Rex American Resources Surpasses Expectations with Robust Quarterly Performance

Rex American Resources has delivered a standout quarterly report, with financial results for its third fiscal quarter far exceeding market projections. The ethanol producer's announcement triggered significant pre-market trading activity as investors reacted to the stronger-than-anticipated figures.

The company reported adjusted earnings per share (EPS) of $0.71 for the quarter ended October 31, 2025. This result dramatically outpaced the analyst consensus estimate of $0.26, representing a positive surprise of more than 160 percent. Revenue reached $175.6 million, also coming in above the expected $169 million.

This period marks the 21st consecutive quarter of profitability for Rex American. While gross profit saw a slight year-over-year decrease to $36.1 million, key operational metrics demonstrated underlying strength. Ethanol sales volume increased to 78.4 million gallons. A particularly bright spot was the corn oil segment, where revenue surged by 60 percent, driven by both higher sales volumes and improved pricing.

Growth Initiatives and Financial Health

Management is actively advancing several strategic projects to fuel future growth. The expansion of production capacity at the "One Earth Energy" plant remains on schedule for completion in 2026, which is set to boost annual output to 200 million gallons. Concurrently, the firm is investing over $155 million in a carbon capture and storage (CCS) initiative at the same location. Final approval from the U.S. Environmental Protection Agency (EPA) for this project is anticipated in June 2026.

Should investors sell immediately? Or is it worth buying Rex American?

The company's strong balance sheet, featuring a liquid cash position exceeding $335 million and no bank debt, provides a substantial financial foundation to support these capital investments.

Analyst Upgrades and Forward Outlook

The solid quarterly performance and clear strategic direction have prompted favorable responses from investment researchers. Both Wall Street Zen and Weiss Ratings have recently upgraded their views on Rex American, shifting their ratings from "Hold" to "Buy."

Looking ahead, executive focus is centered on maximizing the value of future clean production tax credits (45Z) to further enhance shareholder value. Key upcoming milestones include the finalization of the plant expansion and the awaited EPA regulatory decision next year.