ANDE•ANDE•1Q FY26 gross profit totaled $29.1 million, with $7.5 million (26%) from Section 45Z credits booked at $0.10/gallon, while equity income from affiliates rose $3.6 million. The One Earth expansion and carbon capture project ($176.3 million capex) remain on schedule to boost ethanol volumes and long-term policy-linked earnings.
REX recorded $7.5 million of Section 45Z production tax credits in 1Q FY26 at an average rate of $0.10 per gallon, representing approximately 26% of the quarter’s $29.1 million gross profit. Adoption of ASU 2025-10 shifted these credits into gross profit, and equity income from unconsolidated affiliates rose to $3.6 million on incremental 45Z recognition.
The One Earth facility is on track for full operation during FY26, adding new capacity alongside the Gibson City ethanol plant expansion, which is entering testing and commissioning. Stable quarter-to-quarter volumes of 71.1 million gallons demonstrate a solid base, while new capacity will drive volume and profit growth once online.
Total investment in carbon capture and ethanol growth projects reached $176.3 million by end of 1Q FY26, within the $220–230 million budget range. REX is pursuing a Class VI injection well permit with the EPA and preparing Illinois pipeline applications for submission after the July 1 moratorium expiration, targeting improved carbon intensity scores and higher credit realization.
The company ended 1Q FY26 with $364.3 million in cash, cash equivalents, and short-term investments and no bank debt, down slightly from $375.8 million at FY25-end due to capex spending. Working capital shifts included higher receivables at $21.6 million and lower inventory at $26.5 million, while net cash used in operating activities improved to $2.1 million.
