REX American Resources Corporation reported fiscal third‑quarter 2025 results that surpassed analyst expectations, delivering a diluted earnings per share of $0.71 versus the consensus estimate of $0.27. Total revenue reached $175.6 million, up 0.4 % from the prior year’s $174.9 million and beating the $169 million forecast by 3.9 %. The company’s net income for the quarter was $23.4 million, a slight decline from $24.5 million in Q3 2024, but the earnings beat reflects disciplined cost management and a favorable mix of high‑margin ethanol sales.
The quarter’s performance can be contextualized by comparing it to the same period last year. Q3 2024 diluted EPS was $0.69 and revenue was $174.9 million, so the current quarter’s EPS growth of $0.02 and revenue increase of $0.7 million represent modest year‑over‑year gains. Operating income fell to $36.1 million from $39.7 million, a 9.1 % decline largely driven by lower ethanol and distillers‑grain prices that compressed gross margins.
Gross profit for Q3 2025 was $36.1 million, down from $39.7 million in Q3 2024. The decline is attributed to a drop in ethanol and distillers‑grain pricing, which eroded the company’s gross margin despite steady sales volumes of 78.4 million gallons. The company’s six ethanol production facilities continued to operate at high capacity, but the lower commodity prices offset the operational leverage gained from scale.
Management guided that Q4 2025 net profit will exceed last year’s Q4, signaling confidence in the company’s earnings trajectory. REX is advancing a $220–$230 million expansion and carbon‑capture project at its One Earth facility, with completion expected in 2026. Capital expenditures for the project totaled $155.8 million by the end of Q3 2025, underscoring the company’s commitment to long‑term growth and sustainability.
CEO Zafar Rizvi highlighted the company’s 21st consecutive quarter of positive earnings, noting that “REX continues to deliver value to shareholders.” He also mentioned the strategic evaluation of 45Z tax credits as expansion and carbon‑capture initiatives progress, indicating a focus on leveraging regulatory incentives to enhance shareholder returns.
Investors reacted positively to the earnings release, with analysts emphasizing the strong earnings beat, robust balance sheet—$335.5 million in cash and no bank debt—and the forward‑looking guidance. The company’s continued profitability and strategic investments in expansion and carbon capture are viewed as reinforcing its long‑term competitive position.
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