REX American Resources Reports Record Q1 Earnings Driven by Ethanol Sales and Tax Credits
Transcript: REX American Resources Q1 2026 Earnings Conference Call
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REX American Resources achieved its most profitable first quarter ever in Q1 2026, with net income per share reaching $0.56. The company reported ethanol sales of 71.1 million gallons but faced a decrease in average selling prices. Significant contributions came from $7.5 million in production tax credits, bolstering gross profit to $29.1 million.
- 01REX American Resources recorded a net income of $18.5 million, or $0.56 per diluted share, marking a significant increase from $8.7 million, or $0.26 per share, in Q1 2025.
- 02The company recognized $7.5 million in 45Z production tax credits, which significantly enhanced its gross profit.
- 03Ethanol sales volumes rose slightly to 71.1 million gallons, while the average selling price fell to $1.66 per gallon from $1.76 in the previous year.
- 04REX's total investment in carbon capture and ethanol expansion projects is approximately $176.3 million, with a combined project budget of $220 million to $230 million.
- 05The Illinois Carbon Pipeline permitting moratorium is set to expire on July 1, 2026, which REX is preparing for by engaging with regulatory bodies.
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REX American Resources (NYSE:REX) reported record earnings for the first quarter of 2026, achieving a net income of $18.5 million, or $0.56 per diluted share, the highest in its history. The company saw ethanol sales volumes slightly increase to 71.1 million gallons, although the average selling price decreased to $1.66 per gallon. A key factor in the improved financial performance was the recognition of $7.5 million in 45Z production tax credits, which contributed to a gross profit of $29.1 million, up from $14.3 million in Q1 2025. REX continues to advance its growth initiatives, including the expansion of its ethanol production capacity and a carbon capture project, with a total investment of approximately $176.3 million. The company maintains a strong financial position with $364.3 million in cash and no bank debt. Management remains optimistic about future growth, citing favorable market conditions and a focus on shareholder value.
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The company's growth initiatives, particularly in ethanol production and carbon capture, are expected to enhance local job opportunities and economic activity in the regions where they operate.
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