REX American Resources Corporation (NYSE:REX) reported fourth-quarter earnings on Thursday that surpassed analyst expectations, largely supported by newly available tax credits, although revenue came in slightly below forecasts.
The ethanol producer’s shares slipped about 0.22% in pre-market trading after the announcement, suggesting a restrained reaction from investors to the mixed results.
For the fourth quarter, the company posted adjusted earnings per share of $1.32, well above the analyst consensus estimate of $0.15. Revenue totaled $158.0 million, missing the expected $162 million and remaining largely unchanged from $158.2 million recorded in the same period a year earlier.
The strong profit performance was mainly driven by about $28.1 million in 45Z tax credits, which were recognized as a reduction in income tax expense. These credits became available for production and sales starting January 1, 2025.
Higher ethanol prices and lower corn costs also contributed to improved profitability, lifting gross profit to $28.9 million compared with $17.6 million in the fourth quarter of the prior year.
For the full fiscal year 2025, REX reported net income of $2.50 per share, up from $1.65 per share in fiscal 2024. Annual revenue reached $650.5 million, increasing from $642.5 million the previous year, representing growth of 1.2% year over year.
“REX American delivered record earnings per share in fiscal 2025,” said Zafar Rizvi, Chief Executive Officer. “We strengthened our record of profitable operations, advanced our ethanol production expansion, and continued working closely with government officials to drive progress on our carbon capture initiative.”
The company reported consolidated ethanol sales volumes of 70.1 million gallons for the fourth quarter and 290.0 million gallons for the full fiscal year.
REX also maintained a strong financial position, ending January 31, 2026 with $375.8 million in cash, cash equivalents and short-term investments, and no bank debt.
During fiscal 2025, the company repurchased approximately 1.65 million shares for a total of $32.9 million.