Loading...
01/11 16:22
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects mixed signals: while there is optimism about profitability and ethanol margins, financial metrics show a decline in sales volumes and net income. The share buyback program is a positive, but regulatory risks and unclear guidance in the Q&A section raise concerns. The lack of new partnerships or strong guidance adjustments tempers the outlook, leading to a neutral sentiment.
Ethanol Sales Volumes 70,900,000 gallons (down from 74,500,000 gallons in Q1 2024) - Lower sales volumes were mostly attributable to timing of shipments.
Average Selling Price for Ethanol $1.76 per gallon - Improved pricing compared to previous periods.
Dry Distiller Grain Sales Volumes 153,000 tons (no year-over-year comparison provided) - Average selling price was $145.65 per ton.
Modified Distillery Grain Volumes 22,000 tons (no year-over-year comparison provided) - Average selling price was $73.44 per ton.
Corn Oil Sales Volumes 21,400,000 pounds (no year-over-year comparison provided) - Average selling price was $0.46 per pound.
Gross Profit $14,300,000 (down from $14,500,000 in Q1 2024) - Primarily reflects lower sales prices for dry distiller grains, somewhat offset by improved ethanol pricing.
Selling, General and Administrative Expenses $5,900,000 (down from $6,100,000 in Q1 2024) - Reflects cost control measures.
Interest and Other Income $4,200,000 (down from $5,900,000 in Q1 2024) - Reduction attributed to lower cash balances and interest income.
Income Before Taxes $13,600,000 (down from $16,000,000 in Q1 2024) - Reflects overall lower income.
Net Income Attributable to REX Shareholders $8,700,000 or $0.51 per diluted share (down from $10,200,000 or $0.58 per diluted share in Q1 2024) - Reduction primarily attributable to lower cash balances and interest income.
Cash, Cash Equivalents and Short Term Investments $315,900,000 (reduction due to ongoing capital investments in growth projects and share repurchases).
Share Repurchase Activity Repurchased approximately 822,000 shares for $32,700,000 - Reflects ongoing commitment to delivering shareholder value.
Ethanol Production Expansion: The ethanol facility expansion in Gibson City is undergoing a technical review of key project components to enhance operational efficiencies.
Carbon Capture Projects: Investment in carbon capture and ethanol expansion projects totals approximately $122,700,000, within a combined budget range of $220,000,000 to $230,000,000.
Ethanol Sales: Ethanol sales volumes reached 70,900,000 gallons in Q1 2025, with an average selling price of $1.76 per gallon.
Ethanol Exports: Ethanol exports in March 2025 were up 23% compared to March 2024, with cumulative exports nearly 19% higher than the same period in 2024.
Share Repurchase Program: Approximately 822,000 shares were repurchased for $32,700,000, representing 6.8% of outstanding shares since December 2024.
Operational Efficiency: The company maintained stable ethanol demand and production, demonstrating operational excellence despite market uncertainties.
Strategic Growth Initiatives: The company is pursuing organic growth initiatives in carbon capture and ethanol production capacity expansion.
Regulatory Monitoring: REX is closely monitoring potential changes to the Inflation Reduction Act and state legislation affecting carbon capture projects.
Regulatory Risks: The company is closely monitoring potential changes to the Inflation Reduction Act, particularly regarding tax credit provisions for carbon capture projects (45Q and 45Z). Additionally, Senate Bill 1723 in Illinois could prohibit carbon sequestration activities near sole source aquifers, which may impact project planning.
Supply Chain Challenges: The company is affected by fluctuating corn prices and natural gas costs, which are major expenses in the ethanol business. Increased natural gas exports could negatively impact operations.
Economic Factors: The company faces uncertain market conditions, including the potential for tariffs on ethanol and DDG exports, which could affect profitability. However, there is a positive outlook for ethanol margins due to expected record corn production.
Competitive Pressures: The company operates in a competitive environment with evolving regulatory and market conditions, necessitating a disciplined approach to capital allocation and strategic opportunities.
Ethanol Production Capacity Expansion: The company is progressing with its ethanol production capacity expansion at One Earth, with a total investment of approximately $122,700,000.
Carbon Capture Initiatives: REX is advancing its carbon capture projects, maintaining close coordination with the EPA regarding its Class six injection well permit.
Share Buyback Program: During Q1 2025, REX repurchased approximately 822,000 shares for $32,700,000, representing about 6.8% of outstanding shares since December 2024.
Future Revenue Expectations: REX anticipates stable performance in Q2 2025, expecting another profitable result.
Financial Projections: The company remains within its revised combined budget range of $220,000,000 to $230,000,000 for carbon capture and ethanol expansion projects.
Ethanol Export Growth: Ethanol exports in March 2025 were up 23% compared to March 2024, indicating favorable market conditions.
Profitability Outlook: REX has achieved its nineteenth consecutive profitable quarter and expects continued profitability driven by strong market conditions.
Share Buyback Program: During Q1 2025, REX repurchased approximately 822,000 shares for a total consideration of $32,700,000, at an average purchase price of $39.8 per share. This buyback activity represents about 6.8% of outstanding shares since reinitiating purchases in December 2024. Currently, there are approximately 1,182,000 shares remaining on the buyback authorization, which is about 7% of outstanding shares.
The earnings call presents mixed signals: while there's optimism about ethanol production expansion and potential record exports, financial metrics show declines in gross profit and net income. The Q&A reveals uncertainties in tax credits and partnerships, impacting sentiment. Positive elements include increased ethanol sales volume and strong cash reserves. However, lower selling prices and unclear guidance on tax credits and partnerships temper enthusiasm. Considering these factors, along with the lack of market cap data to gauge stock volatility, the stock price is likely to remain stable in the short term, resulting in a neutral rating.
Despite some positive elements like increased ethanol sales volumes and a promising strategic plan for expansion, there are significant uncertainties, particularly around the 45Z tax credits and declining distiller grain sales. The Q&A revealed management's lack of clarity on key issues, which may cause investor concerns. The overall financial performance shows mixed results, with a slight decrease in net income but an increase in earnings per share. These factors combined suggest a neutral impact on the stock price.
The earnings call reveals a decline in key financial metrics, including gross profit and net income, despite increased sales volumes. While there is optimism about future projects and partnerships, unresolved issues such as the CI score and reliance on external approvals introduce uncertainty. The Q&A highlighted management's evasive responses, raising concerns about transparency. The 2-for-1 stock split is positive, but overall, the financial decline and uncertainties suggest a negative sentiment, likely leading to a stock price drop between -2% to -8%.
The earnings call reflects mixed signals: while there are positive aspects like ongoing share buybacks and stable ethanol demand, there are also several concerns. These include reduced financial metrics such as EPS and net income, potential regulatory risks, and unclear management responses. The market may react cautiously due to these uncertainties, leading to a neutral stock price movement in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
