REX’s Record 2Q EPS, CCS Project Advances – Quarterly Update Report

REX reported record second-quarter earnings of $1.06 per diluted share, up significantly from $0.22 in the same period last year. The company's gross profit reached $53.3 million, with a gross margin of 31.6%, up substantially from previous levels. This improvement was driven by stronger crush economics and the 45Z production tax credit, which contributed $18.4 million during the quarter.

REX's first-half credits now stand at $26.0 million, bolstering its profitability streak to 24 consecutive quarters. The company anticipates its One Earth facility will reach a production capacity of 200 million gallons by early to mid-2027, with a phased ramp-up from 150 million gallons. Draft Class VI permits for the facility's CCS system have advanced, reducing regulatory uncertainty.

REX expects to sell transferable 45Z credits earned in 2026, with cumulative benefits reaching approximately $57.7 million, including minority interests. The 45Z program provides an $85 per ton credit for sequestered carbon, with potential annual benefits of $36 million. One Earth remains the primary growth driver, with a projected capacity increase to 200 million gallons.