REX American Resources Reports 6% Revenue Growth and Significant Net Income Increase in Latest Quarter

REX American Resources Corporation reported significant financial performance improvements in its latest 10-Q filing for the quarter ending July 31, 2026. The company achieved net sales and revenue of $168.5 million, a 6.0% increase from $158.6 million in the same quarter of the previous year. For the first six months of fiscal year 2026, revenue rose to $325.0 million, up 2.0% from $316.9 million in the prior year. The company’s net income attributable to REX common shareholders surged to $34.9 million, compared to $7.1 million in the same quarter last year, while net income for the first half of the fiscal year reached $53.4 million, up from $15.8 million.

The financial results reflect a notable increase in gross profit, which rose to $53.3 million for the quarter, compared to $14.3 million in the prior year, driven by a decrease in cost of sales. The cost of sales decreased by 7.4% to $133.6 million, primarily due to lower corn prices, which accounted for approximately 77% of total costs. The company also recognized $18.4 million in production tax credit income, a new revenue stream resulting from the Inflation Reduction Act and the One Big Beautiful Bill Act, which was not present in the previous year’s results.

Strategically, REX has made significant investments in its carbon sequestration project and the expansion of its One Earth ethanol plant. The company has spent $59.1 million on the carbon sequestration project and is contractually committed to an additional $0.3 million. The expansion project aims to increase production capacity from 150 million gallons to 175 million gallons annually, with plans to further increase to 200 million gallons. These initiatives are expected to enhance the company’s operational efficiency and qualify for additional tax credits.

Operationally, REX reported a consistent customer base with stable sales volumes across its product lines. The average selling price for ethanol increased by 2% in the second quarter, while the company sold approximately 70.6 million gallons of ethanol, consistent with the previous year. The company’s engagement metrics also showed growth, with distillers corn oil revenue increasing by 41% due to higher selling prices and improved yields. The company’s equity investment in Big River Resources also contributed positively, with recognized income of $7.2 million in the second quarter, compared to $0.9 million in the prior year.

Looking ahead, REX American Resources remains optimistic about its growth trajectory, bolstered by its strategic investments and favorable market conditions. The company plans to continue leveraging its cash reserves for further investments in ethanol production and carbon capture technologies, while also navigating the challenges posed by commodity price volatility and regulatory changes. The management anticipates that these efforts will enhance profitability and shareholder value in the coming quarters.