The Andersons, Inc. Reports Second Quarter Results and Acquires Full Ownership Interest in The Andersons Marathon Holdings LLC
The Andersons, Inc. (Nasdaq: ANDE) has reported Q2 2025 financial results and announced a major strategic acquisition. The company achieved net income of $8 million ($0.23 per diluted share) and adjusted EBITDA of $65 million. In a significant move, Andersons acquired the remaining 49.9% ownership stake in The Andersons Marathon Holdings LLC (TAMH) for $425 million from Marathon Petroleum Corp.
The acquisition doubles Andersons' ethanol industry ownership, adding full control of four ethanol plants with 500 million gallons annual production capacity. The transaction was funded through cash and existing credit facilities, with the company maintaining its debt-to-EBITDA ratio below 2.5x. The Renewables segment reported pretax income of $17 million, while Agribusiness recorded pretax income of $19 million despite challenging market conditions.
The company's cash flow remains strong, with $299 million provided by operating activities in Q2 2025. Capital projects spending increased by $20 million year-over-year to $49 million.
The Andersons, Inc. (Nasdaq: ANDE) ha comunicato i risultati finanziari del secondo trimestre 2025 e annunciato un'importante acquisizione strategica. L'azienda ha registrato un utile netto di 8 milioni di dollari (0,23 dollari per azione diluita) e un EBITDA rettificato di 65 milioni di dollari. In un passo significativo, Andersons ha acquisito la restante quota del 49,9% di proprietà in The Andersons Marathon Holdings LLC (TAMH) per 425 milioni di dollari da Marathon Petroleum Corp.
L'acquisizione raddoppia la partecipazione di Andersons nel settore dell'etanolo, aggiungendo il controllo totale di quattro impianti di etanolo con una capacità produttiva annuale di 500 milioni di galloni. La transazione è stata finanziata tramite liquidità e linee di credito esistenti, mantenendo il rapporto debito/EBITDA sotto 2,5x. Il segmento Renewables ha riportato un utile ante imposte di 17 milioni di dollari, mentre l'Agribusiness ha registrato un utile ante imposte di 19 milioni di dollari nonostante condizioni di mercato difficili.
Il flusso di cassa dell'azienda rimane solido, con 299 milioni di dollari generati dalle attività operative nel secondo trimestre 2025. La spesa per progetti di capitale è aumentata di 20 milioni di dollari su base annua, raggiungendo 49 milioni di dollari.
The Andersons, Inc. (Nasdaq: ANDE) ha informado los resultados financieros del segundo trimestre de 2025 y anunció una importante adquisición estratégica. La compañía logró un ingreso neto de 8 millones de dólares (0,23 dólares por acción diluida) y un EBITDA ajustado de 65 millones de dólares. En un movimiento significativo, Andersons adquirió el restante 49,9% de participación en The Andersons Marathon Holdings LLC (TAMH) por 425 millones de dólares de Marathon Petroleum Corp.
La adquisición duplica la participación de Andersons en la industria del etanol, agregando el control total de cuatro plantas de etanol con una capacidad anual de producción de 500 millones de galones. La transacción se financió mediante efectivo y líneas de crédito existentes, manteniendo la relación deuda/EBITDA por debajo de 2,5x. El segmento de Renovables reportó un ingreso antes de impuestos de 17 millones de dólares, mientras que Agronegocios registró un ingreso antes de impuestos de 19 millones de dólares a pesar de condiciones de mercado desafiantes.
El flujo de caja de la empresa sigue siendo sólido, con 299 millones de dólares generados por actividades operativas en el segundo trimestre de 2025. El gasto en proyectos de capital aumentó 20 millones de dólares año tras año, alcanzando 49 millones de dólares.
The Andersons, Inc. (나스닥: ANDE)는 2025년 2분기 재무 실적을 발표하고 주요 전략적 인수를 발표했습니다. 회사는 순이익 800만 달러(희석 주당 0.23달러)와 조정 EBITDA 6,500만 달러를 기록했습니다. 중요한 조치로 Andersons는 Marathon Petroleum Corp.로부터 The Andersons Marathon Holdings LLC (TAMH)의 나머지 49.9% 지분을 4억 2,500만 달러에 인수했습니다.
이번 인수로 Andersons의 에탄올 산업 소유권이 두 배로 증가하며, 연간 5억 갤런 생산능력을 갖춘 4개의 에탄올 공장을 완전 통제하게 되었습니다. 거래는 현금과 기존 신용 시설을 통해 자금을 조달했으며, 회사는 부채 대비 EBITDA 비율을 2.5배 미만으로 유지하고 있습니다. 재생에너지 부문은 세전 이익 1,700만 달러를 보고했으며, 농업 사업 부문은 어려운 시장 상황에도 불구하고 세전 이익 1,900만 달러를 기록했습니다.
회사의 현금 흐름은 강세를 유지하고 있으며, 2025년 2분기 운영 활동에서 2억 9,900만 달러의 현금 흐름을 창출했습니다. 자본 프로젝트 지출은 전년 대비 2,000만 달러 증가하여 4,900만 달러에 달했습니다.
The Andersons, Inc. (Nasdaq : ANDE) a publié ses résultats financiers du deuxième trimestre 2025 et annoncé une importante acquisition stratégique. La société a réalisé un revenu net de 8 millions de dollars (0,23 dollar par action diluée) et un EBITDA ajusté de 65 millions de dollars. Dans une démarche majeure, Andersons a acquis les 49,9 % restants de The Andersons Marathon Holdings LLC (TAMH) pour 425 millions de dollars auprès de Marathon Petroleum Corp.
Cette acquisition double la participation d'Andersons dans l'industrie de l'éthanol, ajoutant le contrôle complet de quatre usines d'éthanol avec une capacité de production annuelle de 500 millions de gallons. La transaction a été financée par des liquidités et des facilités de crédit existantes, la société maintenant son ratio dette/EBITDA en dessous de 2,5x. Le segment des Énergies Renouvelables a enregistré un revenu avant impôt de 17 millions de dollars, tandis que l'Agribusiness a affiché un revenu avant impôt de 19 millions de dollars malgré des conditions de marché difficiles.
La trésorerie de l'entreprise reste solide, avec 299 millions de dollars générés par les activités opérationnelles au deuxième trimestre 2025. Les dépenses en projets d'investissement ont augmenté de 20 millions de dollars en glissement annuel pour atteindre 49 millions de dollars.
The Andersons, Inc. (Nasdaq: ANDE) hat die Finanzergebnisse für das zweite Quartal 2025 veröffentlicht und eine bedeutende strategische Übernahme bekannt gegeben. Das Unternehmen erzielte einen Nettoertrag von 8 Millionen US-Dollar (0,23 US-Dollar pro verwässerter Aktie) und ein bereinigtes EBITDA von 65 Millionen US-Dollar. In einem bedeutenden Schritt erwarb Andersons die verbleibenden 49,9% der Anteile an The Andersons Marathon Holdings LLC (TAMH) für 425 Millionen US-Dollar von Marathon Petroleum Corp.
Durch die Übernahme verdoppelt Andersons seinen Besitzanteil in der Ethanolindustrie und erlangt die vollständige Kontrolle über vier Ethanolwerke mit einer jährlichen Produktionskapazität von 500 Millionen Gallonen. Die Transaktion wurde durch Bargeld und bestehende Kreditfazilitäten finanziert, wobei das Unternehmen seine Verschuldungsquote gegenüber EBITDA unter 2,5x hielt. Der Bereich Erneuerbare Energien meldete einen Vorsteuergewinn von 17 Millionen US-Dollar, während das Agrargeschäft trotz schwieriger Marktbedingungen einen Vorsteuergewinn von 19 Millionen US-Dollar erzielte.
Der Cashflow des Unternehmens bleibt stark, mit 299 Millionen US-Dollar aus operativen Tätigkeiten im zweiten Quartal 2025. Die Ausgaben für Investitionsprojekte stiegen im Jahresvergleich um 20 Millionen US-Dollar auf 49 Millionen US-Dollar.
- Strategic acquisition of remaining 49.9% TAMH stake doubles ethanol industry ownership
- Strong cash flows with $299 million from operating activities
- Maintained healthy balance sheet with debt-to-EBITDA ratio below 2.5x
- Improved nutrient sales volumes due to increased corn acre plantings
- Higher year-over-year ethanol yields and production efficiency
- Net income declined to $8 million from $36 million year-over-year
- Adjusted EBITDA decreased to $65.2 million from $98.3 million in Q2 2024
- Lower ethanol margins due to higher corn basis and natural gas costs
- Surplus grain and weak customer demand in western markets affecting prices
- Decline in plant co-product values due to oversupply of soybean meal
Insights
Andersons acquires full TAMH ownership, doubling ethanol exposure while Q2 shows mixed results amid challenging agricultural markets.
The Andersons has made a strategic acquisition of Marathon's 49.9% stake in TAMH for
Q2 financial results were mixed, with
The agricultural markets remain challenging with surplus grain and weak customer demand in western markets, leading to low grain prices and limited forward contracting. However, an anticipated large harvest with limited on-farm storage capacity is expected to create favorable merchandising opportunities in late 2025 and into 2026. The nutrient business showed improvement with increased sales volumes driven by higher nitrogen demand for corn acreage.
In Renewables, despite efficient plant operations with higher yields and production, margins were compressed by lower board crush, higher eastern corn basis, and increased natural gas costs. Management expects an uptick in ethanol board crush through the summer driving season, supported by strong demand including exports and anticipated reduction in corn costs post-harvest.
The company maintains a solid financial position with strong cash generation. Cash from operations before working capital changes was
Full TAMH acquisition represents major strategic shift, giving Andersons complete control of ethanol assets amid evolving renewable fuels landscape.
The acquisition of Marathon's 49.9% stake in TAMH marks a decisive strategic pivot for Andersons, transitioning from a joint venture model to full ownership of their ethanol production assets. This vertical integration move gives the company complete operational control and financial exposure to 500 million gallons of annual ethanol production capacity across four plants in Michigan, Indiana, Ohio, and Iowa.
The timing of this acquisition appears calculated to position Andersons advantageously amid evolving regulatory tailwinds. Management specifically highlighted "increased support for renewable fuels" and mentioned potential benefits from the EPA's proposed renewable volume obligations (RVOs). Additionally, the company noted they've filed for a Class VI well permit at their Clymers facility for potential carbon sequestration, suggesting they're positioning for carbon capture opportunities that could create additional value streams.
This transaction provides Andersons with unrestricted access to 100% of TAMH's cash flows, enhancing capital allocation flexibility across their entire enterprise. The
The acquisition complements other strategic initiatives, including the ongoing Houston port project designed to improve grain operations efficiency and add export capacity for U.S. soybean meal. This infrastructure development, targeted for completion by mid-2026, appears strategically aligned with potential changes in renewable fuel mandates that could increase demand for feedstocks.
While current market conditions present challenges with compressed ethanol margins, management's decision to significantly increase their stake in the ethanol business signals confidence in the medium to long-term fundamentals of renewable fuels. The execution risk appears limited as Andersons was already operating these plants with their own employees through the previous joint venture structure.
Second Quarter Highlights:
- Reported net income and adjusted net income attributable to The Andersons of
$8 million $0.23 $0.24 - Adjusted EBITDA was
$65 million - Renewables reported pretax income of
$17 million $10 million - Agribusiness recorded a pretax income of
$19 million $17 million
Strategic Acquisition of Full Ownership Interest of TAMH:
- Acquired the remaining
49.9% ownership interest in TAMH from a subsidiary of Marathon Petroleum Corp. (Marathon) for$425 million $40 million $385 million - The transaction closed on July 31, 2025, funded with cash on hand and debt from existing credit facilities
"Over the past couple of years, we have shared our intent to utilize a disciplined capital deployment approach to grow earnings through additional investment in ethanol. After evaluating several opportunities, we have acquired Marathon's ownership in TAMH, in line with our stated strategy. This transaction doubles our financial ownership in the ethanol industry, a key growth pillar within our Renewables strategy. Importantly, we currently operate the four plants with Andersons employees, thus limiting our execution risk. The acquisition is attractive from a financial perspective and we expect immediate accretion in earnings per share. These production facilities are poised to further benefit from increased support for renewable fuels," said President and CEO Bill Krueger.
"Construction continues on our
Strategic Acquisition of the Full Ownership Interest of TAMH
TAMH operates four ethanol plants with total annual production capacity of 500 million gallons located in
"We are proud of what we built at TAMH through our partnership with Marathon and are excited to bring the business fully under The Andersons' leadership given its strong alignment with our long-term strategy. As the sole owner and operator of these assets, we will be able to streamline decision making and unlock greater efficiency," said Krueger. "We deeply appreciate our partnership with Marathon and look forward to continuing our long-standing commercial relationship. As one of the largest consumers of ethanol in
The Andersons, Inc. was advised on the transaction by Goldman Sachs & Co. LLC.
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continue to generate strong cash flows, allowing us to fund a significant portion of our growth projects internally. As such, our debt remains at a modest level and we funded this purchase with cash on hand and existing credit facilities," said Executive Vice President and CFO Brian Valentine. "As a result of this transaction, we will have unrestricted access to
Cash provided by operating activities was
Second Quarter Segment Overview
$ in millions, except per share amounts | ||||||
Q2 2025 | Q2 2024 | Variance | YTD 2025 | YTD 2024 | Variance | |
Pretax Income | $ 24.8 | $ 57.3 | $ (32.5) | $ 28.0 | $ 71.3 | $ (43.3) |
Pretax Income Attributable to the Company1 | 15.9 | 40.9 | (25.0) | 14.1 | 47.7 | (33.6) |
Adjusted Pretax Income (Loss) Attributable to the Company1 | 15.0 | 44.9 | (29.9) | 18.2 | 51.5 | (33.3) |
Agribusiness1 | 16.8 | 32.6 | (15.8) | 16.7 | 38.0 | (21.3) |
Renewables1 | 9.6 | 23.0 | (13.4) | 25.0 | 37.1 | (12.1) |
Other | (11.5) | (10.7) | (0.8) | (23.5) | (23.6) | 0.1 |
Net Income Attributable to the Company | 7.9 | 36.0 | (28.1) | 8.1 | 41.6 | (33.5) |
Adjusted Net Income Attributable to the Company1 | 8.4 | 39.5 | (31.1) | 12.4 | 45.1 | (32.7) |
Diluted Earnings Per Share ("EPS") | 0.23 | 1.05 | (0.82) | 0.24 | 1.21 | (0.97) |
Adjusted EPS1 | 0.24 | 1.15 | (0.91) | 0.36 | 1.31 | (0.95) |
EBITDA1 | 69.4 | 94.2 | (24.8) | 120.1 | 145.7 | (25.6) |
Adjusted EBITDA1 | $ 65.2 | $ 98.3 | $ (33.1) | $ 122.4 | $ 149.4 | $ (27.0) |
1 Non-GAAP financial measures; see appendix for explanations and reconciliations. | ||||||
Nutrient Volumes and Margins Increase; Grain Markets Remain Over-Supplied
Agribusiness recorded a pretax income of
Nutrient results improved year-over-year with increased sales volumes on customer demand for nitrogen due to the increase in planted corn acres. A surplus of grain and weak customer demand continue to exist in western markets. This has resulted in low grain prices and limited forward contracting. Both physical assets and merchandising have been impacted by these stagnant markets.
An anticipated large harvest and on-farm storage limitations are expected to make large quantities of grain available at favorable values in the last half of 2025. This should provide sales and merchandising opportunities in the latter part of 2025 and into 2026. The balanced asset and merchandising portfolio enables opportunities in various market conditions, including this period of higher supply.
Agribusiness's second quarter adjusted EBITDA was
Renewables with Solid Quarter on Efficient Operations
The Renewables segment reported pretax income of
The ethanol plants continue to run efficiently, resulting in higher year-over-year yields and production. Lower board crush, higher eastern corn basis, and increased natural gas costs led to lower overall margins. Plant co-product values also declined, with corn-based feed ingredients continuing to compete against an oversupply of soybean meal.
Although later than expected, an uptick in the ethanol board crush occurred in July and is expected to remain through the summer driving season. This expectation is bolstered by strong demand, including exports, and an expected reduction in corn costs post-harvest.
In future quarters, results will include all the ethanol plants' earnings, including the share previously attributable to the noncontrolling interest. As the company previously consolidated the entity and managed the plants, there should be limited costs to achieve these accretive results. The regulatory environment may support new opportunities, including at our Clymers,
Renewables had second quarter EBITDA of
Income Taxes
The company recorded an income tax provision for the quarter of
Conference Call
The company will host a webcast on Tuesday, August 5, 2025, at 8:30 a.m. ET, to discuss its performance and provide its outlook for the remainder of 2025. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 9563079). It is recommended that you call 10 minutes before the conference call begins.
To access the webcast, click on the link: https://app.webinar.net/k4oVL4Njwl0 and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at www.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.
Non-GAAP Measures
This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.
Company Description
The Andersons, Inc., is a North American agriculture company that conducts business in the agribusiness and renewables sectors. 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.
The Andersons, Inc. Condensed Consolidated Statements of Operations (unaudited) | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||
Sales and merchandising revenues | |||||||
Cost of sales and merchandising revenues | 2,977,453 | 2,619,834 | 5,483,679 | 5,209,731 | |||
Gross profit | 158,416 | 175,371 | 311,288 | 303,691 | |||
Operating, administrative and general expenses | 134,589 | 116,614 | 280,343 | 235,972 | |||
Interest expense, net | 11,495 | 6,611 | 24,591 | 13,133 | |||
Other income, net | 12,503 | 5,200 | 21,694 | 16,728 | |||
Income before income taxes | 24,835 | 57,346 | 28,048 | 71,314 | |||
Income tax provision | 8,028 | 4,876 | 5,910 | 6,179 | |||
Net income | 16,807 | 52,470 | 22,138 | 65,135 | |||
Net income attributable to noncontrolling interests | 8,950 | 16,494 | 13,997 | 23,578 | |||
Net income attributable to The Andersons, Inc. | $ 7,857 | $ 35,976 | $ 8,141 | $ 41,557 | |||
Earnings per share attributable to The Andersons, Inc. common shareholders: | |||||||
Basic earnings: | $ 0.23 | $ 1.06 | $ 0.24 | $ 1.22 | |||
Diluted earnings: | $ 0.23 | $ 1.05 | $ 0.24 | $ 1.21 | |||
The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited)
| |||||
(in thousands) | June 30, 2025 | December 31, 2024 | June 30, 2024 | ||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ 350,970 | $ 561,771 | $ 530,386 | ||
Accounts receivable, net | 783,892 | 764,550 | 743,550 | ||
Inventories | 771,868 | 1,286,811 | 686,540 | ||
Commodity derivative assets – current | 147,937 | 148,801 | 180,189 | ||
Other current assets | 120,780 | 88,344 | 108,634 | ||
Total current assets | 2,175,447 | 2,850,277 | 2,249,299 | ||
Property, plant and equipment, net | 883,985 | 868,151 | 694,136 | ||
Other assets, net | 387,059 | 402,886 | 356,378 | ||
Total assets | $ 3,446,491 | $ 4,121,314 | $ 3,299,813 | ||
Liabilities and equity | |||||
Current liabilities: | |||||
Short-term debt | $ 104,467 | $ 166,614 | $ 4,021 | ||
Trade and other payables | 572,232 | 1,047,436 | 607,083 | ||
Customer prepayments and deferred revenue | 73,545 | 194,025 | 124,424 | ||
Commodity derivative liabilities – current | 79,253 | 59,766 | 128,847 | ||
Current maturities of long-term debt | 64,210 | 36,139 | 27,671 | ||
Accrued expenses and other current liabilities | 186,902 | 227,192 | 192,683 | ||
Total current liabilities | 1,080,609 | 1,731,172 | 1,084,729 | ||
Long-term debt, less current maturities | 578,464 | 608,151 | 549,378 | ||
Other long-term liabilities | 176,908 | 182,155 | 145,444 | ||
Total liabilities | 1,835,981 | 2,521,478 | 1,779,551 | ||
Total equity | 1,610,510 | 1,599,836 | 1,520,262 | ||
Total liabilities and equity | $ 3,446,491 | $ 4,121,314 | $ 3,299,813 | ||
The Andersons, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) | |||
Six months ended June 30, | |||
(in thousands) | 2025 | 2024 | |
Operating Activities | |||
Net income | $ 22,138 | $ 65,135 | |
Adjustments to reconcile net income to cash (used in) provided by operating activities: | |||
Depreciation and amortization | 67,411 | 61,218 | |
Other | 10,311 | 10,821 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (23,396) | 15,284 | |
Inventories | 521,356 | 477,723 | |
Commodity derivatives | 19,857 | 36,010 | |
Other current and non-current assets | (31,730) | (50,587) | |
Payables and other current and non-current liabilities | (636,646) | (550,797) | |
Net cash (used in) provided by operating activities | (50,699) | 64,807 | |
Investing Activities | |||
Purchases of property, plant and equipment and capitalized software | (95,376) | (55,389) | |
Insurance proceeds | 13,989 | — | |
Other | 5,680 | (2,749) | |
Net cash used in investing activities | (75,707) | (58,138) | |
Financing Activities | |||
Net payments under short-term lines of credit | (64,875) | (37,705) | |
Proceeds from issuance of long-term debt | 14,700 | — | |
Payments of long-term debt | (16,645) | (13,752) | |
Dividends paid | (13,367) | (12,993) | |
Value of shares withheld for taxes | (3,931) | (8,071) | |
Distributions to noncontrolling interest owner | (1,547) | (47,405) | |
Other | (1,343) | — | |
Net cash used in financing activities | (87,008) | (119,926) | |
Effect of exchange rates on cash and cash equivalents | 2,613 | (211) | |
Decrease in cash and cash equivalents | (210,801) | (113,468) | |
Cash and cash equivalents at beginning of period | 561,771 | 643,854 | |
Cash and cash equivalents at end of period | $ 350,970 | $ 530,386 | |
The Andersons, Inc. Adjusted Net Income Attributable to The Andersons, Inc. A non-GAAP financial measure (unaudited) | |||||||
Three months ended June 30, | Six months ended June 30, | ||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||
Net income | $ 16,807 | $ 52,470 | $ 22,138 | $ 65,135 | |||
Net income attributable to noncontrolling interests | 8,950 | 16,494 | 13,997 | 23,578 | |||
Net income attributable to The Andersons, Inc. | 7,857 | 35,976 | 8,141 | 41,557 | |||
Adjustments: | |||||||
Loss on investments | 7,178 | — | 7,178 | — | |||
Transaction related compensation | 1,768 | 4,049 | 3,871 | 6,900 | |||
Severance expense | 1,197 | — | 1,197 | — | |||
Insured inventory and property recoveries, net | (7,845) | — | (4,919) | — | |||
Gain on sale of businesses, net | (3,190) | — | (3,190) | — | |||
Gain on deconsolidation of joint venture | — | — | — | (3,117) | |||
Income tax impact of adjustments1 | 1,400 | (531) | 143 | (252) | |||
Total adjusting items, net of tax | 508 | 3,518 | 4,280 | 3,531 | |||
Adjusted net income attributable to The Andersons, Inc. | $ 8,365 | $ 39,494 | $ 12,421 | $ 45,088 | |||
Diluted earnings per share attributable to The Andersons, Inc. common shareholders | $ 0.23 | $ 1.05 | $ 0.24 | $ 1.21 | |||
Impact on diluted earnings per share | $ 0.01 | $ 0.10 | $ 0.12 | $ 0.10 | |||
Adjusted diluted earnings per share | $ 0.24 | $ 1.15 | $ 0.36 | $ 1.31 | |||
1 The income tax impact of adjustments is taken at the blended federal, state, and local tax rate of |
Adjusted net income (loss) attributable to The Andersons, Inc. reflects reported net income (loss) available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings per share attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) per share amount for each specified item. |
The Andersons, Inc. Segment Data (unaudited)
| |||||||
(in thousands) | Agribusiness | Renewables | Other | Total | |||
Three months ended June 30, 2025 | |||||||
Sales and merchandising revenues | $ 2,414,827 | $ 721,042 | $ — | $ 3,135,869 | |||
Cost of sales and merchandising revenues | 2,282,765 | 694,688 | — | 2,977,453 | |||
Gross profit | 132,062 | 26,354 | — | 158,416 | |||
Operating, administrative and general expenses | 114,012 | 8,951 | 11,626 | 134,589 | |||
Interest expense (income), net | 11,331 | 725 | (561) | 11,495 | |||
Other income (loss), net | 12,180 | 746 | (423) | 12,503 | |||
Income (loss) before income taxes | 18,899 | 17,424 | (11,488) | 24,835 | |||
Income attributable to noncontrolling interests | 1,171 | 7,779 | — | 8,950 | |||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 17,728 | $ 9,645 | $ (11,488) | $ 15,885 | |||
Adjustments to income (loss) before income taxes2 | (892) | — | — | (892) | |||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 16,836 | $ 9,645 | $ (11,488) | $ 14,993 | |||
Three months ended June 30, 2024 | |||||||
Sales and merchandising revenues | $ 2,109,351 | $ 685,854 | $ — | $ 2,795,205 | |||
Cost of sales and merchandising revenues | 1,981,308 | 638,526 | — | 2,619,834 | |||
Gross profit | 128,043 | 47,328 | — | 175,371 | |||
Operating, administrative and general expenses | 97,906 | 8,046 | 10,662 | 116,614 | |||
Interest expense (income), net | 6,098 | 996 | (483) | 6,611 | |||
Other income (loss), net | 4,542 | 1,176 | (518) | 5,200 | |||
Income (loss) before income taxes | 28,581 | 39,462 | (10,697) | 57,346 | |||
Income attributable to noncontrolling interests | — | 16,494 | — | 16,494 | |||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 28,581 | $ 22,968 | $ (10,697) | $ 40,852 | |||
Adjustments to income (loss) before income taxes2 | 4,049 | — | — | 4,049 | |||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 32,630 | $ 22,968 | $ (10,697) | $ 44,901 | |||
1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a |
The Andersons, Inc. Segment Data (unaudited)
| |||||||
(in thousands) | Agribusiness | Renewables | Other | Total | |||
Six months ended June 30, 2025 | |||||||
Sales and merchandising revenues | $ 4,408,114 | $ 1,386,853 | $ — | $ 5,794,967 | |||
Cost of sales and merchandising revenues | 4,157,454 | 1,326,225 | — | 5,483,679 | |||
Gross profit | 250,660 | 60,628 | — | 311,288 | |||
Operating, administrative and general expenses | 238,501 | 18,734 | 23,108 | 280,343 | |||
Interest expense (income), net | 24,157 | 1,423 | (989) | 24,591 | |||
Other income (loss), net | 21,221 | 1,834 | (1,361) | 21,694 | |||
Income (loss) before income taxes | 9,223 | 42,305 | (23,480) | 28,048 | |||
Income (loss) attributable to noncontrolling interests | (3,351) | 17,348 | — | 13,997 | |||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 12,574 | $ 24,957 | $ (23,480) | $ 14,051 | |||
Adjustments to income (loss) before income taxes2 | 4,137 | — | — | 4,137 | |||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 16,711 | $ 24,957 | $ (23,480) | $ 18,188 | |||
Six months ended June 30, 2024 | |||||||
Sales and merchandising revenues | $ 4,170,790 | $ 1,342,632 | $ — | $ 5,513,422 | |||
Cost of sales and merchandising revenues | 3,943,228 | 1,266,503 | — | 5,209,731 | |||
Gross profit | 227,562 | 76,129 | — | 303,691 | |||
Operating, administrative and general expenses | 194,827 | 16,823 | 24,322 | 235,972 | |||
Interest expense (income), net | 12,729 | 1,453 | (1,049) | 13,133 | |||
Other income (loss), net | 11,113 | 5,936 | (321) | 16,728 | |||
Income (loss) before income taxes | 31,119 | 63,789 | (23,594) | 71,314 | |||
Income attributable to noncontrolling interests | — | 23,578 | — | 23,578 | |||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 31,119 | $ 40,211 | $ (23,594) | $ 47,736 | |||
Adjustments to income (loss) before income taxes2 | 6,900 | (3,117) | — | 3,783 | |||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 38,019 | $ 37,094 | $ (23,594) | $ 51,519 | |||
1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a |
The Andersons, Inc. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited)
| |||||||
(in thousands) | Agribusiness | Renewables | Other | Total | |||
Three months ended June 30, 2025 | |||||||
Net income (loss) | $ 18,899 | $ 17,424 | $ (19,516) | $ 16,807 | |||
Interest expense (income) | 11,331 | 725 | (561) | 11,495 | |||
Tax provision | — | — | 8,028 | 8,028 | |||
Depreciation and amortization | 20,399 | 12,018 | 654 | 33,071 | |||
EBITDA | 50,629 | 30,167 | (11,395) | 69,401 | |||
Adjusting items impacting EBITDA: | |||||||
Transaction related compensation | 1,768 | — | — | 1,768 | |||
Loss on investments | 7,178 | — | — | 7,178 | |||
Insured inventory and property recoveries, net | (11,162) | — | — | (11,162) | |||
Gain on sale of businesses, net | (3,190) | — | — | (3,190) | |||
Severance expense | 1,197 | — | — | 1,197 | |||
Total adjusting items | (4,209) | — | — | (4,209) | |||
Adjusted EBITDA | $ 46,420 | $ 30,167 | $ (11,395) | $ 65,192 | |||
Three months ended June 30, 2024 | |||||||
Net income (loss) | $ 28,581 | $ 39,462 | $ (15,573) | $ 52,470 | |||
Interest expense (income) | 6,098 | 996 | (483) | 6,611 | |||
Tax provision | — | — | 4,876 | 4,876 | |||
Depreciation and amortization | 17,279 | 11,719 | 1,271 | 30,269 | |||
EBITDA | 51,958 | 52,177 | (9,909) | 94,226 | |||
Adjusting items impacting EBITDA: | |||||||
Transaction related compensation | 4,049 | — | — | 4,049 | |||
Total adjusting items | 4,049 | — | — | 4,049 | |||
Adjusted EBITDA | $ 56,007 | $ 52,177 | $ (9,909) | $ 98,275 | |||
Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure. |
The Andersons, Inc. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited)
| |||||||
(in thousands) | Agribusiness | Renewables | Other | Total | |||
Six months ended June 30, 2025 | |||||||
Net income (loss) | $ 9,223 | $ 42,305 | $ (29,390) | $ 22,138 | |||
Interest expense (income) | 24,157 | 1,423 | (989) | 24,591 | |||
Tax provision | — | — | 5,910 | 5,910 | |||
Depreciation and amortization | 42,084 | 23,909 | 1,418 | 67,411 | |||
EBITDA | 75,464 | 67,637 | (23,051) | 120,050 | |||
Adjusting items impacting EBITDA: | |||||||
Transaction related compensation | 3,871 | — | — | 3,871 | |||
Insured inventory and property recoveries, net | (6,661) | — | — | (6,661) | |||
Gain on sale of businesses, net | (3,190) | — | — | (3,190) | |||
Loss on investments | 7,178 | — | — | 7,178 | |||
Severance expense | 1,197 | — | — | 1,197 | |||
Total adjusting items | 2,395 | — | — | 2,395 | |||
Adjusted EBITDA | $ 77,859 | $ 67,637 | $ (23,051) | $ 122,445 | |||
Six months ended June 30, 2024 | |||||||
Net income (loss) | $ 31,119 | $ 63,789 | $ (29,773) | $ 65,135 | |||
Interest expense (income) | 12,729 | 1,453 | (1,049) | 13,133 | |||
Tax provision | — | — | 6,179 | 6,179 | |||
Depreciation and amortization | 34,327 | 23,684 | 3,207 | 61,218 | |||
EBITDA | 78,175 | 88,926 | (21,436) | 145,665 | |||
Adjusting items impacting EBITDA: | |||||||
Transaction related compensation | 6,900 | — | — | 6,900 | |||
Gain on deconsolidation of joint venture | — | (3,117) | — | (3,117) | |||
Total adjusting items | 6,900 | (3,117) | — | 3,783 | |||
Adjusted EBITDA | $ 85,075 | $ 85,809 | $ (21,436) | $ 149,448 | |||
The Andersons, Inc. Trailing Twelve Months of EBITDA and Adjusted EBITDA A non-GAAP financial measure (unaudited) | |||||||||
Three Months Ended, | Twelve months | ||||||||
(in thousands) | September 30, | December 31, | March 31, | June 30, | |||||
Net income | $ 51,461 | $ 54,104 | $ 5,331 | $ 16,807 | $ 127,703 | ||||
Interest expense | 8,361 | 10,266 | 13,096 | 11,495 | 43,218 | ||||
Tax provision (benefit) | 10,731 | 13,146 | (2,118) | 8,028 | 29,787 | ||||
Depreciation and amortization | 30,408 | 36,178 | 34,340 | 33,071 | 133,997 | ||||
EBITDA | 100,961 | 113,694 | 50,649 | 69,401 | 334,705 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 1,668 | 2,536 | 2,103 | 1,768 | 8,075 | ||||
Insured inventory and property damage (recoveries), net | (5,204) | (4,446) | 4,502 | (11,162) | (16,310) | ||||
Loss on investments | — | 1,535 | — | 7,178 | 8,713 | ||||
Severance expense | — | — | — | 1,197 | 1,197 | ||||
Gain on sale of businesses, net | — | — | — | (3,190) | (3,190) | ||||
Acquisition costs | — | 3,193 | — | — | 3,193 | ||||
Total adjusting items | (3,536) | 2,818 | 6,605 | (4,209) | 1,678 | ||||
Adjusted EBITDA | $ 97,425 | $ 116,512 | $ 57,254 | $ 65,192 | $ 336,383 | ||||
Three Months Ended, | Twelve months | ||||||||
September 30, | December 31, | March 31, | June 30, | ||||||
Net income | $ 30,523 | $ 78,437 | $ 12,665 | $ 52,470 | $ 174,095 | ||||
Interest expense | 8,188 | 8,101 | 6,522 | 6,611 | 29,422 | ||||
Tax provision | 7,862 | 13,324 | 1,303 | 4,876 | 27,365 | ||||
Depreciation and amortization | 31,215 | 31,306 | 30,949 | 30,269 | 123,739 | ||||
EBITDA | 77,788 | 131,168 | 51,439 | 94,226 | 354,621 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 1,999 | 3,212 | 2,852 | 4,049 | 12,112 | ||||
Gain on deconsolidation of joint venture | — | — | (3,117) | — | (3,117) | ||||
Goodwill impairment | — | 686 | — | — | 686 | ||||
Gain on sale of assets | (5,643) | — | — | — | (5,643) | ||||
Gain on cost method investment | (4,798) | — | — | — | (4,798) | ||||
Impairment on equity method investments | 963 | — | — | — | 963 | ||||
Total adjusting items | (7,479) | 3,898 | (265) | 4,049 | 203 | ||||
Adjusted EBITDA | $ 70,309 | $ 135,066 | $ 51,174 | $ 98,275 | $ 354,824 | ||||
The Andersons, Inc. Cash from Operations Before Working Capital Changes A non-GAAP financial measure (unaudited) | |||||||
Three months ended | Six months ended | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Cash provided by (used in) operating activities | $ 299,321 | $ 304,434 | $ (50,699) | $ 64,807 | |||
Changes in operating assets and liabilities | |||||||
Accounts receivable | 29,872 | (42,441) | (23,396) | 15,284 | |||
Inventories | 482,825 | 308,640 | 521,356 | 477,723 | |||
Commodity derivatives | 18,781 | 64,508 | 19,857 | 36,010 | |||
Other current and non-current assets | (23,172) | (52,510) | (31,730) | (50,587) | |||
Payables and other current and non-current liabilities | (251,871) | (62,528) | (636,646) | (550,797) | |||
Total changes in operating assets and liabilities | 256,435 | 215,669 | (150,559) | (72,367) | |||
Cash from operations before working capital changes | $ 42,886 | $ 88,765 | $ 99,860 | $ 137,174 | |||
Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The Company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other assets, and payables and accrued expenses from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure. |
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SOURCE The Andersons, Inc.
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