What were the key takeaways from Rex American's earnings call?

What were the key takeaways from Rex American’s earnings call?

What guidance did Rex American's management provide for the next earnings period?

Did Rex American beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Rex American year over year?

What is Rex American's gross profit margin?

What is Rex American's latest dividend and current dividend yield?

What factors drove the changes in Rex American's revenue and profit?

- **Stock Split Reward:** 2-for-1 split to enhance liquidity and shareholder returns.
- **Tax Credit Extension:** 45Q/45Z credits extended to 2029, supporting $220M carbon capture project.
- **Record Profitability:** 20 consecutive quarters of profit, Q3 2025 expected to beat Q2.
- **Export Growth:** Ethanol exports up 10% YoY, targeting 2025 record with Japan/UK deals.
- **Corn Oil Boom:** 46% revenue increase from corn oil, driven by 26% price hike.
- **Pipeline Progress:** Class VI permit expected March 2026, pipeline construction feasible post-moratorium.

**【Management Opening Remarks】**
- CFO Doug Bruggeman introduced the call, emphasizing the company's strong financial position and announcing a 2-for-1 stock split (100% dividend) to reward shareholders and enhance liquidity.

**【Executive Chairman's Remarks】**
- Stuart Rose highlighted Q2 success in ethanol production and the One Earth Energy expansion. The extension of 45Q and 45Z tax credits through 2029 supports carbon capture economics. The company maintains a strong balance sheet with $310.5M in cash and no debt.

**【CEO Commentary】**
- Zafar Rizvi detailed progress on the 175M gallon ethanol expansion (due 2026) and the Class VI injection well permit (EPA approval expected March 2026). Total project investment to date: $126.7M, within the $220-230M budget. The tax credit extension enables expansion to 200M gallons.

**【CFO Financial Commentary】**
- Q2 2025: Ethanol sales 70.6M gallons (+8.4% YoY), corn oil revenue up 46% due to 14% volume growth and 26% price increase. Gross profit $14.3M (down 28% YoY) due to lower DDG prices. Net income $7.1M ($0.43/diluted share), down 43% YoY. Cash reserves remain robust at $310.5M.

**【CEO Closing Remarks】**
- REX achieved 20 consecutive quarters of profitability. Q3 2025 expected to outperform Q2 but lag Q3 2024. Improved corn oil yields and bumper crop outlook support margins. Ethanol exports up 10% YoY, targeting a record 2025. Illinois corn crop on track for a potential record harvest.

**【Q&A Highlights】**
- **Community Support:** Local officials and shareholders attended the One Earth facility event, reinforcing community backing.
- **Utility Resolution:** Ameren interconnection issue resolved.
- **Export Growth:** Japan and UK ethanol purchases expected to continue post-tariff resolution.
- **Pipeline Timeline:** <6.5-mile pipeline construction feasible within months of ICC approval post-moratorium expiration.
- **DDG Concerns:** Mexico DDG imports down 10% YoY, offsetting corn oil gains.
- **CI Score Uncertainty:** Potential 4-6 point reduction from smart farming exclusion, but guidelines pending.

REX American Resources Corporation (REX) Q2 2025 Earnings Conference Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

REX

REX fundamentals

You can ask Aime