REX American Resources Posts Record 2025 Results as 45Z Credits Lift Earnings

Overview

• REX reported 290.0 million gallons of ethanol sold and $83.0 million in net income for fiscal 2025, with about $28 million in 45Z tax credits lifting fourth-quarter results.
• The company ended the year with $375.8 million in cash and short-term investments and no bank debt, after putting roughly $166 million into its expansion and carbon capture projects.
• The One Earth Energy upgrade to 200 million gallons of annual capacity is nearing completion and is expected to run at full rates in fiscal 2026.
• A completed carbon capture facility cannot add extra credits until the EPA issues a Class VI injection well permit and state regulators approve a CO2 pipeline, which would allow underground storage of captured emissions.
• The 45Z credit rewards lower carbon intensity in each gallon of fuel, and management said it could approach about $1.00 per gallon at One Earth if carbon capture cuts the score by 30 to 35 points, compared with an estimated 10 cents per gallon today.