REX American Resources Corporation

For Q1 2026, ethanol sales volumes were 71.1 million gallons versus 70.9 million gallons in Q1 2025, and average ethanol selling price was $1.66 per gallon versus $1.76. Gross profit was $29.1 million compared with $14.3 million a year ago; SG&A was $9.7 million versus $5.9 million; income before taxes and noncontrolling interest was $26.1 million versus $13.6 million; and net income attributable to REX shareholders was $18.5 million, or $0.56 per diluted share, versus $8.7 million, or $0.26 per diluted share. The company also recorded $7.5 million in 45Z production tax credit income in the quarter. Looking ahead, management said the Gibson City ethanol expansion remains on schedule for completion by the end of 2026, and they expect a profitable second quarter while continuing to monitor 45Z regulations and regulatory developments around carbon capture.

The CEO framed the quarter as evidence of disciplined execution and long-term value creation, calling it the strongest first quarter in company history on an EPS basis. He emphasized ongoing progress on the ethanol capacity expansion and carbon capture initiative, while noting that both projects are being advanced despite permitting delays and regulatory uncertainty. His tone was confident and constructive, with repeated emphasis on sustainable growth, strong operating conditions, and the ability to adapt to policy changes.

The CFO highlighted the main drivers of improved profitability: higher 45Z income, reduced corn pricing, and solid operating performance. He cited ethanol volume of 71.1 million gallons, gross profit of $29.1 million, SG&A of $9.7 million, and net income of $18.5 million, or $0.56 per diluted share. He also noted $364.3 million in cash, cash equivalents and short-term investments at quarter-end, along with no bank debt, and said the cash decline versus the prior quarter was mainly due to ongoing capital investments in growth projects.

There was no analyst Q&A in the call. Management nonetheless addressed likely investor concerns by updating the status of the EPA class 6 injection well permit, the Illinois carbon pipeline moratorium expiring on 07/01/2026, and ongoing monitoring of Section 45Z policy. They also said they recognized an additional $7.5 million of 45Z production tax credit income in Q1 and are still booking the credit at $0.10 per gallon while regulations are monitored.