Financial Data and Key Metrics Changes - Fiscal 2025 was marked by record ethanol sales volume of 290 million gallons, a slight increase from 289.7 million gallons in fiscal 2024, with fourth quarter volumes at 70.1 million gallons compared to 74.6 million gallons in Q4 2024 [11] - Average selling price for consolidated ethanol volumes was approximately $1.74 per gallon for the full fiscal year 2025 and $1.72 for the fourth quarter [11] - Gross profit for fiscal year 2025 was $93.7 million, up from approximately $91.5 million in fiscal year 2024, with Q4 gross profit at $28.9 million compared to $17.6 million in Q4 2024 [13][14] - Net income attributable to REX shareholders for the year was $83 million, compared to $58.2 million in fiscal year 2024, with Q4 net income at $43.7 million compared to $11.1 million in Q4 2024 [16] Business Line Data and Key Metrics Changes - Dried distillers grains sales volumes totaled 612,000 tons in fiscal 2025, a 3% decrease from 632,000 tons in fiscal 2024, with Q4 volumes at approximately 151,000 tons, a 9% decrease from Q4 2024 [12] - Modified distillers grains sales volumes increased to 81,900 tons in fiscal 2025 from approximately 70,000 tons in fiscal 2024, with Q4 volumes at approximately 19,700 tons, a 1% increase over Q4 2024 [12] - Corn oil sales volumes increased to approximately 97 million pounds in fiscal 2025 from 88.1 million pounds in fiscal 2024, with Q4 volumes at approximately 25.2 million pounds, a 7% increase over Q4 2024 [13] Market Data and Key Metrics Changes - Ethanol export demand remained strong throughout 2025, with U.S. exports reaching record levels, and this strength is expected to continue into 2026 [20] - Corn supplies are favorable, supporting manageable input costs and expected healthy crush margins [21] Company Strategy and Development Direction - The company is focused on expanding capacity at the One Earth Energy facility to 200 million gallons per year, with completion expected in fiscal 2026 [8] - The implementation of the 45Z tax credit is anticipated to positively impact results going forward, with the company positioned to capitalize on this program [5][9] - The company is committed to sustainability through its carbon capture and sequestration initiative, which is expected to enhance its competitive position and financial benefits [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to build on momentum from fiscal 2025, citing expanded capacity, tax credit eligibility, and a strong financial foundation as key growth drivers [6][19] - The company has delivered 22 consecutive quarters of profitability, indicating operational excellence and market expertise [19] - Management remains optimistic about the favorable policy environment and the potential for increased ethanol demand through developments related to year-round E15 blending [20][21] Other Important Information - The company ended fiscal 2025 with total cash equivalents and short-term investments of $375.8 million, compared to $359.1 million at the end of fiscal 2024, and concluded the year without any bank debt [17][18] Q&A Session Summary Question: Regarding the 45Z tax credits, is the $28 million for Q4 or a catch-up for previous periods? - The $28 million represents the full fiscal year of 2025, and the company remains optimistic about claiming these credits in future years [24][25] Question: How will the carbon capture project impact the CI score? - The carbon capture project is expected to significantly improve the CI score, but specific details have not been disclosed [27][29] Question: What is the status of the Class VI injection permit? - The permitting process is in the final stage of technical review, with regular meetings ongoing with the EPA [32] Question: How are tariffs impacting operations for ethanol and corn oil? - There has been no negative impact from tariffs on ethanol exports, and high oil prices are expected to benefit the ethanol business [34][37] Question: What is the outlook for nationwide E15? - While nationwide E15 would be beneficial, management does not expect it to happen due to the influence of oil companies, but anticipates more independent retailers adopting E15 [51]

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]