REX AMERICAN RESOURCES Corp — Call Transcript 2026

Good morning, welcome to the REX American Resources first quarter 2026 conference call. As a reminder, today's call is being recorded, and at this time, all participants are in a listen-only mode. A brief question and answer session will follow a formal presentation. I would now like to turn the call over to Mr. Doug Bruggeman, Chief Financial Officer of REX American. Please go ahead. Good morning, and thank you for joining REX American Resources first quarter 2026 conference call. With me on our call today are Stuart Rose, REX Executive Chairman, and Zafar Rizvi, REX Chief Executive Officer. We'll get to our presentation and comments momentarily, as well as your questions. 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 in 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. Good morning, and thank you to everyone for joining us today. First quarter of 2026 continued to showcase REX's operational excellence and strategic discipline. Our team has once again demonstrated the ability to deliver outstanding results while advancing our key growth initiatives. As proof of this, the first quarter of 2026 was the most profitable first quarter on a net income per share basis in our company's history. This consistent approach provides us with the flexibility to pursue value-creating opportunities while maintaining thoughtful approach to capital allocation. Both of our major growth projects, the carbon capture and sequestration initiative and the ethanol production capacity expansion at our One Earth Energy facility, continue to advance. We remain focused on executing what is within our control while adapting to external factors as they evolve. Shareholder value creation remains a top priority. REX is particularly keen to take advantage of market tailwinds, driven by both domestic policy and international export markets, and to maximize our profit potential. We believe that our team is incredibly well-positioned and prepared to do this. I now turn the call over to our CEO, Zafar Rizvi, to provide updates on our ongoing projects. Thank you, Stuart. Our ethanol facility expansion at Gibson City continues to progress on schedule, and we remain on track for completion by the end of 2026. This expansion represents an important step in strengthening our production capabilities and positioning the company for long-term growth. We are pleased to announce a record profitable first quarter on a net income per share basis. Regarding our carbon capture and sequestration initiative, we continue to work closely with the EPA on our Class VI injection well permit application. The permitting process remains ongoing, and we are addressing all regulatory requirements to move the project forward efficiently. At the state level, the Illinois moratorium on carbon pipeline permitting is scheduled to expire on July 1st, 2026. We have maintained engagement with the Illinois Commerce Commission and plan to submit our application shortly following the expiration of the moratorium. We are also closely monitoring ongoing federal policy discussion related to carbon capture incentives under Section 45Z. We began recognizing 45Z production tax credits in the fourth quarter of 2025, and during the first quarter of 2026, we recorded an additional $7.5 million in production tax credit. For the first quarter, we maintain booking the credit at $0.10 per gallon at the consolidated plants as we continue to monitor the 45Z regulations. As of the end of the first quarter of 2026, our total investment in the carbon capture and ethanol expansion projects was approximately $176.3 million. We continue to operate within our combined project budget range of $220 million-$230 million, subject to potential adjustments related to inflation and other market factors as the project advance. I will now turn the call over to Doug Bruggeman to discuss our financial results. Thanks, Zafar. During the first quarter of fiscal 2026, our ethanol sales volumes reached 71.1 million gallons compared to 70.9 million gallons in the first quarter of 2025. The average selling price for ethanol was $1.66 per gallon during the quarter, compared to $1.76 in the prior year's first quarter. dried distillers grains sales volumes were approximately 155,000 tons for Q1, with an average selling price of $155.86 per ton versus $145.65 in the prior year. modified distillers grains volumes totaled approximately 13,427 tons, with an average selling price of $76.94 per ton. Corn oil sales volumes were approximately 23.9 million pounds during the quarter, with an average selling price of $0.54 per pound, compared to $0.46 in the prior year. The company reported $7.5 million in 45Z production tax credit income in the first quarter of fiscal 2026. Reflecting our change in accounting principles, we now report that as operating income from our consolidated plants. Gross profit for the first quarter was $29.1 million, compared to $14.3 million in Q1 2025. This improvement primarily reflects the benefit of 45Z tax credits and reduced corn pricing. Selling general and administrative expenses were approximately $9.7 million for the quarter, compared to $5.9 million in Q1 2025. The increase was primarily due to higher incentive compensation and recording unpaid stock bonuses from 2025 at fair value. Our equity in income of unconsolidated affiliates increased from $1 million to $3.6 million, with approximately $1.8 million of the increase due to income from 45Z tax credits. Interest and other income totaled $3.2 million for the quarter, compared to $4.2 million in Q1 2025. Income before taxes and non-controlling interest was approximately $26.1 million, compared to $13.6 million in Q1 2025. Net income attributable to REX shareholders was $18.5 million, or $0.56 per diluted share, compared to $8.7 million, or $0.26 per diluted share in Q1 2025. This represents our 23rd consecutive profitable quarter. We ended the first quarter with cash equivalents, and short-term investments of $364.3 million. The reduction for the previous quarter primarily reflects our ongoing capital investments in our growth projects. REX continues to maintain its strong financial position with no bank debt. I'll now turn things back to Zafar. Thank you, Doug. The REX team continues to execute successfully against our long-term strategic objectives. Our core focus remains on building and operating a consistently profitable business. The first quarter of 2026 marked the strongest first quarter earnings per share in our company's history and represented our 23rd consecutive profitable quarter. This performance reflects our team's ability to capitalize on opportunities, navigate changing market conditions, and consistently deliver value for our shareholders. We continue to position REX for sustainable long-term growth through disciplined organic expansion initiatives, all funded through our strong balance sheet with no debt. Our ethanol production expansion and carbon capture project continue to advance as planned, despite permitting delays and certain regulatory headwinds. We remain focused on optimizing these investments, expecting to drive future operational excellence and enhanced financial performance for our shareholders. We also plan to continue evaluate the best use of our cash, including investment that complement our existing platform. In addition, we continue to closely monitoring policy developments at both the federal and state levels. The anticipated expiration of the Illinois carbon pipeline moratorium in July represents an important regulatory milestone. While policy outcomes remain outside our control, we believe we are well-informed and working diligently to respond effectively to regulatory developments. Market fundamentals for the ethanol industries remain constructive. Domestic demand continues to be stable while export markets remain strong. According to the Renewable Fuels Association, 2026 ethanol export through March increased by 20% compared to the same period last year. As we move through the second quarter, we continue to see stable operating conditions and remain confident in our ability to deliver another profitable quarter for our shareholders. With that, I would now like to open the call for questions. Operator? Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. There are no questions at this time. I would like to hand the floor back over to Stuart Rose for any closing comments. Thank you. Sorry there's no questions, but I want to reiterate we have great plants, great locations, and I feel the best employees in the business led by our CEO, Zafar Rizvi. I think they're better than anyone else in the industry, and our earnings prove it. We've been public for over 40 years. We had our greatest first quarter in earnings per share in our public history. Best people, best plants in my opinion. We're optimistic for future growth, both in ethanol and receiving Section 45 tax credits, Z and Q. We look forward to talking to everyone at the next call. Thank you for listening. Bye. This concludes today's conference. You may disconnect your lines at this time. Thank you again for your participation.

Speaker 2: Good morning, welcome to the REX American Resources first quarter 2026 conference call. As a reminder, today's call is being recorded, and at this time, all participants are in a listen-only mode. A brief question and answer session will follow a formal presentation. I would now like to turn the call over to Mr. Doug Bruggeman, Chief Financial Officer of REX American. Please go ahead. Good morning, welcome to the REX American Resources first quarter 2026 conference call. good morning welcome to the rex american resources first quarter 2026 conference call As a reminder, today's call is being recorded, and at this time, all participants are in a listen-only mode. as a reminder today's call is being recorded and at this time all participants are in a listen-only mode A brief question and answer session will follow a formal presentation. a brief question and answer session will follow a formal presentation I would now like to turn the call over to Mr. Doug Bruggeman, Chief Financial Officer of REX American. i would now like to turn the call over to mr doug bruggeman chief financial officer of rex american Please go ahead. please go ahead

Speaker 1: Good morning, and thank you for joining REX American Resources first quarter 2026 conference call. With me on our call today are Stuart Rose, REX Executive Chairman, and Zafar Rizvi, REX Chief Executive Officer. We'll get to our presentation and comments momentarily, as well as your questions. 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 in 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. Good morning, and thank you for joining REX American Resources first quarter 2026 conference call. good morning and thank you for joining rex american resources first quarter 2026 conference call With me on our call today are Stuart Rose, REX Executive Chairman, and Zafar Rizvi, REX Chief Executive Officer. with me on our call today are stuart rose rex executive chairman and zafar rizvi rex chief executive officer We'll get to our presentation and comments momentarily, as well as your questions. we'll get to our presentation and comments momentarily as well as your questions First, I will review the safe harbor disclosure. 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 in the meaning of the Private Securities Litigation Reform Act of 1995. in addition to historical facts or statements of current conditions today's conference call contains forward-looking statements that involve risks and uncertainties in 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. 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. 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. 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. REX American Resources assumes no obligation to publicly update or revise any forward-looking statements. 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. i'd now like to turn the call over to our executive chairman stuart rose

Speaker 3: Good morning, and thank you to everyone for joining us today. First quarter of 2026 continued to showcase REX's operational excellence and strategic discipline. Our team has once again demonstrated the ability to deliver outstanding results while advancing our key growth initiatives. As proof of this, the first quarter of 2026 was the most profitable first quarter on a net income per share basis in our company's history. This consistent approach provides us with the flexibility to pursue value-creating opportunities while maintaining thoughtful approach to capital allocation. Both of our major growth projects, the carbon capture and sequestration initiative and the ethanol production capacity expansion at our One Earth Energy facility, continue to advance. We remain focused on executing what is within our control while adapting to external factors as they evolve. Shareholder value creation remains a top priority. Good morning, and thank you to everyone for joining us today. good morning and thank you to everyone for joining us today First quarter of 2026 continued to showcase REX's operational excellence and strategic discipline. first quarter of 2026 continued to showcase rex's operational excellence and strategic discipline Our team has once again demonstrated the ability to deliver outstanding results while advancing our key growth initiatives. our team has once again demonstrated the ability to deliver outstanding results while advancing our key growth initiatives As proof of this, the first quarter of 2026 was the most profitable first quarter on a net income per share basis in our company's history. as proof of this the first quarter of 2026 was the most profitable first quarter on a net income per share basis in our company's history This consistent approach provides us with the flexibility to pursue value-creating opportunities while maintaining thoughtful approach to capital allocation. this consistent approach provides us with the flexibility to pursue value-creating opportunities while maintaining thoughtful approach to capital allocation Both of our major growth projects, the carbon capture and sequestration initiative and the ethanol production capacity expansion at our One Earth Energy facility, continue to advance. both of our major growth projects the carbon capture and sequestration initiative and the ethanol production capacity expansion at our one earth energy facility continue to advance We remain focused on executing what is within our control while adapting to external factors as they evolve. we remain focused on executing what is within our control while adapting to external factors as they evolve Shareholder value creation remains a top priority. shareholder value creation remains a top priority REX is particularly keen to take advantage of market tailwinds, driven by both domestic policy and international export markets, and to maximize our profit potential. We believe that our team is incredibly well-positioned and prepared to do this. I now turn the call over to our CEO, Zafar Rizvi, to provide updates on our ongoing projects. REX is particularly keen to take advantage of market tailwinds, driven by both domestic policy and international export markets, and to maximize our profit potential. rex is particularly keen to take advantage of market tailwinds driven by both domestic policy and international export markets and to maximize our profit potential We believe that our team is incredibly well-positioned and prepared to do this. we believe that our team is incredibly well-positioned and prepared to do this I now turn the call over to our CEO, Zafar Rizvi, to provide updates on our ongoing projects. i now turn the call over to our ceo zafar rizvi to provide updates on our ongoing projects

Speaker 4: Thank you, Stuart. Our ethanol facility expansion at Gibson City continues to progress on schedule, and we remain on track for completion by the end of 2026. This expansion represents an important step in strengthening our production capabilities and positioning the company for long-term growth. We are pleased to announce a record profitable first quarter on a net income per share basis. Regarding our carbon capture and sequestration initiative, we continue to work closely with the EPA on our Class VI injection well permit application. The permitting process remains ongoing, and we are addressing all regulatory requirements to move the project forward efficiently. At the state level, the Illinois moratorium on carbon pipeline permitting is scheduled to expire on July 1st, 2026. We have maintained engagement with the Illinois Commerce Commission and plan to submit our application shortly following the expiration of the moratorium. Thank you, Stuart. thank you stuart Our ethanol facility expansion at Gibson City continues to progress on schedule, and we remain on track for completion by the end of 2026. our ethanol facility expansion at gibson city continues to progress on schedule and we remain on track for completion by the end of 2026 This expansion represents an important step in strengthening our production capabilities and positioning the company for long-term growth. this expansion represents an important step in strengthening our production capabilities and positioning the company for long-term growth We are pleased to announce a record profitable first quarter on a net income per share basis. we are pleased to announce a record profitable first quarter on a net income per share basis Regarding our carbon capture and sequestration initiative, we continue to work closely with the EPA on our Class VI injection well permit application. regarding our carbon capture and sequestration initiative we continue to work closely with the epa on our class vi injection well permit application The permitting process remains ongoing, and we are addressing all regulatory requirements to move the project forward efficiently. the permitting process remains ongoing and we are addressing all regulatory requirements to move the project forward efficiently At the state level, the Illinois moratorium on carbon pipeline permitting is scheduled to expire on July 1st, 2026. at the state level the illinois moratorium on carbon pipeline permitting is scheduled to expire on july 1st 2026 We have maintained engagement with the Illinois Commerce Commission and plan to submit our application shortly following the expiration of the moratorium. we have maintained engagement with the illinois commerce commission and plan to submit our application shortly following the expiration of the moratorium We are also closely monitoring ongoing federal policy discussion related to carbon capture incentives under Section 45Z. We began recognizing 45Z production tax credits in the fourth quarter of 2025, and during the first quarter of 2026, we recorded an additional $7.5 million in production tax credit. For the first quarter, we maintain booking the credit at $0.10 per gallon at the consolidated plants as we continue to monitor the 45Z regulations. As of the end of the first quarter of 2026, our total investment in the carbon capture and ethanol expansion projects was approximately $176.3 million. We continue to operate within our combined project budget range of $220 million-$230 million, subject to potential adjustments related to inflation and other market factors as the project advance. I will now turn the call over to Doug Bruggeman to discuss our financial results. We are also closely monitoring ongoing federal policy discussion related to carbon capture incentives under Section 45Z. we are also closely monitoring ongoing federal policy discussion related to carbon capture incentives under section 45z We began recognizing 45Z production tax credits in the fourth quarter of 2025, and during the first quarter of 2026, we recorded an additional $7.5 million in production tax credit. we began recognizing 45z production tax credits in the fourth quarter of 2025 and during the first quarter of 2026 we recorded an additional $7.5 million in production tax credit For the first quarter, we maintain booking the credit at $0.10 per gallon at the consolidated plants as we continue to monitor the 45Z regulations. for the first quarter we maintain booking the credit at $0.10 per gallon at the consolidated plants as we continue to monitor the 45z regulations As of the end of the first quarter of 2026, our total investment in the carbon capture and ethanol expansion projects was approximately $176.3 million. as of the end of the first quarter of 2026 our total investment in the carbon capture and ethanol expansion projects was approximately $176.3 million We continue to operate within our combined project budget range of $220 million-$230 million, subject to potential adjustments related to inflation and other market factors as the project advance. we continue to operate within our combined project budget range of $220 million-$230 million subject to potential adjustments related to inflation and other market factors as the project advance I will now turn the call over to Doug Bruggeman to discuss our financial results. i will now turn the call over to doug bruggeman to discuss our financial results

Speaker 1: Thanks, Zafar. During the first quarter of fiscal 2026, our ethanol sales volumes reached 71.1 million gallons compared to 70.9 million gallons in the first quarter of 2025. The average selling price for ethanol was $1.66 per gallon during the quarter, compared to $1.76 in the prior year's first quarter. dried distillers grains sales volumes were approximately 155,000 tons for Q1, with an average selling price of $155.86 per ton versus $145.65 in the prior year. modified distillers grains volumes totaled approximately 13,427 tons, with an average selling price of $76.94 per ton. Corn oil sales volumes were approximately 23.9 million pounds during the quarter, with an average selling price of $0.54 per pound, compared to $0.46 in the prior year. The company reported $7.5 million in 45Z production tax credit income in the first quarter of fiscal 2026. Thanks, Zafar. thanks zafar During the first quarter of fiscal 2026, our ethanol sales volumes reached 71.1 million gallons compared to 70.9 million gallons in the first quarter of 2025. during the first quarter of fiscal 2026 our ethanol sales volumes reached 71.1 million gallons compared to 70.9 million gallons in the first quarter of 2025 The average selling price for ethanol was $1.66 per gallon during the quarter, compared to $1.76 in the prior year's first quarter. dried distillers grains sales volumes were approximately 155,000 tons for Q1, with an average selling price of $155.86 per ton versus $145.65 in the prior year. modified distillers grains volumes totaled approximately 13,427 tons, with an average selling price of $76.94 per ton. the average selling price for ethanol was $1.66 per gallon during the quarter compared to $1.76 in the prior year's first quarter dried distillers grains sales volumes were approximately 155,000 tons for q1 with an average selling price of $155.86 per ton versus $145.65 in the prior year modified distillers grains volumes totaled approximately 13,427 tons with an average selling price of $76.94 per ton Corn oil sales volumes were approximately 23.9 million pounds during the quarter, with an average selling price of $0.54 per pound, compared to $0.46 in the prior year. corn oil sales volumes were approximately 23.9 million pounds during the quarter with an average selling price of $0.54 per pound compared to $0.46 in the prior year The company reported $7.5 million in 45Z production tax credit income in the first quarter of fiscal 2026. the company reported $7.5 million in 45z production tax credit income in the first quarter of fiscal 2026 Reflecting our change in accounting principles, we now report that as operating income from our consolidated plants. Gross profit for the first quarter was $29.1 million, compared to $14.3 million in Q1 2025. This improvement primarily reflects the benefit of 45Z tax credits and reduced corn pricing. Selling general and administrative expenses were approximately $9.7 million for the quarter, compared to $5.9 million in Q1 2025. The increase was primarily due to higher incentive compensation and recording unpaid stock bonuses from 2025 at fair value. Our equity in income of unconsolidated affiliates increased from $1 million to $3.6 million, with approximately $1.8 million of the increase due to income from 45Z tax credits. Interest and other income totaled $3.2 million for the quarter, compared to $4.2 million in Q1 2025. Income before taxes and non-controlling interest was approximately $26.1 million, compared to $13.6 million in Q1 2025. Reflecting our change in accounting principles, we now report that as operating income from our consolidated plants. reflecting our change in accounting principles we now report that as operating income from our consolidated plants Gross profit for the first quarter was $29.1 million, compared to $14.3 million in Q1 2025. gross profit for the first quarter was $29.1 million compared to $14.3 million in q1 2025 This improvement primarily reflects the benefit of 45Z tax credits and reduced corn pricing. this improvement primarily reflects the benefit of 45z tax credits and reduced corn pricing Selling general and administrative expenses were approximately $9.7 million for the quarter, compared to $5.9 million in Q1 2025. selling general and administrative expenses were approximately $9.7 million for the quarter compared to $5.9 million in q1 2025 The increase was primarily due to higher incentive compensation and recording unpaid stock bonuses from 2025 at fair value. the increase was primarily due to higher incentive compensation and recording unpaid stock bonuses from 2025 at fair value Our equity in income of unconsolidated affiliates increased from $1 million to $3.6 million, with approximately $1.8 million of the increase due to income from 45Z tax credits. our equity in income of unconsolidated affiliates increased from $1 million to $3.6 million with approximately $1.8 million of the increase due to income from 45z tax credits Interest and other income totaled $3.2 million for the quarter, compared to $4.2 million in Q1 2025. interest and other income totaled $3.2 million for the quarter compared to $4.2 million in q1 2025 Income before taxes and non-controlling interest was approximately $26.1 million, compared to $13.6 million in Q1 2025. income before taxes and non-controlling interest was approximately $26.1 million compared to $13.6 million in q1 2025 Net income attributable to REX shareholders was $18.5 million, or $0.56 per diluted share, compared to $8.7 million, or $0.26 per diluted share in Q1 2025. This represents our 23rd consecutive profitable quarter. We ended the first quarter with cash equivalents, and short-term investments of $364.3 million. The reduction for the previous quarter primarily reflects our ongoing capital investments in our growth projects. REX continues to maintain its strong financial position with no bank debt. I'll now turn things back to Zafar. Net income attributable to REX shareholders was $18.5 million, or $0.56 per diluted share, compared to $8.7 million, or $0.26 per diluted share in Q1 2025. net income attributable to rex shareholders was $18.5 million or $0.56 per diluted share compared to $8.7 million or $0.26 per diluted share in q1 2025 This represents our 23rd consecutive profitable quarter. this represents our 23rd consecutive profitable quarter We ended the first quarter with cash equivalents, and short-term investments of $364.3 million. we ended the first quarter with cash equivalents and short-term investments of $364.3 million The reduction for the previous quarter primarily reflects our ongoing capital investments in our growth projects. the reduction for the previous quarter primarily reflects our ongoing capital investments in our growth projects REX continues to maintain its strong financial position with no bank debt. rex continues to maintain its strong financial position with no bank debt I'll now turn things back to Zafar. i'll now turn things back to zafar

Speaker 4: Thank you, Doug. The REX team continues to execute successfully against our long-term strategic objectives. Our core focus remains on building and operating a consistently profitable business. The first quarter of 2026 marked the strongest first quarter earnings per share in our company's history and represented our 23rd consecutive profitable quarter. This performance reflects our team's ability to capitalize on opportunities, navigate changing market conditions, and consistently deliver value for our shareholders. We continue to position REX for sustainable long-term growth through disciplined organic expansion initiatives, all funded through our strong balance sheet with no debt. Our ethanol production expansion and carbon capture project continue to advance as planned, despite permitting delays and certain regulatory headwinds. We remain focused on optimizing these investments, expecting to drive future operational excellence and enhanced financial performance for our shareholders. Thank you, Doug. thank you doug The REX team continues to execute successfully against our long-term strategic objectives. the rex team continues to execute successfully against our long-term strategic objectives Our core focus remains on building and operating a consistently profitable business. our core focus remains on building and operating a consistently profitable business The first quarter of 2026 marked the strongest first quarter earnings per share in our company's history and represented our 23rd consecutive profitable quarter. the first quarter of 2026 marked the strongest first quarter earnings per share in our company's history and represented our 23rd consecutive profitable quarter This performance reflects our team's ability to capitalize on opportunities, navigate changing market conditions, and consistently deliver value for our shareholders. this performance reflects our team's ability to capitalize on opportunities navigate changing market conditions and consistently deliver value for our shareholders We continue to position REX for sustainable long-term growth through disciplined organic expansion initiatives, all funded through our strong balance sheet with no debt. we continue to position rex for sustainable long-term growth through disciplined organic expansion initiatives all funded through our strong balance sheet with no debt Our ethanol production expansion and carbon capture project continue to advance as planned, despite permitting delays and certain regulatory headwinds. our ethanol production expansion and carbon capture project continue to advance as planned despite permitting delays and certain regulatory headwinds We remain focused on optimizing these investments, expecting to drive future operational excellence and enhanced financial performance for our shareholders. we remain focused on optimizing these investments expecting to drive future operational excellence and enhanced financial performance for our shareholders We also plan to continue evaluate the best use of our cash, including investment that complement our existing platform. In addition, we continue to closely monitoring policy developments at both the federal and state levels. The anticipated expiration of the Illinois carbon pipeline moratorium in July represents an important regulatory milestone. While policy outcomes remain outside our control, we believe we are well-informed and working diligently to respond effectively to regulatory developments. Market fundamentals for the ethanol industries remain constructive. Domestic demand continues to be stable while export markets remain strong. According to the Renewable Fuels Association, 2026 ethanol export through March increased by 20% compared to the same period last year. As we move through the second quarter, we continue to see stable operating conditions and remain confident in our ability to deliver another profitable quarter for our shareholders. We also plan to continue evaluate the best use of our cash, including investment that complement our existing platform. we also plan to continue evaluate the best use of our cash including investment that complement our existing platform In addition, we continue to closely monitoring policy developments at both the federal and state levels. in addition we continue to closely monitoring policy developments at both the federal and state levels The anticipated expiration of the Illinois carbon pipeline moratorium in July represents an important regulatory milestone. the anticipated expiration of the illinois carbon pipeline moratorium in july represents an important regulatory milestone While policy outcomes remain outside our control, we believe we are well-informed and working diligently to respond effectively to regulatory developments. while policy outcomes remain outside our control we believe we are well-informed and working diligently to respond effectively to regulatory developments Market fundamentals for the ethanol industries remain constructive. market fundamentals for the ethanol industries remain constructive Domestic demand continues to be stable while export markets remain strong. domestic demand continues to be stable while export markets remain strong According to the Renewable Fuels Association, 2026 ethanol export through March increased by 20% compared to the same period last year. according to the renewable fuels association 2026 ethanol export through march increased by 20% compared to the same period last year As we move through the second quarter, we continue to see stable operating conditions and remain confident in our ability to deliver another profitable quarter for our shareholders. as we move through the second quarter we continue to see stable operating conditions and remain confident in our ability to deliver another profitable quarter for our shareholders With that, I would now like to open the call for questions. Operator? With that, I would now like to open the call for questions. with that i would now like to open the call for questions Operator? operator

Speaker 2: Thank you. We'll now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. There are no questions at this time. I would like to hand the floor back over to Stuart Rose for any closing comments. Thank you. thank you We'll now be conducting a question and answer session. we'll now be conducting a question and answer session If you would like to ask a question, please press star one on your telephone keypad. if you would like to ask a question please press star one on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press star two if you'd like to remove your question from the queue. you may press star two if you'd like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. for participants using speaker equipment it may be necessary to pick up your handset before pressing the star keys One moment please while we poll for questions. one moment please while we poll for questions Thank you. thank you There are no questions at this time. there are no questions at this time I would like to hand the floor back over to Stuart Rose for any closing comments. i would like to hand the floor back over to stuart rose for any closing comments

Speaker 3: Thank you. Sorry there's no questions, but I want to reiterate we have great plants, great locations, and I feel the best employees in the business led by our CEO, Zafar Rizvi. I think they're better than anyone else in the industry, and our earnings prove it. We've been public for over 40 years. We had our greatest first quarter in earnings per share in our public history. Best people, best plants in my opinion. We're optimistic for future growth, both in ethanol and receiving Section 45 tax credits, Z and Q. We look forward to talking to everyone at the next call. Thank you for listening. Bye. Thank you. thank you Sorry there's no questions, but I want to reiterate we have great plants, great locations, and I feel the best employees in the business led by our CEO, Zafar Rizvi. sorry there's no questions but i want to reiterate we have great plants great locations and i feel the best employees in the business led by our ceo zafar rizvi I think they're better than anyone else in the industry, and our earnings prove it. i think they're better than anyone else in the industry and our earnings prove it We've been public for over 40 years. we've been public for over 40 years We had our greatest first quarter in earnings per share in our public history. we had our greatest first quarter in earnings per share in our public history Best people, best plants in my opinion. best people best plants in my opinion We're optimistic for future growth, both in ethanol and receiving Section 45 tax credits, Z and Q. we're optimistic for future growth both in ethanol and receiving section 45 tax credits z and q We look forward to talking to everyone at the next call. we look forward to talking to everyone at the next call Thank you for listening. thank you for listening Bye. bye

Speaker 2: This concludes today's conference. You may disconnect your lines at this time. Thank you again for your participation. This concludes today's conference. this concludes today's conference You may disconnect your lines at this time. you may disconnect your lines at this time Thank you again for your participation. thank you again for your participation