REX AMERICAN RESOURCES Corp (REX): Results of Operations and Financial Condition
REX AMERICAN RESOURCES Corp (REX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 REX American Resources Reports Record Fiscal Second Quarter 2026 Net Income Per Share Attributable to REX Common Shareholders of $1.06 vs. $0.22 in Fiscal Second Quarter 2025 Company receives Class VI injection well draft permit from U.S. EPA ▪ Generated $1.06 of net i
How this was made
The 30-second read
Why it matters
Strong earnings and cash position may attract short‑term buying, while the carbon‑capture permit adds a longer‑term growth narrative.
Market read
First‑report earnings with record EPS and cash cushion make the news materially relevant for traders.
What to watch
Pending EPA approval for carbon‑capture wells introduces regulatory risk.
REX American Resources Reports Record Fiscal Second Quarter 2026 Net Income Per Share Attributable to REX Common Shareholders of $1.06 vs. $0.22 in Fiscal Second Quarter 2025
Fiscal Q2 2026 gross profit, net income attributable to REX common shareholders and diluted net income per share increased substantially from fiscal Q2 2025, supported by improved crush margins and $18.4 million of production tax credit income.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales and revenue, three months ended July 31, 2026 (in thousands)other | $ 168,493 | – | – |
| Production tax credit income, three months ended July 31, 2026 (in thousands)other | 18,410 | – | – |
| Cost of sales, three months ended July 31, 2026 (in thousands)other | 133,603 | – | – |
| Gross profit, three months ended July 31, 2026 (in thousands)other | 53,300 | – | – |
| Selling, general and administrative expenses, three months ended July 31, 2026 (in thousands)other | (15,622) | – | – |
| Equity in income of unconsolidated affiliates, three months ended July 31, 2026 (in thousands)other | 7,195 | – | – |
| Interest and other income, net, three months ended July 31, 2026 (in thousands)other | 3,245 | – | – |
| Income before income taxes, three months ended July 31, 2026 (in thousands)other | 48,118 | – | – |
| Provision for income taxes, three months ended July 31, 2026 (in thousands)other | (7,472) | – | – |
| Net income, three months ended July 31, 2026 (in thousands)other | 40,646 | – | – |
| Net income attributable to noncontrolling interests, three months ended July 31, 2026 (in thousands)other | (5,702) | – | – |
| Net income attributable to REX common shareholders, three months ended July 31, 2026 (in thousands)other | $ 34,944 | – | – |
| Weighted average shares outstanding, basic and diluted, three months ended July 31, 2026 (in thousands)other | 33,090 | – | – |
| Basic and diluted net income per share attributable to REX common shareholders, three months ended July 31, 2026other | $ 1.06 | – | – |
| Net sales and revenue, six months ended July 31, 2026 (in thousands)other | $ 324,992 | – | – |
| Production tax credit income, six months ended July 31, 2026 (in thousands)other | 25,959 | – | – |
| Gross profit, six months ended July 31, 2026 (in thousands)other | 82,371 | – | – |
| Selling, general and administrative expenses, six months ended July 31, 2026 (in thousands)other | (25,350) | – | – |
| Equity in income of unconsolidated affiliates, six months ended July 31, 2026 (in thousands)other | 10,761 | – | – |
| Interest and other income, net, six months ended July 31, 2026 (in thousands)other | 6,451 | – | – |
| Income before income taxes, six months ended July 31, 2026 (in thousands)other | 74,233 | – | – |
| Net income, six months ended July 31, 2026 (in thousands)other | 62,324 | – | – |
| Net income attributable to REX common shareholders, six months ended July 31, 2026 (in thousands)other | $ 53,396 | – | – |
| Basic and diluted net income per share attributable to REX common shareholders, six months ended July 31, 2026other | $ 1.62 | – | – |
| Average selling price per gallon of ethanol (net of hedging), three months ended July 31, 2026other | $1.78 | – | – |
| Gallons of ethanol sold (in millions), three months ended July 31, 2026other | 70.6 | – | – |
| Average selling price per ton of dried distillers grains, three months ended July 31, 2026other | $166.55 | – | – |
| Tons of dried distillers grains sold, three months ended July 31, 2026other | 145,081 | – | – |
| Average selling price per pound of distillers corn oil, three months ended July 31, 2026other | $0.72 | – | – |
| Pounds of distillers corn oil sold (in millions), three months ended July 31, 2026other | 24.3 | – | – |
| Net cash provided by operating activities, six months ended July 31, 2026 (in thousands)other | 38,023 | – | – |
| Capital expenditures, six months ended July 31, 2026 (in thousands)other | (34,977) | – | – |
| Net cash (used in) provided by investing activities, six months ended July 31, 2026 (in thousands)other | (131,495) | – | – |
| Net cash used in financing activities, six months ended July 31, 2026 (in thousands)other | (3,934) | – | – |
| Cash and cash equivalents, July 31, 2026 (in thousands)other | $ 91,328 | – | – |
| Short-term investments, July 31, 2026 (in thousands)other | 288,186 | – | – |
| Total assets, July 31, 2026 (in thousands)other | $ 856,476 | – | – |
| Total current liabilities, July 31, 2026 (in thousands)other | 66,538 | – | – |
| Total long-term liabilities, July 31, 2026 (in thousands)other | 18,324 | – | – |
| Total REX shareholders’ equity, July 31, 2026 (in thousands)other | 673,621 | – | – |
| Total equity, July 31, 2026 (in thousands)other | 771,614 | – | – |
Capital returns
- Treasury stock acquired, six months ended July 31, 2026: (1,581) (in thousands).
- Noncontrolling interests distributions, six months ended July 31, 2026: (2,228) (in thousands).
What drove it
- Improved pricing principally drove the increase in Q2 2026 net sales and revenue.
- Improved crush margins and production tax credits drove the increase in Q2 2026 gross profit.
- Production tax credit income was $18.4 million net of estimated monetization expenses in the second quarter of 2026.
- The Section 45Z tax credit program contributed $18.4 million directly to gross profit, according to management.
- Equity in income of unconsolidated affiliates was 7,195 (in thousands) in the three months ended July 31, 2026, compared with 891 (in thousands) in the prior-year period.
- The carbon capture and sequestration project received draft permits from the U.S. EPA for three Class VI injection wells on August 17, 2026.
Concerns
- The U.S. EPA is currently accepting public comments on the draft permits for the three Class VI injection wells.
- The filing identifies volatility and availability of corn, distillers grains, ethanol, distillers corn oil, gasoline and natural gas as risks.
- The filing identifies permitting and development risk for the planned carbon sequestration facility near the One Earth Energy ethanol plant.
- Selling, general and administrative expenses were (15,622) (in thousands) in the three months ended July 31, 2026, compared with (6,201) (in thousands) in the prior-year period.
What to watch
- Testing and commissioning of the One Earth ethanol-production expansion, which the Company expects to begin upon completion.
- Whether the One Earth expansion becomes operational during fiscal 2026, as expected by the Company.
- Progress of EPA and Illinois regulatory processes following public comments on the draft permits for the three Class VI injection wells.
- Capital expenditures related to the One Earth carbon capture and sequestration project and related expansion, which totaled $191.2 million to date.
- The ongoing contribution of the Section 45Z tax credit program and core operating crush margins.
Balance sheet and cash flow
- As of July 31, 2026, REX had $379.5 million of cash, cash equivalents, and short-term investments available and no bank debt.
- Cash and cash equivalents were $ 91,328 (in thousands) as of July 31, 2026, compared with $ 188,734 (in thousands) as of January 31, 2026.
- Short-term investments were 288,186 (in thousands) as of July 31, 2026, compared with 187,048 (in thousands) as of January 31, 2026.
- Property and equipment, net was 293,962 (in thousands) as of July 31, 2026, compared with 272,029 (in thousands) as of January 31, 2026.
- Net cash provided by operating activities was 38,023 (in thousands) for the six months ended July 31, 2026, compared with 12,808 (in thousands) for the six months ended July 31, 2025.
- Capital expenditures were (34,977) (in thousands) for the six months ended July 31, 2026, compared with (28,924) (in thousands) for the six months ended July 31, 2025.
Analysis
REX reported a materially stronger fiscal second quarter. Net sales and revenue were $ 168,493 (in thousands), compared with $ 158,563 (in thousands) in fiscal Q2 2025, with the Company citing improved pricing. Gross profit was $53.3 million, compared with $14.3 million, while net income attributable to REX common shareholders was $34.9 million, compared with $7.1 million. Basic and diluted net income per share attributable to REX common shareholders was $1.06, compared with $0.22.
The gross-profit result reflected both improved crush margins and production tax credits. Production tax credit income was $18.4 million net of estimated monetization expenses during the quarter. Management said the Section 45Z tax credit program contributed $18.4 million directly to gross profit, and said quarterly gross profit from core operations, excluding the impact from 45Z tax credits, increased 144% from the same period in the prior year. Equity in income of unconsolidated affiliates also increased to 7,195 (in thousands) from 891 (in thousands).
Operating volumes were mixed while selling prices increased in certain products. Ethanol gallons sold were 70.6 million in both quarterly periods, while the average selling price per gallon of ethanol, net of hedging, was $1.78 compared with $1.75. Dried distillers grains volume was 145,081 tons compared with 148,017 tons, but the average selling price per ton was $166.55 compared with $143.63. Distillers corn oil volume was 24.3 million pounds compared with 23.1 million pounds, and the average selling price per pound was $0.72 compared with $0.54.
Cash generation increased in the first half, with net cash provided by operating activities of 38,023 (in thousands), compared with 12,808 (in thousands). Capital expenditures were (34,977) (in thousands), including spending associated with the One Earth carbon capture and sequestration project and related ethanol-capacity expansion, for which cumulative capital expenditures totaled $191.2 million. REX reported $379.5 million of cash, cash equivalents and short-term investments available as of July 31, 2026, and no bank debt. Treasury stock acquired was (1,581) (in thousands) in the six-month period.
The principal forward operational milestone is the One Earth expansion. REX is on-track to complete its construction phase and expects testing and commissioning to begin upon completion, with the expansion becoming operational during fiscal 2026. The carbon capture and sequestration project received draft EPA permits for three Class VI injection wells on August 17, 2026, but the permits remain subject to an ongoing public-comment process. The release did not provide quantitative financial guidance.
Management, verbatim
We continued to benefit from the Section 45Z tax credit program in the second quarter, which contributed $18.4 million directly to gross profit.
Zafar Rizvi, Chief Executive Officer of REX
Excluding the impact from 45Z tax credits, our quarterly gross profit from our core operations increased 144% over the same period in the prior year.
Zafar Rizvi, Chief Executive Officer of REX
The second quarter marked REX’s 24th consecutive profitable quarter and represented a record second quarter on an earnings-per-share basis for the company.
Zafar Rizvi, Chief Executive Officer of REX
Not in the filing
stated, not guessed- Quantitative financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, capital expenditures or cash flow was not provided.
- Prior-period financial guidance was not provided.
- Segment revenue, segment profit and segment-margin disclosures were not provided.
- Prior-quarter comparative financial results were not provided.
- GAAP and non-GAAP designations and non-GAAP reconciliations were not provided.
- Free cash flow was not reported.
- A dividend declaration or dividend payment was not reported.
- A total debt figure was not reported; the Company reported no bank debt.
- Gross margin was not reported.
- Percentage changes for most reported financial-statement line items were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC 8‑K Item 2.02 release, the first public disclosure of REX's Q2 2026 results.
Ticker impact
SEC Form 8‑K reports REX American Resources' Q2 2026 earnings with net income per share of $1.06, a record increase from $0.22 a year earlier.
Potential short‑term price rally on better‑than‑expected earnings and cash balance of $379.5 M.
Record EPS, 144% core gross profit growth, and no debt provide a solid catalyst for buying pressure.
Market effects
Ethanol sector may see renewed interest as REX highlights tax credit benefits and carbon‑capture progress.
Midwest ethanol producers could benefit from similar regulatory milestones.
Limited to U.S. biofuel and renewable energy markets.
Counterpoint
Higher commodity volatility could pressure margins despite the earnings beat.
Key entities
- ExecutiveZafar Rizvi
CEO of REX American Resources, quoted on earnings and regulatory milestones.
- RegulatorU.S. EPA
Issued draft Class VI injection well permits for REX's carbon‑capture project.
