REX American Resources Reports Strong Fiscal Year 2024 Results Amid Ethanol Market Challenges
REX American Resources Corporation (NYSE: REX), a leading ethanol production company, has announced its financial and operational results for the full fiscal year and fourth quarter of 2024. The company’s performance reflects its strategic focus on ethanol production, growth initiatives, and disciplined cost management despite challenging market conditions.
Full Fiscal Year 2024 Highlights
For the full fiscal year 2024, REX reported net sales and revenue of $642.5 million, compared to $833.4 million in 2023. This decline was primarily driven by reduced pricing for ethanol and co-products. Despite this, the company achieved a gross profit of $91.5 million, reflecting a resilient performance amidst lower selling prices. Cost-saving measures, including decreased corn and natural gas prices and increased ethanol production levels, helped offset some of the revenue pressures. Gross profit margin improved to 14% from 12% in the prior year, underscoring the company’s operational efficiency.
Income before income taxes and non-controlling interests totaled $92.9 million, slightly down from $98.5 million in 2023. Net income attributable to REX shareholders was $58.2 million, with diluted net income per share of $3.30, compared to $3.47 per share in 2023. These results were based on 17,636,000 diluted weighted average shares outstanding.
Fourth Quarter 2024 Performance
In Q4 2024, REX reported net sales and revenue of $158.2 million, a decrease from $187.6 million in Q4 2023, primarily due to lower product pricing. Gross profit for the quarter was $17.6 million, down from $30.4 million in the prior-year period. Income before income taxes and non-controlling interests stood at $17.9 million, compared to $32.5 million in Q4 2023. Diluted net income per share was $0.63, versus $1.16 in Q4 2023.
Despite these challenges, REX maintained a strong financial position, leveraging its expertise in ethanol production and cost optimization to navigate a weaker crush spread environment during the quarter.
Strategic Growth Initiatives: One Earth Energy Expansion and Carbon Capture Projects
REX continues to advance its growth strategy through key projects at its One Earth Energy facility in Gibson City, Illinois. Construction of utility substation and interconnection equipment necessary for both the ethanol production expansion and carbon capture and sequestration (CCS) facilities has been completed. The capture and compression portions of the CCS project were substantially completed during fiscal year 2024, with final Environmental Protection Agency (EPA) Class VI injection well permitting expected by October 2025.
However, progress has been impacted by a moratorium on new carbon dioxide pipeline permits in Illinois, instituted in July 2024. This regulatory pause, lasting up to two years or until new federal guidelines are approved, has extended the project timeline beyond the initially planned mid-2025 completion date. REX now estimates total project costs between $220-$230 million, reflecting ongoing technical reviews aimed at ensuring operational efficiency.
Capital expenditures related to the One Earth CCS project and ethanol expansion totaled $115.6 million as of January 31, 2025. These investments underscore REX’s commitment to sustainable growth and innovation in the ethanol industry.
Share Repurchase Program
REX demonstrated its confidence in future growth prospects through robust share repurchases. During fiscal year 2024, the company repurchased approximately 372,567 shares for $15.5 million. Following the fiscal year-end, an additional 281,709 shares were repurchased for $11.9 million. On March 25, 2025, the Board authorized the repurchase of up to 1.5 million additional shares, bringing the total available under existing authorizations to over 1.7 million shares.
Solid Financial Position
As of January 31, 2025, REX maintained a strong balance sheet with $359.1 million in cash, cash equivalents, and short-term investments, and no bank debt. This financial strength positions the company to execute its growth strategy while continuing to deliver value to shareholders.
Leadership Perspective
“During Fiscal Year 2024, REX American continued to provide value to shareholders through profitable operations, strategic positioning, and proactive policy engagement,” said Zafar Rizvi, REX’s Chief Executive Officer. “Our team remains committed to navigating market challenges and delivering exceptional results for customers and shareholders.”
Rizvi highlighted the importance of managing growth projects efficiently, emphasizing that technical reviews and permitting processes are critical steps toward maximizing long-term value creation. He expressed optimism about the company’s ability to capitalize on opportunities in the evolving ethanol landscape.
Upcoming Conference Call
Investors and stakeholders can learn more about REX’s performance during a conference call scheduled for today at 11:00 a.m. ET. To participate, dial (877) 269-7751 (US) or (201) 389-0908 (international). A live webcast and updated presentation will also be available on the Investors section of REX’s website at www.rexamerican.com. A replay of the call will be accessible shortly after the event and remain available for 30 days.
