REX American Resources (REX) Q1 2026 earnings summary

Executive summary

• Achieved 19th consecutive profitable quarter with net income attributable to shareholders of $8.7 million ($0.51 per diluted share), down from $10.2 million ($0.58 per share) in Q1 2024, amid evolving regulatory and market conditions.

• Net sales and revenue for Q1 2025 were $158.3 million, a decrease from $161.2 million year-over-year, mainly due to lower distiller grains volumes and prices, partially offset by improved ethanol pricing.

• Continued progress on organic growth initiatives, including carbon capture and ethanol production expansion at One Earth, with substantial project investments.

• Maintained a strong balance sheet and operational excellence, enabling flexibility for strategic opportunities and disciplined capital allocation.

• SG&A expenses declined to $5.9 million, reflecting lower performance bonuses and stock compensation.

Financial highlights

• Ethanol sales volumes were 70.9 million gallons, down from 74.5 million gallons year-over-year; average selling price was $1.76 per gallon.

• Gross profit was $14.3 million, nearly flat year-over-year; gross margin was approximately 9.1%.

• Cash, cash equivalents, and short-term investments totaled $315.9 million at quarter end, with no bank debt.

• Interest and other income totaled $4.2 million, down from $5.9 million in Q1 2024.

• Net cash used in operating activities was $3.5 million for Q1 2025.

Outlook and guidance

• Stable performance expected in Q2 2025, with another profitable result anticipated.

• One Earth Energy ethanol production expansion and carbon capture project expected to complete in 2026; EPA permitting for sequestration anticipated by January 2026.

• Combined budget for these projects is $220–$230 million, with $122.7 million spent to date.

• $60–$80 million in capital spending is planned for the remainder of fiscal 2025.

• Management continues to seek investment opportunities in ethanol, energy, carbon sequestration, and related sectors.