The Andersons, Inc. (ANDE) Announces Third Quarter Earnings Results

The Andersons, Inc. (ANDE) today announced its earnings results for the most recent quarter, reporting earnings per share of $0.59, which exceeded analysts’ expectations of $0.47. This marks a notable increase, with the company beating estimates by $0.12. The strong performance reflects the company’s resilience and effective strategies in navigating the current market landscape.

Key Highlights:

• Reported net income of $20 million ($0.59 per diluted share) and adjusted net income of $29 million ($0.84 per diluted share) for Q3 2025.
• Adjusted EBITDA of $78 million for the quarter.
• Renewables segment reported pretax income of $43 million, benefiting from strong operating performance and 45Z tax credits.
• Agribusiness segment recorded pretax income of $1 million, impacted by trade policy uncertainty and low prices.
• Full ownership of ethanol plants acquired in July 2025, enhancing operational control and efficiency.
• Progress on the Port of Houston project expected to be completed by mid-2026.
• Anticipation of meeting run-rate EPS target by the end of 2026 and hosting an Investor Day on December 9 to discuss long-range financial targets.

In the third quarter of 2025, The Andersons, Inc. reported a net income of $20 million, translating to $0.59 per diluted share, with an adjusted net income of $29 million or $0.84 per diluted share. The company highlighted strong performance in its Renewables segment, which achieved a pretax income of $43 million, bolstered by operational efficiencies and the realization of 45Z tax credits. President and CEO Bill Krueger expressed enthusiasm about the full ownership of ethanol plants, stating, “We are excited to have full control over these strategic assets and are both evaluating and implementing a variety of enhancements to continue improving ethanol and co-product yields while lowering the carbon intensity of the ethanol we produce.”

The Agribusiness segment faced challenges, recording a pretax income of only $1 million due to trade policy uncertainties and low market prices affecting gross profits. However, the company remains optimistic about future growth, particularly in the renewable fuels sector, and is progressing on strategic projects like the Port of Houston to enhance export capacity. CFO Brian Valentine noted the company’s strong cash flow position, allowing for internal funding of growth projects while maintaining a modest debt level. The company is on track to meet its run-rate EPS target by the end of 2026 and plans to provide updated long-range financial targets during the upcoming Investor Day.

The Andersons, Inc. (ANDE) has experienced a notable price fluctuation recently, with a 13.10% increase over the past month, reflecting a growing investor interest despite some underlying challenges. Over the last three months, the stock has surged by 35.28%, suggesting a potential recovery or positive sentiment surrounding the company. However, a closer look at the fundamentals reveals a more complex picture; the company has faced a decline in revenue and free cash flow, with two-year compound annual growth rates (CAGR) of -17.12% and -73.44%, respectively. This raises concerns about the sustainability of its recent price gains, especially given the modest net profit margin of just 0.69%. The price-to-earnings ratio stands at 19.64, indicating that investors may be pricing in future growth that the current financial metrics do not fully support. Additionally, the return on invested capital at 9.56% suggests that while the company is generating some returns, it may not be maximizing its investment efficiency. As the market continues to react to these mixed signals, investors will need to weigh the stock’s recent performance against its fundamental health.

The Andersons, Inc., an agriculture company, operates in trade, renewables, and plant nutrient sectors in the United States and internationally. The company’s Trade segment operates grain elevators; stores commodities; and provides grain marketing, risk management, and origination services to its customers and affiliated ethanol facilities. This segment also engages in the commodity merchandising business, as well as offers logistics for physical commodities, such as whole grains, grain products, feed ingredients, domestic fuel products, and other agricultural commodities. Its Renewables segment produces, purchases, and sells ethanol, and co-products, as well as offers facility operations, risk management, and ethanol and coproducts marketing services to the ethanol plants it invests in and operates. The company’s Plant Nutrient segment manufactures, distributes, and retails agricultural and related plant nutrients, corncob-based products, and pelleted lime and gypsum products; and crop nutrients, crop protection chemicals, and seed products, as well as provides application and agronomic services to commercial and family farmers. It also offers warehousing, packaging, and manufacturing services to nutrient producers and other distributors; and manufactures and distributes various industrial products, such as nitrogen reagents for air pollution control systems that are used in coal-fired power plants, and water treatment and dust abatement products. In addition, this segment produces corncob-based products for laboratory animal bedding and private-label cat litter, as well as absorbents, blast cleaners, carriers, and polishers; professional lawn care products for golf course and turf care markets; fertilizer and weed and pest control products; pelleted lime, gypsum, and value add soil amendments; and specialty ag liquids, seed starters, zinc, and industrial liquids. The Andersons, Inc. was founded in 1947 and is based in Maumee, Ohio.