REX American Resources (NYSE:REX), a player in the U.S. ethanol industry, today reported financial results for its fiscal fourth quarter and full year ended January 31, 2026.
The company’s performance was characterized by a dramatic expansion in profitability, driven by a "goldilocks" environment of rising ethanol prices and declining input costs for corn, further amplified by the first-ever recognition of significant federal tax incentives.
For the fourth quarter of 2025, REX reported net sales and revenue of $158 million, essentially flat compared to the $158.2 million reported in the prior-year period.
However, the company’s gross profit surged to $28.9 million from $17.6 million a year ago.
This margin expansion reflects the improved "crush spread"—the difference between the cost of corn and the selling price of ethanol and its byproducts.
Consequently, income before taxes rose to $27.4 million, a 53% increase over the fourth quarter of 2024.
The bottom line received a substantial one-time boost from the 45Z Clean Fuel Production Credit, which became available on January 1, 2025.
REX recognized approximately $28.1 million in these credits during the quarter as a reduction to income tax expense.
This led to a net income attributable to shareholders of $43.7 million, or $1.32 per diluted share, compared to $11.1 million, or $0.31 per share, in the fourth quarter of 2024.
On the operational front, REX provided a progress update on its major growth initiatives at the One Earth Energy facility in Gibson City, Illinois.
The company is nearing the completion of its ethanol production expansion, with testing and commissioning expected to begin shortly.
Management anticipates the facility will become fully operational during fiscal 2026.
Simultaneously, the company is advancing its integrated carbon capture and sequestration (CCS) project.
While the project continues to await Class VI injection well permitting from the U.S. EPA and pipeline approval from the Illinois Commerce Commission, REX remains actively engaged in the regulatory process.
To date, the company has invested $166 million of an estimated $220 million to $230 million total budget for the combined expansion and CCS projects.
REX enters the new fiscal year with a significantly strengthened balance sheet and a lower share count, having reduced its diluted weighted average shares outstanding to 33 million from 35.3 million a year earlier.