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, with six-month revenue up 2% to $316.9 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.

• Maintained 20 consecutive quarters of profitability and a strong balance sheet with significant cash and no bank debt.

• Announced a two-for-one stock split via a 100% stock dividend, effective September 15, 2025, doubling outstanding shares.

• Focused on ethanol production, expansion into carbon capture and sequestration (CCS), and energy efficiency initiatives at core facilities.

Financial highlights

• Q2 2025 net sales: $158.6 million (+7% YoY); gross profit: $14.3 million (down from $19.8 million YoY); net income: $7.1 million ($0.43/share).

• Ethanol sales volume reached 70.6 million gallons at an average price of $1.75/gal, up from 65.1 million gallons in Q2 2024.

• Cash, cash equivalents, and short-term investments totaled $310.5 million as of July 31, 2025; working capital was $353.4 million.

• Interest and other income was $3.1 million, down from $4.4 million year-over-year.

• Operating cash flow for six months was $12.8 million, up from $5.7 million YoY.

Outlook and guidance

• Third quarter of 2025 is expected to outperform Q2 but not reach last year's Q3, with margin expansion likely through year-end.

• Ethanol expansion at One Earth remains on schedule for 2026 completion; CCS project permitting expected by March 2026.

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

• Expects to benefit from 45Q and 45Z tax credits, with potential annual earnings up to $36 million (45Q) and $150 million (45Z), pending final Treasury guidance.

• Exploring sustainable aviation fuel (SAF) market for low-carbon ethanol.