its carbon capture strategy, with the updated Class VI permit timeline now pointing to June 2026, and capital deployment for both expansion and carbon capture is within budget [2] Industry Outlook - U.S. ethanol exports are on an upward trend and are expected to set a new record in 2025, supported by strong corn production in key states that will help reduce input costs [3] - Early tariff disruptions have opened new export channels, particularly in Europe, enhancing REX's market opportunities for the upcoming year [3] Valuation and Market Position - Despite a recent re-rating, REX's stock trades below historical peak multiples, indicating potential for further upside as expansion, export momentum, and carbon initiatives align [4]