The Andersons, Inc. Announces Growth Target for 2028
Rhea-AI Summary
The Andersons (Nasdaq: ANDE) announced at its 2025 Investor Day on Dec 11, 2025 a target to reach $7.00 run-rate EPS exiting 2028, representing a 36% CAGR from $2.56 per share for the trailing twelve months ended Sept 30, 2025. The plan emphasizes strategic investments, operational efficiency, and disciplined capital allocation.
Key actions include a $60 million capital investment at the Clymers, Indiana ethanol plant to add 30 million gallons capacity by mid-2027, completion of the Port of Houston export terminal expansion in 2026, integration of Skyland Grain, focus on low‑CI ethanol and maximizing 45Z tax credits, and continued dividends plus opportunistic buybacks.
Positive
- EPS target of $7.00 exiting 2028 (36% CAGR from $2.56)
- $60 million capital investment at Clymers to add 30 million gallons by mid-2027
- Port of Houston export terminal expansion completing in 2026
- Continued >25‑year consecutive dividend payments and opportunistic buybacks
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
ANDE’s +4.98% move contrasts with mixed peers: UNFI -8.66%, AVO +2.42%, CVGW +3.25%, CHEF +2.11%, and SPTN flat, suggesting a company-specific reaction to its growth targets.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Investor Day announcement | Positive | -1.8% | Announced Investor Day with strategic growth plan and financial outlook presentations. |
| Nov 17 | Conference presentation | Neutral | +2.1% | Planned presentation at Stephens investment conference with leadership remarks. |
| Nov 04 | Quarterly earnings | Positive | +4.5% | Reported Q3 2025 results with solid Renewables performance and tax credits. |
| Oct 14 | Earnings date notice | Neutral | +1.1% | Set timing and access details for upcoming Q3 2025 earnings release and webcast. |
| Sep 03 | Investor Day scheduling | Neutral | +2.2% | Announced December 9, 2025 Investor Day with strategic vision and objectives. |
Recent company news and earnings have more often seen share price gains, with one notable divergence on a prior Investor Day announcement.
Over the past six months, The Andersons has focused on investor communication and strategic positioning. The company hosted and announced its 2025 Investor Day, participated in the Stephens conference, and consistently provided webcasts around quarterly results. Q3 2025 earnings showed positive contributions from Renewables and reaffirmed balance sheet targets. Today’s long-term EPS growth target to $7.00 by exiting 2028 builds directly on those earlier strategy and earnings disclosures, framing a multiyear roadmap for the recently expanded renewables and agribusiness platform.
Market Pulse Summary
This announcement sets a long-term framework, targeting run-rate EPS of $7.00 by exiting 2028 from a trailing $2.56 base and detailing a $60 million ethanol investment and Port of Houston expansion by 2026. It builds on earlier communications around Q3 2025 results and Investor Day plans. Investors may track progress on added 30 million gallons of ethanol capacity, execution of merchandising expansions, and the company’s ability to benefit from low-CI operations and 45Z tax credits over time.
Key Terms
45Z tax credits regulatory
AI-generated analysis. Not financial advice.
"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 President and Chief Executive Officer Bill Krueger. "We will leverage our balanced and diversified portfolio to continue our long track record of delivering growth and value for our shareholders."
The framework outlined the company's long-term growth potential with an emphasis on:
- Investing in strategic growth opportunities across the company, including a
$60 million Indiana , ethanol plant, which is expected to deliver increased ethanol capacity of 30 million gallons in mid-2027. - Completing the expansion of the export terminal at the Port of
Houston in 2026, enabling the export of soybean meal to the international market and further enhancing the efficient export of western grains. - Continuing to strengthen geographic presence and expand merchandising capabilities by leveraging opportunities provided through the Skyland Grain acquisition and integration.
- Enhancing customer loyalty and value by providing customized solutions that meet the evolving needs of the market.
- Remaining focused on running efficient, low-CI ethanol plants, and maximizing 45Z tax credits.
- Utilizing a disciplined, long-term capital investment strategy to drive growth that provides strong margins and cash flows.
- Returning capital to shareholders through a balanced approach, including the continuation of the more than 25-year track record of consecutive dividend payments and opportunistic share repurchases.
"The Andersons is well-positioned to capitalize on the favorable macro trends that are driving growth within the agriculture and renewable fuels markets," said Executive Vice President and CFO Brian Valentine. "Our strategy enables us to continue delivering strong shareholder value throughout the ag cycle."
An archived copy of The Andersons Investor Day 2025 webcast is available at https://investorday.andersonsinc.com/.
Forward-Looking Statements
This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.
About The Andersons, Inc.
The Andersons, Inc., is a North American agriculture and renewable fuels company. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.
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SOURCE The Andersons, Inc.
FAQ
What EPS target did The Andersons (ANDE) announce at Investor Day Dec 11, 2025?
How much is The Andersons investing in the Clymers ethanol plant and when will capacity increase?
When will The Andersons complete the Port of Houston export terminal expansion and what does it enable?
How will The Andersons return capital to shareholders under the new plan (ANDE)?
How does the 45Z tax credit factor into The Andersons' strategy announced Dec 11, 2025?
What role does the Skyland Grain acquisition play in The Andersons' growth plan (ANDE)?
