Key Takeaways:
- The Andersons reports third quarter 2025 net income of $20 million and adjusted net income of $29 million.
- Adjusted EBITDA reached $78 million, supported by Renewables’ strong operating results.
- Renewables recorded $43 million in pretax income, driven by efficient ethanol operations and 45Z tax credits.
- Agribusiness reported $1 million in pretax income amid continued grain oversupply and low prices.
- The company highlights progress on key projects, including Port of Houston expansion and Skyland Grain integration.
The Andersons Announces Third Quarter 2025 Financial Results
The Andersons, Inc. (Nasdaq: ANDE) announced financial results for the third quarter ended September 30, 2025, reporting net income attributable to the company of $20 million, or $0.59 per diluted share. Adjusted net income was $29 million, or $0.84 per diluted share. Adjusted EBITDA totaled $78 million for the quarter.
President and CEO Bill Krueger said the results reflect a strong quarter for the Renewables segment following the company’s acquisition of full ownership of its ethanol plants in July. “We are excited to have full control over these strategic assets and are implementing a variety of enhancements to continue improving ethanol and co-product yields while lowering the carbon intensity of the ethanol we produce,” Krueger said.
Renewables Segment Delivers Strong Performance
The Andersons’ Renewables segment reported pretax income of $43 million and adjusted pretax income attributable to the company of $46 million. The quarter included two months of results under full ownership of the ethanol plants, contributing approximately $12 million to pretax earnings.
The segment benefited from the recording of $20 million in 45Z tax credits for year-to-date 2025, as well as efficient plant operations that yielded slightly higher production compared to last year. While lower board crush and higher corn basis affected margins, improved co-product contributions—particularly from distillers corn oil—supported overall results.
Renewables recorded adjusted EBITDA of $67 million, up from $63 million in the same period of 2024. Krueger noted that strong ethanol demand, including exports, and the continuation of 45Z tax credits through 2029 will support future growth. The company’s Clymers, Indiana, facility is awaiting EPA approval of a Class VI well permit to enable on-site carbon sequestration and further reduce carbon intensity.
Agribusiness Faces Challenging Grain Market Conditions
The Agribusiness segment reported pretax income of $1 million and adjusted pretax income of $2 million, reflecting lower gross profit due to persistent grain oversupply and reduced market volatility.
Lower margins in merchandising and limited throughput volumes at grain assets contributed to weaker results compared to the prior year’s $23 million pretax income. The completion of the wheat harvest, however, allowed the company to accumulate favorable basis bushels across its eastern and western grain belts.
Fall harvest continued during the quarter with variable yields across regions. Despite soft demand from feed and end-use customers, The Andersons expects elevation margins and merchandising opportunities to strengthen in the fourth quarter. The nutrient business also saw higher margins and volumes during this seasonally slow period, with expectations for improved performance in the fourth quarter, weather permitting.
Agribusiness reported adjusted EBITDA of $29 million, compared to $45 million in the third quarter of 2024.
The Andersons Advances Strategic Projects and Integration Efforts
Krueger highlighted progress on several key initiatives, including the Port of Houston project—aimed at adding export capacity for soybean meal and improving efficiency in grain operations—which remains on track for completion by mid-2026.
The Andersons continues to integrate assets from Skyland Grain, LLC into its Agribusiness segment and expand its premium food corn operations to meet growing customer demand. “We are on track to meet our run-rate EPS target by the end of 2026 and anticipate further growth opportunities resulting from the current agricultural environment,” Krueger said.
The company plans to host an Investor Day on December 9 to provide updated long-range financial targets and further details on its growth strategy.
Cash Flow, Liquidity, and Balance Sheet Strength
Executive Vice President and CFO Brian Valentine stated that strong cash generation enabled The Andersons to fund its ethanol acquisition largely with cash on hand and minimal borrowing. “We expect to continue to fund many of our growth projects internally, and our debt remains at a modest level,” Valentine said.
Cash provided by operating activities was $234 million for the quarter, compared to a use of $2 million in the prior year. Capital expenditures totaled $67 million, up $29 million year over year, as the company continues to invest in growth and infrastructure.
Valentine emphasized that The Andersons remains below its long-term debt-to-EBITDA target of less than 2.5 times and now has access to 100% of the cash generated by its ethanol operations, underscoring the company’s financial flexibility and solid balance sheet position.
Read the full financial report here.
