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, despite a 21% year-over-year revenue decline due to lower ethanol and co-product prices.

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

• Ethanol sales volumes rose 3% year-over-year to 75.5 million gallons in Q3 2024.

• Significant investments continue in carbon capture and sequestration (CCS) and ethanol plant expansion at One Earth Energy, with $103 million invested to date and a total budget of $165–$175 million.

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

Financial highlights

• Q3 2024 net sales and revenue were $174.9 million; gross profit was $39.7 million.

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

• Working capital at October 31, 2024 was $392.5 million; current ratio improved to 9.9:1.

• SG&A expenses increased to $8.4 million, mainly due to higher railcar leasing and donations.

• Interest and other income for the nine months was $15.0 million, up from $10.9 million year-over-year.

Outlook and guidance

• Ethanol production expansion to 175 million gallons per year at One Earth Energy targeted for mid-2025, with further permitting to 200 million gallons per year planned.

• CCS project at One Earth Energy is nearing completion, awaiting EPA Class VI well permit and resolution of Illinois CO2 pipeline moratorium.

• Management expects to spend $25–$35 million on capital projects in the remainder of fiscal 2024.

• Awaiting final rules for 45Z tax credits, with potential annual benefits of $150 million during 2025–2027.

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