The Andersons, Inc. Delivers Record Fourth Quarter Performance and Solid Full-Year Results
The Andersons, Inc. reported a strong close to the year, highlighted by record fourth quarter results driven by disciplined execution across its Renewables and Agribusiness segments. Strategic investments, operational efficiency, and favorable market conditions in key areas contributed to improved profitability and solid cash flow generation.
President and CEO Bill Krueger credited the company’s performance to a combination of recent capital investments and operational strength across its asset footprint. Notably, the company’s move to full ownership of its ethanol plants played a meaningful role in boosting quarterly results. Strong grain positioning, export activity, and demand trends further supported performance during what was described as an exceptionally active period for both grain elevators and ethanol facilities.
Strategic Investments Strengthen Operational Footprint
Recent and ongoing capital projects remain central to the company’s long-term growth strategy. During the quarter, operations commenced at a new mineral processing facility in Carlsbad, New Mexico, expanding the company’s capabilities within its plant nutrient portfolio.
Additional projects are progressing as planned, including a multi-year expansion at the Port of Houston designed to enhance export capacity and logistics efficiency. The company also recently announced a $60 million investment to increase production capacity at its Clymers, Indiana ethanol facility, further strengthening its Renewables segment.
In addition, a bio-based diesel feedstock storage and blending facility at one of the Skyland locations is expected to begin operations later in the quarter. The company continues to expand corn and wheat cleaning operations across its network in response to increasing demand from food and pet food customers.
Management emphasized its commitment to pursuing additional growth initiatives, including lowering the carbon intensity of its ethanol plants, implementing process improvements, and evaluating expansion and acquisition opportunities. These investments align with broader industry trends toward sustainability, efficiency, and higher-value product offerings.
Strong Balance Sheet and Cash Flow Position
Executive Vice President and CFO Brian Valentine highlighted the company’s solid operating cash flows, which supported both growth investments and balance sheet discipline.
The company reported a long-term debt-to-adjusted EBITDA ratio of 1.8 times, well below its stated target of less than 2.5 times. This conservative leverage position provides flexibility to fund strategic initiatives while maintaining financial stability.
During the fourth quarter of 2025, the company used $6 million in cash from operating activities, compared to generating $269 million in the fourth quarter of 2024. Cash from operations before working capital changes totaled $110 million in the fourth quarter of 2025, compared to $100 million in the same period of 2024.
For the full year 2025, operating activities generated $177 million in cash, compared to $332 million in 2024. Cash from operations before working capital changes reached $278 million in 2025, compared to $323 million in 2024. Management noted that these results were achieved despite challenging agricultural market conditions throughout 2025.
Agribusiness Segment: Solid Quarter on Record Corn Harvest
The Agribusiness segment delivered a strong fourth quarter, benefiting from a robust fall harvest and favorable regional market dynamics.
The segment reported pretax income of $46 million and adjusted pretax income attributable to the company of $45 million, compared to $55 million and $56 million, respectively, in the fourth quarter of the prior year. Adjusted EBITDA for the quarter totaled $80 million, compared to $88 million in the fourth quarter of 2024.
Regional Performance Differences
Performance varied across the company’s eastern and western footprints:
- Western Operations (including Skyland Grain):
The western region experienced improved performance, driven by strong basis appreciation in both corn and sorghum. Skyland locations successfully accumulated substantial corn and sorghum positions at favorable values and benefited from the return of sorghum exports through the company’s Houston port elevator. - Eastern Operations:
Eastern assets realized seasonally strong elevation margins on higher volumes, supported by increased corn demand from ethanol producers and export programs. However, elevated basis levels through harvest may limit basis appreciation opportunities heading into 2026.
Looking ahead, management expects the company’s diversified and complementary asset footprint to provide potential upside in 2026. More traditional basis appreciation opportunities are anticipated in the western region, while sustained export demand could continue to support elevation margins in the east.
Sorghum exports remained strong into early 2026, which is expected to benefit both Skyland and Houston assets. As on-farm grain volumes come to market, additional merchandising opportunities may arise.
Demand Trends and Outlook
Domestic demand for premium ingredients remains solid and continues to support recent capital investments. Additionally, expected corn plantings above historical averages could drive increased demand for nitrogen products, although final volumes will depend on overall farmer economics and crop margins.
For the full year 2025, Agribusiness reported adjusted EBITDA of $187 million, compared to $218 million in 2024, reflecting the impact of softer agricultural market conditions earlier in the year despite a strong finish.
Renewables Segment: Record Production Drives Strong Quarter
The Renewables segment posted particularly strong results in the fourth quarter, supported by record ethanol production and improved crush margins.
Pretax income reached $54 million, compared to $26 million in the fourth quarter of 2024. Renewables generated EBITDA of $69 million in the fourth quarter of 2025, up significantly from $41 million in the prior-year quarter.
Operational Excellence and Margin Expansion
Efficient plant operations and record production levels were key contributors to performance. Ethanol board crush margins improved by $0.15 per gallon compared to the prior year, boosting profitability. Firmer corn basis and higher natural gas expenses partially offset these favorable margin conditions.
The fourth quarter results also included $15 million in 45Z tax credits, bringing the year-to-date total to $35 million. These credits further enhanced earnings and reflect the company’s alignment with evolving renewable fuel policies.
The renewable feedstocks business delivered another solid quarter, and co-product values improved compared to the fourth quarter of 2024, contributing additional strength to segment performance.
For the full year 2025, Renewables reported adjusted EBITDA of $203 million, compared to $189 million in 2024, reflecting consistent operational execution and supportive policy and demand dynamics.
Favorable Industry Fundamentals Support 2026 Outlook
Management remains optimistic about ethanol market fundamentals heading into 2026. Favorable biofuels policies, sustained export demand, planned industry maintenance outages, and seasonal summer gasoline demand are expected to support ethanol margins.
Additionally, renewable feedstocks merchandising is anticipated to benefit from robust Renewable Volume Obligations, which could further enhance demand for low-carbon and bio-based products.
Across both segments, the company continues to focus on disciplined capital allocation, operational efficiency, and strategic growth initiatives. Investments aimed at lowering carbon intensity, expanding processing capacity, and strengthening logistics infrastructure position the company to capitalize on evolving agricultural and renewable energy markets.
Positioned for Growth with Financial Flexibility
With a strong balance sheet, diversified asset base, and continued investment in strategic projects, The Andersons, Inc. enters the new year well-positioned to pursue growth opportunities.
Despite ongoing volatility in agricultural markets, the company’s complementary geographic footprint, expanding renewables platform, and disciplined financial management provide resilience and flexibility. Management remains focused on enhancing shareholder value through operational excellence, targeted capital investments, and sustainable growth initiatives across its Agribusiness and Renewables segments.
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