Rex American Resources Announces Stock Split Amid Mixed Quarterly Results

Rex American Resources reported a complex set of quarterly figures today, revealing a decline in profitability that still managed to beat market expectations. The ethanol producer also announced a significant corporate action aimed at enhancing shareholder accessibility.

Financial Performance: Profit Dip Offsets Revenue Growth

For the second quarter of 2025, Rex American posted earnings of $0.43 per share, a decrease from the $0.70 per share recorded in the same period last year. Despite this contraction, the company’s performance substantially exceeded the analyst consensus estimate of $0.34 per share.

Contrasting the profit trend, the company experienced a healthy uptick in revenue, which climbed to $158.6 million from $148.2 million a year earlier. Management attributed this top-line expansion primarily to increased sales volumes, which compensated for lower realized prices in its core ethanol and dried distillers grains segments.

Key operational metrics included:
* Ethanol Sales: 70.6 million gallons (prior year: 65.1 million gallons)
* Corn Oil: Volume increased 14%, while prices rose 26%
* Gross Profit: $14.3 million (compared to $19.8 million in Q2 2024)

The company’s balance sheet remains a point of strength, characterized by the absence of bank debt. Rex American holds a substantial war chest of cash and short-term investments totaling $310.5 million. The quarter also marked its 20th consecutive period of profitability.

Should investors sell immediately? Or is it worth buying Rex American?

Corporate Action: Board Approves 2-for-1 Stock Split

In a move to improve stock liquidity and broaden its investor base, Rex American’s board has approved a two-for-one stock split. Shareholders of record as of September 8 will receive one additional share for every share held. The distribution of these new shares is scheduled for September 15.

This corporate action will effectively double the number of outstanding shares from approximately 16.5 million to 33.1 million. In a related decision that signals strong managerial confidence, the company’s share repurchase authorization was simultaneously doubled to 2.36 million shares.

Strategic Projects and Outlook

The company’s major expansion initiative, which includes a significant carbon capture project, is reported to be progressing on schedule and within its established budget. Total costs for the project are estimated to be between $220 million and $230 million, with $126.7 million already invested. Completion is targeted for 2026.

Looking ahead, management expressed optimism for the upcoming quarter. This positive outlook is underpinned by an ample corn supply, stable demand fundamentals, and a favorable trend of increasing ethanol export volumes.