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The Andersons, Inc. Reports First Quarter Results

MAUMEE, Ohio, May 6, 2025 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) has disclosed its financial results for the first quarter ending March 31, 2025. This quarter presented a blend of challenges and successes for the company as various segments reacted differently to the fluctuating market conditions.

Highlights from the First Quarter

In the first quarter, The Andersons reported a net income of $0.3 million or $0.01 per diluted share, with an adjusted net income of $4 million or $0.12 per diluted share. The adjusted EBITDA for this period was $57 million, showing a positive trend compared to previous quarters.

The Renewables segment was a significant highlight, reporting a pretax income of $25 million. This success was attributed largely to impressive operational performance and effective merchandising strategies. On the other hand, the Agribusiness segment faced a tougher landscape, logging a pretax loss of $10 million, attributed to stagnant market conditions influenced by global trade uncertainties.

Mixed Results in a Turbulent Market

"We had mixed results in a turbulent first quarter," stated Bill Krueger, President and CEO of The Andersons, Inc. "The Renewables segment performed exceptionally well, aided by our ethanol plants operating at high efficiency. However, the Agribusiness side faced challenges, particularly in adapting to market disruptions that affected grain flows." Krueger expressed optimism about the upcoming planting season, indicating that increased corn acreage could create various opportunities for the agronomy teams.

The performance in the Renewables segment stands out, especially with its ethanol and renewable diesel feedstock merchandising. This has driven one of the best first quarters for this segment in recent memory. In contrast, the agronomy team is working diligently to navigate through a tough market, with expectations for increased demand as planting progresses.

Financial Insights and Future Outlook

• - Cash Flow Management: The company generated significant cash flows, managing to remain well below its long-term debt to EBITDA target of less than 2.5 times. This is a promising sign for the company's liquidity position.
• - Investment in Growth: Management has indicated a commitment to continuing investment in growth projects across segments, particularly in Agribusiness where longer lead-time projects are on track for completion by mid-2026.
• - Expected Developments: As we progress into the second quarter, The Andersons anticipates heightened demand for its core products, driven by seasonal trends supporting both grain production and ethanol. The management remains hopeful about leveraging its asset base effectively to handle expected increases in storage and supply chain activities.

Segment Performance Overview

• - Agribusiness: Despite a tough environment, Agribusiness managed to maintain an adjusted EBITDA of $31 million, which shows resilience in operations despite the challenges posed by limited trade flows.
• - Renewables: This segment saw robust operational efficiency, reflected in its $15 million pretax income attributable to The Andersons, as operational metrics improved from previous quarters.

Upcoming Conference Call

The Andersons will host a webcast on Wednesday, May 7, 2025, at 8:30 AM ET to provide further insights into its financial results and outlook for the future. Interested stakeholders can access the call through the company's official website or by dialing in using provided numbers.

Conclusion

As The Andersons navigates through the complexities of the current market, its measured approach towards operations in the Renewables segment coupled with strategic planning in Agribusiness will be critical for future success. With expected improvements in demand and operational efficiencies, The Andersons remains poised for a potentially strong performance as the year progresses. For further updates, visit The Andersons, Inc..