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Jan 31
REX American Q4 2024 Earnings Report
REX American Resources reported its Q4 2024 results, showing decreased revenue and net income due to lower product pricing despite higher ethanol production levels.
Key Takeaways
The company experienced a year-over-year decline in revenue and net income in Q4 2024, primarily driven by lower product pricing. Gross profit was impacted but partially offset by decreased corn and natural gas prices and higher ethanol production volumes.
Revenue for Q4 2024 was $158.2 million, down from $187.6 million in Q4 2023.
Net income attributable to REX shareholders was $11.1 million, compared to $20.6 million last year.
Gross profit decreased to $17.6 million due to lower selling prices.
Diluted EPS for Q4 2024 was $0.63, down from $1.16 in the prior year.
REX American
REX American
REX American Revenue by Segment
Revenue by Segment
Ethanol & by-products Revenue
CapyFin.com Forward Guidance
REX American Resources expects to continue managing operations efficiently while progressing on growth projects, including ethanol production expansion and carbon capture initiatives.
Positive Outlook
- Continued progress on ethanol production expansion at One Earth facility.
- Strong balance sheet with $359.1 million in cash, cash equivalents, and short-term investments as of January 31, 2025.
- EPA permitting for carbon capture project expected by October 2025.
- Ongoing share repurchase programs with new 1.5 million share buyback authorized.
- Commitment to operational efficiency and cost management.
Challenges Ahead
- Lower product pricing impacting revenues and margins.
- Weaker crush spread environment continuing into Q1 2025.
- Extended timeline for ethanol expansion project beyond mid-2025.
- Regulatory moratorium on new CO2 pipelines in Illinois delaying projects.
- Market volatility and commodity price risks remain significant challenges.