MIAMI, April 01, 2026 (GLOBE NEWSWIRE) — RenX Enterprises Corp. (NASDAQ:RENX) today announced financial results for the fiscal year ended December 31, 2025.
The growing media and substrate industry runs on imported raw materials. Peat is harvested in Canada and Eastern Europe. Coconut coir is processed in Southeast Asia. Both travel thousands of miles before they reach a North American greenhouse or a bag on a retail shelf. Producers who depend on this supply chain are facing a structural problem: input costs are rising, import dependencies are deepening, and sourcing alternatives quickly is not straightforward. The industry has been waiting for a domestic solution that can produce at scale, at the right quality, and at a cost that makes the import dependency look like what it increasingly is: a disadvantage.
RenX was built to be that solution. The Company’s Biomass Recycling segment, operated through Resource Group US Holdings LLC (RGUS), runs a permitted 80+ acre organics processing facility in Myakka City, Florida, converting regional organic waste into compost, engineered soils, and specialty growing media. The Company’s Logistics segment, operated through Zimmer Equipment Inc. (ZEI), aggregates feedstock through hauling contracts with customers including a multi-billion dollar national waste management company and Florida municipal governments. The raw material is the regional waste stream. There is no container ship involved. The unit economics of local organic processing, which converts material already present in the regional waste stream into products that command meaningful market prices, are structurally favorable compared to producers dependent on imported inputs.
RenX entered 2025 as Safe and Green Development Corporation, a real estate holding company with no processing operations. It exits 2025 as a producing platform. On June 2, it closed the acquisition of RGUS, including its subsidiary, ZEI. In the seven months that followed, the Company has generated $8.2 million in post-acquisition revenue, beating prior management guidance of $7.0 million by approximately 17%. Since the acquisition, the Company has also deployed a Diamond Z track horizontal grinder, Komptech Shredder, and Komptech XL3 screening system at the Myakka City facility, completed its first deliveries of bulk compost into the South Florida premium market, and retired $11.9 million in legacy debt. In addition, the Company has ordered, and anticipates delivery in April of the Microtec UTM 1200 Turbo Mill, which is expected to materially enhance the Company’s ability to convert lower-margin biomass overages into higher-value engineered soil products as the Microtec milling system is designed to process up to 10 tons per hour of woody biomass screened from compost. The fiscal year net loss was $15.9 million, of which approximately $4.8 million reflects three identified non-recurring charges (a $3.0 million reserve on legacy notes receivable, a $966 thousand asset impairment, and an $818 thousand loss on investment) that management does not expect to recur.
FY 2025 Highlights
- Revenue beat guidance by 17%. $8.2 million against prior management guidance of $7.0 million. Blended consolidated gross margin was 29.1% for the year ended December 31, 2025, reflecting the early-stage production mix ahead of Microtec commissioning.
- $11.9 million in legacy debt retired. Principal payments and extinguishments completed during fiscal year 2025, including the Lago Vista Note restructuring, full retirement of the outstanding Debentures, and payments across acquisition-related and legacy corporate notes. See Note 8 to the Annual Report on Form 10-K for the complete schedule.
- Processing platform rebuilt at Myakka City. Deployed a Diamond Z track horizontal grinder, Komptech Shredder, and Komptech XL3 screening system with automated conveyor stacking, replacing prior limited-capacity equipment with a circuit built for industrial throughput and premium substrate quality standards.
- First deliveries into the premium compost market. Completed first deliveries of bulk compost material into the South Florida premium compost market. The Company held $1.08 million in finished goods inventory at December 31, 2025, representing early-stage production ahead of Microtec commissioning.
- Microtec UTM 1200 Turbo Mill confirmed manufactured and en route. The precision milling system that will enable premium fine-grade substrate production has been confirmed as manufactured and is expected to arrive at the Myakka City facility in April 2026. Following delivery, the Company expects installation and commissioning to be completed within 2026, with commercial production targeted to begin in the second half of the year.
- Capital raised to support the transformation. The Company raised capital during the period and subsequent to year end to support its operational transition. We intend to continue to finance our operations and finance Resource Group’s expansion from the proceeds of future financings (which may not be available at acceptable terms, if at all), and/or sale proceeds from properties that are sold, and future revenues.
- Legacy real estate being monetized. Norman Berry Village (Atlanta, GA) and the McLean mixed-use site (Durant, OK) are both being actively marketed, with proceeds intended to reduce debt and fund the core platform.
“2025 was the year we did the work every serious investor needs to see get done. We retired $11.9 million in legacy debt, deployed industrial-grade processing equipment at the Myakka City facility, made our first deliveries into the premium compost market, and secured contracts with some of the largest waste generators in the region. The $15.9 million net loss is the cost of transforming a real estate holding company into an operating platform in a single year. Approximately $4.8 million of it was non-recurring charges we do not expect to see again. What it does not reflect is what this business looks like with a full calendar year of operations and Microtec running. The substrate industry is facing a supply chain problem that plays directly to our model. We enter 2026 with the platform in place and the market moving in our direction.”
David Villarreal, Chief Executive Officer, RenX Enterprises Corp.
2026
The Microtec UTM 1200 Turbo Mill, expected to arrive in April and to be commissioned within 2026, changes the economics of the Myakka City facility in a fundamental way. The system processes material that is already on-site, specifically organic byproduct material from the existing RGUS processing operation, and converts it into premium substrate products that command significantly higher prices per ton than the current bulk compost output. Because the feedstock cost is essentially zero, the incremental economics of Microtec-enabled products are highly favorable. Management believes the system will drive consolidated gross margins toward 60 percent and above as it ramps, subject to production volume and market conditions. That is both a revenue expansion story, as Microtec opens product categories that the existing processing circuit cannot reach, and a margin improvement story that management does not believe any competitor in the region can currently replicate.
Three headwinds from 2025 do not carry into 2026. The $11.9 million in …