EarningsQ2 2026 Earnings Report
DE:RX3 Q2 2026 EPS Results
Actual EPS€0.91
Consensus EPS―
Beat/Miss―
One Year Ago EPS€0.18
DE:RX3 Q2 2026 Revenue Results
Actual Revenue€160.65M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth+17.98%
Earnings Announcement Details
QuarterQ2 2026
Date09/02/2026
TimeBefore Open
Conference CallWednesday, September 2, 2026
DE:RX3 Upcoming Earnings
Rex American's next earnings date is estimated for November 26, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:RX3 Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by record second-quarter earnings per share, substantial year-over-year growth in gross profit and net income, a 24th consecutive profitable quarter, strong cash and no bank debt, and continued progress on the ethanol expansion and carbon capture projects. The main challenges were higher SG&A expenses, uncertainty around the Illinois pipeline approval timeline, remaining carbon capture permits, and the possibility of some RIN impact. These lowlights were limited relative to the breadth of the reported operational and financial achievements.Company Guidance
Record Second-Quarter Earnings Per Share
REX reported its highest second-quarter net income per share in company history at $1.06 per diluted share, compared with $0.22 in the second quarter of fiscal 2025.
Strong Revenue Growth
Second-quarter net sales and revenue increased to $169 million from $159 million in the second quarter of fiscal 2025, reflecting improved pricing across the product mix.
Gross Profit Expansion
Gross profit increased to $53.3 million from $14.3 million year over year. The improvement reflected stronger crush margins and $18.4 million of Section 45Z production tax credit income. Excluding the 45Z tax credits, gross profit grew 144% year over year.
Higher Pre-Tax Income and Net Income
Income before income taxes and noncontrolling interest rose to $48.1 million from $12.1 million. Net income attributable to REX shareholders increased to $34.9 million from $7.1 million.
Twenty-Fourth Consecutive Profitable Quarter
REX delivered its 24th consecutive profitable quarter and achieved a record second quarter on an earnings-per-share basis.
Meaningful 45Z Production Tax Credit Contribution
REX recognized $18.4 million of Section 45Z production tax credit income during the second quarter, bringing the year-to-date total to $26 million. The company stated that the tax credit benefits flow directly through gross profit.
1 Earth Ethanol Expansion Remains on Schedule
The expansion project at the 1 Earth Energy facility in Gibson City remains on schedule, with construction of additional ethanol production capacity expected to be completed by the end of 2026. Production is currently approximately 150 million gallons, with the next step expected to be 175 million gallons, followed by an application for 200 million gallons.
Carbon Capture Project Reaches Regulatory Milestone
On August 17, the U.S. Environmental Protection Agency issued draft permits for three Class 6 injection wells associated with the 1 Earth carbon capture project. The company described this as a major step forward and is continuing to work toward final approval.
Progress with Illinois Regulatory Processes
The Illinois moratorium on carbon sequestration expired on July 1. The Illinois Commerce Commission initiated its rulemaking process, and the Illinois Environmental Protection Agency began its permitting application process. REX plans to submit applications for the approximately 5-mile connector pipeline and the related Illinois EPA permit.
Continued Investment in Strategic Growth Projects
Combined investment in the ethanol expansion and carbon capture projects totaled $191 million through the end of the second quarter.
Strong Balance Sheet and No Bank Debt
REX ended the quarter with $380 million in cash equivalents and short-term investments and no bank debt. The company stated that it continues to fund its growth projects entirely from its own balance sheet.
Improved Affiliate Income
Equity income from unconsolidated affiliates increased to $7.2 million from $900 thousand in the second quarter of fiscal 2025, benefiting from stronger industry dynamics and production tax credit contributions at nonconsolidated facilities.
Positive Near-Term Outlook
At the early stage of the third quarter, management expects to remain profitable and anticipates that third-quarter results will be better than the same period last year.
Constructive Ethanol Market Fundamentals
Management cited continued record export demand supporting the U.S. ethanol industry. Ethanol exports were reported to have increased almost 13% during the first six months of the year, with management expecting exports to continue increasing.
Potential E15 Demand Support
Management stated that California is expected to have approximately 695 million gallons of E15 consumption and that E15 had been fully approved.
Capital Allocation Flexibility
Management said REX has been a leader, or among the leaders, in share buybacks as a percentage of shares outstanding and expects to continue evaluating buybacks and other ways to distribute capital. The company is also evaluating acquisitions of other ethanol plants or businesses in similar related industries.
Potential Third-Party Carbon Capture Capacity
Management stated that the carbon capture wells would have capacity to take on third-party projects, such as a direct-air-to-CO2 project, although the company is currently focused on getting its own project operating.
DE:RX3 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed