By Brian Lantier, CFA
NASDAQ: RENX
READ THE FULL RENX RESEARCH REPORT
RenX Enterprises (NASDAQ: RENX) released its full-year results before the market opened on April 1, 2026. As a result of the company's acquisition of Resource Group in June 2025, it is now focused squarely on producing engineered soils, processing organic waste (composting), and providing logistics services for recyclables, organic waste, and municipal solid waste.
Comparisons with previous quarters are not relevant for RenX because the company had virtually no revenue-generating operations prior to the acquisition of Resource Group in 2025; however, we can compare fourth-quarter results with our previously published model.
Fourth Quarter Results
We believe the company's compost business performed well in the quarter, with revenue of $1.1 million, exceeding our forecast of $532k. Given the significant equipment upgrades at the Myakka facility, it has been challenging to get a sense of the facility's normalized quarterly output, but we are certainly encouraged by these results, and they bode well for 2026. Compost sales were also up 42% sequentially, but again, it's unclear how much of this increase was due to demand versus simply an increase in operating time due to equipment upgrades.
The company's logistics business – Zimmer Equipment – also exceeded our forecast, recording $2.2 million in sales, up from our estimate of $1.9 million, likely due to increased driver availability. While the actual results exceeded our forecast, we note that sales in the division were down 20% sequentially, likely due to restrictions on certain seasonal work visas that reduced the total available driver pool.
The gross margin on compost sales was an impressive 57%, while the gross margin on logistics revenue was roughly as expected at around 14%. Given that compost sales accounted for a significantly larger share of the total group's revenue in Q4 and the gross margin on those sales was nearly 4 times the logistics gross margin, RenX's total gross margin in Q4 was 28.4%, roughly 100 basis points above our projections.
We would note that in the footnotes to the company's year-end financial statements, RenX indicated that pro forma revenues for 2025, assuming the acquisition had occurred on 1/1/2024, were $15.2 million, a decline of $3.2 million, or 17%, from 2024's pro forma results. These results are likely the best indication of the company's true operating performance in 2025.
There are several unknowns in our model but we have updated our EPS estimates to reflect the March 1-for-20 reverse split and now stand at $(5.86)/share in 2026 and $(3.48)/share in 2027.
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