REX American Resources reported fiscal second-quarter 2026 net sales and revenue of $168.5 million, up from $158.6 million a year earlier, primarily due to improved pricing.
Gross profit surged to $53.3 million from $14.3 million, reflecting improved crush margins and $18.4 million of production tax credit income. Net income attributable to REX shareholders increased to $34.9 million from $7.1 million, while diluted EPS climbed to a record second-quarter level of $1.06 from $0.22.
REX’s One Earth Energy ethanol capacity expansion remains on track to become operational during fiscal 2026. Its carbon capture and sequestration project received draft EPA permits for three Class VI injection wells in August.
Capital expenditures to date related to the One Earth carbon capture project and ethanol capacity expansion totaled $191.2 million. REX ended July with $379.5 million of cash, cash equivalents and short-term investments and no bank debt.
KEY QUOTE:
“During the second quarter of 2026 REX achieved several important milestones that further support and advance our long-term growth strategy. We continued to benefit from the Section 45Z tax credit program in the second quarter, which contributed $18.4 million directly to gross profit. 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. In addition, we received notice from the U.S. EPA that our One Earth carbon capture and sequestration project had been issued draft permits on August 17th for three Class VI injection wells. We are pleased to have reached this important regulatory milestone and look forward to advancing the project in coordination with the EPA and Illinois regulators. 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. REX’s long-term prospects remain strong, supported by the continued dedication, hard work, and execution of our team across all of our operations.”
Zafar Rizvi, Chief Executive Officer of REX American Resources
