REX American Resources beats Q1 estimates, shares rise over 4%

Published 28/05/2025, 12:48
REX American Resources beats Q1 estimates, shares rise over 4%

NEW YORK - REX American Resources (NASDAQ:AREC) Corporation (NYSE:REX) reported better-than-expected first quarter earnings on Wednesday.

The company’s shares were up 4.55% in pre-market trading following the release.

The ethanol producer posted adjusted earnings per share of $0.51 for the fiscal first quarter of 2025, surpassing analyst estimates of $0.26. Revenue came in at $158.3 million, slightly below the consensus forecast of $161.27 million but down only 1.8% YoY.

REX’s strong bottom line performance was driven by improved ethanol pricing, which helped offset lower volumes and sales prices for distillers grains. The company reported gross profit of $14.3 million, nearly flat compared to $14.5 million in the same quarter last year.

"We achieved our 19th consecutive quarter of positive earnings in our core ethanol business," said CEO Zafar Rizvi. He noted the company repurchased over 822,000 shares during the quarter for $32.7 million.

REX continued to make progress on expansion projects, including increasing ethanol production capacity at its One Earth facility. The company has spent $122.7 million so far on carbon capture and ethanol expansion initiatives, with a total budget of $220-$230 million.

As of April 30, REX had a strong balance sheet with $315.9 million in cash and short-term investments and no bank debt.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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