The Andersons, Inc. (Nasdaq: ANDE) has released its financial results for the third quarter ending September 30, 2024, reporting substantial gains across several business segments. Key highlights include:
- Net Income: The company achieved net income attributable to The Andersons of $27 million, or $0.80 per diluted share, and adjusted net income of $25 million, or $0.72 per diluted share.
- Record EBITDA: Adjusted EBITDA reached $97 million, marking a record for the third quarter.
- Renewables Performance: The Renewables segment posted its strongest-ever third quarter, with pretax income of $53 million and $28 million in pretax income attributable to the company, driven by high operational efficiency and favorable ethanol margins.
- Trade Segment Gains: Year-over-year, Trade’s pretax income increased to $26 million, with an adjusted pretax income of $23 million.
“We are very pleased with this quarter’s performance,” said Bill Krueger, President and CEO. “Despite lower commodity prices and reduced volatility in agricultural markets, our Renewables segment saw strong ethanol production and improved yields. The Trade segment also performed significantly better than last year, benefiting from increased volumes and margins in specialty liquids and manufactured products within Nutrient & Industrial.” Krueger added that the near-complete harvest, aided by ideal weather, has yielded high-quality grain, enabling cost-effective purchases that present strong opportunities for 2025.
Krueger also highlighted the company’s expansion strategy, noting a recent $85 million investment for a 65% stake in Skyland Grain, LLC, which has a significant presence across Southwest Kansas, Eastern Colorado, and the Texas and Oklahoma panhandles. The Andersons also invested in its leased port facility in Houston to enhance grain exports and expand soybean meal storage and export capabilities. Progress continues on longer-term projects to lower carbon emissions at the company’s ethanol plants, reflecting The Andersons’ commitment to growth and operational efficiency.
Financial Strength and Growth Prospects
According to Brian Valentine, Executive Vice President and CFO, the company remains financially strong, with a low debt-to-EBITDA ratio well below its target of 2.5 times. Cash flow remains high, supported by lower commodity prices and robust operations. “We anticipate increased investments in growth projects as we move into the fourth quarter and 2025,” said Valentine, underscoring a disciplined approach to new strategic investments.
Segment Overview
Trade Segment
The Trade segment delivered pretax income of $26 million, up from $8 million in the same period last year, supported by improved grain margins, particularly for corn and wheat, and growth in the specialty ingredients business. The segment’s adjusted EBITDA rose to $38 million from $21 million in 2023.
Renewables Segment
The Renewables segment achieved a record pretax income of $53 million, with year-over-year ethanol margin improvements and efficient plant operations. EBITDA for the quarter reached $65 million, up from $60 million last year.
Nutrient & Industrial Segment
The Nutrient & Industrial segment showed improvement despite its traditionally slower third quarter, reporting a smaller pretax loss of $6 million, compared to an $8 million loss in 2023. The engineered granules business saw notable growth due to increased sales volume and margins.
Looking forward, The Andersons plans to continue leveraging its strong asset base and efficient operations, with a strategic focus on growth investments and expanding its presence across key agricultural regions.
