Nov 20, 2025 7:30 AM Eastern Standard Time REX American Resources to Report Fiscal Q3 2025 Results and Host a Conference Call and Webcast on December 4, 2025 Share DAYTON, Ohio--(BUSINESS WIRE)--REX American Resources Corporation ("REX†or the "Company†) (NYSE: REX), a leading ethanol production company, announced today that it will report its fiscal third quarter 2025 operational and financial results on Thursday, December 4, 2025 pre-market and will host a conference call and webcast at 11:00 a.m. ET tha ...

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $11.9 million or $0.17 per share, down from $48.2 million or $0.69 per diluted share in Q3 2024 [8] - Revenue for the quarter was $508.5 million, a decrease of 22.8% year over year, attributed to exiting ethanol marketing for Tarleton and placing the Fairmont ethanol asset on cold maintenance [9] - Adjusted EBITDA for Q3 2025 was $52.6 million, slightly down from $53.3 million in Q3 2024 [8][9] - The company strengthened its balance sheet by retiring approximately $130 million of high-cost debt and refinancing most of its 2027 convertible debt with a new $200 million facility due in 2030 [5][9] Business Line Data and Key Metrics Changes - The operational performance of the plants reached over 101% capacity utilization, the highest level reported in over a decade, driven by operational excellence programs [6][18] - The company recognized $25 million in production tax credit value during the quarter and anticipates an additional $15-$25 million benefit in Q4 2025 [7][20] Market Data and Key Metrics Changes - Ethanol prices increased by approximately $0.25-$0.30 per gallon in August and September, while corn prices remained subdued due to favorable weather supporting larger yields [19] - The overall margin structure improved significantly in the second half of Q3 and early Q4, driven by tighter ethanol supplies and lower input costs [19] Company Strategy and Development Direction - The company has restructured its business to focus on value creation and strong cash flows, with a clear capital allocation strategy prioritizing operational excellence and reducing carbon intensity [5][17] - The carbon capture strategy is operational, with all three Nebraska facilities capturing CO2 and generating credits, marking a significant step in the company's decarbonization efforts [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable, profitable results and highlighted the importance of executing on carbon program opportunities [4][23] - The company anticipates a solid Q4 performance, with margins remaining attractive despite expected seasonal volatility [20] Other Important Information - The company has no significant debt maturities for the next several years, allowing it to focus on operational initiatives [16] - Capital expenditures for Q3 were $4 million, with expectations of $5-10 million for the remainder of 2025, excluding fully financed carbon capture equipment [13] Q&A Session Summary Question: Key challenges for the next 9-12 months - Management highlighted the focus on managing costs and ensuring plant assets remain competitive, while also emphasizing the need to monetize tax credits and run the plants efficiently [23] Question: Uses of cash generation in 2026 and 2027 - Management indicated that cash would be used to maintain operating assets, reduce carbon intensity, and potentially return value to shareholders [26][27] Question: Incremental unlocks beyond Advantage Nebraska strategy - Management adjusted the expected EBITDA contribution from non-Nebraska assets to around $38 million, focusing on improving efficiency and reducing carbon intensity [34] Question: Rationale behind convertible debt restructuring - The rationale was to eliminate debt overhang and allow the organization to focus on day-to-day operations [37] Question: Changes at the plants and low CapEx - Management noted that improvements in capacity utilization were driven by operational focus rather than significant new investments [41][42] Question: Contribution of 45Z credits in Q4 - Management confirmed that the range of $15 million-$25 million in credits is based on execution and capture efficiency, with ongoing efforts to improve performance [45] Question: Status of clean sugar technology and commercialization path - Management indicated that while the technology is functional, additional CapEx is required to unlock its full potential, and a reevaluation will occur mid-2026 [66][67]

Core Insights - Gevo, Inc. has contracted sales of its remaining Section 45Z Clean Fuel Production Credits for 2025, totaling $30 million, bringing total sales for the year to $52 million [1][2] - The Section 45Z tax credits are generated based on ethanol production volumes and carbon sequestration efficiencies, supporting domestic biofuel production [2] - The sales of these credits are expected to enhance Gevo's cash flow from operations and are anticipated to be recurring [2] Company Overview - Gevo is a diversified energy company focused on producing cost-effective, renewable fuels and products that contribute to energy security and economic growth [3] - The company operates an ethanol plant with an adjacent carbon capture, utilization, and sequestration facility, and is developing the world's first large-scale alcohol-to-jet fuel facility [3] - Gevo's business model emphasizes job creation and community revitalization while providing transparency and efficiency in tracking sustainability attributes through its Verity subsidiary [3]

Core Insights - Google is investing in a natural gas power plant in Illinois that aims to capture approximately 90% of its carbon emissions [1][2] - The power plant will have a capacity of 400 megawatts and will be located next to an ethanol plant operated by Archer Daniels Midland (ADM) [1] - The project is being developed by Low Carbon Infrastructure, and Google plans to purchase most of the electricity generated for its data centers [1] Carbon Capture and Storage (CCS) Performance - The power plant's carbon dioxide will be injected into geological storage formations already utilized by ADM's ethanol facility, which is the site of the first long-term CO2 storage well in the U.S. [2] - A recent study of 13 CCS facilities indicates that many are not meeting their carbon capture expectations, with an ExxonMobil facility capturing 36% less than anticipated [5] - A similar Canadian power plant has only captured about 50% of the promised carbon emissions [5] Environmental Impact Considerations - While CCS can reduce emissions from natural gas power generation, it does not address methane leaks throughout the natural gas supply chain, which is a significant greenhouse gas [6] - Methane has a warming potential 84 times greater than carbon dioxide over a 20-year period, and even with carbon capture, the overall warming impact from natural gas extraction and transportation remains [6][7] - Leakage rates as low as 2% can make burning natural gas comparable to coal in terms of carbon accounting [7]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Green Plains Renewable Energy (GPRE) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Green Plains is expected to report a quarterly loss of $0.09 per share, reflecting a year-over-year change of -125.7%. Revenues are projected to be $548.25 million, down 16.8% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Green Plains is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +100.00%. This suggests a bullish sentiment among analysts regarding the company's earnings prospects [11]. Historical Performance - In the last reported quarter, Green Plains was expected to post a loss of $0.28 per share but actually reported a loss of -$0.41, resulting in a surprise of -46.43%. Over the last four quarters, the company has only beaten consensus EPS estimates once [12][13]. Investment Considerations - While Green Plains is seen as a potential earnings-beat candidate, investors are advised to consider other factors that may influence stock performance beyond just earnings results [14][16].

Core Insights - Alto Ingredients, Inc. welcomes the signing of Assembly Bill 30, which authorizes the sale of E15 fuel in California, enabling the company to meet the rising demand for affordable, domestically produced ethanol blends while supporting clean energy goals [1][2][3] Company Positioning - With the approval of E15 fuel sales, ethanol consumption in California could increase by over 600 million gallons annually, positioning Alto Ingredients to leverage its production capacity of up to 350 million gallons of low carbon ethanol [2] - The CEO of Alto Ingredients commended the legislation for expanding consumer choice and promoting lower-carbon fuel options, indicating that it validates the role of American ethanol and encourages investment in infrastructure and job creation [3] Industry Impact - The legislation is expected to support California's evolving low carbon transportation fuels market, aligning with the state's ambitious climate objectives [1][2][3]

Core Insights - The discussion highlights the philosophical mindset of the investment group, emphasizing the importance of resilience and conviction in navigating the current market landscape [5][8][96] - The investment landscape has been challenging, with significant drawdowns and volatility, particularly in small-cap and micro-cap stocks [11][16][39] - The focus is on specific companies, such as Green Plains and Cineverse, detailing their performance, challenges, and potential for recovery [18][45] Group 1: Market Overview - The market has experienced a 20% drawdown in April, one of the fastest corrections in history, followed by a strong recovery [11][37] - The current market is characterized by a focus on large-cap tech stocks, leading to a disparity in performance between small caps and larger companies [14][76] - The investment group operates primarily in the micro-cap and small-cap space, which has been more volatile and challenging compared to larger stocks [14][39] Group 2: Company Analysis - Green Plains - Green Plains is a significant ethanol producer with nine plants and a capacity of 800 million gallons [18] - The company faced challenges due to high inventories and a negative EBITDA quarter, leading to a substantial stock price drop [25][26] - Despite initial setbacks, the company has potential for recovery due to favorable legislation and management's proactive strategies [34][36] Group 3: Company Analysis - Cineverse - Cineverse has a strong niche in the horror film market, with successful titles like "Terrifier 3" contributing to revenue growth [46][54] - The company has faced stock price volatility due to mixed performance in recent releases, but has upcoming films that are expected to perform well [58][61] - Cineverse's business model includes acquiring intellectual property and leveraging marketing channels, which positions it for potential growth [50][63] Group 4: Economic and Policy Context - The Federal Reserve's recent rate cuts are seen as a cautious approach, with uncertainty about the broader economic impact [78][80] - Tariffs and their effects on small-cap companies are a concern, but the investment group does not believe their specific holdings are significantly impacted [81][84] - The discussion touches on the broader economic challenges facing younger generations, including job market difficulties and high living costs [87][88]

Company Insights - Green Plains (NASDAQ: GPRE) is a significant ethanol producer with nine plants and a capacity of 800 million gallons. The company has a carbon capture program that is expected to unlock substantial value through the Inflation Reduction Act (IRA) until 2027, despite facing challenges due to high inventories and a fragmented industry [18][19][21][22]. - Cineverse (NASDAQ: CNVS) has a strong business model focused on horror films, owning platforms like Bloody and Disgusting. The company experienced a significant stock price increase, reaching $7.40 in July, but faced a downturn due to mixed performance in recent film releases [12][46][47][60][72]. Market Trends - The market has shown volatility, with a notable 20% correction in April, one of the fastest in history. However, it rebounded due to tactical trading setups and depressed valuations [11][37]. - The current investment landscape is characterized by a focus on AI and significant capital expenditure (CapEx) cycles, leading to substantial revenue growth for companies directly involved in this sector [13][14]. Investment Strategy - The investment approach emphasizes identifying mispriced opportunities in small and micro-cap stocks, particularly those with market caps under $500 million. This strategy involves thorough research and engagement with management teams to understand the business dynamics [14][41][73]. - The importance of resilience and conviction in investment decisions is highlighted, especially in the context of market fluctuations and the need for a long-term perspective [74][96].

Core Insights - Sugar prices have recently increased due to a rally in WTI crude oil, which has led to short covering in sugar futures, benefiting ethanol prices and potentially reducing sugar supplies as mills may shift focus to ethanol production [1] Group 1: Sugar Production and Supply - Brazil's sugar production in the first half of August rose by 16% year-on-year to 3,615 million tons, with the percentage of sugarcane crushed for sugar increasing to 55% from 49.15% the previous year [2] - Covrig Analytics reported that Brazilian sugar mills are currently prioritizing sugar production over ethanol, driven by drier cane crops [3] - Conab has reduced its Brazil 2025/26 sugar production estimate by 3.1% to 44.5 million tons, citing lower sugarcane yields due to drought and excessive heat [5] Group 2: Global Sugar Market Outlook - The International Sugar Organization (ISO) forecasts a global sugar deficit of 231,000 tons for the 2025/26 season, marking the sixth consecutive year of deficits, with global production expected to rise by 3.3% year-on-year to 180.6 million tons [4] - The USDA projected a record global sugar production of 189.318 million tons for the 2025/26 season, with ending stocks expected to increase by 7.5% year-on-year to 41.188 million tons [6] - Expectations for abundant sugar supplies are currently undermining sugar prices, with a projected global sugar surplus of 7.5 million tons for the 2025/26 season, the largest in eight years [6]

Group 1 - Green Plains is transitioning from a cash-burning operation to one that generates positive free cash flow through operational improvements [1] - The company is focused on realizing additional efficiencies in its ethanol production process [1] Group 2 - The article emphasizes the long-term potential of Green Plains as an investment opportunity in the ethanol sector [1]