What were the key takeaways from The Andersons’s earnings call?

What does The Andersons do and what are its main business segments?

What were the key takeaways from The Andersons's earnings call?

What is the market's earnings forecast for The Andersons next quarter?

Did The Andersons beat or miss consensus estimates last quarter?

What guidance did The Andersons's management provide for the next earnings period?

What is the revenue and EPS growth rate for The Andersons year over year?

What is The Andersons's latest dividend and current dividend yield?

- **45Z Tax Credit Windfall**: Q4 2025 expects $10-15M EBITDA boost; 2026+ credits could rise to $0.20/gallon with carbon sequestration.
- **Ethanol Expansion**: $425M investment in ethanol plants; 2026+ tax credits may fund larger M&A.
- **Agribusiness Recovery**: China sorghum purchases key to 2026 margin normalization; Skyland underperforming at $15M EBITDA vs. $30-40M target.
- **Financial Strength**: Debt-to-EBITDA 2x; $82M cash on hand despite $200M annual capex.

**【CEO Opening Remarks】**
- Acquired full ownership of ethanol plants in Q3, recognizing $9M in 45Z tax credits for 2025. Q4 expects $10-15M EBITDA benefit from tax credits.
- Investing in ethanol plant efficiency, including carbon sequestration at Clymers, IN, to lower carbon intensity scores.
- Agribusiness projects: soybean meal export capacity at Houston port (2026), mineral plant in NM, and expanded corn processing in IL.
- Ag cycle challenges persist due to domestic supply and trade policy uncertainty, but 2026 trade clarity could improve margins.

**【CFO Financial Commentary】**
- Q3 2025: Net income $20M ($0.59 EPS), adjusted net income $29M ($0.84 EPS). Adjusted EBITDA $78M vs. $97M in 2024.
- Capital spending $67M (vs. $38M in 2024), driven by growth projects and Skyland acquisition. Full-year capex ~$200M.
- Debt-to-EBITDA 2x, well below 2.5x target. Generated $68M cash from ops, ending with $82M cash.
- Agribusiness pretax income $2M (vs. $19M in 2024), EBITDA $29M (vs. $45M). Renewables pretax $46M (vs. $26M), EBITDA $67M (vs. $63M).

**【Q&A Highlights】**
- **45Z Tax Credits**: 2026+ credits could rise to $0.20/gallon if CI scores improve. Q4 2025 expects $10-15M EBITDA benefit.
- **Agribusiness Recovery**: China sorghum purchases could boost margins; 2026 trade clarity needed for normalization. Skyland EBITDA ~$15M in 2025 (vs. $30-40M target).
- **Ethanol Demand**: E15 approval in CA may offset export headwinds. Q4 corn basis decline may stabilize margins despite lower crush rates.
- **M&A Strategy**: Disciplined capital allocation; targeting $425M+ deals for scale, e.g., ethanol plants. 2026+ tax credits may enable larger acquisitions.
- **Fertilizer Outlook**: Q3 2025 margins up, but 2026 volumes uncertain due to farmer hesitation on fall applications.

ANDE

ANDE fundamentals

You can ask Aime