REX American Resources (REX) Q3 2026 earnings summary

Executive summary

• Achieved strong Q3 2025 results with net sales of $175.6 million and net income attributable to shareholders of $23.4 million, driven by operational excellence, robust export demand, and favorable ethanol industry dynamics.

• Delivered 21 consecutive quarters of profitability, reflecting disciplined execution and strategic positioning for long-term growth.

• Progressed on One Earth Energy facility expansion, targeting 200 million gallons per year by 2026, and advanced carbon capture and sequestration initiatives, with substantial completion of capture and compression facilities.

• Maintained a strong balance sheet with $335.5 million in cash, cash equivalents, and short-term investments, and no bank debt.

• Operates six ethanol facilities in the Midwest, controlling approximately 300 million gallons of annual production.

Financial highlights

• Q3 2025 net sales were $175.6 million, with gross profit of $36.1 million, down from $39.7 million in Q3 2024 due to lower ethanol and distillers grains prices.

• Net income attributable to shareholders was $23.4 million, or $0.71 per diluted share, versus $24.5 million, or $0.69 per share, in Q3 2024.

• Ethanol sales volumes reached 78.4 million gallons, up from 75.5 million gallons in Q3 2024; average selling price was $1.73 per gallon, down from $1.83.

• Corn oil sales revenue increased by 60% year-over-year, driven by a 17% rise in volume and a 36% increase in average selling price.

• Working capital at quarter-end was $354.2 million, with a current ratio of 7.2x.

Outlook and guidance

• Ethanol production capacity at One Earth Energy is being expanded from 150 million to 200 million gallons per year, with project completion expected in 2026.

• CCS facility at One Earth Energy is substantially complete, pending regulatory approvals, with operations expected to sequester 560,000 tons of carbon annually.

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

• Management expects continued profitability and positive cash flow into fiscal Q4 and 2026, with potential to earn up to $150 million annually from 45Z tax credits during 2025-2029.

• Actively preparing to capitalize on 45Z tax credits, pending final Treasury guidance.