REX American Resources Reports Q1 2026 Financial Results with Increased Net Income

REX American Resources Corporation reported its financial results for the first quarter of fiscal year 2026, ending April 30, 2026, revealing a net income of $21.7 million, or $0.56 per share, compared to $10.7 million, or $0.26 per share, in the same period last year. The company’s net sales and revenue decreased slightly to $156.5 million from $158.3 million year-over-year. The decline in revenue was primarily attributed to a 5% decrease in ethanol revenue, which fell to $119.9 million, despite a slight increase in gallons sold.

The company experienced a significant increase in gross profit, which rose to $29.1 million from $14.3 million in the prior year, largely due to a decrease in the cost of sales, which fell to $135.0 million from $144.0 million. This reduction in costs was driven by lower corn prices, which accounted for approximately 75% of total costs. Additionally, REX recognized $7.5 million in production tax credit income, a new revenue stream resulting from the Inflation Reduction Act and the One Big Beautiful Bill Act, which was not present in the previous year.

In terms of operational developments, REX continues to invest in its ethanol production capabilities, with ongoing projects at its One Earth facility aimed at increasing production capacity and reducing carbon intensity. The company has budgeted approximately $220 million to $230 million for these projects, which include a carbon sequestration initiative and an expansion of ethanol production from 150 million to 175 million gallons per year. As of April 30, 2026, REX had spent $58.7 million on the carbon sequestration project and $117.7 million on the expansion project.

The company’s balance sheet showed total assets of $807.7 million, an increase from $797.7 million at the end of the previous fiscal year. REX's working capital stood at $376.2 million, with a current ratio of 6.8, indicating strong liquidity. The company’s cash and cash equivalents decreased to $117.7 million from $188.7 million, primarily due to significant investments in short-term securities and capital expenditures.

Looking ahead, REX American Resources remains focused on expanding its market presence and enhancing operational efficiencies. The company is optimistic about the potential benefits of the clean fuel production tax credits and plans to continue leveraging its investments in carbon capture and ethanol production to drive future growth. However, management acknowledges the inherent risks associated with commodity price volatility and regulatory changes that could impact operations.