Andersons (NASDAQ:ANDE) reported fourth-quarter results that management said produced a record level of earnings per share, supported by strong performance in renewables and solid execution across its agribusiness footprint. On the company’s earnings call, executives also outlined capital projects underway and provided an initial outlook for 2026, citing expectations for improved agribusiness results and continued strength in ethanol demand.
Fourth-quarter earnings and profitability
For the fourth quarter of 2025, the company reported net income attributable to The Andersons of $67 million, or $1.97 per diluted share. Adjusted net income was $70 million, or $2.04 per diluted share, up from adjusted net income of $47 million, or $1.36 per diluted share, in the fourth quarter of 2024.
Adjusted EBITDA in the fourth quarter was $137 million, compared with $117 million in the prior-year quarter. Full-year adjusted EBITDA was $337 million, down from $363 million in 2024. The company said the quarterly EBITDA improvement reflected an increase in renewables that was partially offset by a year-over-year decline in agribusiness.
The effective tax rate was 19% in the quarter and 16% for the full year, with management noting the rate can vary based on income attributable to non-controlling interests and the recognition of non-taxable biofuels credits.
Cash flow, balance sheet, and capital spending
Andersons generated fourth-quarter cash flow from operations before changes in working capital of $110 million, up from $100 million a year earlier. Full-year cash flow was $278 million, compared with $323 million in 2024, which management attributed to “challenging ag market conditions in the first half of the year.”
Valentine said the year-end cash balance declined and short-term debt increased modestly, reflecting the acquisition of the company’s partner’s share of its ethanol plants completed in the third quarter of 2025.
Management said it “intentionally increased” strategic investment in 2025, including larger growth projects in both business segments and a full-year impact of Skyland capital spending. Long-term debt to EBITDA ended the year at 1.8x, which the company said remains below its stated target of less than 2.5x.
Segment results: Agribusiness and renewables
Agribusiness reported fourth-quarter pre-tax income of $46 million (adjusted pre-tax income attributable of $45 million), down from $56 million in 2024. Management described a large harvest that produced significant grain volumes, particularly in the company’s Western footprint, allowing the business to acquire grain at favorable values and realize basis appreciation. The company also pointed to “considerable sorghum export sales in December,” supporting its Skyland and Port of Houston assets.
In the Eastern Corn Belt, Andersons cited strong elevation margins and a significant portion of acquired corn moving into export markets, while noting its merchandising portfolio remained challenged as grain markets were well supplied and prices were relatively low. The company also said its premium ingredients business delivered solid results and that the Skyland investment improved in the quarter.
Agribusiness adjusted EBITDA was $80 million in the fourth quarter, compared with $88 million a year ago. Full-year adjusted EBITDA was $187 million, down from $218 million in 2024.
Renewables generated fourth-quarter pre-tax income attributable to the company of $54 million, up from $17 million in the fourth quarter of 2024. The company attributed the increase to its full ownership of four ethanol plants following the acquisition of its partner’s share in the third quarter of 2025. Management said the ethanol plants delivered another quarter of record production and that ethanol board crush margins were up $0.15 per gallon year over year, partially offset by higher natural gas costs and firmer eastern corn basis.
The company said the impact of 45Z tax incentives was $15 million in the quarter and $35 million for the full year, reflecting full ownership since August and the relative share of gallons produced in the first seven months of 2025. Renewables EBITDA was $69 million in the quarter, up from $41 million a year earlier. Full-year renewables adjusted EBITDA was $203 million, compared with $189 million in 2024.
Strategic projects and growth initiatives
CEO Bill Krueger said the company remains committed to profitable growth in both agribusiness and renewables. In renewables, Andersons recently announced an additional investment in its Climer, Indiana facility, which is expected to add 30 million gallons of incremental annual production in 2027. The company also plans to begin operations in the first quarter at a renewable feedstock storage and blending facility in Ulysses, Kansas, adding capacity for low carbon-intensity feedstocks supplying bio-based diesel and feed markets.
In agribusiness, the company highlighted continued improvements in its Skyland footprint and provided an update on major infrastructure projects:
- Port of Houston expansion: upgrades to the grain elevator are expected to be completed in Q2 2026, with soybean meal export capacity expected to be online in late Q3 2026.
- Carlsbad, New Mexico mineral processing facility: after completing the first phase, Andersons is adding processing capabilities in a second phase scheduled to be complete in the second quarter.
- Late processing capabilities: continued build-out of corn and wheat capabilities positioned to support key consumer packaged goods customers.
Early 2026 outlook: agribusiness improvement, ethanol demand, and policy watch
Krueger said the company expects “better financial results in agribusiness” in 2026, citing more certainty in global grain markets, while also expecting demand for ethanol and related products to remain strong. He said the company is focused on connecting supply to end users and export demand and expects the large fall harvest to support basis appreciation in its Western footprint into 2026, with sorghum exports continuing into the new year.
The company also discussed the farm economy and the importance of domestic demand, pointing to potential support from year-round E-15 legislation and the finalization of Renewable Volume Obligations (RVOs) “as proposed.”
In Q&A, management addressed fertilizer positioning and farmer selling dynamics. Krueger said fall ammonia applications were substantial in the western U.S. due to nearly perfect application weather and said the company believes this supports expectations for higher-than-normal corn acres in 2026 (though less than 2025). In the east, the company expects stronger-than-normal applications in the first quarter, while noting that farmer economics remain challenging.
On ethanol, Krueger said the company entered the first quarter with slightly stronger board crush than the industry expected, even as corn basis and natural gas costs remained factors in some areas. Valentine said the company expects export demand to remain high and pointed to seasonal uplift tied to summer driving season, along with the full-year impact of full plant ownership. He also referenced an expected full-year range for 45Z of $90 billion to $100 billion, as stated on the call.
Management also provided updated long-term targets, saying it expects to exit 2026 with run-rate EPS above its prior target of $4.30 and updated its long-range target to $7 as it exits 2028.
About Andersons (NASDAQ:ANDE)
The Andersons, Inc operates as a diversified agriculture company offering a broad range of products and services to farmers, retailers and industrial customers. Through its Grain Group, the company purchases, stores, merchandises and transports corn, soybeans and other commodities, while its Renewables Group produces ethanol and distillers grains at multiple plants in the U.S. The Rail Group provides locomotive leasing, railcar repair and related maintenance services, and the Horticulture Group supplies turf, specialty and horticultural products to landscaping professionals and consumer lawn and garden retailers.
Founded in 1947 and headquartered in Maumee, Ohio, The Andersons has grown from a regional grain elevator operator into an integrated agribusiness platform.
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