REX American Resources' Q2 profit surges on tax credits, higher margins
REX•Profit drivers and margins
The company said higher selling prices for ethanol and co-products contributed to increased revenue and gross profit.
REX said the Section 45Z tax credit program contributed $18.4 million directly to gross profit in the quarter.
The company also said improved crush margins boosted gross profit excluding tax credits.
Q2 profit and revenue rise
REX American Resources said its fiscal second-quarter revenue rose year over year on improved pricing, while net income and earnings per share surged, aided by production tax credits and better margins.
The U.S. ethanol producer reported second-quarter revenue of $168.49 million and EPS of $1.06.
Project and regulatory update
REX said it expects the One Earth ethanol expansion to become operational during fiscal 2026.
The company also said it received draft EPA permits for its carbon capture project at the One Earth facility, advancing the regulatory process.
