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The Andersons, Inc. Q2 Performance and Strategic Acquisition

Company Overview
The Andersons, Inc. is a leading player in North America's agribusiness and renewable energy sectors. Recently, the company released its financial results for the second quarter of 2025, reporting significant earnings despite navigating through challenging market conditions.

Second Quarter Financial Highlights
For the quarter ending June 30, 2025, The Andersons reported a net income of $8 million, translating to $0.23 per diluted share, alongside an adjusted net income of $8.4 million or $0.24 per diluted share. The company's adjusted EBITDA stood at $65 million during this period. Major contributors to its revenue included noteworthy performances in its renewables and agribusiness divisions.

Part of their success was driven by the robust operating performance in the renewables sector, with a reported $10 million pretax income attributable to The Andersons. Meanwhile, agribusiness demonstrated strong resilience, recording a pretax income of $19 million. In a year where grains were oversupplied, the company managed to capitalize on its strengths and market position.

Acquisition of Marathon Holdings
In addition to its impressive financial results, The Andersons made a strategic move by acquiring full ownership of The Andersons Marathon Holdings LLC (TAMH) for $425 million, which included $40 million in working capital. This acquisition increases the company's control over ethanol production, an area they deemed pivotal for growth within the renewables segment. It allows them to streamline operations and decision-making processes, thereby enhancing efficiency and revenue potential.

Bill Krueger, the President and CEO, emphasized that this acquisition supports The Andersons’ strategy of disciplined capital deployment and commitment to growth in the ethanol industry. Following this transaction, TAMH will now be rebranded as The Andersons Renewables, LLC.

Operational Efficiency and Future Outlook
The company is continuing construction on a Houston port project, which is designed to bolster the efficiency and capacity of grain operations. Completion of this project is anticipated by mid-2026, which should provide further expansion capabilities for the export market, particularly for U.S. soybean meal.

Operationally, The Andersons aims to optimize its portfolio, integrating the former Trade and Nutrient businesses into its agribusiness operations effectively. This consolidation is expected to aid in preparing for the anticipated large harvest this fall, offering additional merchandising opportunities.

Segment Performance Overview
During the second quarter, The Andersons observed distinct performances in its various segments:

• - Agribusiness

The segment posted a pretax income of $19 million but noted a decline compared to $29 million the same period last year. Despite the surplus of grains, increased sales in nutrient volumes were encouraging.

• - Renewables

Pretax income from renewables hit $17 million, though it faced challenges due to fluctuating margins and high operational costs. However, the segment’s operational efficiency continued to yield positive results as ethanol production stayed robust.

Future Projections and Market Position
Looking ahead, The Andersons is optimistic about the market landscape, capitalizing on expected large harvests in the U.S. and anticipated enhancements in renewable fuel support. Their cash flow from operations remains strong, emphasizing their ability to fund growth initiatives internally while maintaining a manageable level of debt. With the strategic acquisition of TAMH, The Andersons is poised to unlock further value and strengthen their footprint in the renewable market. Moving forward, they plan to conduct a conference call to discuss their outlook and performance on August 5, 2025.

The Andersons continues to establish itself as a formidable force in the agribusiness and renewable energy sectors, leveraging strategic acquisitions and focusing on operational excellence to drive future growth.