REX American Resources Corporation (REX): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, precise breakdown of REX American Resources Corporation's (REX) business model, and honestly, the core story is about ethanol production efficiency, strong liquidity, and a big bet on carbon capture. If you look closely at their setup, you'll see REX American Resources Corporation (REX) is running six facilities, managing commodity risk, and sitting on serious financial firepower-they had about $335.5 million in cash and short-term investments as of October 2025, with no bank debt to boot. This isn't just about selling fuel-grade ethanol and co-products like distillers grains; it's about positioning the whole operation to benefit from cleaner fuel credits via their One Earth Energy project while maintaining a rock-solid balance sheet. Let's dive into exactly how REX American Resources Corporation (REX) turns corn into cash and carbon credits below.

REX American Resources Corporation (REX) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships REX American Resources Corporation relies on to run its ethanol and by-products business as of late 2025. These partnerships are crucial for securing raw materials, managing energy needs, advancing technology, and getting products to market.

Joint ventures with entities like Big River Resources, LLC represent a significant portion of REX American Resources Corporation's operational footprint. REX American Resources Corporation holds minority ownership interests in four Big River Resources, LLC entities, which operate four ethanol production plants with a combined capacity of approximately 430 million gallons per year as of early 2025. REX's effective ownership of total ethanol gallons shipped across all six facilities for the twelve-month period ended January 31, 2025, was approximately 294 million gallons.

Here's a breakdown of REX American Resources Corporation's ownership in the Big River Resources affiliates as of April 30, 2025:

REX American Resources Corporation's operations are highly dependent on local corn suppliers in the Midwest for raw material procurement. The price volatility of corn directly impacts operating results. Chicago Board of Trade corn prices per bushel ranged from a low of $3.62 in August 2024 to a high of $4.97 in January 2025. For the first nine months of fiscal 2025, higher input costs, including corn, contributed to gross profit compression to $64.8 million from $73.9 million year-over-year.

The energy-intensive production processes rely on natural gas providers. For the full fiscal year 2024, decreased natural gas prices partially offset lower selling prices for ethanol and co-products. REX American Resources Corporation's two majority-owned plants, One Earth Energy, LLC and NuGen Energy, LLC, have a combined production capacity of 300 million gallons per year.

REX American Resources Corporation is engaged in a strategic project with the University of Illinois for carbon sequestration project evaluation at its One Earth Energy facility. The company has invested approximately $155.8 million to date within the combined budget of $220 million-$230 million for the carbon capture and ethanol expansion initiatives as of the end of the third quarter of fiscal 2025. The U.S. Environmental Protection Agency (EPA) is currently expected to issue a final decision on the Class VI injection well permit in June 2026.

Distribution relies on logistics and rail partners for product distribution and export. The six ethanol production plants are located close to major railroads and truck routes. For context on the export market, the United States exported an estimated 1.9 billion gallons of ethanol in 2024, with 36% sold in Canada. Additionally, the U.S. exported an estimated 12.2 million metric tons of distillers grains in 2024, with 21% of that total going to Mexico.

• REX American Resources Corporation has delivered 21 consecutive quarters of profitability as of the third quarter of fiscal 2025.
• The company reported $335.5 million of cash, cash equivalents, and short-term investments as of October 31, 2025.
• One Earth Energy, LLC is expanding capacity from 150 million gallons per year to 175 million gallons per year, with further activities aiming for 200 million gallons per year by 2026.

Finance: review Q4 2025 capital expenditure forecast against current cash position by end of January.

REX American Resources Corporation (REX) - Canvas Business Model: Key Activities

You're looking at the core engine of REX American Resources Corporation, the day-to-day work that keeps the lights on and funds the future growth projects. It's a heavy lift, balancing physical production with financial hedging.

Operating six ethanol production facilities with 730 million gallons aggregate capacity is the foundation. REX American Resources Corporation has interests in six ethanol production facilities, which in aggregate have production capacity totaling approximately 730 million gallons per year. Keep in mind, REX's effective ownership of annual volumes is approximately 300 million gallons. For the third quarter of fiscal 2025, consolidated ethanol sales volumes hit 78.4 million gallons, which is up from 75.5 million gallons sold in the same quarter last year. The average selling price for ethanol during that Q3 2025 quarter was $1.73 per gallon versus $1.83 in the prior year.

A major focus is managing commodity price risk for corn, ethanol, and natural gas. The business is highly dependent on these commodity prices, which causes substantial fluctuation in operating results. For example, Chicago Board of Trade corn prices ranged from a low of $3.62 per bushel in August 2024 to a high of $4.97 in January 2025. This volatility clearly hit the bottom line; Q3 2025 gross profit was $36.1 million, a decrease from $39.7 million in Q3 2024, primarily due to lower ethanol and distillers grain pricing.

The company is heavily invested in advancing the One Earth Energy carbon capture and sequestration project. Capital expenditures at the end of the third quarter related to the One Earth carbon capture and sequestration project and related expansion totaled $155.8 million. The combined budget for completion of the expansion and CCS projects is $220 million to $230 million. You should note that the U.S. EPA currently estimates that the Class VI injection well permit application will be finalized in June 2026. The One Earth Energy facility expansion itself is on track for 2026 completion, aiming for a capacity of 200 million gallons per year.

REX American Resources Corporation is also busy producing and selling co-products like distillers grains and corn oil. These by-products are a key part of the revenue mix, though their pricing can be inconsistent. Here's a look at the Q3 2025 co-product activity:

Honestly, the corn oil performance was a bright spot; revenue increased approximately 60% year-over-year in Q3 2025, driven by a 17% increase in pounds sold and a 36% increase in the selling price per pound.

Finally, a forward-looking activity is evaluating how to leverage the new 45Z clean fuel production tax credits. REX is actively engaged in assessing its operations to assign a carbon intensity score, expecting favorable outcomes to begin earning credits. The company is positioning to capitalize on these near-term opportunities while awaiting final guidance from the Treasury Department. The $155.8M investment in the CCS project is directly tied to this, aiming to qualify for 45Z credits based on gallons of ethanol produced, which are available for calendar years 2025 - 2027.

You can see the key operational metrics for the core ethanol business here:

• Net sales and revenue for Q3 2025 were $175.6 million.
• Net income attributable to REX shareholders for Q3 2025 was $23.4 million.
• Diluted net income per share for Q3 2025 was $0.71.
• The company maintained profitability for its 21st consecutive quarter.
• REX ended Q3 2025 with $335.5 million in cash, cash equivalents, and short-term investments, with no bank debt.

Finance: draft the Q4 2025 cash flow projection incorporating potential 45Z credit timing by next Wednesday.

REX American Resources Corporation (REX) - Canvas Business Model: Key Resources

You're looking at the core assets REX American Resources Corporation holds as of late 2025. These aren't just line items; they are the engines and the future bets for the business.

The balance sheet shows significant liquidity, which is a major strength right now, especially with capital projects underway. As of October 31, 2025, REX American Resources Corporation had $335.5 million in cash, cash equivalents, and short-term investments, while carrying no bank debt.

The foundation of REX American Resources Corporation's operations rests on its majority ownership stakes in key ethanol production facilities. The two consolidated plants, One Earth Energy, LLC and NuGen Energy, LLC, represent a current combined capacity of 300 MMgy (Million Gallons per Year). Plus, REX American Resources Corporation holds ownership shares in four other ethanol plants reported as equity in unconsolidated affiliates. The total production capacity across all six facilities is substantial.

Here's the quick math on the production footprint:

The One Earth Energy facility is currently undergoing an expansion project, which is on track for completion in 2026, aiming to boost its capacity to 200 MMgy. Capital expenditures related to this expansion and the adjacent carbon capture project totaled $155.8 million at the end of the third quarter, with a combined budget for completion set between $220-$230 million. This investment is critical for future earnings potential, especially with the 45Z tax credits in play.

REX American Resources Corporation's expertise is rooted in the dry-mill ethanol production process, which yields valuable co-products. The company is actively positioning itself to maximize benefits from the 45Z Clean Fuel Production Credit.

Key operational and strategic assets include:

• Majority ownership in One Earth Energy, LLC and NuGen Energy, LLC.
• Expertise in dry-mill ethanol production and by-product management.
• Operational focus on reducing carbon intensity (CI) score.
• Strong operational performance, marking 21st consecutive quarter of positive earnings.

Strategic plant locations are a key advantage. The One Earth Energy plant is situated in the Illinois Basin, which is known for having proven geologic storage characteristics for carbon sequestration. This geographical placement directly supports the company's carbon capture and sequestration (CCS) ambitions. The company sold 78.4 million gallons of ethanol in the third quarter of fiscal 2025.

The Class VI well permit application for CO2 sequestration at the One Earth facility is a major near-term focus. The U.S. EPA is currently expected to issue a final decision on the permit application in June 2026. Securing this permit is essential to moving forward with the sequestration well construction. If onboarding takes longer than expected, the timeline for realizing the full CCS benefits could shift, defintely impacting the expected tax credit realization.

REX American Resources Corporation (REX) - Canvas Business Model: Value Propositions

You're looking at what REX American Resources Corporation actually delivers to its customers and stakeholders as of late 2025. It's a mix of physical commodities and financial strength.

High-quality, cleaner-burning fuel-grade ethanol for blending is a core offering. For the third quarter of fiscal 2025, REX American Resources Corporation reported consolidated ethanol sales volumes of 78.4 million gallons. The average selling price for ethanol during that quarter was $1.73 per gallon.

The value extends to co-products essential for livestock:

• Protein-rich animal feed (DDGS/MDGS) co-product for livestock
• Dried distillers grain sales volumes for Q3 2025 were 160,000 tons at an average selling price of $139.93 per ton.
• Modified distiller grain volumes totaled approximately 21,000 tons at an average selling price of $57.03 per ton.

Distillers corn oil is another key output, used in low-carbon fuels like renewable diesel. For the third quarter of fiscal 2025, corn oil sales volumes were approximately 27.4 million pounds, with an average selling price of $0.60 per pound. This represented an approximately 60% increase in sales revenue for corn oil year-over-year.

REX American Resources Corporation also offers significant value through its financial posture. The company has delivered 21 consecutive quarters of positive earnings. As of October 31, 2025, REX American Resources Corporation had $335.5 million of cash, cash equivalents, and short-term investments available and no bank debt. Total equity reached $656.2 million.

Here are the key operational metrics from the third quarter of fiscal 2025:

The commitment to sustainability is a value proposition tied to future regulatory benefits. REX American Resources Corporation is advancing its carbon capture and sequestration initiative at the One Earth Energy facility. To date, approximately $155.8 million has been invested in the carbon capture and ethanol expansion projects, with a combined budget of $220-$230 million. The final permitting decision for the sequestration portion is expected in June 2026, positioning the company to potentially earn 45Z tax credits.

The One Earth ethanol expansion project is on track for completion in 2026, which will boost annual production capacity to 200 million gallons.

• One Earth Ethanol Expansion Completion Target: 2026
• EPA Class VI Well Permit Decision Estimate: June 2026
• Capital Invested to Date in CCS/Expansion: $155.8 million
• Total Project Budget Range: $220-$230 million

Finance: draft 13-week cash view by Friday.

REX American Resources Corporation (REX) - Canvas Business Model: Customer Relationships

REX American Resources Corporation (REX) engages customers through a clear business-to-business (B2B) structure, primarily selling its core product, ethanol, alongside by-products like distillers grains and distillers corn oil.

Direct B2B sales model with fuel blenders and feed companies

The customer base for REX American Resources Corporation is concentrated within the fuel blending and animal feed industries, reflecting the nature of its ethanol and by-product output. The company's interests in six ethanol production facilities give it an aggregate production capacity totaling approximately 730 million gallons per year. REX American Resources Corporation's effective ownership of annual volumes is approximately 300 million gallons. For instance, in the fiscal third quarter of 2025, REX reported consolidated ethanol sales volumes of 78.4 million gallons. The second quarter of fiscal 2025 saw consolidated ethanol sales volumes of 70.6 million gallons. These sales volumes are directly tied to the output from its majority-owned facilities, One Earth Energy, LLC, and NuGen Energy, LLC, which have a combined capacity of 300 MMgy, and its minority interests.

Dedicated sales team for managing large-volume commodity contracts

Managing the movement of millions of gallons of product requires a focused approach to sales and logistics. The relationship structure is inherently transactional, centered on securing agreements for large volumes of product delivery. The company's operations are highly dependent on commodity prices, especially for corn, ethanol, distillers grains, distillers corn oil, and natural gas. This dependency means the sales team's primary focus is on navigating price volatility to secure favorable terms for customers, as evidenced by the Q3 2025 gross profit decrease, which was primarily the result of lower ethanol and distillers grain pricing.

Transactional relationships driven by commodity pricing and supply reliability

The core of the customer relationship hinges on two factors: the price at which REX American Resources Corporation can sell its output and the certainty of supply. The company's net sales and revenue for the third quarter of fiscal 2025 were $175.6 million, demonstrating the scale of these transactions. The relationship is not typically about deep, long-term product development collaboration but rather about executing reliable, high-volume commodity sales against fluctuating market benchmarks. The company is also focused on future revenue streams tied to environmental attributes, which will influence future pricing discussions:

• REX American Resources Corporation is planning to generate 45Z clean production tax credits.
• Capital expenditures related to the One Earth carbon capture and sequestration project and expansion totaled $155.8 million at the end of Q3 2025, with a combined budget of $220-$230 million.

Long-term engagement with partners like Big River Resources

REX American Resources Corporation maintains a significant, long-term engagement through its equity investment in Big River Resources, LLC ("Big River"). This relationship is strategic, providing access to additional production capacity and revenue streams through an equity method investment. As of January 31, 2025, REX American Resources Corporation's carrying amount for this investment was approximately $35.8 million. The Big River entities, which include four ethanol manufacturing facilities, shipped approximately 437.8 million gallons of ethanol in the twelve months ended January 31, 2025. REX's ownership percentage in Big River is 10.3%. This structure suggests a relationship that goes beyond a simple buyer-seller dynamic, involving shared governance and financial alignment, even though the ultimate sales to end-users remain transactional.

Key Production and Partnership Volumes (As of Early/Mid-2025)

REX American Resources Corporation's customer relationships are fundamentally rooted in the physical commodity market, supported by a structure that manages both direct sales from its majority-owned assets and indirect revenue sharing from its minority stake in Big River Resources. Finance: draft 13-week cash view by Friday.

REX American Resources Corporation (REX) - Canvas Business Model: Channels

You're looking at how REX American Resources Corporation moves its product-ethanol and co-products-from the plant gates to the end-users. This is all about logistics and market access, which is critical when you're dealing with high-volume commodities.

The core of the distribution relies on moving product out of their six ethanol production facilities, including the consolidated One Earth Energy, LLC and NuGen Energy, LLC plants, plus four others reported as equity in unconsolidated affiliates. As of the end of the third quarter of fiscal 2025, REX American Resources Corporation reported net sales and revenue of $175.6 million for that quarter alone.

Direct sales and delivery via major railroads and truck routes form the backbone for getting product to market. This infrastructure is essential for handling the sheer volume moved. For instance, in the third quarter of fiscal 2025, the company moved 78.4 million gallons of ethanol. The dried distillers grain (DDG) volumes were approximately 160,000 tons during the same period.

The domestic distribution network targets fuel terminals and feedlots for the various co-products. This is where the value of the by-products is realized alongside the main ethanol stream. Here's a snapshot of the sales activity in Q3 2025 across these channels:

REX American Resources Corporation actively uses export channels to move volumes into international markets, specifically mentioning Canada and Mexico. Initial concerns about tariffs impacting these routes have eased, and ethanol exports are noted as increasing. This international reach helps manage sales volumes when domestic demand or pricing is tight. The company's effective ownership of annual volumes is approximately 300 million gallons across its interests.

Commodity brokers and traders are used for managing these sales volumes, especially for the bulk movements to domestic terminals and international buyers. While specific broker fees or volumes transacted through them aren't broken out in the Q3 2025 results, the scale of the sales implies their necessity in optimizing market access and pricing for products like ethanol, DDG, and corn oil. The company's overall production capacity is significant, totaling approximately 730 million gallons per year across the facilities in which it holds interests.

The company is actively investing to enhance future channel capacity. Capital expenditures related to the One Earth carbon capture and expansion projects totaled approximately $155.8 million year-to-date in Q3 2025, with a combined budget of $220-$230 million.

• One Earth Energy facility expansion targets increasing production capacity to 175 million gallons per year.
• The expansion project completion is still expected in 2026.
• The company ended Q3 2025 with $335.5 million in cash, cash equivalents, and short-term investments, supporting these capital-intensive channel improvements without bank debt.

Finance: draft 13-week cash view by Friday.

REX American Resources Corporation (REX) - Canvas Business Model: Customer Segments

You're looking at the core buyers for REX American Resources Corporation's output, which is heavily concentrated in a few key commercial relationships.

REX American Resources Corporation sells its products to a limited number of larger commercial buyers, which creates a concentration of risk. For fiscal year 2024, ten customers accounted for approximately 92% of the Company's net sales and revenue. As of January 31, 2025, six customers represented approximately 92% of the Company's accounts receivable balance.

The customer segments are defined by the primary product they purchase:

• Major oil companies and fuel blenders requiring Renewable Fuel Standards (RFS) compliance.
• Large-scale livestock and poultry operations (feedlots) purchasing by-products.
• International buyers driving strong export demand for ethanol and distillers grains.
• Industrial manufacturers and renewable diesel producers purchasing corn oil.

The scale of activity in the third quarter of fiscal year 2025 demonstrates the volume moving to these segments:

REX American Resources Corporation's effective ownership of ethanol gallons shipped over the twelve-month period ended January 31, 2025, was approximately 294 million gallons, out of an aggregate shipment of about 727 million gallons from the six facilities it holds interests in.

The export market, which serves international buyers, is a significant component of the broader industry demand. For context on the market REX serves, the United States exported an estimated 1.9 billion gallons of ethanol in 2024, with 36% of that volume going to Canada. Furthermore, the U.S. exported an estimated 12.2 million metric tons of distillers grains in 2024, representing approximately 37% of U.S. production, with 21% of those exports going to Mexico.

The corn oil segment, which targets industrial manufacturers and renewable diesel producers, showed strong growth in the quarter:

• Corn oil sales revenue increased by approximately 60% in Q3 FY2025 versus Q3 FY2024.
• This was driven by a 17% increase in pounds sold and a 36% increase in the average selling price per pound.

The company is also positioning itself to serve customers seeking low-carbon fuel mandates, as it plans to generate 45Z clean production tax credits, expecting its carbon intensity score to be below the threshold to begin earning credits. Finance: draft 13-week cash view by Friday.

REX American Resources Corporation (REX) - Canvas Business Model: Cost Structure

You're looking at the cost side of REX American Resources Corporation's business as of late 2025, and it's heavily influenced by commodity markets. The biggest cost drivers here are definitely the raw materials for ethanol production.

High variable costs are dominated by the prices of corn and natural gas input. The pressure from these costs is evident when you look at the gross profit; for the third quarter of fiscal 2025, gross profit compressed to $36.1 million, down from $39.7 million in Q3 2024. This compression was primarily the result of lower ethanol and distillers grain pricing, even with higher input costs like corn and natural gas being a factor. For instance, the average selling price for ethanol in Q3 2025 was $1.73 per gallon, lower than the $1.83 per gallon seen in the prior year's third quarter.

The company is also making significant outlays for future capacity and environmental compliance. Capital expenditures for the One Earth carbon capture and sequestration project and the related expansion of ethanol production capacity totaled $155.8 million at the end of the third quarter. REX American Resources Corporation's combined budget for the completion of these projects is set between $220-$230 million.

General overhead, which includes plant maintenance and labor, is part of the operating expenses, though specific maintenance and labor line items aren't broken out in the latest reports. What we do have is the Selling, General, and Administrative (SG&A) expense figure. For the third quarter of fiscal 2025, SG&A expenses were approximately $8.2 million, a slight improvement from $8.4 million reported in Q3 2024.

Here's a quick look at some key financial figures from Q3 2025 that frame the cost environment:

Also factored into the cost structure are logistics and transportation costs associated with shipping bulk commodities like ethanol and distillers grains, which fluctuate based on freight rates and the volume of the 78.4 million gallons of consolidated ethanol sold during the quarter.

• Corn and natural gas prices directly impact the cost of goods sold.
• The total budget for the One Earth expansion and carbon capture is $220 million to $230 million.
• SG&A expenses for the quarter were $8.2 million.
• The company maintained $335.5 million in cash, cash equivalents, and short-term investments as of October 31, 2025, with no bank debt, which helps buffer against input cost volatility.

Finance: draft 13-week cash view by Friday.

REX American Resources Corporation (REX) - Canvas Business Model: Revenue Streams

You're looking at the core ways REX American Resources Corporation brings in money, which is heavily tied to the commodity markets for ethanol and its co-products. Here's the quick math on the revenue streams as of their Fiscal Third Quarter 2025 results, reported on December 4, 2025.

The primary revenue drivers come from the production and sale of fuel-grade ethanol and its associated byproducts. REX American Resources' total net sales and revenue for Q3 2025 was reported at $\text{175.6 million}$.

Key volume metrics for the major product sales in Q3 2025 include:

• Sales of fuel-grade ethanol volume: $\text{78.4 million gallons}$.
• Sales of Dried Distillers Grains (DDGS) volume: $\text{160,000 tons}$.
• Sales of Distillers Corn Oil (DCO) volume: $\text{27.4 million pounds}$.

REX American Resources' revenue streams are diversified across these physical products and their financial investments. The company reports its results based on interests in six ethanol facilities, with two consolidated and four accounted for via equity income.

Here is a breakdown of the key income components from the Q3 2025 Consolidated Statements of Operations (amounts in thousands, except where noted):

The interest and other income stream is derived from cash reserves. For Q3 2025, REX American Resources reported $\text{3.2 million}$ in interest and other income, down from $\text{4.6 million}$ in Q3 2024, reflecting lower rates and lower investments.

REX American Resources Corporation also generates revenue from its equity stakes in other operations. The income from these non-consolidated interests is a material component of their overall earnings:

• Equity in income of unconsolidated ethanol affiliates for Q3 2025 was $\text{4,388 thousand}$, or approximately $\text{4.388 million}$.
• This compares to $\text{3,621 thousand}$ in the same period last year.

For completeness on the product side, the company also reported sales volumes for Modified Distillers Grains during the quarter:

• Modified distiller grain volumes totaled approximately $\text{21,000 tons}$.
• The average selling price for DDGS was $\text{139.93}$ per ton.
• The average selling price for corn oil was $\text{0.60}$ per pound.

Finance: draft 13-week cash view by Friday.