REX American Resources Reports Slight Revenue Increase but Decline in Net Income for Third Quarter

REX American Resources Corporation reported its financial results for the third quarter and nine months ended October 31, 2025, revealing a slight increase in net sales and revenue. The company generated $175.6 million in revenue for the third quarter, a marginal rise from $174.9 million in the same period last year. For the nine months, revenue reached $492.5 million, up from $484.3 million in the prior year. However, net income attributable to REX common shareholders decreased to $23.4 million, or $0.71 per share, compared to $24.5 million, or $0.70 per share, in the previous year’s third quarter. For the nine-month period, net income was $39.2 million, down from $47.1 million.

The company experienced a 3% increase in cost of sales for the third quarter, totaling $139.5 million, compared to $135.2 million in the prior year. This increase was primarily driven by higher corn prices, which accounted for approximately 75% of total costs. Gross profit for the quarter fell to $36.1 million from $39.7 million a year earlier, reflecting the impact of rising costs on profitability. The company’s selling, general, and administrative expenses also decreased slightly to $8.2 million from $8.4 million in the previous year.

Strategically, REX continues to focus on its ethanol and by-products segment, which remains its sole reportable segment. The company has made significant investments in its subsidiaries, including One Earth Energy and NuGen Energy, to enhance production capabilities and reduce carbon intensity. Notably, One Earth is in the process of expanding its ethanol production capacity from 150 million gallons to 175 million gallons per year, with plans to further increase it to 200 million gallons. Additionally, REX is pursuing a carbon sequestration project, which is currently awaiting regulatory approvals.

Operationally, REX reported an increase in the volume of ethanol sold, with 78.4 million gallons sold in the third quarter, up from 75.5 million gallons in the same period last year. The average selling price per gallon of ethanol decreased to $1.73 from $1.83. The company also noted a significant increase in distillers corn oil revenue, which rose by 60% in the third quarter, driven by higher selling prices and increased production. As of October 31, 2025, REX had a strong liquidity position with working capital of $354.2 million and a current ratio of 7.2x.

Looking ahead, REX American Resources remains cautious about the volatility of commodity prices, particularly corn and ethanol, which can significantly impact its operating margins. The company is actively managing these risks through various contracts and hedging strategies. REX also anticipates that ongoing investments in its production facilities and carbon capture initiatives will position it favorably to capitalize on potential tax credits and market opportunities in the renewable energy sector.