AI-extracted from the 10-Q filed 2026-09-03 — Q2 FY2026 (quarter ended July 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
REX reported Q2 revenue of $168.5M (+6% YoY) with net income of $34.9M (+391% YoY), driven by $18.4M in Section 45Z production tax credits and improved commodity margins.
Biggest Revenue Drivers
Ethanol$125.8M+2% YoY
Average selling price increased 2% to $1.78/gallon; gallons sold held flat at 70.6M gallons.
Dried distillers grains$24.2M+14% YoY
Average price per ton increased 16% to $166.55 reflecting increased soymeal prices and export demand; tons sold decreased 2%.
Biggest Revenue Drivers
Total revenue: $168.5M+6% YoY
Ethanol$125.8M+2% YoY
Average selling price increased 2% to $1.78/gallon; gallons sold held flat at 70.6M gallons.
Dried distillers grains$24.2M+14% YoY
Average price per ton increased 16% to $166.55 reflecting increased soymeal prices and export demand; tons sold decreased 2%.
Distillers corn oil$17.6M+41% YoY
Average price per pound increased 33% to $0.72 and pounds sold increased 5%, driven by renewable biodiesel market demand.
Production tax credit income$18.4M
Section 45Z clean fuel production credits recognized under ASU 2025-10 income model; credits earned based on CO2 reduction below 50 CI score threshold.
Largest Expense Items
Cost of sales$133.6M-7% YoY
Corn represented 77% ($102.3M); natural gas 4% ($5.4M). Lower commodity costs on lower volumes offset by favorable crush spread.
Selling, general and administrative$15.6M+152% YoY
$4.7M increase in performance bonuses from higher net income; $3.0M increase from restricted stock awards granted to executives in Q2.
Income tax provision$7.5M
Effective tax rate 15.5% (vs. 22.9% prior year) due to nontaxable income from 45Z tax credits and noncontrolling interests impact.
Margins: Gross profit surged to $53.3M (+271% YoY) from improved crush spreads and $18.4M in 45Z tax credits recognized as production income. Operating leverage improved significantly as revenue grew 6% while cost of sales declined 7%, reflecting favorable commodity price dynamics.
Watch Items from the Filing
Section 45Z tax credit monetization strategy: Company intends to sell $26.0M in transferable tax credits earned in FY2026 (recorded as Level 3 fair value assets), subject to proposed regulatory changes and timing of credit monetization markets.
One Earth carbon sequestration project: $59.1M cumulative spend with $0.3M remaining commitment; EPA issued draft permit for Class VI injection wells (August 17, 2026); still requires state/county permits and CO2 connector pipeline approval with no assurance of success or timing.
NuGen Summit Carbon Solutions pipeline delay: South Dakota banned eminent domain for CO2 pipelines (March 2025); North Dakota voided permits (March 2026); project delays may hinder Company's ability to capture additional 45Q/45Z credits at NuGen facility.
RFS compliance uncertainty: EPA issued 34 Small Refinery Exemption decisions on August 31, 2026 (18 full, 11 partial 50%, 5 denied); 1.8B RINs exempted; 2025 RVO compliance deadline extended 30 days to October 1, 2026; discretionary SRE decisions impact ethanol demand.
Big River equity investment concentration: 10.3% ownership stake contributed $7.2M equity income in Q2 (vs. $0.9M prior year), with $1.8M from 45Z credits; undiversified reliance on co-member performance and regulatory credit monetization.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About REX AMERICAN RESOURCES Corp (REX): stock profile, AI score and financials
REX AMERICAN RESOURCES Corp (REX) stock profile, AI quality score, and SEC EDGAR financial data, a Materials sector company. 13F Pro's AI-powered ranking engine scores REX at 52.8/100 on a composite quality score built from its SEC filings, placing it at rank #1,449 of 2,925 stocks — the top half of the AI-ranked universe. REX scores in the top quartile across balance sheet strength (92.9), profitability (81.9). Areas of concern include revenue growth (14.9) and institutional flow (29.2), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2027), REX AMERICAN RESOURCES Corp reports quarterly revenue of $168.5M, net income of $40.6M, free cash flow of $16.8M. Top institutional holders of REX by reported 13-F value include BlackRock, DIMENSIONAL FUND ADVISORS, STATE STREET, based on the most recent SEC filings. REX trades on the NYSE exchange and files with the SEC under CIK 744187. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate REX daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for REX AMERICAN RESOURCES Corp directly from SEC EDGAR.