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The Andersons, Inc. Third Quarter Financial Performance

On November 4, 2025, The Andersons, Inc. (NASDAQ: ANDE) shared its financial results for the third quarter, which ended on September 30, 2025. This report showcases substantial developments within its operations and financial standing, highlighting notable results in the agribusiness and renewables sectors.

Overview of Financial Performance

During the third quarter, The Andersons reported a net income of $20 million, translating to $0.59 per diluted share. Moreover, adjusted net income attributed to the company reached $29 million or $0.84 per diluted share. The adjusted EBITDA for the quarter stood at $78 million, reflecting the company’s ability to generate consistent revenue streams despite fluctuating market conditions.

In the renewables sector, the company reported a pretax income of $43 million, with adjusted pretax income being $46 million. This performance is supported by robust operating results and tax incentives from the 45Z tax credits achieved year-to-date. The acquisition of ethanol plants in July, which allowed 100% ownership effective in August and September, is expected to enhance operational efficiencies and yield improvements moving forward.

Strategic Enhancements

Bill Krueger, President and CEO, expressed excitement about the full ownership of their ethanol facilities, stating this strategic move enables the company to make enhancements in yield while maintaining a lower carbon intensity in the production process. This is particularly significant as the company looks to expand within the renewable fuels market. Furthermore, efforts are underway to assess and apply for the 45Z tax credits for ethanol gallons sold, which is reflected in the quarter's performance.

Looking ahead, The Andersons is making progress on its comprehensive Port of Houston project aimed at improving capacity for soybean meal exports and operational efficiencies in its grain operations, projected for completion in mid-2026. The integration of Skyland Grain, LLC’s assets into the Agribusiness segment is also ongoing, as The Andersons actively responds to growing demand in its premium food corn business.

Investment and Debt Management

The solid cash flows generated across its business lines have granted The Andersons the capability to fund the ethanol acquisition without incurring significant debt increases. The company maintains a healthy balance sheet, with a long-term debt-to-EBITDA ratio well below its target threshold of 2.5 times. For the third quarter, cash provided from operating activities was impressive at $234 million, showing positive operational trends compared to previous quarters.

The company also noted a cash outflow of $67 million on capital projects, representing significant investment in future growth initiatives, although this is a marked increase from prior periods. Cash from operations before working capital changes was $68 million, a dip from last year’s comparison.

Agribusiness Performance

In the Agribusiness sector, the company recorded a pretax income of $1 million, contrasting negatively with the $23 million reported in the previous year's third quarter. The principal challenges included trade policy uncertainties and declining profit margins exacerbated by volatility and lower market prices impacting gross profits from grain assets. However, a robust wheat harvest allowed for favorable bushel accumulations, indicating potential improvements in the fourth quarter as markets stabilize.

Moving Forward

Management remains optimistic about meeting its run-rate EPS targets by the end of 2026 and sees the current agricultural landscape as an opportunity for further growth. The upcoming Investor Day scheduled for December 9, will provide deeper insights into long-term financial strategies and targets.

Additionally, the Renewables segment demonstrated alignment with market demands, reporting solid operational performance despite challenges in the broader economic context. Future prospects include the advancement of a Class VI well permit application with the EPA aimed at carbon sequestration, which would further underscore the company’s commitment to sustainable practices.

With strong fundamentals and strategic positioning, The Andersons, Inc. is poised to navigate the agricultural sector's complexities while innovating its offerings in renewable energy.