REX AMERICAN RESOURCES Corp

Previous wording

Illinois Senate Bill 1723 was signed into law by the Governor on August 1, 2025. SB 1723 prohibits carbon sequestration activities over, under, or through the aquifer as defined by the EPA. The proposed injection wells for our carbon sequestration project are located outside of this area.

Current wording

Illinois Senate Bill 1723 was signed into law by the Governor on August 1, 2025. SB 1723 prohibits carbon sequestration activities over, under, or through the aquifer as defined by the EPA. The proposed injection wells for our carbon sequestration project are located outside of these areas.

Previous wording

We continue to work to identify ways to reduce our CI score at the One Earth plant with the intention of maximizing tax credits available under the IRA. The IRA created a new Clean Fuel Production Credit under Section 45Z, originally available for calendar years 2025 – 2027 which, based on proposed rulemaking by the United States Department of Treasury, will establish a credit that utilizes a sliding scale where credits can be earned in ten-cent increments between $0.10 and $1.00 per gallon of non-SAF fuels based on an ethanol plant’s GHG reduction below a 50 CI score threshold, with the first ten cents earned upon achieving a CI score below 47.5, to incentivize further increases in plant efficiencies within the industry. In July 2025, Congress passed the budget reconciliation bill known as the One Big Beautiful Bill Act, which was subsequently signed into law by the President. The law extended the time period which 45Z credits can be claimed by two years, through December 31, 2029. The U.S. Department of the Treasury has not yet issued final rules on qualification for 45Z tax credits.

Current wording

We continue to work to identify ways to reduce our CI score at the One Earth plant with the intention of maximizing tax credits available under the IRA. The IRA created a new Clean Fuel Production Credit under Section 45Z, originally available for calendar years 2025 – 2027 which, based on proposed rulemaking by the United States Department of Treasury, will establish a tax credit that utilizes a sliding scale where credits can be earned incrementally between $0.02 and $0.20, or $0.10 and $1.00 if prevailing wage requirements are met, per gallon of non-SAF fuels based on an ethanol plant’s GHG reduction below a 50 CI score threshold, with the first two or ten cents earned upon achieving a CI score below 47.5, to incentivize further increases in plant efficiencies within the industry. In July 2025, Congress passed the OBBBA, which was subsequently signed into law by the President. The law extended the time period which 45Z credits can be claimed by two years, through December 31, 2029. The U.S. Department of the Treasury has not yet issued final rules on qualification for 45Z tax credits.

Previous wording

We currently budget capital expenditures for both the expansion and sequestration projects at One Earth to be approximately $220 million to $230 million, subject to further refinement as we move forward. We plan to pay for all expenditures from available cash. As of July 31, 2025, we had spent $57.4 million since inception toward the carbon sequestration project. If the carbon sequestration project is successful, we believe we will qualify for tax credits under section 45Q, based on tons of carbon sequestered, and section 45Z, based on gallons of ethanol produced, as outlined in the IRA and OBBBA. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available. As of July 31, 2025, we had spent $69.3 million since inception and were contractually committed to spend an additional $45.2 million, inclusive of the $38.2 million equipment purchase and installation agreement entered into subsequent to the end of the quarter, toward plant capacity expansion and ongoing efforts to reduce our CI scoring.

Current wording

We currently budget capital expenditures for both the expansion and sequestration projects at One Earth to be approximately $220 million to $230 million, subject to further refinement as we move forward. We plan to pay for all expenditures from available cash. As of October 31, 2025, we had spent $58.1 million since inception toward the carbon sequestration project. If the carbon sequestration project is successful, we believe we will qualify for tax credits under section 45Q, based on tons of carbon sequestered, and section 45Z, based on gallons of ethanol produced, as outlined in the IRA and OBBBA. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available. As of October 31, 2025, we had spent $97.7 million since inception and were contractually committed to spend an additional $17.0 million toward plant capacity expansion and ongoing efforts to reduce our CI scoring at One Earth.

Previous wording

In May 2023, NuGen, our majority owned ethanol plant in Marion, South Dakota, signed an agreement to be part of Summit Carbon Solutions’ carbon capture and storage pipeline. Should Summit Carbon Solutions be able to obtain all necessary permits and approvals, the agreement would allow NuGen to share in the economic benefits of tax credits through the sale of the CO 2 output of its ethanol production facility for sequestration, as well as reduce its net carbon emissions. In March 2025, South Dakota signed a bill into law that bans the use of eminent domain in connection with CO 2 pipelines. This act could make the sequestration project for the NuGen facility more difficult to complete.

Current wording

In May 2023, NuGen, our majority owned ethanol plant in Marion, South Dakota, signed an agreement to be part of Summit Carbon Solutions’ carbon capture and storage pipeline. Should Summit Carbon Solutions be able to obtain all necessary permits and approvals, the agreement would allow NuGen to share in the economic benefits of tax credits through the sale of the CO 2 output of its ethanol production facility for sequestration, as well as to reduce its net carbon emissions. In March 2025, South Dakota signed a bill into law that bans the use of eminent domain in connection with CO 2 pipelines. This act could make the sequestration project for the NuGen facility more difficult to complete.

Previous wording

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. Using licensed technology, our plant applied two separate chemicals to convert feedstock coal into refined coal, which was sold to the end user of the refined coal. The refined coal operating results were subsidized by federal production tax credits through November 18, 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the IRC. We ceased operating the facility on November 18, 2021 and subsequently sold the facility. The approximately $58.2 million in federal production tax credits received through the ownership of this facility remain under IRS audit. We have received an Acknowledgement of Facts notice from the IRS that they intend to deny these tax credits. We intend to vigorously defend these credits.

Current wording

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. Using licensed technology, our plant applied two separate chemicals to convert feedstock coal into refined coal, which was sold to the end user of the refined coal. The refined coal operating results were subsidized by federal production tax credits through November 18, 2021, subject to meeting qualified emissions reductions as governed by Section 45 of the IRC. We ceased operating the facility on November 18, 2021 and subsequently sold the facility. The approximately $58.2 million in federal production tax credits received through the ownership of this facility remain under IRS audit. We have received a Notice of Proposed Adjustments from the IRS that they intend to deny these tax credits. We intend to vigorously defend these credits.

Previous wording

During the six months ended July 31, 2025, we did not change any of our critical accounting policies as disclosed in our 2024 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025.

Current wording

During the nine months ended October 31, 2025, we did not change any of our critical accounting policies as disclosed in our 2024 Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025.

Previous wording

Renewable Fuel Standard II, established in October 2010, has been an important factor in the growth of ethanol usage in the United States. There has been much uncertainty in the enforcement of RFS II. When it was originally established, RFS II required the volume of “conventional” or corn derived ethanol to be blended with gasoline to increase each year until it reached 15.0 billion gallons in 2015 and required that it remain at that level through 2022. There are no established congressional target volumes beginning in 2023. The EPA has the authority to waive the biofuel mandate, in whole or in part, if there is inadequate domestic renewable fuel supply or the requirement severely harms the domestic economy or environment. In addition, under RFS II, a small refiner that processes fewer than 75,000 barrels of oil per day can petition the EPA for a waiver of their requirement to submit RINs. The EPA, through consultation with the United States Department of Energy and the USDA, can grant the refiner a full or partial waiver, or deny the waiver. The EPA issued 88 refinery exemptions for 2016-2018 compliance years, undercutting the statutory renewable fuel volumes by a total of 4.3 billion gallons. The EPA did not grant any small refinery waivers for 2019-2022. There have been multiple ongoing legal challenges on how the EPA has handled the small refinery waivers. In July 2024, the U.S. Court of Appeals for the District of Columbia Circuit vacated many of the EPA’s 2022 SRE denials. As a result of this Court ruling, the EPA voluntarily moved to rescind the agency’s 2023 denial of 26 SREs. On August 22, 2025, the EPA ruled on much of the backlog of SREs, with 63 full exemptions, 77 partial exemptions of 50%, 28 denials and 7 ruled as ineligible. These and additional SREs could lead to decreased RIN values and ethanol pricing. As of August 22, 2025, there were 13 SRE petitions pending from compliance years 2021 and 2025. The total exemptions amount to approximately 5.3 billion credits. The EPA is currently working on determining how to reallocate credits exempted for 2023 and later years, which amount to 1.4 billion credits. In addition, the EPA laid out its new approach to ruling on SRE petitions. The agency said it would utilize the Department of Energy’s matrix for determining disproportionate harm unless the EPA’s “consideration of other economic factors, including refinery-specific information, compels the Agency to depart from that rebuttable presumption.” It also stated if the small refiner has already demonstrated compliance by retiring RINs it would return those RINs.

Current wording

Renewable Fuel Standard II, established in October 2010, has been an important factor in the growth of ethanol usage in the United States. There has been much uncertainty in the enforcement of RFS II. When it was originally established, RFS II required the volume of “conventional” or corn derived ethanol to be blended with gasoline to increase each year until it reached 15.0 billion gallons in 2015 and required that it remain at that level through 2022. There are no established congressional target volumes beginning in 2023. The EPA has the authority to waive the biofuel mandate, in whole or in part, if there is inadequate domestic renewable fuel supply or the requirement severely harms the domestic economy or environment. In addition, under RFS II, a small refiner that processes fewer than 75,000 barrels of oil per day can petition the EPA for a waiver of their requirement to submit RINs. The EPA, through consultation with the United States Department of Energy and the USDA, can grant the refiner a full or partial waiver, or deny the waiver. The EPA issued 88 refinery exemptions for 2016-2018 compliance years, undercutting the statutory renewable fuel volumes by a total of 4.3 billion gallons. The EPA did not grant any small refinery waivers for 2019-2022. There have been multiple ongoing legal challenges to how the EPA has handled the small refinery waivers. In July 2024, the U.S. Court of Appeals for the District of Columbia Circuit vacated many of the EPA’s 2022 SRE denials. As a result of this Court ruling, the EPA voluntarily moved to rescind the agency’s 2023 denial of 26 SREs. On August 22, 2025, the EPA ruled on much of the backlog of SREs, issuing 63 full exemptions, 77 partial exemptions of 50%, 28 denials and 7 ruled as ineligible. On November 7, 2025 the EPA issued two 100% waivers and 12 50% waivers. These and additional SREs could lead to decreased RIN values and ethanol pricing. As of November 20, 2025, there were 17 SRE petitions pending from compliance years 2023 - 2025. The total exemptions amount to approximately 2.2 billion gallon credits from compliance years 2023 - 2025. The EPA is currently working on determining how to possibly reallocate credits exempted for 2023 and later years. In addition, the EPA laid out its new approach to ruling on SRE petitions. The agency said it would utilize the Department of Energy’s matrix for determining disproportionate harm unless the EPA’s “consideration of other economic factors, including refinery-specific information, compels the Agency to depart from that rebuttable presumption.” It also stated if the small refiner has already demonstrated compliance by retiring RINs it would return those RINs.

Previous wording

The EPA has issued emergency waivers for the sale of E-15 gasoline for the 2025 summer months. This is the fourth consecutive year for these emergency waivers. The EPA has not granted E-15 the same Reid vapor pressure waiver as E-10, so absent the emergency waivers, E-15 may not be sold in most states from June 1 to September 15.

Current wording

The EPA issued emergency waivers allowing the sale of E-15 gasoline for the 2025 summer months. This is the fourth consecutive year for these emergency waivers. The EPA has not granted E-15 the same Reid vapor pressure waiver as E-10, so absent the emergency waivers, E-15 may not be sold in most states from June 1 to September 15.

Previous wording

The IRA, signed into law on August 16, 2022, created a new Clean Fuel Production Credit, section 45Z, originally available for years 2025 to 2027. Based on proposed rulemaking by the United States Department of Treasury, the Clean Fuel Production Credit will be established utilizing a sliding scale where credits may be earned in ten-cent increments between $0.10 and $1.00 per gallon of non-SAF fuels based on a plant’s GHG reduction below a 50 CI score threshold, with the first ten cents earned upon achieving a CI score below 47.5. The IRA also raises the carbon capture tax credit from $50 per metric ton to $85 per metric ton, under section 45Q. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available.

Current wording

The IRA, signed into law on August 16, 2022, created a new Clean Fuel Production Credit, section 45Z, originally available for years 2025 to 2027. Based on proposed rulemaking by the United States Department of Treasury, the Clean Fuel Production Credit will be established utilizing a sliding scale where tax credits may be earned incrementally between $0.02 and $0.20, or $0.10 and $1.00 if prevailing wage requirements are met, per gallon of non-SAF fuels based on a plant’s GHG reduction below a 50 CI score threshold, with the first two or ten cents earned upon achieving a CI score below 47.5. The IRA also raises the carbon capture tax credit from $50 per metric ton to $85 per metric ton, under section 45Q. Companies may elect either the 45Q credit or the 45Z credit in periods in which both tax credits are available.

Previous wording

Signed into law on July 4, 2025, the OBBBA introduced major revisions to clean energy tax credits. Key provisions include extending the 45Z credit through 2029, removing the indirect land-use change penalty for crop-based feedstocks, limiting eligibility to feedstocks under the USMCA, imposing FEOC restrictions, and prohibiting negative emissions rates except from animal manure. It also modified the language for 45Q tax credits for facilities placed in service after the bill enactment but maintained the $85 per ton if the prevailing wage and apprenticeship requirements are met.

Current wording

The OBBBA introduced major revisions to clean energy tax credits. Key provisions include extending the 45Z credit through 2029, removing the indirect land-use change penalty for crop-based feedstocks, limiting eligibility to feedstocks under the USMCA, imposing FEOC restrictions, and prohibiting negative emissions rates except from animal manure. It also modified the language for 45Q tax credits for facilities placed in service after the bill enactment but maintained the $85 per ton tax credit if the prevailing wage and apprenticeship requirements are met. 45Q credits are available for 12 years from the time CO 2 injection begins.

Previous wording

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. As the plant was no longer eligible to receive federal production tax credits beginning on November 18, 2021, we ceased operations on that date and subsequently sold the facility. The approximately $58.2 million in federal production tax credits received through ownership of this facility remain under IRS audit. We have received an Acknowledgement of Facts notice from the IRS that they intend to deny these tax credits. We intend to vigorously defend these credits.

Current wording

On August 10, 2017, we purchased, through a 95.35% owned subsidiary, the entire ownership interest of an entity that owned a refined coal facility. We began operating the refined coal facility immediately after the acquisition. As the plant was no longer eligible to receive federal production tax credits beginning on November 18, 2021, we ceased operations on that date and subsequently sold the facility. The approximately $58.2 million in federal production tax credits received through ownership of this facility remain under IRS audit. We have received a Notice of Proposed Adjustments from the IRS that they have denied these tax credits. We intend to vigorously defend these credits.

Previous wording

The Company claimed research and experimentation tax credits for tax years 2014 – 2022 totaling $24.5 million. These credits have been a focus of the ongoing IRS audit, in which the IRS has notified the Company the credits will be denied. We plan to vigorously defend these credits in appeals.

Current wording

The Company claimed research and experimentation tax credits for tax years 2014 – 2022 totaling $24.5 million. These credits have been a focus of the ongoing IRS audit, in which the IRS has notified the Company the credits will be denied at audit. We plan to continue vigorously defending these credits in appeals.

Previous wording

The United States exported an estimated 1.9 billion gallons of ethanol in 2024, up from approximately 1.4 and 1.3 billion gallons in 2023 and 2022, respectively. Through June 2025, the United States exported 1.1 billion gallons of ethanol, compared to 968 million gallons through June 2024. In 2024 and 2023, an estimated 12.2 and 10.8 million metric tons, respectively, of distillers grains were exported from the United States, which represented approximately 37% and 34% in 2024 and 2023, respectively, of U.S production. For the first half of calendar-year 2025, distiller grain exports declined by approximately. 6.5%. There has been much discussion around proposed and recently enacted tariffs by the United States and counter-tariffs and other trade restriction involving countries which have been large purchasers from our industry in the United States which could affect future demand for these products.

Current wording

The United States exported an estimated 1.9 billion gallons of ethanol in 2024, up from approximately 1.4 and 1.3 billion gallons in 2023 and 2022, respectively. Through August 2025, the United States exports increased approximately 14% compared to 2024. In 2024 and 2023, an estimated 12.2 and 10.8 million metric tons, respectively, of distillers grains were exported from the United States, which represented approximately 37% and 34% in 2024 and 2023, respectively, of U.S production. Through August 2025, distiller grain exports declined by approximately 4% on the calendar year. There has been much discussion around proposed and recently enacted tariffs by the United States and counter-tariffs and other trade restrictions involving countries which have been large purchasers from our industry in the United States, which could affect future demand for these products.

Previous wording

Based on the August 12, 2025 report from the USDA, corn production is forecasted to be 16.7 billion bushels in 2025, up 13% from 2024. The average corn yield is forecasted to be a record high of 188.8 bushels per acre, an increase of 9.5 bushels from 2024.

Current wording

Based on the November 14, 2025 report from the USDA, corn production is forecasted to be 16.75 billion bushels in 2025, up 12% from 2024. The average corn yield is forecasted to be a record high of 186 bushels per acre, an increase of 6.7 bushels from 2024.

Previous wording

Comparison of Three and Six Months Ended July 31, 2025 and 2024

Current wording

Comparison of Three and Nine Months Ended October 31, 2025 and 2024

Previous wording

Net sales and revenue in the quarter ended July 31, 2025 increased 7% compared to the prior year second quarter. Net sales and revenue in the first six months ended July 31, 2025 increased approximately 2% compared to the first six months of 2024.

Current wording

Net sales and revenue in the quarter ended October 31, 2025 increased an insignificant amount compared to the prior year third quarter. Net sales and revenue in the first nine months ended October 31, 2025 increased approximately 2% compared to the first nine months of 2024.

Previous wording

Ethanol revenue increased 6% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as gallons sold during the quarter increased 8% over the prior year comparable period, partially offset by a 2% decrease in the selling price per gallon sold. Ethanol revenue increased 5% in the first six months of fiscal year 2025 compared to the first six months of fiscal year 2024 as the average selling price of ethanol at our consolidated plants increased 4%, coupled with a 1% increase in gallons sold during first six months of 2025 compared to the prior year comparable period. Ethanol pricing is affected by many factors, including overall market supply and demand, as well as corn and gasoline pricing.

Current wording

Ethanol revenue decreased 2% in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 as the selling price per gallon decreased 5%, offset partially by a 4% increase in the number of gallons sold during the quarter. Ethanol revenue increased 3% in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024 due to a 2% increase in gallons sold during first nine months of 2025 compared to the prior year comparable period with prices remaining consistent year-over-year. Ethanol pricing is affected by many factors, including overall market supply and demand, as well as corn and gasoline pricing.

Previous wording

Dried distillers grains revenue decreased 3% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as the average price per ton sold decreased 13%, offset partially by an 11% increase in tons sold. Dried distillers grains revenue decreased 17% in the first six months of fiscal year 2025 compared to the first six months of fiscal year 2024 as the average price per ton sold decreased 18%, offset partially by a 2% increase in tons sold. The decrease in the dried distillers grains selling price is consistent with recent quarters and reflects an extended period of lower corn pricing as dried distillers grains prices often correlate with corn pricing. The increase in tons sold was impacted by higher production levels and uncertainty in the market regarding tariffs.

Current wording

Dried distillers grains revenue decreased 11% in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 as there was a 6% decrease in tons sold, coupled with a 5% decrease in the average price per ton sold. Dried distillers grains revenue decreased 15% in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024 as the average price per ton sold decreased 14%, coupled with a 1% decrease in tons sold. The decrease in the dried distillers grains selling price is consistent with recent quarters and reflects an extended period of lower corn pricing as dried distillers grains prices often correlate with corn pricing. The decrease in tons sold was impacted by increased production levels of other ethanol by-products.

Previous wording

Distillers corn oil revenue increased approximately 46% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as the selling price per pound increased 26% and the amount of pounds sold increased 14%. Distillers corn oil revenue increased approximately 22% in the first six months of 2025 compared to the first six months of fiscal year 2024 as the selling price per pound increased 11% and the amount of pounds sold increased 8%. The increase in the distillers corn oil selling price resulted primarily from fluctuations in demand in the renewable biodiesel market which often reflects the price of soybean oil.

Current wording

Distillers corn oil revenue increased approximately 60% in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 as the selling price per pound increased 36% and the amount of pounds sold increased 17%. Distillers corn oil revenue increased approximately 35% in the first nine months of 2025 compared to the first nine months of fiscal year 2024 as the selling price per pound increased 23% and the amount of pounds sold increased 11%. The corn oil yield per bushel ground improved at our consolidated ethanol plants in both the three- and nine-month periods ended October 31, 2025, relative to the comparable period in fiscal 2024. The increase in the distillers corn oil selling price resulted primarily from fluctuations in demand in the renewable biodiesel market.

Previous wording

Modified distillers grains revenue increased 11% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as the amount of tons sold increased by 10%, coupled with a 1% increase in the average selling price per ton sold. Modified distillers grains revenue increased 24% in the first six months of fiscal year 2025 compared to the first six months of fiscal year 2024 as the amount of tons sold increased by 29%, offset partially by a 4% decrease in the average selling price per ton sold. The decrease in the modified distillers grains selling price in the six-month periods resulted primarily from an extended period of lower corn prices as prices tend to move in the same direction, but are also impacted on changes in local market demand. As such, the price in the three-month comparable periods saw a slight increase. Our consolidated plants’ decisions to sell modified or dried distillers grains fluctuate from time to time based upon market conditions.

Current wording

Modified distillers grains revenue increased 2% in the third quarter of fiscal year 2025 compared to the third quarter of fiscal year 2024 as the amount of tons sold increased by 13%, offset partially with a 9% decrease in the average selling price per ton sold. Modified distillers grains revenue increased 16% in the first nine months of fiscal year 2025 compared to the first nine months of fiscal year 2024 as the amount of tons sold increased by 23%, offset partially by a 5% decrease in the average selling price per ton sold. The decrease in the modified distillers grains selling price in the three- and nine-month periods resulted primarily from an extended period of lower corn prices, as prices tend to move in the same direction but are also impacted by changes in local market demand. Our consolidated plants’ decisions to sell modified or dried distillers grains fluctuate from time to time based upon market conditions.

Previous wording

Cost of sales increased 12% in the quarter ended July 31, 2025, compared to the prior year second quarter. Corn accounted for approximately 74% ($106.5 million) of our cost of sales during the second quarter of fiscal year 2025 compared to approximately 77% ($98.9 million) during the second quarter of fiscal year 2024. Natural gas accounted for approximately 4% ($5.7 million) of our cost of sales during the second quarter of fiscal year 2025 and 3% ($3.9 million) in the second quarter of fiscal year 2024. Cost of sales increased 5% in the first six months of fiscal year 2025, compared to the first six months of fiscal year 2024. Corn accounted for approximately 74% ($212.9 million) of our cost of sales during the first six months of fiscal year 2025 compared to approximately 76% ($209.6 million) during the first six months of fiscal year 2024. Natural gas accounted for approximately 5% ($13.8 million) of our cost of sales during the first six months of fiscal year 2025 and 4% ($11.0 million) in the first six months of fiscal year 2024.

Current wording

Cost of sales increased 3% in the quarter ended October 31, 2025, compared to the prior year third quarter. Corn accounted for approximately 75% ($104.2 million) of our cost of sales during the third quarter of fiscal year 2025 compared to approximately 76% ($102.6 million) during the third quarter of fiscal year 2024. Natural gas accounted for approximately 4% ($6.2 million) of our cost of sales during the third quarter of fiscal year 2025 and 3% ($4.6 million) in the third quarter of fiscal year 2024. Cost of sales increased 4% in the first nine months of fiscal year 2025, compared to the first nine months of fiscal year 2024. Corn accounted for approximately 74% ($317.1 million) of our cost of sales during the first nine months of fiscal year 2025 compared to approximately 76% ($312.2 million) during the first nine months of fiscal year 2024. Natural gas accounted for approximately 5% ($20.0 million) of our cost of sales during the first nine months of fiscal year 2025 and 4% ($15.6 million) in the first nine months of fiscal year 2024.

Previous wording

As a result of the foregoing, gross profit for the second quarter of fiscal year 2025 decreased approximately $5.5 million compared to the prior year second quarter. Gross profit for the first six months of fiscal year 2025 decreased approximately $5.6 million compared to the first six months of fiscal year 2024.

Current wording

As a result of the foregoing, gross profit for the third quarter of fiscal year 2025 decreased approximately $3.5 million compared to the prior year third quarter. Gross profit for the first nine months of fiscal year 2025 decreased approximately $9.1 million compared to the first nine months of fiscal year 2024.

Previous wording

SG&A expenses were approximately $6.2 million for the second quarter of fiscal year 2025, compared to approximately $6.4 million of expenses for the second quarter of fiscal year 2024. SG&A expenses were approximately $12.1 million for the first six months of fiscal year 2025, compared to approximately $12.6 million for the first six months of fiscal year 2024. The decreases compared to the prior year are due primarily to a decrease in performance bonus expense of $0.8 million and $1.0 million in the second quarter of fiscal year 2025 and the first six months of fiscal year 2025, respectively, from the comparable periods of fiscal year 2024. Additionally, there was a decrease in stock compensation expense of approximately $0.2 million and $0.5 million in the second quarter of fiscal year 2025 and the first six months of fiscal year 2025, respectively, from the comparable periods of fiscal year 2024 subsequent to the completion of the restricted stock units performance period on December 31, 2024. These decreases were partially offset by an increase in rail car lease expense due to higher rates realized upon lease renewals.

Current wording

SG&A expenses were approximately $8.2 million for the third quarter of fiscal year 2025, compared to approximately $8.4 million of expenses for the third quarter of fiscal year 2024. SG&A expenses were approximately $20.4 million for the first nine months of fiscal year 2025, compared to approximately $21.0 million for the first nine months of fiscal year 2024. The decreases compared to the prior year were due primarily to a decrease in performance bonus expense of $0.3 million and $1.3 million in the third quarter of fiscal year 2025 and the first nine months of fiscal year 2025, respectively, from the comparable periods of fiscal year 2024. Additionally, there was a decrease in stock compensation expense of approximately $0.6 million and $1.1 million in the third quarter of fiscal year 2025 and the first nine months of fiscal year 2025, respectively, from the comparable periods of fiscal year 2024 subsequent to the completion of the restricted stock units performance period on December 31, 2024. These decreases were partially offset by an increase in rail car lease payments due to higher rates realized upon lease renewals.

Previous wording

During the second quarter of fiscal year 2025, we recognized income from our equity investment in Big River of approximately $0.9 million compared to income of approximately $1.7 million for the second quarter of fiscal year 2024. During the first six months of fiscal year 2025, we recognized income from our equity investment in Big River of approximately $1.9 million compared to income of approximately $3.5 million during the first six months of fiscal year 2024. Our investment in Big River, which has interests in four ethanol production plants, represents an effective ownership of approximately 38.0 million gallons of ethanol shipped in the trailing twelve months ended July 31, 2025. Due to the inherent volatility of commodity prices within the ethanol industry, we cannot predict the likelihood of future operating results from Big River being similar to historical results.

Current wording

During the third quarter of fiscal year 2025, we recognized income from our equity investment in Big River of approximately $4.4 million compared to income of approximately $3.6 million for the third quarter of fiscal year 2024. During the first nine months of fiscal year 2025, we recognized income from our equity investment in Big River of approximately $6.3 million compared to income of approximately $7.1 million during the first nine months of fiscal year 2024. Our investment in Big River, which has interests in four ethanol production plants, represents an effective ownership of approximately 39.0 million gallons of ethanol shipped in the trailing twelve months ended October 31, 2025. Due to the inherent volatility of commodity prices within the ethanol industry, we cannot predict the likelihood of future operating results from Big River being similar to historical results.

Previous wording

Interest and other income was approximately $3.1 million for the second quarter of fiscal year 2025 versus approximately $4.4 million for the second quarter of fiscal year 2024. Interest and other income was approximately $7.3 million for the first six months of 2025 versus approximately $10.3 million for the first six months of fiscal year 2024. The decrease is primarily related to decreased interest income of $1.2 million and $2.4 million in the second quarter and first six months of fiscal year 2025, respectively, based upon lower balances and yields on our excess cash and short-term investments in fiscal year 2025, compared to 2024. One of our consolidated ethanol plants recognized $0.5 million less in patronage income from an investment in a cooperative in the first six months of 2025 ($0.7 million) compared to the first six months of 2024 ($1.2 million). We do not expect patronage income from this investment in a cooperative to be significant in future periods.

Current wording

Interest and other income was approximately $3.2 million for the third quarter of fiscal year 2025 versus approximately $4.6 million for the third quarter of fiscal year 2024. Interest and other income was approximately $10.5 million for the first nine months of 2025 versus approximately $15.0 million for the first nine months of fiscal year 2024. The decrease is primarily related todecreased interest income of $1.4 million and $3.8 million in the third quarter and first nine months of fiscal year 2025, respectively, based upon lower balances and yields on our excess cash and short-term investments in fiscal year 2025, compared to 2024. One of our consolidated ethanol plants recognized $0.5 million less in patronage income from an investment in a cooperative in the first nine months of 2025 ($0.7 million) compared to the first nine months of 2024 ($1.2 million). We do not expect patronage income from this investment in a cooperative to be significant in future periods.

Previous wording

As a result of the foregoing, income before income taxes was approximately $12.1 million and $19.5 million for the second quarters of fiscal year 2025 and 2024, respectively. Income before income taxes was approximately $25.7 million and $35.5 million for the first six months of fiscal year 2025 and 2024, respectively.

Current wording

As a result of the foregoing, income before income taxes was approximately $35.5 million and $39.5 million for the third quarters of fiscal year 2025 and 2024, respectively. Income before income taxes was approximately $61.2 million and $75.0 million for the first nine months of fiscal year 2025 and 2024, respectively.

Previous wording

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. Our income tax provision was approximately $2.8 million and $4.5 million for the three months ended July 31, 2025 and 2024, respectively. Our income tax provision was approximately $5.7 million and $8.2 million for the first six months of fiscal year 2025 and 2024, respectively.

Current wording

The Company applies an effective tax rate to interim periods that is consistent with the Company’s estimated annual tax rate as adjusted for discrete items impacting the interim periods. Our income tax provision was approximately $8.0 million and $9.4 million for the three months ended October 31, 2025 and 2024, respectively. Our income tax provision was approximately $13.7 million and $17.6 million for the first nine months of fiscal year 2025 and 2024, respectively.

Previous wording

As a result of the foregoing, net income was approximately $9.3 million for the second quarter of fiscal year 2025 compared to approximately $15.0 million for the second quarter of fiscal year 2024. Net income was approximately $20.0 million for the first six months of fiscal year 2025 compared to approximately $27.3 million for the first six months of fiscal year 2024.

Current wording

As a result of the foregoing, net income was approximately $27.5 million for the third quarter of fiscal year 2025 compared to approximately $30.1 million for the third quarter of fiscal year 2024. Net income was approximately $47.5 million for the first nine months of fiscal year 2025 compared to approximately $57.4 million for the first nine months of fiscal year 2024.

Previous wording

Net income attributable to noncontrolling interests was approximately $2.2 million for the second quarter of fiscal year 2025 and $2.6 million for the second quarter of 2024. Net income attributable to noncontrolling interests was approximately $4.2 million for the first six months of fiscal year 2025 and $4.7 million for the first six months of fiscal year 2024. These amounts represent the other owners’ share of the income of NuGen and One Earth.

Current wording

Net income attributable to noncontrolling interests was approximately $4.1 million for the third quarter of fiscal year 2025 and $5.6 million for the third quarter of 2024. Net income attributable to noncontrolling interests was approximately $8.3 million for the first nine months of fiscal year 2025 and $10.3 million for the first nine months of fiscal year 2024. These amounts represent the other owners’ share of the income of NuGen and One Earth.

Previous wording

As a result of the foregoing, net income attributable to REX common shareholders for the second quarter of fiscal year 2025 was approximately $7.1 million, compared to net income attributable to REX common shareholders of approximately $12.4 million for the second quarter of fiscal year 2024. Net income attributable to REX common shareholders from the first six months of fiscal year 2025 was approximately $15.8 million, compared to net income attributable to REX common shareholders of approximately $22.6 million for the first six months of fiscal year 2024.

Current wording

As a result of the foregoing, net income attributable to REX common shareholders for the third quarter of fiscal year 2025 was approximately $23.4 million, compared to net income attributable to REX common shareholders of approximately $24.5 million for the third quarter of fiscal year 2024. Net income attributable to REX common shareholders from the first nine months of fiscal year 2025 was approximately $39.2 million, compared to net income attributable to REX common shareholders of approximately $47.1 million for the first nine months of fiscal year 2024.

Previous wording

Net cash provided by operating activities was approximately $12.8 million for the first six months of fiscal year 2025, compared to net cash provided by operating activities of approximately $5.7 million for the first six months of fiscal year 2024.

Current wording

Net cash provided by operating activities was $64.0 million for the first nine months of fiscal 2025, compared to $39.1 million for the prior year period.

Previous wording

For the first six months of fiscal year 2025, cash was provided by net income of approximately $20.0 million, adjusted upward for non-cash items of approximately $11.4 million, which consisted of depreciation, amortization of right-of-use assets, income from equity method investments, interest income from short-term investments, the deferred income tax provision, stock-based compensation expense, and loss on disposal of property and equipment. Big River paid dividends to REX of approximately $2.5 million during the first six months of fiscal year 2025. An increase in the balance of accounts receivable used cash of approximately $3.3 million, primarily as a result of the timing of products shipped and the receipt of customer payments at One Earth and NuGen. Inventories were nearly flat over the first six months of fiscal year 2025. An increase in the balance of other assets of approximately $0.6 million primarily related to increases in spare parts and in prepayments for certain fixed assets, offset by decreases in prepaid insurance and changes in the carrying value of forward purchase contracts and commodity futures positions recorded at fair value. An increase in the balance of refundable income taxes of approximately $2.0 million primarily relates to the accrual of the federal taxes currently payable being less than estimated federal tax payments made to date. While the Company has tax credits available to offset all amounts owed, the Company is limited to using tax credits for only 75% of federal taxes owed. A decrease in the balance of accounts payable used cash of approximately $9.9 million, which was primarily a result of the timing of inventory receipts and vendor payments. A decrease in the balance of other liabilities used cash of approximately $5.5 million, which was primarily caused by a decrease in accrued payroll which used cash of approximately $4.4 million, due to the timing of annual bonus payments. Additionally, a decrease in the lease liability used cash of $3.0 million based on payments made during the quarter. These decreases are partially offset by an increase in other current liabilities of $1.9 million.

Current wording

Operating cash flows for the nine-month period ended October 31, 2025 reflected net income of $47.5 million and non-cash adjustments of $17.2 million, consisted of depreciation, amortization of right-of-use assets, income from equity method investments, interest income from short-term investments, the deferred income tax provision, stock-based compensation expense, and loss on disposal of property and equipment. Additionally, Big River paid dividends of approximately $2.5 million during the first nine months of fiscal year 2025. These inflows were partially offset by various changes to working capital of $3.2 million during the first nine months of 2025, most significantly including:

Previous wording

We are investigating various uses for our excess cash and short-term investments. We expect total capital expenditures related to the construction at the One Earth facilities to approximate $220 million to $230 million, inclusive of the carbon sequestration project and plant capacity expansion and ongoing efforts to reduce CI scoring, which we currently plan to pay from our available cash. This estimate is subject to further refinement as the project progresses. As of July 31, 2025, we had spent $57.4 million since inception and were contractually committed to spend an additional $0.1 million toward the carbon sequestration project. As of July 31, 2025, we had spent $69.3 million since inception and were contractually committed to spend an additional $45.2 million, inclusive of the $38.2 million equipment purchase and installation agreement entered into subsequent to the end of the quarter, toward plant capacity expansion and CI scoring reduction efforts. For all projects, we plan to spend $50 million to $60 million during the remainder of fiscal year 2025.

Current wording

We expect total capital expenditures related to the construction at the One Earth facilities to approximate $220 million to $230 million, inclusive of the carbon sequestration project and plant capacity expansion and ongoing efforts to reduce CI scoring, which we currently plan to pay from our available cash. This estimate is subject to further refinement as the projects progress. As of October 31, 2025, we had spent $58.1 million since inception and were contractually committed to spend an additional $0.1 million toward the carbon sequestration project. As of October 31, 2025, we had spent $97.7 million since inception and were contractually committed to spend an additional $17.0 million toward plant capacity expansion and CI scoring reduction efforts. For all projects, we plan to spend $25 million to $35 million during the remainder of fiscal year 2025.