REX American Resources Reports $83M Net Income and $650.5M Revenue for Fiscal Year Ending January 31, 2026

REX American Resources Corporation reported a net income of approximately $83.0 million for the fiscal year ending January 31, 2026, a significant increase from the $58.2 million recorded in the previous fiscal year. This growth was attributed to a reduction in the effective tax rate due to the impact of 45Z tax credits associated with ethanol production. The company's gross profit also rose to $93.7 million, up from $91.5 million in fiscal 2024, primarily driven by higher crush spreads, despite the volatility in corn and ethanol prices throughout the year.

In terms of revenue, REX reported total net sales of $650.5 million, a slight increase of 1% compared to $642.5 million in the prior year. Ethanol sales were a key contributor, with revenue from ethanol rising to $504.4 million, reflecting a 2% increase in the average selling price per gallon. However, sales of dried distillers grains decreased by 13%, attributed to a decline in both average selling prices and tons sold. Conversely, sales of distillers corn oil surged by 34%, driven by a 23% increase in average selling price and a 10% rise in the volume sold.

Strategically, REX is advancing its carbon sequestration project near the One Earth Energy ethanol plant, having applied for a Class VI injection well permit from the EPA. The company has invested approximately $58.4 million in this project to date and expects to spend an additional $220 million to $230 million on both the carbon sequestration and plant expansion initiatives. The expansion aims to increase ethanol production capacity from 150 million gallons to 175 million gallons annually, with plans to further increase it to 200 million gallons.

Operationally, REX's ethanol production facilities shipped approximately 722 million gallons of ethanol in the twelve months ending January 31, 2026, with REX's effective ownership accounting for about 294 million gallons. The company maintained a workforce of 132 employees across its operations, with no union representation. The company continues to manage risks associated with commodity price volatility through various contracts and hedging strategies, although it acknowledges that fluctuations in corn and ethanol prices can significantly impact profitability.

Looking ahead, REX American Resources remains focused on evaluating new investment opportunities in energy, carbon sequestration, and agriculture. The company is optimistic about the potential benefits of the 45Z and 45Q tax credits, which could enhance its financial performance if the carbon sequestration project is successful. However, the company also recognizes the inherent risks associated with market conditions, regulatory changes, and operational challenges that could affect future results.