The Andersons 2025 Q3 Earnings Mixed Results as Net Income Falls 49.3%

The Andersons (ANDE) reported fiscal 2025 Q3 earnings on Nov 5, 2025, with revenue rising 2.2% year-over-year but net income declining sharply. , reflecting mixed investor sentiment.

Revenue

, driven by its Agribusiness segment, . , reflecting ongoing operations in ethanol production. The overall revenue growth was modest despite strong performance in specific segments.

Earnings/Net Income

, while net income fell 49.3% to $26.07 million. The decline in profitability highlights operational challenges despite revenue growth. This EPS performance is concerning for investors, given the significant drop from the prior-year period.

Post-Earnings Price Action Review

The stock’s price action post-earnings has been volatile, with a 3.50% rise in the most recent week and a 15.70% increase month-to-date. Historical backtests of buying shares after revenue growth quarters show mixed results, . The stock’s high volatility underscores the need for caution.

CEO Commentary

CEO emphasized operational improvements in ethanol plants and the impact of 45Z tax credits, which contributed $20 million year-to-date. He highlighted strategic projects like the Port of Houston expansion and Skyland Grain integration, expressing confidence in meeting 2026 run-rate EPS targets.

Guidance

The company reaffirmed its 2026 run-rate EPS target and expects continued support from 45Z tax credits through 2029. CFO noted that internal cash flows will fund growth while maintaining debt below 2.5x EBITDA.

Additional News

The Andersons recently completed the acquisition of Skyland Grain, expanding its Agribusiness footprint. . Institutional purchases and dividend declarations have bolstered investor confidence, though market volatility and supply chain challenges remain.