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REX American Resources (REX) has posted its FY 2026 numbers with third quarter revenue of US$175.6 million and EPS of US$0.71, setting the tone for how the rest of the year is shaping up. The company has seen revenue move from US$148.2 million in Q2 FY 2025 to US$174.9 million in Q3 FY 2025 and then to US$175.6 million in Q3 FY 2026. Quarterly EPS has ranged from US$0.35 in Q2 FY 2025 to US$0.70 in Q3 FY 2025 and US$0.71 in Q3 FY 2026, keeping investor attention firmly on how margins are holding up through these shifts.

With the headline figures on the table, the next step is to set these results against the main narratives around REX to see which stories about growth, risk and profit quality still hold up and which start to look stretched.

See what the community is saying about REX American Resources

Margins Under Pressure At 7.7%

• Over the last 12 months, REX reported a 7.7% net profit margin, compared with 10.1% in the prior year, alongside trailing earnings that turned negative despite five year earnings growth of 21.3% per year.
• Analysts' consensus view highlights margin pressure as a key risk, and the numbers back that up while also showing some support for the longer term growth story:
  • The trailing 7.7% margin and negative recent earnings line up with concerns about cost pressures and weaker profitability, especially when set against the prior year margin of 10.1%.
  • At the same time, the 21.3% annual earnings growth rate over five years and high assessed earnings quality show why the consensus still treats REX as a business with an underlying record of solid profit generation.

P/E Of 28.9x Versus Industry 16.4x

• REX trades on a trailing P/E of 28.9x, which is below the 42.8x peer average but above the wider US Oil & Gas industry at 16.4x, and the DCF fair value cited for the shares is US$33.26 compared with the current price of US$44.08.
• Consensus narrative commentary on valuation finds mixed signals here, and the data highlight where the arguments pull in different directions:
  • The lower P/E versus the 42.8x peer group ties in with the idea that REX looks comparatively cheaper than some direct peers at US$44.08.
  • However, the premium to the broader industry P/E and the share price sitting above the US$33.26 DCF fair value both match concerns that valuation risk is present even alongside the longer term earnings track record.

Quarterly EPS Swings Against Longer Term Growth

• Quarterly EPS has moved from US$0.35 in Q2 FY 2025 to US$0.70 in Q3 FY 2025, then to US$0.71 in Q3 FY 2026, while trailing 12 month basic EPS figures in the data run from US$1.93 at 2025 Q3 to US$1.48 at 2026 Q3, alongside five year annual earnings growth of 21.3%.
• Consensus narrative comments on both growth projects and risks, and the reported earnings pattern shows where that balanced view is grounded in numbers:
  • The five year 21.3% earnings growth rate and description of past earnings quality as high support the idea that projects like carbon capture and facility expansion are being layered onto an already proven earnings base.
  • At the same time, the fall in trailing margin from 10.1% to 7.7% and negative trailing earnings underline the concern that higher costs, regulatory factors, or lower selling prices can weigh on results even when volume and capacity stories sound positive.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for REX American Resources on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See What Else Is Out There

REX is contending with a lower 7.7% net margin, negative trailing earnings, and a share price above the cited DCF fair value of US$33.26.

If margin pressure and valuation risk have you hesitating, compare this profile with 61 high quality undervalued stocks to quickly spot companies where pricing looks more aligned with underlying fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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