REX American Resources Reports Record Q2 Earnings and Advances in CCS Project
REX American Resources Corp (REX) reported record second-quarter earnings per share of $1.06, a significant increase from $0.22 year-over-year. The strong performance was driven by improved crush margins and higher income from the 45Z production tax credit program. Gross profit surged to $53.3 million with a gross margin expansion to 31.6%, up nearly 2,260 basis points compared to last year. The company's One Earth project is progressing well toward completion by year-end 2026 and aims for a phased ramp-up of production capacity to around 175 million gallons in the coming years. Draft Class VI permits have advanced carbon capture and storage (CCS) efforts, while favorable market conditions such as exports, California E15 demand, and stronger co-product pricing support industry growth. REX's valuation remains attractive despite its strong earnings performance and improving project visibility. The company continues to benefit from a constructive ethanol environment with higher revenues across all product lines including dried distillers grains (DDG) and corn oil.
Topics: 45Z credits carbon capture and storage (CCS) crush margins earnings valuation