0000930413-25-002856
SEC filingStrong liquidity with $311M cash & investments, no debt, and $7.1M in capital commitments.
As of July 31, 2025, REX holds $240.962M in cash and $69.490M in short-term U.S. Treasury Bills, totaling $310.5M in liquid assets. The company has no debt, with shareholders' equity (REX) of $545.766M. Inventory stands at $31.632M, with no write-downs recorded. The current ratio is strong at 10.5x ($390.5M current assets vs $37.1M current liabilities).
Capital commitments include $7.1M remaining on signed non-cancelable contracts at One Earth for capital projects. Additionally, the company has forward purchase contracts for 15.0M bushels of corn and 1.1M MmBtu of natural gas (not dollar-denominated). Sales commitments total 68.8M gallons of ethanol, 88,100 tons of distillers grains, and 14.6M pounds of distillers corn oil. A subsequent event on August 26, 2025, announced a 2-for-1 stock split.
In the first six months of fiscal 2025, REX repurchased 826,000 shares for $33.382M. Capital expenditures were $28.924M (9.1% of sales). No dividends were paid or declared. The company has no debt outstanding.
The sole reportable segment is ethanol and by-products, aggregating three plants (two consolidated majority-owned, one equity method). For Q2 2025, segment net sales (including equity method) were $388.439M, down 4.9% YoY. Segment income before taxes was $21.417M, a 45.9% decline from $39.560M in Q2 2024, driven by lower margins. Depreciation for the segment was $11.724M. The reconciling item to consolidated results is the equity method investment in Big River (10.3% owned), which contributed $891K in Q2 2025 equity income.
REX's cash from operations (CFO) of $12.8M significantly exceeded net income of $20.0M after adjustments, indicating strong cash generation. The 124% YoY increase in CFO was primarily driven by favorable working capital changes, including a $2.6M reduction in inventories and a $4.1M smaller decrease in accounts payable year-over-year.
Capital expenditures of $28.9M remained elevated, though down from $40.2M in the prior period. This investment intensity resulted in negative free cash flow (CFO minus capex) of -$16.1M, a large improvement from -$34.5M last year. The company funded capital outlays through proceeds from maturities of short-term investments.
REX repurchased $33.4M in treasury stock, a new initiative this year, and paid $2.3M to noncontrolling interests. These outflows were more than covered by investing activities, as net cash provided by investing was $67.5M, largely from net maturities of short-term investments. Overall cash balance increased by $44.7M, ending at $241.0M.
Notable non-cash adjustments include depreciation of $7.1M, stock-based compensation of $1.0M, and deferred tax of $4.3M. Working capital swings were mixed: accounts receivable increased $3.3M, while accounts payable decreased $9.9M, weighing on CFO. Refundable taxes and other assets also consumed cash.