REX AMERICAN RESOURCES Corp SEC 10-Q Report

REX AMERICAN RESOURCES Corp, a leading player in the ethanol and by-products industry, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting both the challenges and opportunities faced in the current market environment.

Financial Highlights

Net Sales and Revenue: The company reported net sales and revenue of $175.6 million, a slight increase from $174.9 million in the prior year third quarter. This growth was driven by a 4% increase in ethanol gallons sold, despite a 5% decrease in the selling price per gallon.

Gross Profit: Gross profit for the quarter was $36.1 million, down from $39.7 million in the prior year third quarter. The decrease was primarily due to increased cost of sales and a reduction in dried distillers grains revenue.

Income Before Income Taxes: The company reported income before income taxes of $35.5 million, a decrease from $39.5 million in the prior year third quarter. This decline reflects lower gross profit and decreased interest and other income.

Net Income: Net income for the quarter was $27.5 million, down from $30.1 million in the prior year third quarter, impacted by lower gross profit and higher cost of sales.

Net Income Attributable to REX Common Shareholders: The net income attributable to REX common shareholders was $23.4 million, a decrease from $24.5 million in the prior year third quarter, reflecting the overall decrease in net income.

Basic Net Income Per Share Attributable to REX Common Shareholders: Basic net income per share attributable to REX common shareholders increased to $0.71 from $0.70 in the prior year third quarter, due to a reduction in weighted average shares outstanding.

Diluted Net Income Per Share Attributable to REX Common Shareholders: Diluted net income per share attributable to REX common shareholders increased to $0.71 from $0.69 in the prior year third quarter, reflecting the impact of reduced shares outstanding.

Business Highlights

Ethanol and By-Products Segment: REX AMERICAN RESOURCES operates in the ethanol and by-products segment, with investments in three ethanol limited liability companies, two of which are majority-owned. The segment's performance is highly dependent on commodity prices, including corn, ethanol, distillers grains, and natural gas, which can cause significant fluctuations in operating results.

Revenue Segments: Ethanol revenue decreased by 2% in the third quarter of fiscal year 2025 compared to the same period in 2024, primarily due to a 5% decrease in the selling price per gallon, despite a 4% increase in gallons sold. Distillers corn oil revenue increased by approximately 60% in the third quarter of fiscal year 2025 compared to the same period in 2024, driven by a 36% increase in selling price per pound and a 17% increase in pounds sold.

Sales Units: The company sold 78.4 million gallons of ethanol in the third quarter of fiscal year 2025, up from 75.5 million gallons in the same period of 2024. The average selling price per gallon of ethanol was $1.73, down from $1.83 in the prior year. Additionally, 159,781 tons of dried distillers grains were sold, a decrease from 170,116 tons in the previous year.

New Production Launches: One Earth Energy, LLC is expanding its ethanol plant, with a construction permit to increase production from 150 million gallons to 175 million gallons per year. The company plans to apply for another permit to further increase production to 200 million gallons per year.

Carbon Sequestration Project: One Earth Sequestration, LLC is developing a carbon sequestration project near the One Earth ethanol plant. The company has applied for a Class VI injection well permit and expects a draft permit by February 2026, with a final decision by June 2026. The project aims to capture, dehydrate, and compress carbon dioxide for sequestration.

Future Outlook: The company is focused on reducing its carbon intensity (CI) score at the One Earth plant to maximize tax credits available under the Inflation Reduction Act (IRA). The company is also evaluating various investment opportunities in ethanol, energy, carbon sequestration, and agriculture-related ventures.

Geographical Performance: The company’s operations are primarily located in the United States, with ethanol plants in Illinois and South Dakota. The company is also involved in a carbon capture and storage pipeline project in South Dakota, which could face challenges due to recent legislation banning the use of eminent domain for CO2 pipelines.

SEC Filing: REX AMERICAN RESOURCES Corp [ REX ] - 10-Q - Dec. 04, 2025