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CEO Zafar Rizvi acknowledged the weaker crush spread environment, similar to what was seen during the fourth quarter, continuing into the first quarter of 2025.
Ethanol-producer REX American Resources (REX) shares were in the spotlight on Wednesday morning after the company’s fourth quarter earnings topped Wall Street estimates.
Net sales and revenue declined 15% year over year (YoY) to $158.23 million but topped a Street estimate of $154 million, per FinChat data. The decrease in sales primarily reflected lower product pricing.
Earnings per share came in at $0.63 versus an analyst estimate of $0.37. However, net income attributable to REX shareholders dropped 46% YoY to $11.1 million.
The company reported a consolidated ethanol sales volume of 74.6 million gallons for the quarter.
CEO Zafar Rizvi highlighted that the company’s two growth projects at its One Earth facility are progressing. “The technical review underway at our ethanol expansion project is in line with our philosophy of prioritizing efficiency of operations across our plants,” he noted.
REX stated that management is currently reviewing certain details of the ethanol expansion project. Due to this, the company expects the timeline for completion to extend beyond the previously communicated target of the middle of 2025.
REX is now budgeting between $220 million and $230 million for this project.
The CEO also acknowledged the weaker crush spread environment, similar to what was seen during the fourth quarter, continuing into the first quarter of 2025.
As of Jan. 31, 2025, the company reported $359.1 million of cash, cash equivalents, and short-term investments available and no bank debt.
On Tuesday, the company’s Board authorized repurchasing up to 1.5 million shares.
Meanwhile, on Stocktwits, retail sentiment continued to trend in the ‘neutral’ territory following the earnings announcement.
REX shares have lost over 12% in 2025 and are down over 16% in the past 12 months.
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