REX American Resources (REX) Q4 2025 earnings summary

Executive summary

• Fiscal 2024 delivered strong results with ethanol sales reaching 289.7 million gallons, but net sales and revenue declined to $642.5 million from $833.4 million in FY23 due to lower ethanol and co-product pricing.

• Net income per diluted share was $3.30 for FY24 and $0.63 for Q4, with gross profit at $91.5 million and margin rising to 14% from 12% in FY23.

• Major progress was made on carbon capture and ethanol capacity expansion projects at One Earth, with substantial construction completed, permitting ongoing, and project budgets increased to $220–$230 million.

• Shareholder value was enhanced through active share repurchases, with 654,276 shares bought back across Q4 2024 and Q1 2025, and an additional 1.5 million shares authorized for repurchase.

• Maintains a strong balance sheet with $359.1 million in cash and short-term investments and no bank debt at year-end.

Financial highlights

• FY24 net income attributable to shareholders was $58.2 million, down from $60.9 million in FY23; Q4 net income was $11.1 million, down from $20.6 million.

• FY24 gross profit was $91.5 million, with a margin increase to 14% from 12% in FY23; Q4 gross profit was $17.6 million, down from $30.4 million.

• FY24 diluted EPS was $3.30, compared to $3.47 in FY23; Q4 diluted EPS was $0.63, down from $1.16.

• Cash, cash equivalents, and short-term investments totaled $359.1 million at year-end, with no bank debt.

• Working capital was $385.4 million as of January 31, 2025.

Outlook and guidance

• Management expects a profitable Q1 2025, which would mark the 19th consecutive profitable quarter, but notes a continued weaker crush spread environment.

• Carbon capture project permitting is ongoing, with EPA approval expected by October 2025; ethanol expansion project timeline extended beyond mid-2025.

• Focus remains on executing growth projects, monitoring policy changes, and leveraging tax credits such as 45Q and 45Z for future profitability.