REX American Resources Corporation Q1 2026 Earnings Call Summary

• Achieved the astir profitable archetypal 4th connected a nett income per stock ground successful institution history, marking the 23rd consecutive profitable quarter.

• Performance was chiefly driven by the strategical designation of Section 45Z accumulation taxation credits and a favorable simplification successful maize pricing.

• Management attributes occurrence to operational excellence and the quality to capitalize connected marketplace tailwinds successful some home argumentation and planetary export markets.

• Maintained a beardown liquidity presumption with $364.3 cardinal successful currency and zero slope debt, providing the flexibility to money large maturation projects organically.

• The institution transitioned its accounting principles to study 45Z taxation credits arsenic operating income from consolidated plants, contributing $7.5 cardinal successful the quarter.

• Strategic positioning remains focused connected high-quality works locations and industry-leading unit to navigate evolving marketplace conditions.

Growth Initiatives and Regulatory Outlook

• The ethanol installation enlargement astatine Gibson City remains connected docket for completion by the extremity of 2026 to standard accumulation capabilities.

• Management expects to taxable a c pipeline exertion soon aft the Illinois authorities moratorium expires connected July 1, 2026.

• Total concern for c seizure and ethanol enlargement projects is budgeted betwixt $220 cardinal and $230 million, taxable to inflationary adjustments.

• The institution continues to show national 45Z regulations, presently booking the recognition astatine a blimpish $0.10 per gallon astatine consolidated plants.

• Outlook for the 2nd 4th remains positive, with absorption citing unchangeable operating conditions and assurance successful continued profitability.

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Operational and Regulatory Context

• SG&A expenses accrued to $9.7 million, driven by higher inducement compensation and the just worth signaling of unpaid banal bonuses from 2025.

• The c seizure inaugural is presently navigating the EPA Class 6 injection good licence exertion process, which remains ongoing.

• Ethanol export markets showed important strength, with industry-wide exports expanding by 20% successful the play ending March 2026.

• Equity income from unconsolidated affiliates roseate to $3.6 million, with $1.8 cardinal of that summation specifically attributed to 45Z taxation recognition benefits.

Q&A Highlights