REX American Resources (REX) Q2 2025 earnings summary

Executive summary

• Net income attributable to shareholders rose 37% year-over-year to $12.4 million in Q2 2024, with EPS up to $0.70 from $0.52.

• Gross profit increased to $19.8 million, up over 7% year-over-year, despite a 30% drop in net sales and revenue to $148.2 million, driven by lower ethanol and co-product pricing.

• Achieved sixteen consecutive quarters of positive earnings.

• Progressed on key goals: profitable operations, carbon capture facility construction, and ethanol plant capacity expansion.

• Maintained a debt-free balance sheet and industry-leading operational performance.

Financial highlights

• Q2 2024 net sales and revenue were $148.2 million, down 30% year-over-year; gross profit was $19.8 million, up from $18.4 million.

• Net income attributable to shareholders was $12.4 million, or $0.70 per diluted share, up from $9.1 million ($0.52 per share) in Q2 2023.

• Interest and other income rose to $4.4 million from $3.3 million year-over-year.

• Ended Q2 with $346 million in cash, cash equivalents, and short-term investments.

• No bank debt at quarter end.

Outlook and guidance

• Q3 2024 is off to a strong start, with expectations for results to exceed Q2.

• Ethanol facility expansion to 175 million gallons/year on track for Q1 2025, with further permitting to 200 million gallons planned.

• Carbon capture project construction continues, with EPA draft permit expected by end of 2024 and final decision in Q2 2025; Illinois moratorium delays full completion until at least July 2026.

• Company expects to spend $50–$60 million on capital projects in the remainder of fiscal 2024, mainly for carbon sequestration and plant expansion.

• All major projects are planned to be funded from available cash.