The Andersons 2025 Q3 Earnings Mixed Results as EPS Surges 78% Despite Revenue Miss

The Andersons reported mixed third-quarter 2025 results, with adjusted EPS surging 78% to $0.84 (beating estimates) but revenue falling short of expectations by 5.96%. The company reaffirmed its 2026 run-rate EPS target, citing strategic investments in renewables and ethanol production efficiency.

Revenue

Total revenue rose 2.2% to $2.68 billion in Q3 2025, driven by strong performance in its Renewables segment. Agribusiness generated $1.99 billion in revenue, reflecting higher-than-expected wheat harvest volumes and ongoing integration of Skyland Grain. The Renewables segment contributed $688.80 million, bolstered by ethanol production efficiency gains and 45Z tax credit benefits.

Earnings/Net Income

The company’s adjusted EPS soared to $0.84, outperforming the $0.40 estimate, while net income declined to $26.07 million (-49.3% YoY). The EPS beat underscores effective cost management, but the net income contraction highlights margin pressures in agribusiness and elevated production costs.

Post-Earnings Price Action Review

The Andersons’ stock exhibited volatile post-earnings reactions in recent quarters, with no clear historical pattern. While the latest Q3 results drove a 3.38% intraday gain despite a revenue miss, Q2 2025 saw a 0.06% dip following a significant EPS shortfall. Analysts note that short-term price movements remain unpredictable, with mixed outcomes even during revenue growth periods. The lack of three-year stock price data for 30-day post-earnings returns complicates definitive trend analysis.

CEO Commentary

CEO Bill Krueger highlighted strategic acquisitions of ethanol plants and operational improvements to enhance yields and reduce carbon intensity. He emphasized the 45Z tax credit’s impact on Q3 results and outlined plans for the Port of Houston project, Skyland Grain integration, and capacity expansion in premium food corn. The company remains on track to meet its 2026 run-rate EPS target and will host an Investor Day on December 9 for long-term financial updates.

Guidance

The Andersons expects to meet its 2026 run-rate EPS target, driven by ethanol demand, 45Z tax credits, and agribusiness margin improvements. The company plans to fund growth projects internally, maintaining a debt-to-EBITDA ratio below 2.5x. Renewables’ 45Z tax credits are projected to remain a policy tailwind through 2029.

Additional News

Recent non-earnings updates include the completion of ethanol plant acquisitions, enabling full operational control and efficiency gains. The company announced a $200M capital expenditure for 2025, focusing on renewable energy projects and facility expansions. Additionally, the Clymers, Indiana, facility is progressing toward EPA approval for carbon sequestration, further reducing carbon intensity. CEO Krueger expressed optimism about agricultural market opportunities and the integration of Skyland Grain into the Agribusiness segment.