REX American Resources (REX) Q2 2026 earnings summary

Executive summary

• Net sales and revenue for Q2 2025 increased 7% year-over-year to $158.6 million, driven by higher ethanol volumes despite lower pricing.

• Net income attributable to shareholders was $7.1 million ($0.43/diluted share), down from $12.4 million ($0.70/diluted share) in Q2 2024, reflecting margin compression and higher costs.

• Gross profit declined to $14.3 million from $19.8 million in Q2 2024, mainly due to lower DDG prices and higher shipping costs.

• Announced a two-for-one stock split via a 100% stock dividend, effective September 15, 2025, increasing liquidity for shareholders.

• Maintained 20 consecutive quarters of profitability and a strong balance sheet with ample cash for growth initiatives.

Financial highlights

• Q2 2025 net sales: $158.6 million (+7% YoY); ethanol sales volume: 70.6 million gallons, up from 65.1 million in Q2 2024.

• Average ethanol selling price was $1.75/gal, down from $1.79/gal year-over-year.

• Gross profit was $14.3 million, down from $19.8 million in Q2 2024.

• Net income attributable to shareholders was $7.1 million ($0.43/diluted share), down from $12.4 million ($0.70/diluted share) in Q2 2024.

• Ended the quarter with $310.5 million in cash, cash equivalents, and short-term investments, and no bank debt.

Outlook and guidance

• Ethanol expansion project at One Earth facility remains on schedule for 2026 completion.

• Carbon capture and sequestration project permitting expected to complete by March 2026.

• Expects 2025 to set a new export record, with margin expansion likely through year-end, supported by favorable corn supply and rising ethanol export demand.

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

• $50–$60 million in capital spending planned for the remainder of fiscal 2025.