REX American Resources — Fiscal Second Quarter 2026 Earnings Summary

Financial Performance

• Reported net sales and revenue of $168.5 million for Q2 2026, an increase from $158.6 million in Q2 2025.
• Reported gross profit of $53.3 million for Q2 2026, compared to $14.3 million in Q2 2025.
• Net income attributable to REX shareholders was $34.9 million in Q2 2026, up from $7.1 million in Q2 2025.
• Diluted net income per share was $1.06 in Q2 2026, compared to $0.22 in Q2 2025.
• Production tax credit income totaled $18.4 million in Q2 2026, compared to $0 in Q2 2025.
• Income before income taxes and noncontrolling interests was $48.1 million in Q2 2026, compared to $12.1 million in Q2 2025.
• Interest and other income was $3.2 million in Q2 2026, compared to $3.1 million in Q2 2025.
• For the six months ended July 31, 2026, net sales and revenue were $325.0 million compared to $316.9 million in the prior year period.
• For the six months ended July 31, 2026, net income attributable to REX shareholders was $53.4 million compared to $15.8 million in the prior year period.
• Diluted net income per share for the six months ended July 31, 2026, was $1.62 compared to $0.47 in the prior year period.
• Net cash provided by operating activities was $38.0 million for the six months ended July 31, 2026, compared to $12.8 million in the prior year period.
• Capital expenditures were $35.0 million for the six months ended July 31, 2026, compared to $28.9 million in the prior year period.
• As of July 31, 2026, the company held $379.5 million in cash, cash equivalents, and short-term investments.
• The company reported no bank debt as of July 31, 2026.

Business Segments and Product Lines

• The company's results reflect interests in six ethanol production facilities, with One Earth Energy and NuGen Energy consolidated, and four other plants reported as equity in income of unconsolidated affiliates.
• Average selling price per gallon of ethanol (net of hedging) was $1.78 in Q2 2026, compared to $1.75 in Q2 2025.
• Gallons of ethanol sold were 70.6 million in Q2 2026, matching the 70.6 million sold in Q2 2025.
• Average selling price per ton of dried distillers grains was $166.55 in Q2 2026, compared to $143.63 in Q2 2025.
• Tons of dried distillers grains sold were 145,081 in Q2 2026, compared to 148,017 in Q2 2025.
• Average selling price per pound of distillers corn oil was $0.72 in Q2 2026, compared to $0.54 in Q2 2025.
• Pounds of distillers corn oil sold were 24.3 million in Q2 2026, compared to 23.1 million in Q2 2025.
• Equity in income of unconsolidated affiliates was $7.2 million in Q2 2026, compared to $0.9 million in Q2 2025.

Management Commentary and Tone

• CEO Zafar Rizvi stated the company achieved several important milestones supporting its long-term growth strategy.
• Management noted that excluding the impact of 45Z tax credits, quarterly gross profit from core operations increased 144% over the same period in the prior year.
• The company received notice from the U.S. EPA that its One Earth carbon capture and sequestration project was issued draft permits for three Class VI injection wells.
• Management highlighted that Q2 2026 marked the company's 24th consecutive profitable quarter.
• Management described the quarter as a record second quarter on an earnings-per-share basis for the company.
• Management expressed confidence that long-term prospects remain strong, supported by the team's dedication and execution.

Other Key Points

• The One Earth Energy ethanol production expansion is on track to complete construction, with testing and commissioning expected to begin upon completion and operations expected during fiscal 2026.
• Capital expenditures to-date related to the One Earth Energy carbon capture and sequestration project and ethanol production capacity expansion at the Gibson City location totaled $191.2 million.
• The EPA is currently accepting public comments on the draft permits for the three Class VI injection wells.
• The company has an effective ownership of annual ethanol volumes of approximately 300 million gallons across facilities with a total production capacity of approximately 730 million gallons per year.
• Treasury stock acquired during the six months ended July 31, 2026, was $1.6 million.
• Stock-based compensation expense was $6.0 million for the six months ended July 31, 2026, compared to $1.0 million in the prior year period.
• Noncontrolling interests distributions were $2.2 million for the six months ended July 31, 2026.