Rex American Resources(NYSE) REX

REX American Resources Corporation turns corn into fuel for cars. It also makes protein-rich feed for farm animals. These products help farmers and fuel suppliers meet energy needs.

What Does REX Make?

• Ethanol: Renewable fuel produced for blending with gasoline; sold to fuel distributors and retailers across the United States.
• Dried Distillers Grains: High-protein animal feed byproduct; created during the fermentation process and sold to livestock producers.
• Distillers Corn Oil: Industrial-grade oil extracted during processing; used as a feedstock for renewable biodiesel production.
• Modified Distillers Grains: Feed product with higher moisture content than dried grains; sold based on local market demand.

Expanding Production and Sequestration

• Obtained a construction permit to expand the One Earth ethanol plant to 175 million gallons per year.
• Applied for a Class VI injection well permit for carbon sequestration in October 2022.
• Received a draft permit from the EPA for three injection wells on Aug. 17, 2026.
• Signed an agreement in May 2023 for the NuGen plant to join a carbon capture pipeline.

Managing Volatility and Carbon

REX manages commodity price volatility by matching corn purchase contracts with ethanol sales agreements to protect profit margins. The company also builds specialized facilities to capture and compress carbon dioxide for underground storage projects.

Second Quarter Financial Facts

• Net sales and revenue reached $168.5 million in the second quarter of fiscal year 2026, up approximately 6% year over year.
• Net income attributable to REX common shareholders was $34.9 million in the second quarter of fiscal year 2026, up from $7.1 million in the prior year period.
• Production tax credit income totaled $26.0 million in the first six months of fiscal year 2026.
• Working capital was $391.5 million at July 31, 2026, compared to $372.5 million at Jan. 31, 2026.

Bottom Line

REX has transitioned from its origins as a retail store operator to a specialized energy and agribusiness company. It continues to diversify by investing in carbon capture and plant efficiency projects.