REX American Resources Reports Record FY2025 EPS of $2.50
REX American Resources Corporation, a prominent U.S.-based ethanol production company listed on the New York Stock Exchange under the ticker REX, has reported its financial and operational performance for both the fourth quarter and the full fiscal year ending in 2025. The results highlight steady revenue growth, improved profitability, and continued strategic investment in expanding ethanol production capacity and developing carbon capture infrastructure. The company’s performance reflects strong operational execution across its network of ethanol production facilities and a favorable pricing environment for ethanol and related co-products.
Overview of Operations
The financial results for the fourth quarter and full fiscal year 2025 primarily reflect the company’s ownership interests in six ethanol production facilities across the United States. Two of these facilities—One Earth Energy LLC and NuGen Energy LLC—are consolidated within the company’s financial statements. The remaining four ethanol plants are accounted for as equity investments and are reported under income from unconsolidated ethanol affiliates. This structure allows the company to maintain strategic ownership positions while diversifying its operational footprint across multiple production sites.
Through these facilities, the company produces fuel ethanol and valuable co-products such as distillers grains and corn oil. The pricing of these products, along with input costs such as corn, plays a significant role in determining the company’s overall profitability. In fiscal year 2025, improvements in ethanol and corn oil prices, combined with efficient plant operations, supported strong financial results.
Full Fiscal Year 2025 Financial Performance
For the full fiscal year 2025, REX reported net sales and revenue totaling $650.5 million. This represents a modest increase compared with the $642.5 million reported in fiscal year 2024. The year-over-year growth in revenue was primarily driven by improved market prices for ethanol and corn oil, two of the company’s primary products.
Gross profit for fiscal year 2025 reached $93.7 million, slightly higher than the $91.5 million recorded in fiscal year 2024. This improvement largely resulted from stronger crush margins. In the ethanol industry, crush margin refers to the difference between the cost of corn used as a feedstock and the market value of ethanol and co-products produced during processing. Favorable market conditions during portions of 2025 allowed the company to maintain healthy margins.
Despite the increase in gross profit, income before income taxes and non-controlling interests was somewhat lower than the previous year. The company reported pre-tax income of $88.6 million in fiscal 2025, compared with $92.9 million in fiscal 2024. Variations in operating costs, equity income from affiliates, and other financial factors contributed to this change.
Even with the slight decrease in pre-tax income, net income attributable to REX shareholders rose significantly. For fiscal year 2025, the company reported net income of $83.0 million attributable to its shareholders. This represents a substantial increase compared with $58.2 million recorded in fiscal year 2024.
The strong improvement in net income was reflected in the company’s earnings per share. Diluted net income per share attributable to REX common shareholders for fiscal year 2025 was $2.50, compared with $1.65 per share in fiscal year 2024. The calculation of diluted earnings per share was based on 33.2 million diluted weighted average shares outstanding during fiscal 2025, compared with approximately 35.3 million shares in the previous year. The reduction in the share count was partially driven by the company’s share repurchase program.
Overall, the fiscal year results demonstrate the company’s ability to grow profitability even amid fluctuating commodity markets, while continuing to invest in long-term infrastructure and sustainability initiatives.
Fourth Quarter 2025 Performance
In the fourth quarter of fiscal 2025, the company reported net sales and revenue of $158.0 million, essentially unchanged from the $158.2 million recorded in the same quarter of 2024. While revenue remained stable, profitability improved significantly due to favorable shifts in both product pricing and input costs.
Gross profit for the fourth quarter reached $28.9 million, compared with $17.6 million in the fourth quarter of the previous year. The substantial improvement in gross profit was primarily driven by higher ethanol prices and lower corn costs. Since corn represents the largest input cost in ethanol production, lower feedstock prices can significantly enhance operating margins.
As a result of the improved margins, income before income taxes and non-controlling interests for the fourth quarter of 2025 rose to $27.4 million. This compares with $17.9 million reported during the same quarter in 2024, highlighting a strong year-over-year improvement in operating performance.
Another important factor influencing fourth-quarter results was the introduction of new federal clean fuel incentives. During the quarter, the company recognized approximately $28.1 million in tax credits under the federal 45Z clean fuel production credit program. These credits became available for eligible fuel production beginning January 1, 2025, and were recorded as a reduction to income tax expense.
The recognition of these tax credits significantly boosted net income during the quarter. Net income attributable to REX shareholders reached $43.7 million in the fourth quarter of 2025, compared with $11.1 million during the fourth quarter of 2024.
Correspondingly, diluted earnings per share attributable to REX common shareholders increased sharply. For the fourth quarter of fiscal 2025, diluted earnings per share were $1.32, compared with $0.31 per share during the same period in 2024. These results were based on diluted weighted average shares outstanding of approximately 33.0 million for the 2025 quarter and about 35.3 million shares in the prior-year quarter.
Expansion of Ethanol Production Capacity
Beyond its financial performance, the company continues to pursue strategic growth initiatives aimed at expanding ethanol production and reducing the carbon intensity of its operations.
One of the most significant projects currently underway is the expansion of ethanol production capacity at the One Earth facility in Gibson City, Illinois. The company reported that construction and development of the expansion are nearing completion. Once the construction phase is finished, the facility will undergo a period of testing and commissioning.
Following this commissioning process, the expanded plant is expected to become fully operational during fiscal year 2026. The expansion is designed to increase production efficiency and overall output, strengthening the facility’s role within the company’s portfolio of ethanol assets.
Carbon Capture and Sequestration Project
Alongside the production expansion, the company is advancing a major carbon capture and sequestration (CCS) initiative at the Gibson City location. The project aims to capture carbon dioxide emissions generated during ethanol production and permanently store them underground, reducing the overall carbon intensity of the fuel.
However, the project remains subject to regulatory approvals. The company is currently awaiting permits for a Class VI injection well, which is required for the underground storage of captured carbon dioxide. The permitting process also includes approval for the associated carbon dioxide pipeline infrastructure needed to transport the captured emissions.
The company continues to work closely with regulators, including the United States Environmental Protection Agency and the Illinois Commerce Commission, as it advances through the permitting process.
To date, the company has invested approximately $166 million in capital expenditures related to both the ethanol production expansion and the carbon capture and sequestration project at the Gibson City site. The total planned investment for these combined projects is estimated to range between $220 million and $230 million.
These initiatives reflect the company’s broader strategy of aligning ethanol production with emerging low-carbon fuel standards and sustainability objectives across the energy sector.
Share Repurchase Program
During fiscal year 2025, the company also continued to return capital to shareholders through share repurchases. Over the course of the year, REX repurchased approximately 1,651,252 shares of its common stock.
The total cost of these repurchases amounted to about $32.9 million. Share buybacks reduce the total number of outstanding shares, which can enhance earnings per share and increase shareholder value over time.
Following these transactions, the company still had authorization from its board of directors to repurchase an additional 2,357,186 shares under its existing share repurchase program.
Strong Balance Sheet Position
The company ended fiscal year 2025 with a very strong balance sheet, providing significant financial flexibility to support future investments and strategic initiatives.
As of January 31, 2026, the company reported cash, cash equivalents, and short-term investments totaling $375.8 million. Importantly, the company had no bank debt at that time, underscoring its conservative financial management and strong liquidity position.
This substantial cash reserve allows the company to continue funding major capital projects, pursue potential new opportunities, and maintain shareholder return programs while navigating the cyclical nature of commodity markets.
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