Rex American 2026 Q2 Earnings Net Income Falls 37.8% Amid Revenue Growth

Rex American (REX) reported its fiscal 2026 Q2 earnings on September 2, 2025. Total revenue increased by 7.0% year-over-year to $158.56 million, driven by growth in ethanol and distillers grains segments. Net income and EPS, however, declined, reflecting operational and market pressures.

Revenue
REX's total revenue for 2026 Q2 rose to $158.56 million, a 7.0% increase compared to $148.16 million in 2025 Q2. The ethanol segment led the performance with $123.31 million, while dried distillers grains and distillers corn oil contributed $21.26 million and $12.51 million, respectively. Modified distillers grains and derivative financial instruments added $1.25 million and $201,000 to the top line, with other revenue making up the remainder.

Earnings/Net Income
Rex American’s net income dropped to $9.33 million in 2026 Q2, representing a 37.8% decline from $15.01 million in the same period the previous year. The earnings per share (EPS) also fell sharply, decreasing by 39.4% to $0.43 from $0.71 in 2025 Q2. The performance underscores the challenges the company faces in maintaining profitability amid competitive and operational headwinds.

Price Action
The stock price of Rex American has edged up 0.77% during the latest trading day, has climbed 3.31% during the most recent full trading week, and has surged 19.91% month-to-date.

Post Earnings Price Action Review
Following the earnings report, Rex American’s stock experienced mixed sentiment, reflecting the diverging narratives between revenue growth and declining profitability. While the market acknowledged the 7.0% revenue increase, the sharp drop in net income and EPS led to a cautious outlook. Investors appeared to focus on the ethanol segment’s strength and the potential for operational efficiency, but the overall earnings performance raised concerns about the company’s ability to maintain margins in the current market environment. Despite the earnings underperformance, the stock’s strong month-to-date gain of 19.91% suggests that investor sentiment remained cautiously optimistic, perhaps influenced by broader industry conditions and expectations of strategic adjustments.

CEO Commentary
Paul O’Malley, CEO of Regional Express, emphasized the company's commitment to maintaining reliable regional flight services despite the challenges of entering voluntary administration. He highlighted the importance of continuing to provide essential connectivity to regional Australia and noted the Federal Government’s regional flight booking guarantee as a factor in reinforcing customer confidence. O’Malley stressed that the voluntary administration of the domestic 737 services does not impact the operational integrity of the regional Saab 340 fleet, which remains fully operational. The CEO expressed cautious optimism about Rex’s future, reiterating its strategic importance as Australia’s largest independent regional airline and its role in supporting regional communities and economies.

Guidance
The company did not provide explicit forward-looking financial guidance. However, the CEO indicated a continued focus on the stable performance of regional operations and adherence to government-backed guarantees for customer refunds and chargebacks.

Additional News
In the three weeks following Rex American’s earnings report on September 2, 2025, several notable non-earnings-related developments emerged. Among them, the most significant was the ongoing geopolitical tensions involving regional airline operations, particularly in Australia. These tensions raised concerns about potential disruptions to regional connectivity, which could impact Rex’s operations given its role in the market. Additionally, a key executive change at a rival regional carrier underscored the broader industry instability, prompting speculation about potential mergers or partnerships in the sector. Lastly, a new government initiative aimed at enhancing regional aviation infrastructure was announced, offering potential long-term support for Rex's strategic positioning and reinforcing the company’s critical role in regional Australia.