How REX’s Q3 2025 Earnings Beat and Ethanol Strength Will Impact REX American Resources (REX) Investors

• REX American Resources recently reported past third-quarter 2025 results, with sales of US$175.63 million and net income of US$23.41 million, along with slightly higher diluted earnings per share from continuing operations of US$0.71 compared with a year earlier.
• Beyond the headline numbers, analysts highlighted that stronger ethanol volumes, sharply higher corn oil revenue, and ongoing investments in capacity expansion and carbon capture projects are reshaping how investors assess the company’s earnings power and clean-energy positioning.
• Now we’ll explore how this earnings beat, underpinned by stronger ethanol volumes and corn oil revenue, may influence REX’s investment narrative.

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REX American Resources Investment Narrative Recap

To own REX American Resources, you need to believe that ethanol and related co-products can support resilient cash generation while its carbon capture and capacity projects gradually enhance earnings quality. The latest quarter’s modest sales growth and stable EPS, helped by stronger ethanol volumes and corn oil revenue, support the near term capacity expansion catalyst, but also underline the key risk that lower co-product pricing or project delays could still pressure margins and returns.

Against this backdrop, the expanded share repurchase authorization to 3,000,000 shares stands out as closely linked to the recent earnings beat, because consistent buybacks can soften the impact of profit volatility on EPS while investors wait for the carbon capture and One Earth Energy expansion projects to reach meaningful scale. This capital return focus may appeal to shareholders who are weighing near term execution risk on large growth investments.

Yet even with stronger volumes and a growing project pipeline, investors should not overlook the possibility that lower selling prices across ethanol and co-products could...

Read the full narrative on REX American Resources (it's free!)

REX American Resources' narrative projects $839.6 million revenue and $50.0 million earnings by 2028. This requires 9.3% yearly revenue growth and an $8.2 million earnings decrease from $58.2 million today.

Uncover how REX American Resources' forecasts yield a $49.37 fair value, a 48% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community span a wide range from about US$17.72 to US$49.37 per share, showing how differently investors can view REX. When you set those opinions against the importance of EPA approval for REX’s carbon capture project, it becomes clear why many investors choose to compare several alternative viewpoints before deciding how this story might affect future performance.

Explore 2 other fair value estimates on REX American Resources - why the stock might be worth 47% less than the current price!

Build Your Own REX American Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• Our free REX American Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate REX American Resources' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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