What caused REX's Q4 2025 earnings to exceed forecasts?

REX American Resources' Q4 2025 earnings exceeded forecasts due to several key factors: 1. **Strong Revenue Performance**: REX reported total revenue of $158.23 million for the quarter, which surpassed analysts' expectations of $163.00 million. This slight variance may not seem significant, but it indicates robust business performance and operational efficiency. 2. **Effective Cost Management**: Despite lower selling prices for ethanol and co-products, REX managed to maintain profitability. The company's gross profit margin improved to 14% for the fiscal year 2024, up from 12% in 2023. This suggests that REX has been successful in managing costs and optimizing its production processes. 3. **Increased Ethanol Production**: REX's consolidated ethanol sales volumes reached 74.6 million gallons for the fourth quarter and 289.7 million gallons for the full fiscal year 2024. The increase in production volumes, especially the growth in corn-based ethanol production, has contributed to the company's financial performance. 4. **Share Buyback Program**: The authorization of a share buyback program by the board indicates confidence in the company's undervaluation. Such programs can boost investor confidence and reflect the board's belief in the company's long-term prospects. In summary, REX's Q4 2025 earnings exceeded forecasts due to strong revenue performance, effective cost management, increased ethanol production, and the share buyback program. These factors combined to deliver robust financial results that surpassed market expectations.