REX American Resources 2025財年第二季法說會：乙醇擴產與第三季展望

重點摘要

• REX American Resources 公布 2025 財年第二季歸屬於股東淨利為 710 萬美元，或稀釋後每股 0.43 美元，而去年同期則為 1,240 萬美元，或稀釋後每股 0.70 美元。
• 乙醇銷量從 6,510 萬加侖增加至 7,060 萬加侖，但平均售價從每加侖 1.79 美元降至 1.75 美元。
• 毛利從 1,980 萬美元下降至 1,430 萬美元，主要是因為乾酒糟 (DDG) 價格下降以及運輸成本上升。
• One Earth Energy 擴建計畫仍按時程推進，預計在 2026 年將乙醇年產能提升至 1.75 億加侖。乙醇擴建與碳捕集專案的總投資額已達約 1.267 億美元，仍在 2.2 億至 2.3 億美元的合併預算範圍內。
• 管理層預計 2025 財年第三季表現將較第二季改善，但仍低於 2024 財年第三季，後者為該公司歷史上第二佳的季度。
• REX 董事會授權針對截至 2025 年 9 月 8 日登記在冊的股東，透過發放 100% 股票股利實施 1 拆 2 股票分割。

核心財務數據

業務與營運績效

REX 在 One Earth 設施完成了一項能效提升倡議，旨在降低擴建後工廠的碳強度。大部分初期擴建工作已完成，公司預計 1.75 億加侖的乙醇年產能將於 2026 年全面投入營運。REX 還打算隨後進一步擴建至 2 億加侖。

公司已在其碳捕集與乙醇擴建專案中投資約 1.267 億美元。管理層表示，兩個專案均維持在修訂後的 2.2 億至 2.3 億美元合併預算範圍內。

最近頒布的《大型美麗法案》（One Big Beautiful Bill Act）保留了 45Q 稅收抵免，並將 45Z 稅收抵免延長至 2029 年。管理層表示，這些條款改善了擬議中碳捕集與封存專案的經濟效益。取消氣候智慧型農業要求可能會使 REX 的碳強度評分改善 4 至 6 分，不過最終的指導方針仍待定。

玉米油是本季度表現最強勁的副產品。銷量增加約 14%，平均價格上漲約 26%，銷售金額增加約 46%。相較之下，乾酒糟價格走弱，導致毛利下降。

管理層展望

管理層預計 2025 財年第三季業績將強於第二季，但弱於 2024 財年第三季。這項展望獲得良好的玉米供應量、穩定的需求以及乙醇出口增加的支撐。管理層引用可再生燃料協會（Renewable Fuels Association）的數據指出，截至 6 月的美國乙醇出口量比 2024 年水準高出約 10%，並預計 2025 年將再創出口新高。

管理層還預計，美國玉米收成可能再創新高，將支撐利潤率直至年底。如果關稅相關的貿易問題得到解決，出口可能迎來額外的上行空間。

美國國家環保局（EPA）目前預估 REX 的第 VI 類注水井許可申請將於 2026 年 3 月定案。管理層表示，如果公司獲得所需的郡政府、伊利諾州環保局及伊利諾州商務委員會批准，碳捕集專案可能會在 2026 年開始營運。

風險與關注焦點

• 毛利對副產品價格依然敏感。管理層指出，相較於玉米價格，乾酒糟表現疲軟，並指出包括出口至墨西哥在內的 DDG 出口量較去年有所下降。
• 碳捕集的時間表取決於多項監管批准，包括第 VI 類井許可、地方特殊用途許可、伊利諾州環保局許可以及伊利諾州商務委員會的授權。
• 45Z 的最終指導方針仍待定，這使得 REX 無法在碳捕集啟動前公開確認其碳強度評分或可能符合資格的抵免額度。
• 管理層的出口展望包含了因解決關稅相關貿易問題而產生的潛在上行空間，這使貿易政策成為持續的不確定因素。

分析師問答亮點

管理層確認影響 One Earth 碳捕集專案的公用事業互連問題已經解決。該設施現在可以直接從 Ameren 接收公用事業服務。

REX 表示，能效提升以及在 45Z 計算中取消氣候智慧型農業要求，可能使該公司在碳捕集投入營運前就有資格獲得部分稅收抵免。然而，在最終指導方針未定前，管理層拒絕確認資格。

規劃中的碳管道長度將小於 6.5 英里，且位置避開含水層。管理層估計，在獲得伊利諾州商務委員會批准後，施工將需要大約兩個月的時間。

關於副產品，管理層表示玉米油依然強勁，而 DDG 由於出口需求減少表現較弱。伊利諾州、南達科他州和愛荷華州良好的玉米收成預計將為 REX 的營運及少數股權投資提供充足的原物料。

電話會議完整逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Greetings, and welcome to REX American Resources Corporation's Second Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Doug Bruggeman. Thank you. You may begin.

Douglas Bruggeman

Good morning, and thank you for joining REX American Resources' quarter 2 2025 conference call. With me on our call today are Stuart Rose, REX's Executive Chairman; and Zafar Rizvi, REX's Chief Executive Officer. We'll get to our presentation and comments momentarily as well as your questions, but first I will review the safe harbor disclosure.

In addition to historical facts or statements of current conditions, today's conference call contains forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the company's current expectations and beliefs, but are not guarantees of future performance. As such, actual results may vary materially from expectations.

The risks and uncertainties associated with the forward-looking statements are described in today's news announcement and in the company's filings with the Securities and Exchange Commission, including the company's reports on Form 10-K and 10-Q. REX American Resources assumes no obligation to publicly update or revise any forward-looking statements.

I'd now like to turn the call over to our Executive Chairman, Stuart Rose.

Stuart Rose

Good morning, and thank you to everyone for joining us today. During the second quarter, REX extended our success in our core ethanol production business, moved our One Earth Energy expansion project forward and saw supportive near-term tailwinds develop for our business as we head to the second half of the year. Overall, REX exited the second quarter in a great position to continue delivering value to our shareholders.

The passage of The One Big Beautiful Bill Act during the quarter was very supportive of our carbon capture and sequestration project. The continuation of the 45Q tax credit and extension of the 45Z tax credit through 2029, important to the economics of our project, put us in good position as we wait on approvals from the county, state and EPA. We are pleased with these developments and believe they set up REX for long-term success.

During the quarter, we maintained our strong balance sheet and continue to have ample cash to complete our several growth initiatives as well as other opportunities which could arise. These include any potential acquisition opportunities that meet our strict operational and financial criteria or additional future organic growth.

This morning, we announced that our Board of Directors has authorized a 2-for-1 stock split that would be effected by a 100% stock dividend. The stock recently traded at all-time highs; we saw this as an opportunity to reward our loyal shareholders and increase liquidity in our shares. The split will affect shareholders of record as of September 8, 2025.

Overall, the REX team executed at a high level once again, delivering value to our shareholders and moving our business forward efficiently. We are very proud of the work the team does every day to ensure our company success drive value for shareholders.

I'll now turn the call over to CEO, Zafar Rizvi, to provide updates on our ongoing projects.

Zafar Rizvi

Thank you, Stuart. The One Earth facility expansion is progressing steadily. The previously mentioned energy efficiency initiative has been completed with a focus on optimizing the reduction of the expanded plant's carbon intensity. Most of the previous expansion work is already complete. The initial capacity expansion, which will increase annual ethanol production capacity to 175 million gallons, is expected to be fully operational in 2026.

Turning to carbon capture. The recently enacted Big Beautiful Bill Act has further strengthened the economics of REX's proposed carbon capture and sequestration project by preserving both the 45Q and 45Z tax credits. While we also extended 45Z through 2029, with this outcome, we are positioned to maximize the benefit from the tax credit program through expansion of our ethanol production capacity to 175 million and then to 200 million gallons. The legislation also simplified 45Z requirements by removing mandates tied to climate-smart farming practice.

Also, thanks to the legislation, clean fuels produced with feedstock sourced outside the U.S., Mexico or Canada will not be eligible for the 45Z credit pending final treasury guidelines. This supports our business as well as that of our farmers' partners.

As of today, the EPA estimates that our Class VI injection well permit application will be finalized in March 2026, which has been moved forward from April 2026 as per the EPA website. REX remains in active communication with EPA on our application and we look forward to the final approval of this permit.

As of the end of the second quarter, we have invested a total of approximately $126.7 million in carbon capture and ethanol expansion projects. We remain within our revised combined budget range of $220 million to $230 million for both projects.

I'll now hand the call over to Doug Bruggeman to discuss our financial results.

Douglas Bruggeman

Thanks, Zafar. During the second quarter of fiscal 2025, our ethanol sales volumes reached 70.6 million gallons, compared to 65.1 million gallons Q2 2024. The average selling price for ethanol was $1.75 per gallon during the quarter, versus $1.79 in the prior year.

Dried distiller grain sales volumes were approximately 148,000 tons for Q2 with an average selling price of $143.63 per ton, compared to approximately 133,000 tons at a price of $164.45 per ton in the prior year. Modified distillers grain volumes totaled approximately 19,000 tons at an average selling price of $64.41 per ton.

Corn oil sales volumes were approximately 23.1 million pounds during the quarter, with an average selling price of $0.54 per pound. Compared to the prior year, we sold approximately 14% more pounds in the second quarter and also experienced approximately a 26% increase in prices, which led to approximately a 46% increase in sales dollars.

Gross profit for the second quarter was $14.3 million, compared to $19.8 million in Q2 2024. This primarily reflects lower sales prices for dried distiller grains as the average price dropped from $164.45 to $143.63. We also paid higher shipping costs, which is recorded as cost of goods sold and impacts gross profit but does not impact sales.

Selling, general and administrative expenses were approximately $6.2 million for the quarter, compared to $6.4 million in Q2 2024. Interest and other income totaled $3.1 million for the quarter, compared to $4.4 million in quarter 2 2024, reflecting lower rates and lower investments.

Income before taxes and noncontrolling interest was approximately $12.1 million, compared to $19.5 million in Q2 2024. Net income attributable to REX shareholders was $7.1 million or $0.43 per diluted share, compared to $12.4 million or $0.70 per diluted share in Q2 2024.

We ended the first quarter with cash, cash equivalents and short-term investments of $310.5 million. REX continues to maintain a strong financial position with no bank debt.

I'll now turn things back to Zafar.

Zafar Rizvi

Thanks, Doug. REX's strategy continues to be guided by the 3Ps: profit, position and policy.

Profit. Our dedicated team has delivered 20 consecutive quarters of the profitability, reflecting strength, discipline and commitment. Our third quarter for 2025 is on pace to outperform the second quarter, but will not be as strong as our last year's third quarter which was our second best quarter on record.

I'm particularly pleased with the increased yield of corn oil production, which reflects the consistent and efficient operation of the overall plants. This improvement demonstrates not only the effectiveness of our process, but also the dedication of the team in maintaining a high standard of the performance.

Position. Ethanol expansion and carbon capture initiative remains moving forward and within budget, positioning REX for sustainable long-term organic growth.

Policy. [ Government ] policies and measures, particularly the continuation of the 45Q tax credit and the extension of 45Z tax credit through 2029, enhance the economics of our operation and strengthen future earnings potential.

Looking ahead, REX anticipates better performance in the third quarter of 2025 compared to the first 2 quarters of the year, supported by favorable corn supply, strength and steady demand, particularly from rising ethanol exports. Exports are running about 10% ahead of 2024 levels through June according to the Renewable Fuels Association. With 2024 already a record year, REX expects 2025 to set a new export record.

As far as feedstock supply, early estimates also suggest that U.S. corn crops is on track for a potential record harvest, which should further benefit REX. We believe this favorable market dynamic supports margin expansion through yearend with additional export upside once tariff-related trade issues are resolved.

REX remains confident in the outlook for its core business, and we are committed towards executing our growth strategy while continuing to deliver long-term value to our shareholders.

Now I would like to open things up for questions. Operator?

Operator

[Operator Instructions] Our first question comes from Peter Gastreich with Water Tower Research.

分析師問答

Peter Gastreich

For starters, congratulations on the results and another consecutive quarter of profitability. I've said it before, that's something that's eluded pretty much all of your peers. So congratulations on that. It's also great to see the regulatory tailwinds that are coming through in your favor.

Just a few questions for me. The first one is just regarding an event that you held this summer at your Rare Earth -- or excuse me, at your Earth Energy facility. It looks like it was very well attended with a couple of hundred of people. Could you talk about who turned up for that event? And any implications for your state and local support for your growth projects, particularly for CCS?

Stuart Rose

I was at the event, so I guess I'll answer that. This is Stuart. People that turned up were mostly local people. And it was the first time we did it at the One Earth facility. And it was -- again, we're doing our best to be a good citizen in the community.

And almost all the local -- or many local officials turned up, many shareholders, we only own 75% of One Earth, so many shareholders turned up. A few government officials -- a few government officials or state representatives and things like that -- people like that showed up.

Overall it was a big success. I think we accomplished what we were trying to do, which is to get some gratitude in -- or have some favor -- have more favor in the local community. I think we're already a major citizen of Gibson City, but this just made us a little bit better.

Peter Gastreich

Okay. Just in relation to the CCS component of the Earth Energy project, something that came up towards the end of last year was an issue with an interconnection from a local utility. I may have missed the update, but can I just confirm whether that was resolved?

Zafar Rizvi

Yes, that is resolved and now we are able to get the utility directly from Ameren, and it's no problem anymore.

Peter Gastreich

Okay. That's great. So thanks for the update in terms of the ethanol margins. It looks like we are in a better place today versus earlier this year. But going into the second half, it would be great to hear your thoughts on the outlook for your co-products as well.

Zafar Rizvi

As you know, I already mentioned that we believe that our third quarter will be better than second quarter, but it will not be as good as last year because last year was our second best quarter. But we also see the bumper crops not only in South Dakota, but also pretty good crops in Illinois, particularly in the McLean County, it's a record corn this year in Illinois. And we see that will be very beneficial to both of our locations.

And we also see our bumper crops in Iowa, where we have minority shareholders, a company, Big River, which we own approximately 10%, so they have also the record crops this year. So we certainly see that there are going to be plenty of feedstock available.

And also, as you know, the export is increasing, of ethanol, and we are very pleased with that. And not only Britain is buying -- plan to buy ethanol from U.S., but also Japan also plans to buy this year also due to the tariff negotiation. So we certainly see that if this continues, we will be really in a pretty good shape in our core business.

Stuart Rose

In terms of the byproducts, corn oil continues to be very strong. DDG is a little weak relative to corn prices. And with the bumper crop, I don't know if that's going to continue or not. But DDG has not been as strong relative to corn prices as it has in the past. Hopefully, that will turn around.

Zafar Rizvi

Yes, I think that's correct, Stuart, because I think the export of DDG has dropped compared to last year. So that's one of the things. We can see even Mexico is buying less than last year, so first 6 months. So that's certainly some concern.

Operator

Our next question comes from Jarrod Edelen with South Dakota Investment Office.

Jarrod Edelen

Great quarter. I just wanted to see if you could comment on the overall CI score of your 2 main plants given the change in the recent legislation relating to 45Z, and if you would qualify for any credits without a carbon pipeline?

Zafar Rizvi

Stuart, do you want me to take that?

Stuart Rose

Yes. Why don't you take it, Zafar?

Zafar Rizvi

Yes. I think we have not really, compared to other few companies that have declared their CI score. As you know, there is no clear guideline at this time. So that's one of the reasons we have not really discussed publicly what exactly is our CI score at this time, up until we have clear guideline what will be our CI score.

But we're certainly very happy to see that smart farming is no longer part of the calculation, and that will give us 4 to 6 points. And that could help us to really able to go below 50 or close to that number, where we will be able to get some CI score reduction without CI score and will be beneficial to us.

Stuart Rose

Also as part of the One Earth project, we also are doing things to make our plant more energy-efficient, which should help our CI score. And there's a chance even without carbon capture -- but like Zafar said, we can't get -- we don't know the guidelines, so we're not going to say that it's going to happen. But there's a chance we could get some tax credits even without carbon -- even before carbon capture project is ready to go. But we are not -- we don't feel we're in a position to say anything about that right now.

Jarrod Edelen

Excellent. And given the Illinois moratorium on carbon pipelines, which appears to expire in July of next year, if your Class VI well is approved, would you believe that you'd be able to build that soon after that expiration?

Zafar Rizvi

That's where our goal is. But as you know, we still have, after that's approved, we plan to get from the local county special use permit, and then we also have to have IEPA permit. And we have discussion with the Illinois EPA and we also have discussion with ICC, Illinois Commerce Commission. They are also working on legislations or the guideline, whichever they wanted to have, we should follow that.

So we certainly, if those guidelines are issued and all those approvals are received, then we certainly will be able to operate in 2026. But naturally, this depends on all of those permits, once we receive those.

Jarrod Edelen

Excellent. And my final question, just related to the short distance that the pipeline is. What's the build time once approvals come to first carbon injection?

Zafar Rizvi

I think once we receive -- we have to apply -- it's less than 6.5 miles pipeline. The honest answer is we build that pipeline, the reason because, we, from the very beginning, we wanted to make sure that we are away from aquifer. Otherwise, we can have -- build that well right next to our ethanol facility. But we decided we want to be away from the aquifer. So that way, in the future, there is no concern about the drinking water.

And that's what exactly happened later on. The legislation was issued that there should not be any over or under that carbon sequestration where the aquifer is. So we are 6.5 miles away from aquifer, and that's what -- that. So it depends how quickly we can get permission from ICC. Once we receive the permission from ICC, that takes about a couple of months to build the pipeline.

Operator

We have reached the end of the question-and-answer session. I'd now like to turn the call back over to Stuart Rose for closing comments.

Stuart Rose

I'd like to thank everyone for listening. Again, we outperformed most in the industry this quarter. And we currently expect an even better quarter next quarter. It's all due to having great locations for our plants, great plants, most importantly, the top people in the industry. And that goes from our CEO all the way to effort to all the teams in our plants. And that's really what makes us special and what makes us outperform the industry quarter after quarter.

We look forward to talking to everyone after the end of our next quarter. Thank you again for listening.

Operator

This concludes today's conference. You may disconnect your lines at this time. And we thank you for your participation.