REX American Resources (REX) investor relations material

Executive summary

• Achieved record first quarter net income per share of $0.56, up from $0.26 year-over-year, marking the 23rd consecutive profitable quarter.

• Net income attributable to shareholders rose to $18.5 million from $8.7 million in Q1 2025, driven by higher gross profit and production tax credits.

• Gross profit more than doubled to $29.1 million, aided by $7.5 million in 45Z production tax credit income and lower corn costs.

• Continued progress on major growth projects, including carbon capture and sequestration initiatives and ethanol production capacity expansion.

• Ethanol sales volumes reached 71.1 million gallons in Q1 2026.

Financial highlights

• Net sales and revenue were $156.5 million, slightly down from $158.3 million year-over-year due to lower ethanol pricing.

• Gross profit margin doubled to 19% in Q1 2026 from 9% in Q1 2025.

• Ended the quarter with $364.3 million in cash equivalents and short-term investments, with no bank debt.

• Recorded $7.5 million in 45Z production tax credit income for the quarter.

• Interest and other income totaled $3.2 million, down from $4.2 million in Q1 2025.

Outlook and guidance

• Ethanol facility expansion at Gibson City/One Earth remains on track, with testing and commissioning expected soon and full operations during fiscal 2026.

• Capital expenditures for expansion and sequestration projects are budgeted at $220–$230 million, funded from available cash.

• Confident in delivering another profitable quarter, with stable domestic demand and strong export markets.

• Monitoring regulatory developments, including the expiration of the Illinois carbon pipeline moratorium in July 2026 and pending EPA permit decisions.

• Awaiting final rules from the US Treasury on 45Z tax credits, which could provide up to $150 million annually during 2025-2029.