Key Takeaways
- The Andersons hosted its 2025 Investor Day, detailing a long-term growth framework targeting a $7.00 earnings per share run-rate exiting 2028.
- The plan implies a 36% compounded annual growth rate from trailing twelve-month EPS of $2.56 as of September 30, 2025.
- Strategic capital investments include a $60 million ethanol expansion in Indiana and an export terminal expansion at the Port of Houston.
- The company emphasized disciplined capital allocation, low-carbon ethanol production, and shareholder returns.
- Management highlighted favorable macro trends across agriculture and renewable fuels supporting the outlook.
The Andersons Sets Long-Term Earnings Growth Target at Investor Day
The Andersons, Inc. (Nasdaq: ANDE), a North American agricultural and renewable fuels company, used its 2025 Investor Day to present a growth strategy aimed at achieving a run-rate earnings per share (EPS) of $7.00 exiting 2028. This target represents a 36% compounded annual growth rate from $2.56 per share for the trailing twelve months ended September 30, 2025.
“Our long-term strategic framework outlines the opportunities we have to accelerate our growth, optimize our margin potential, and continue to deliver value through a disciplined deployment of capital across the enterprise,” said Bill Krueger, President and Chief Executive Officer of The Andersons. He added that the company intends to leverage its diversified portfolio to continue delivering shareholder value.
Capital Investments Anchor the Growth Framework
Ethanol Expansion and Export Infrastructure
A central pillar of the strategy is targeted capital investment across key assets. The Andersons plans to invest approximately $60 million at its ethanol plant in Clymers, Indiana. The project is expected to increase ethanol capacity by 30 million gallons, with completion anticipated in mid-2027.
In addition, the company is completing an expansion of its export terminal at the Port of Houston, scheduled for 2026. This project is designed to enable soybean meal exports to international markets while improving the efficiency of exporting western grains.
Merchandising, Customer Solutions, and Low-Carbon Focus
Strengthening The Andersons' Core Agribusiness Platform
The Andersons also highlighted efforts to expand its geographic footprint and merchandising capabilities, particularly through the integration of the Skyland Grain acquisition. Management noted that enhanced customer loyalty will be driven by customized solutions that address evolving market needs.
Within renewable fuels, the company reaffirmed its focus on operating efficient, low–carbon-intensity ethanol plants and maximizing benefits from 45Z tax credits. A disciplined, long-term capital allocation strategy is intended to support margin expansion and strong cash flow generation.
Shareholder Returns and Market Positioning For The Andersons
The growth plan includes continued capital returns to shareholders through dividends and opportunistic share repurchases. The Andersons emphasized its track record of more than 25 consecutive years of dividend payments as a core element of its capital strategy.
“The Andersons is well-positioned to capitalize on the favorable macro trends that are driving growth within the agriculture and renewable fuels markets,” said Brian Valentine, Executive Vice President and Chief Financial Officer. “Our strategy enables us to continue delivering strong shareholder value throughout the ag cycle.”
