REX American Resources Fiscal Q2 2025 Earnings Call: Ethanol Expansion and Q3 Outlook
Source Tradingkey
Key Takeaways
- REX American Resources reported fiscal Q2 2025 net income attributable to shareholders of $7.1 million, or $0.43 per diluted share, compared with $12.4 million, or $0.70 per diluted share, a year earlier.
- Ethanol sales volume increased to 70.6 million gallons from 65.1 million gallons, while the average selling price declined to $1.75 per gallon from $1.79.
- Gross profit fell to $14.3 million from $19.8 million, primarily because of lower dried distillers grains pricing and higher shipping costs.
- The One Earth Energy expansion remains scheduled to raise annual ethanol production capacity to 175 million gallons in 2026. Total investment in the ethanol expansion and carbon capture projects reached approximately $126.7 million, within a combined budget of $220 million to $230 million.
- Management expects fiscal Q3 2025 performance to improve from Q2, but remain below fiscal Q3 2024, which was the company’s second-best quarter on record.
- REX’s board authorized a 2-for-1 stock split through a 100% stock dividend for shareholders of record as of September 8, 2025.
Core Financial Data
| Metric | Fiscal Q2 2025 | Fiscal Q2 2024 | Commentary |
|---|---|---|---|
| Ethanol sales volume | 70.6 million gallons | 65.1 million gallons | Higher year over year |
| Average ethanol selling price | $1.75 per gallon | $1.79 per gallon | Lower year over year |
| Dried distillers grains volume | Approx. 148,000 tons | Approx. 133,000 tons | Volume increased |
| Average dried distillers grains price | $143.63 per ton | $164.45 per ton | Lower pricing pressured gross profit |
| Modified distillers grains volume | Approx. 19,000 tons | — | Average price was $64.41 per ton |
| Corn oil sales volume | Approx. 23.1 million pounds | — | Volume increased approximately 14% year over year |
| Average corn oil price | $0.54 per pound | — | Price increased approximately 26%; sales dollars rose approximately 46% |
| Gross profit | $14.3 million | $19.8 million | Lower DDG prices and higher shipping costs |
| SG&A expenses | Approx. $6.2 million | $6.4 million | Modestly lower year over year |
| Interest and other income | $3.1 million | $4.4 million | Lower rates and lower investments |
| Income before taxes and noncontrolling interest | Approx. $12.1 million | $19.5 million | Declined year over year |
| Net income attributable to REX shareholders | $7.1 million | $12.4 million | Declined year over year |
| Diluted EPS | $0.43 | $0.70 | Declined year over year |
| Cash, cash equivalents and short-term investments | $310.5 million | — | Company reported no bank debt |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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