REX American Resources (REX) investor relations material

Executive summary

• Achieved record diluted net income per share of $1.06 in Q2 2026, up from $0.22 in Q2 2025, marking the 24th consecutive profitable quarter, driven by strong ethanol production, improved margins, and tax credit benefits.

• Net income attributable to shareholders rose to $34.9 million from $7.1 million year-over-year.

• Gross profit increased to $53.3 million from $14.3 million, aided by $18.4 million in Section 45Z production tax credit income.

• Net sales and revenue for Q2 2026 were $168.5 million, up from $158.6 million in Q2 2025.

• Significant progress made on ethanol expansion and carbon capture projects, with $191.2 million invested by end of Q2.

Financial highlights

• Production tax credit income was $18.4 million in Q2 2026 and $26.0 million for the first six months, reflecting new 45Z credits.

• SG&A expenses increased to $15.6 million in Q2 2026, mainly due to higher incentive compensation and restricted stock awards.

• Cash, cash equivalents, and short-term investments totaled $379.5 million as of July 31, 2026, with no bank debt.

• Working capital stood at $391.5 million at quarter-end.

• Operating cash flow for the first six months was $38.0 million, up from $12.8 million year-over-year.

Outlook and guidance

• Expect continued profitability in Q3 2026, with results anticipated to surpass the same period last year.

• Ethanol production expansion at One Earth facility remains on schedule for completion by end of 2026, targeting 200 million gallons per year.

• Carbon capture project progressing through regulatory milestones, with draft EPA permits for three Class VI injection wells and final approvals pending.

• Awaiting final rules from the U.S. Treasury on 45Z tax credit qualifications, which could impact future profitability.

• Management anticipates $20M–$30M in capital expenditures for the remainder of fiscal 2026, funded from available cash.