REX American Resources posts record second-quarter EPS as ethanol margins recover and 45Z credits add $18.4 million
Domestic ethanol crush margins improved through the second quarter of 2026, and the shift showed up clearly in REX American Resources Corporation's fiscal results. The Dayton, Ohio-based producer (NYSE: REX) reported record…
Key takeaways
- REX American Resources reported record second-quarter diluted EPS of $1.06 for the quarter ended July 31, 2026, up from $0.22 a year earlier.
- Gross profit rose to $53.3 million from $14.3 million in Q2 2025, including $18.4 million from the Section 45Z production tax credit net of estimated monetization expenses.
- Net income attributable to REX shareholders was $34.9 million versus $7.1 million a year ago, marking the company's 24th consecutive profitable quarter.
- On August 17, 2026, the EPA issued draft permits for three Class VI injection wells for REX's carbon capture project at One Earth Energy in Gibson City, Illinois, with a public comment period now open.
- REX ended the quarter with $379.5 million in cash, cash equivalents, and short-term investments and no bank debt.
Domestic ethanol crush margins improved through the second quarter of 2026, and the shift showed up clearly in REX American Resources Corporation's fiscal results. The Dayton, Ohio-based producer (NYSE: REX) reported record second-quarter diluted earnings per share of $1.06, up from $0.22 a year earlier, as gross profit reached $53.3 million against $14.3 million in Q2 2025.
Net sales and revenue for the quarter ended July 31, 2026 came to $168.5 million, compared with $158.6 million in Q2 2025, a gain management attributed primarily to improved pricing. Net income attributable to REX shareholders was $34.9 million, against $7.1 million a year ago. The quarter was the company's 24th consecutive profitable period and, per management, its best second quarter on a per-share basis.
Margin composition and the 45Z read-through
The $53.3 million gross profit figure includes $18.4 million from the Section 45Z production tax credit, net of estimated monetization expenses. Chief Executive Zafar Rizvi attributed that amount directly to gross profit and said that, excluding 45Z, core operations produced a 144% year-on-year increase in quarterly gross profit. The underlying pricing shift across REX's co-product slate supports that reading. At consolidated facilities, average realized ethanol prices ran $1.78 per gallon against $1.75 a year earlier. Dried distillers grains moved to $166.55 per ton from $143.63. Distillers corn oil fetched $0.72 per pound compared with $0.54. Volume in each category held broadly stable year over year.
Carbon capture permitting and the capex cycle
The other material development is regulatory. On August 17, 2026, the U.S. Environmental Protection Agency issued draft permits for three Class VI injection wells tied to REX's carbon capture and sequestration project at the One Earth Energy facility in Gibson City, Illinois. The EPA is accepting public comments on those drafts. Capital expenditures on the carbon capture project and the associated expansion of ethanol production capacity at One Earth total $191.2 million to date, and management said the expansion remains on schedule to become operational during fiscal 2026.
REX closed the quarter with $379.5 million in cash, cash equivalents, and short-term investments and no bank debt. Corn price volatility, U.S. trade policy and tariffs, and changes in income tax regulation are among the factors the company flags as risks to its guidance. The EPA's public comment period on the three Class VI well permits remains open.
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