REX American Resources Corporation (NYSE:REX) shares fell 4.6% following the release of fiscal second-quarter 2026 results that exceeded analyst earnings expectations but came in below the consensus revenue forecast.
The ethanol producer reported adjusted earnings per share of $1.06, compared with an analyst estimate of $0.42.
Revenue reached $168.5 million, below the consensus estimate of $194.8 million. However, revenue increased 6.2% from $158.6 million in the second quarter of fiscal 2025.
Net Income and Gross Profit Increase
Net income attributable to REX shareholders rose to $34.9 million from $7.1 million in the prior-year quarter.
Gross profit increased to $53.3 million from $14.3 million a year earlier.
According to the company, the improvement reflected higher crush margins as well as $18.4 million of production tax credit income associated with the Section 45Z programme.
The increase in revenue primarily reflected improved pricing, according to the supplied information.
REX Highlights Growth in Core Operations
Chief Executive Officer Zafar Rizvi commented on the company’s quarterly performance and ongoing projects.
“During the second quarter of 2026 REX achieved several important milestones that further support and advance our long-term growth strategy,” said Zafar Rizvi, Chief Executive Officer of REX. “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.”
The 144% increase represents the company’s calculation of gross profit growth from core operations excluding the impact of Section 45Z tax credits.
Carbon Capture Project Receives Draft EPA Permits
REX also reported progress on its carbon capture and sequestration project.
The company received draft permits from the U.S. Environmental Protection Agency on August 17 for three Class VI injection wells associated with the project.
Draft permits represent a regulatory step in the process and do not constitute final approval.
Capital expenditure on the One Earth Energy carbon capture project and ethanol production expansion totalled $191.2 million to date, according to the company.
Cash and Short-Term Investments Reach $379.5 Million
As of July 31, 2026, REX reported $379.5 million in cash, cash equivalents and short-term investments and said it had no bank debt.
The company did not provide financial guidance for future quarters in the supplied information.
REX shares declined 4.6% following the results. While the share-price movement occurred after the earnings release, the supplied information does not establish the extent to which the revenue result, earnings performance or other factors contributed to the decline.
Rex American Resources stock price
