REX American Resources Corporation (“REX” or the “Company”) (NYSE: REX), a leading ethanol production company, today announced financial and operational results for the Company’s fiscal first quarter 2026.
REX American Resources’ fiscal first quarter 2026 results principally reflect its interests in six ethanol production facilities. The One Earth Energy, LLC (“One Earth”) and NuGen Energy, LLC (“NuGen”) ethanol production facilities are consolidated, while the four other ethanol plants are reported as equity in income of unconsolidated affiliates.
First Quarter 2026 Results
REX reported Q1 ’26 net sales and revenue of $156.5 million, compared to Q1 ‘25 net sales and revenue of $158.3 million, primarily reflecting lower ethanol pricing. The Company reported production tax credit income of $7.5 million in the first quarter of 2026. First quarter 2026 gross profit for the Company was $29.1 million, compared with $14.3 million in Q1 ’25 as the production tax credit income and lower corn costs more than offset the lower ethanol pricing. The Company reported interest and other income of $3.2 million in Q1 ’26, compared to $4.2 million in Q1 ’25. This led to Q1 ‘26 income before income taxes and non controlling interests of $26.1 million, compared with $13.6 million in Q1 ’25.
Net income attributable to REX shareholders in Q1 ‘26 was $18.5 million, compared to $8.7 million in Q1 ’25. First quarter ‘26 diluted net income per share attributable to REX common shareholders was $0.56, compared to $0.26 per share in Q1 ’25. Per share results for Q1 ’26 and Q1 ’25 are based on 33,116,000 and 33,878,000 diluted weighted average shares outstanding, respectively.
Update on One Earth Energy Ethanol Production Expansion and Carbon Capture Projects
REX is nearing completion of the expansion of ethanol production at the One Earth facility. The Company expects testing and commissioning to begin upon completion, with the facility becoming fully operational during fiscal 2026.
The Company’s carbon capture and sequestration project continues to await permitting for the Class VI injection well and associated carbon dioxide pipeline. REX remains actively engaged with the U.S. EPA and the Illinois Commerce Commission throughout both processes.
Capital expenditures to-date related to the One Earth Energy carbon capture and sequestration project and related expansion of ethanol production capacity at the Gibson City location totaled $176.3 million. The Company continues to budget a total of $220-$230 million for these projects, subject to further refinement as the projects move forward, including impacts of inflation.
Balance Sheet
As of April 30, 2026, REX had $364.3 million of cash, cash equivalents, and short-term investments available and no bank debt.
Management Commentary
“The first quarter of 2026 maintained REX’s strong operational and financial momentum, delivering the best first quarter on a net income per share basis in the Company’s history, while advancing our growth initiatives,” said Zafar Rizvi, Chief Executive Officer of REX. “Our core ethanol business continued its exceptional record of sustained profitability and earnings strength during the first quarter, benefiting from supportive industry tailwinds and emerging opportunities related to the 45Z tax credit. We remain highly optimistic about the opportunities ahead and what the remainder of 2026 holds for REX American.”
Change in Accounting Principles
Effective February 1, 2026, the Company elected to early adopt ASU 2025-10, “Accounting for Government Grants Received by Business Entities” (“ASU 2025-10”) and as such, changed its accounting policy related to the accounting for Section 45Z tax credits. The Company will record the tax credits earned under the income model of ASU 2025-10 as “Production tax credit income”, included within gross profit on the Consolidated Statements of Operations and within “Other assets” on the Consolidated Balance Sheets. The Company determined the income model under ASU 2025-10 is preferable to better align with monetization potential in the future. The Company has determined that retrospective adjustment to prior period financials is required. The Company did not record any section 45Z tax credits until the fourth quarter of 2025, and as such, there is no impact to the first quarter of 2025. As the Company does not intend to monetize the credits earned in 2025, the balance sheet classification as a deferred tax asset remains appropriate and no retrospective adjustments to the balance sheet are required.
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Below is a summary of reclassifications made to the Consolidated Statements of Operations for the year ended January 31, 2026: (in thousands) |
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Year Ended January 31, 2026 |
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|
|
|
|
||||||||
|
|
As Previously Reported |
Effect of Change |
As Currently Reported |
||||||||
|
|
|
|
|
||||||||
|
Production tax credit income |
$ |
– |
|
$ |
31,723 |
|
$ |
31,723 |
|
||
|
Gross profit |
$ |
93,706 |
|
$ |
31,723 |
|
$ |
125,429 |
|
||
|
Income before income taxes |
$ |
88,572 |
|
$ |
31,723 |
|
$ |
120,295 |
|
||
|
|
|
|
|
||||||||
|
Benefit (provision) for income taxes |
$ |
6,502 |
|
$ |
(28,089 |
) |
$ |
(21,587 |
) |
||
|
Net income |
$ |
95,074 |
|
$ |
3,634 |
|
$ |
98,708 |
|
||
|
Net income attributable to noncontrolling interests |
$ |
(12,123 |
) |
$ |
(3,634 |
) |
$ |
(15,757 |
) |
||
|
Net income attributable to REX common shareholders |
$ |
82,951 |
$ |
– |
$ |
82,951 |
|||||
Conference Call Information
REX will host a conference call at 11:00 a.m. ET today to discuss the Company’s fiscal first quarter results and will also host a question and answer session. To access the conference call, interested parties may dial (877) 269-7751 (US) or (201) 389-0908 (international). Participants can also view an updated presentation, as well as listen to a live webcast of the call by going to the Investors section on the REX website at www.rexamerican.com. A replay will be available shortly after the live conference call and can be accessed by dialing (844) 512-2921 (US) or (412) 317-6671 (international). The passcode for the replay is 13760739. The replay will be available for 30 days after the call.
About REX American Resources Corporation
REX American Resources Corporation has interests in six ethanol production facilities, which in aggregate have production capacity totaling approximately 730 million gallons per year. REX’s effective ownership of annual volumes is approximately 300 million gallons. Further information about REX is available at www.rexamerican.com.
Forward-Looking Statements
This press release contains or may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission and include among other things: the impact of legislative and regulatory changes, the price volatility and availability of corn, distillers grains, ethanol, distillers corn oil, gasoline and natural gas, commodity market risk, ethanol plants operating efficiently and according to forecasts and projections, logistical interruptions, success in permitting and developing the planned carbon sequestration facility near the One Earth Energy ethanol plant, changes in the international, national or regional economies, the impact of inflation, the ability to attract employees, weather, results of income tax audits, changes in income tax laws or regulations, the impact of U.S. foreign trade policy and tariffs, changes in foreign currency exchange rates, the effects of terrorism or acts of war and the effect of pandemics on the Company’s business operations, including impacts on supplies, demand, personnel and other factors. The Company does not intend to update publicly any forward-looking statements except as required by law.
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REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (in thousands, except per share amounts) Unaudited |
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Three Months Ended |
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|
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April 30, |
||||||
|
|
|
2026 |
|
|
2025 |
|
|
|
Net sales and revenue |
$ |
156,499 |
|
$ |
158,340 |
|
|
|
Production tax credit income |
|
7,549 |
|
|
– |
|
|
|
Cost of sales |
|
134,977 |
|
|
143,998 |
|
|
|
Gross profit |
|
29,071 |
|
|
14,342 |
|
|
|
Selling, general and administrative expenses |
|
(9,728 |
) |
|
(5,944 |
) |
|
|
Equity in income of unconsolidated affiliates |
|
3,566 |
|
|
1,006 |
|
|
|
Interest and other income, net |
|
3,206 |
|
|
4,222 |
|
|
|
Income before income taxes |
|
26,115 |
|
|
13,626 |
|
|
|
Provision for income taxes |
|
(4,437 |
) |
|
(2,954 |
) |
|
|
Net income |
|
21,678 |
|
|
10,672 |
|
|
|
Net income attributable to noncontrolling interests |
|
(3,226 |
) |
|
(1,994 |
) |
|
|
Net income attributable to REX common shareholders |
$ |
18,452 |
|
$ |
8,678 |
|
|
|
|
|
|
|||||
|
Weighted average shares outstanding – basic and diluted |
|
33,116 |
|
|
33,878 |
|
|
|
|
|
|
|||||
|
Basic and diluted net income per share attributable to REX common shareholders |
$ |
0.56 |
|
$ |
0.26 |
|
|
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REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) Unaudited |
|||||
|
|
April 30, |
|
January 31, |
||
|
|
2026 |
2026 |
|||
|
ASSETS |
|
|
|
||
|
CURRENT ASSETS: |
|
|
|
||
|
Cash and cash equivalents |
$ |
117,668 |
|
$ |
188,734 |
|
Short-term investments |
|
246,640 |
|
|
187,048 |
|
Accounts receivable |
|
21,597 |
|
|
14,682 |
|
Inventory |
|
26,546 |
|
|
28,422 |
|
Refundable income taxes |
|
10,731 |
|
|
12,374 |
|
Prepaid expenses and other |
|
18,351 |
|
16,568 |
|
|
Total current assets |
|
441,533 |
|
|
447,828 |
|
Property and equipment, net |
|
282,041 |
|
|
272,029 |
|
Operating lease right-of-use assets |
|
15,842 |
|
|
17,594 |
|
Finance lease right-of-use assets |
|
17,083 |
|
|
17,558 |
|
Other assets |
|
9,850 |
|
|
4,963 |
|
Equity method investment |
|
41,325 |
|
37,759 |
|
|
TOTAL ASSETS |
$ |
807,674 |
$ |
797,731 |
|
|
LIABILITIES AND EQUITY |
|
|
|
||
|
CURRENT LIABILITIES: |
|
|
|
||
|
Accounts payable – trade |
$ |
31,073 |
|
$ |
38,400 |
|
Current operating lease liabilities |
|
6,980 |
|
|
6,921 |
|
Current finance lease liabilities |
|
469 |
|
|
469 |
|
Accrued expenses and other current liabilities |
|
26,793 |
|
29,587 |
|
|
Total current liabilities |
|
65,315 |
|
75,377 |
|
|
LONG-TERM LIABILITIES: |
|
|
|
||
|
Deferred taxes |
|
4,065 |
|
|
4,065 |
|
Long-term operating lease liabilities |
|
9,423 |
|
|
11,148 |
|
Long-term finance lease liabilities |
|
2,669 |
|
2,731 |
|
|
Other long-term liabilities |
|
2,448 |
|
2,405 |
|
|
Total long-term liabilities |
|
18,605 |
|
20,349 |
|
|
EQUITY: |
|
|
|
||
|
REX shareholders’ equity: |
|
|
|
||
|
Common stock |
|
329 |
|
|
329 |
|
Paid-in capital |
|
137 |
|
|
66 |
|
Retained earnings |
|
628,769 |
|
|
610,317 |
|
Total REX shareholders’ equity |
|
629,235 |
|
|
610,712 |
|
Noncontrolling interests |
|
94,519 |
|
91,293 |
|
|
Total equity |
|
723,754 |
|
702,005 |
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
807,674 |
$ |
797,731 |
|
|
REX AMERICAN RESOURCES CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) Unaudited |
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|
|
Three Months Ended |
||||||
|
|
April 30, |
|
April 30, |
||||
|
|
|
2026 |
|
|
2025 |
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
|
Net Income |
$ |
21,678 |
|
|
$ |
10,672 |
|
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
||||
|
Depreciation |
|
4,483 |
|
|
|
3,467 |
|
|
Noncash operating lease expense |
|
1,752 |
|
|
|
1,552 |
|
|
Amortization of finance lease right-of-use assets |
|
475 |
|
|
|
– |
|
|
Stock-based compensation expense |
|
2,363 |
|
|
|
394 |
|
|
Income from equity method investments |
|
(3,566 |
) |
|
|
(1,006 |
) |
|
Interest income from investments |
|
(2,025 |
) |
|
|
(1,740 |
) |
|
Loss on disposal of property and equipment – net |
|
41 |
|
|
|
– |
|
|
Deferred income taxes |
|
(4,879 |
) |
|
|
1,707 |
|
|
Changes in assets and liabilities: |
|
|
|
||||
|
Accounts receivable |
|
(6,915 |
) |
|
|
(6,465 |
) |
|
Inventory |
|
1,876 |
|
|
|
1,167 |
|
|
Prepaid expenses and other |
|
(1,803 |
) |
|
69 |
|
|
|
Refundable income taxes |
|
1,643 |
|
|
(915 |
) |
|
|
Accounts payable – trade |
|
(8,596 |
) |
|
|
(8,852 |
) |
|
Long-term taxes payable |
|
– |
|
|
|
279 |
|
|
Accrued expenses and other liabilities |
|
(8,616 |
) |
|
|
(3,805 |
) |
|
Net cash used in operating activities |
|
(2,089 |
) |
|
|
(3,476 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
|
Capital expenditures |
|
(11,639 |
) |
|
(6,900 |
) |
|
|
Purchases of short-term investments |
|
(91,567 |
) |
|
(41,419 |
) |
|
|
Maturities of short-term investments |
|
34,000 |
|
|
|
50,000 |
|
|
Proceeds from disposal of real estate and property and equipment |
299 |
|
– |
|
|||
|
Deposits |
|
(8 |
) |
|
|
128 |
|
|
Net cash (used in) provided by investing activities: |
|
(68,915 |
) |
|
1,809 |
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||
|
Treasury stock acquired |
|
– |
|
|
|
(32,670 |
) |
|
Payments to noncontrolling interests holders |
|
– |
|
|
|
(2,005 |
) |
|
Principal paid on finance lease liabilities |
|
(62 |
) |
|
|
– |
|
|
Net cash used in financing activities |
|
(62 |
) |
|
|
(34,675 |
) |
|
|
|
|
|
||||
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
(71,066 |
) |
|
|
(36,342 |
) |
|
CASH AND CASH EQUIVALENTS – Beginning of period |
|
188,734 |
|
|
196,255 |
|
|
|
CASH AND CASH EQUIVALENTS – End of period |
$ |
117,668 |
|
|
$ |
159,913 |
|
|
|
|||||||
|
Non-cash investing activities – Accrued capital expenditures |
$ |
7,809 |
|
$ |
2,717 |
|
|
|
Non-cash investing activities – Capital additions transferred from prepaid expenses |
$ |
20 |
$ |
76 |
|||
|
Non-cash financing activities – Stock awards accrued |
$ |
2,291 |
|
$ |
301 |
|
|
|
Non-cash financing activities – Stock repurchases accrued |
$ |
– |
|
$ |
577 |
|
|
|
Non-cash financing activities – Excise tax on stock repurchases accrued |
$ |
– |
|
$ |
261 |
|
|
|
Operating right-of-use assets acquired and liabilities incurred upon lease commencement |
$ |
– |
|
$ |
3,007 |
|
|
|
Finance right-of-use assets acquired and liabilities incurred upon lease commencement |
$ |
– |
|
$ |
3,381 |
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20260528923056/en/
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