REX American Resources (REX) Q4 2025 earnings summary

Executive summary

• Fiscal 2024 delivered strong results with ethanol sales reaching 289.7 million gallons, but net sales and revenue declined to $642.5 million from $833.4 million due to lower ethanol and co-product pricing.

• Net income per share was $3.30 for FY24 and $0.63 for Q4, reflecting lower pricing year-over-year.

• Gross profit for FY24 was $91.5 million, with margin rising to 14% from 12% in FY23, aided by lower corn and natural gas costs.

• Major progress was made on carbon capture and ethanol capacity expansion projects, though permitting and construction timelines were extended.

• Shareholder value was enhanced through active share repurchases, with 654,276 shares bought back across Q4 2024 and Q1 2025, and an additional 1.5 million shares authorized for repurchase.

Financial highlights

• FY24 net income attributable to shareholders was $58.2 million, down from $60.9 million in FY23; Q4 net income was $11.1 million, down from $20.6 million.

• FY24 diluted EPS was $3.30, down from $3.47 in FY23; Q4 diluted EPS was $0.63, down from $1.16.

• FY24 gross profit was $91.5 million; Q4 gross profit was $17.6 million, both down year-over-year.

• Cash, cash equivalents, and short-term investments ended at $359.1 million, with no bank debt.

• FY24 net sales and revenue were $642.5 million; Q4 net sales and revenue were $158.2 million.

Outlook and guidance

• Management expects a profitable Q1 2025, which would mark the 19th consecutive profitable quarter.

• Focus remains on executing growth projects, with the One Earth ethanol expansion timeline extended beyond mid-2025 and carbon capture permitting expected by October 2025.

• Weaker crush spread environment seen in Q4 FY24 has continued into Q1 2025.

• Ongoing focus on operational efficiency and cost management.