REX American Resources Reports Q2 2025 Financial Results with Decreased Net Income

REX American Resources Corporation reported its financial results for the second quarter and first half of fiscal year 2025, revealing a net income of $9.3 million for the three months ended July 31, 2025, down from $15.0 million in the same period last year. For the first six months, net income was $20.0 million, compared to $27.3 million in the prior year. The company’s revenue for the second quarter increased by 7% to $158.6 million, while revenue for the first half rose by approximately 2% to $316.9 million. The increase in revenue was primarily driven by a 6% rise in ethanol sales, which accounted for $123.3 million in the second quarter, despite a slight decrease in the average selling price per gallon.

The company experienced a notable increase in costs, with total cost of sales rising 12% in the second quarter to $144.2 million, largely due to higher corn prices, which constituted approximately 74% of total costs. Gross profit for the second quarter decreased to $14.3 million from $19.8 million a year earlier, reflecting the impact of rising input costs. Selling, general, and administrative expenses were slightly lower at $6.2 million compared to $6.4 million in the prior year, contributing to a decrease in overall profitability.

Strategically, REX is advancing its carbon sequestration project through its subsidiary, One Earth Sequestration, LLC, and is also expanding its ethanol production capacity. The company has received a construction permit to increase production at the One Earth facility from 150 million gallons to 175 million gallons annually, with plans to further increase capacity to 200 million gallons. The company is also working on securing necessary permits for its carbon sequestration project, which is expected to enhance its sustainability efforts and potentially qualify for tax credits under the Inflation Reduction Act.

Operationally, REX reported a slight increase in its customer base and engagement metrics, with ethanol sales volumes rising by 8% in the second quarter. The company’s investments in its ethanol plants and related projects are expected to continue driving growth, although market conditions remain volatile due to fluctuating commodity prices. As of July 31, 2025, REX had a working capital of approximately $353.4 million, down from $385.4 million at the beginning of the fiscal year, indicating a strong liquidity position.

Looking ahead, REX American Resources anticipates continued challenges related to commodity price volatility and regulatory changes affecting the ethanol market. The company is focused on managing these risks through strategic investments and operational efficiencies. The outlook remains cautiously optimistic, with expectations for improved production yields and potential benefits from new tax credits related to carbon capture and clean fuel production.