REX American Resources Corp. reported a 4.6% decline in its share price following mixed fiscal second-quarter results that showed strong profitability but missed revenue expectations.
The company posted adjusted earnings per share of $1.06 for the quarter ended July 31, exceeding analyst estimates of $0.42. Revenue totaled $168.5 million, a 6.2% year-over-year increase but below the consensus forecast of $194.8 million. Net income attributable to shareholders rose to $34.9 million from $7.1 million in the same period last year.
Gross profit more than tripled to $53.3 million from $14.3 million in the prior-year quarter, driven by improved crush margins and $18.4 million in production tax credits under the Section 45Z program. Excluding the impact of these credits, CEO Zafar Rizvi noted a 144% increase in quarterly gross profit from core operations compared to the same period in fiscal 2025.
The company maintained a strong balance sheet with $379.5 million in cash, cash equivalents and short-term investments as of July 31, 2026, and reported no bank debt. Capital expenditures reached $191.2 million year-to-date, primarily allocated to the One Earth Energy carbon capture project and ethanol production expansion.
On August 17, REX received draft permits from the U.S. Environmental Protection Agency for three Class VI injection wells associated with its carbon capture and sequestration initiative. The company did not provide forward guidance in its earnings release.
