The Andersons 2025 Q1 Earnings EPS Down 93.8% as Net Income Falls

The Andersons (ANDE) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company's results fell short of analyst expectations, with revenue declining by 2.2% year-over-year to $2.66 billion. The Andersons provided guidance suggesting an anticipated strong performance in the fertilizer and agronomy business for the second quarter, driven by large corn plantings. The company remains committed to its strategic goals, focusing on enhancing production efficiency in its Renewables segment and aligning growth projects with long-term objectives.

Revenue
The total revenue of The Andersons decreased by 2.2% to $2.66 billion in 2025 Q1, down from $2.72 billion in 2024 Q1, with Agribusiness contributing $1.99 billion and Renewables adding $665.81 million, confirming the overall revenue figure.

Earnings/Net Income
The Andersons's EPS declined 93.8% to $0.01 in 2025 Q1 from $0.16 in 2024 Q1. Meanwhile, the company's net income declined to $5.33 million in 2025 Q1, down 57.9% from $12.66 million reported in 2024 Q1. The significant drop in EPS reflects a challenging quarter for the company.

Price Action
The stock price of The Andersons has tumbled 8.51% during the latest trading day, has plummeted 16.44% during the most recent full trading week, and has plummeted 18.39% month-to-date.

Post-Earnings Price Action Review
Historically, investing in The Andersons shares following a quarterly revenue drop and holding them for 30 days has delivered modest returns, with a 6.20% gain over the past five years compared to a benchmark return of 84.08%. The strategy's Compound Annual Growth Rate (CAGR) stood at 1.21%, with a maximum drawdown of -16.46%. The Sharpe ratio was 0.09, indicating limited risk-adjusted returns. Despite the strategy's underperformance relative to the benchmark, it demonstrates a potential for slight profit during periods of revenue decline. Investors should consider these factors when evaluating opportunities in The Andersons stock, especially given the recent downward trend in share prices.

CEO Commentary
Bill Krueger, President and CEO, expressed that The Andersons experienced mixed results in the first quarter, noting a strong performance from Renewables while Agribusiness faced challenges due to global trade uncertainties impacting commodity values. He highlighted that the agronomy business saw increased volumes and margins, supported by a solid planting season. Krueger emphasized the company’s focus on integrating nutrient and trade groups to generate operational synergies. He remains optimistic about Agribusiness, citing improved clarity on tariffs and expectations for increased corn plantings, which will drive demand for nutrients and storage opportunities later in the year.

Guidance
The Andersons anticipates strong performance in the fertilizer and agronomy business for the second quarter, driven by expected large corn plantings. Krueger indicated a full-year capital spending target of approximately $200 million, maintaining a disciplined approach to investments. The company continues to evaluate growth projects and acquisitions, aligning with their strategic goals. He noted that the Renewables segment will focus on enhancing production efficiency and capacity, with ongoing improvements planned at their facilities to optimize operations.

Additional News
The Andersons, Inc. has recently been in the news regarding its potential acquisition plans. The company is actively evaluating growth projects and acquisitions as part of its strategic goals, which could lead to expansion and increased market presence. Additionally, there have been no significant C-Level changes within the organization, ensuring stability in leadership as the company focuses on its operational efficiencies. Furthermore, The Andersons has not announced any dividend or buyback news, maintaining its focus on reinvestment and strategic capital allocation to support long-term growth objectives.