REX American Resources (REX) Q3 2025 earnings summary

Executive summary

• Achieved the second most profitable quarter in company history, with Q3 2024 net income of $24.5 million and EPS of $1.38, up 97% sequentially, despite a 21% year-over-year revenue decline due to lower ethanol and by-product prices.

• Gross profit rose slightly to $39.7 million, aided by lower corn and natural gas prices and higher ethanol sales volumes.

• Progressed on major capital projects, including nearing completion of the One Earth Energy carbon capture and compression facility and advancing ethanol production expansion to 175 million gallons per year.

• Construction and permitting delays have shifted ethanol expansion completion to mid-2025, with further permitting to reach 200 million gallons per year planned.

• Maintained a strong cash position with no bank debt, ending Q3 with $365.1 million in cash, cash equivalents, and short-term investments.

Financial highlights

• Q3 2024 net income attributable to shareholders was $24.5 million, down from $26.1 million in Q3 2023; nine-month net income was $47.1 million, up from $40.4 million year-over-year.

• Q3 2024 net sales were $174.9 million, down 21% year-over-year; nine-month revenue was $484.3 million, down 25% year-over-year.

• Gross profit for Q3 2024 was $39.7 million, up slightly from $39.3 million in Q3 2023.

• Diluted EPS for Q3 2024 was $1.38, the second-best in company history.

• SG&A expenses increased to $8.4 million, up from $7.6 million, mainly due to higher rail car leasing and donations.

Outlook and guidance

• Q4 is expected to remain profitable but below the record Q4 2023, with continued positive earnings and strong export demand for ethanol.

• Ethanol production expansion to 175 million gallons per year is targeted for mid-2025, with further permitting to 200 million gallons per year to follow.

• Anticipates EPA approval for Class VI injection wells by July 2025, enabling full CCS project operation.

• Management expects to spend $25–$35 million on capital projects in the remainder of fiscal 2024, with total expansion and carbon sequestration costs projected at $165–$175 million.

• Ongoing market volatility in commodity prices and regulatory changes are expected to continue impacting operating results.