The Andersons, Inc. Reports Second Quarter 2026 Net Income of $57 Million

en.Wedoany.com Reported - The Andersons, Inc. (Nasdaq: ANDE), headquartered in Maumee, Ohio, reported second quarter results for the period ended June 30, 2026: net income attributable to the company of $57 million, or $1.65 per diluted share; adjusted net income of $74 million, or $2.15 per diluted share; and adjusted EBITDA of $140 million.

President and Chief Executive Officer Bill Krueger stated that second quarter results reflected continued strong performance in the Renewable Energy segment and year-over-year improvement in the Agricultural segment. The Renewable Energy segment achieved record second quarter production while safely completing planned spring maintenance activities, with the Renewable Fuel Standard (RVO) finalized in the first quarter supporting stronger commodity markets and creating opportunities for the trade team, and the low-carbon strategy delivering $24 million in 45Z tax credits during the quarter; the Agricultural segment's trade business benefited from market volatility, and the fertilizer business performed well during the spring application season.

The Renewable Energy segment reported record pre-tax income of $65 million for the second quarter, with adjusted pre-tax income of $88 million, benefiting from record production, strong trade performance, and 45Z tax credits; pre-tax income in the same period last year was $17 million, with pre-tax income attributable to the company of $10 million. The segment's adjusted EBITDA was $103 million, compared to $30 million in the same period last year. Strong ethanol export demand and healthy domestic consumption pushed crush margins higher, partially offset by firmer corn basis; results included $24 million in 45Z producer tax credits. The trade business benefited from market volatility surrounding the RVO announcement, with corn oil and RIN (Renewable Identification Number) values rising. The company expects ethanol demand to remain strong, supported by higher global blend rates and favorable domestic blending economics, and renewable feedstocks are also expected to benefit from healthy biodiesel demand.

The Agricultural segment reported pre-tax income attributable to the company and adjusted pre-tax income of $20 million for the second quarter, compared to $19 million and $17 million, respectively, in the same period last year; adjusted EBITDA was $53 million, compared to $46 million in the same period last year. The fertilizer business achieved higher margins despite lower volumes, serving as the primary source of improvement; the trade business improved due to higher commodity prices and increased early-season volatility, partially offset by fuel surcharges; grain assets performed in line with the same period last year. The company stated that favorable growing conditions in the eastern Corn Belt could support fall harvest volumes and grain holding opportunities, while drought conditions in western production areas may pressure grain asset returns, but market dislocations and volatility should create additional trade opportunities; above-average corn acreage should support fall fertilizer demand.

Regarding cash flow, cash provided by operating activities in the second quarter was $488 million, compared to $299 million in the same period last year; operating cash flow before changes in working capital was $113 million, compared to $43 million in the same period last year. Capital project expenditures totaled $76 million for the quarter, primarily for facility and strategic growth plan investments. Executive Vice President and Chief Financial Officer Brian Valentine stated that the company's long-term debt-to-EBITDA ratio remains well below the 2.5x target, and the balance sheet provides flexibility for growth strategies.

Krueger stated that the company will continue executing its long-term growth strategy, advancing the previously announced ethanol plant bottleneck elimination project in Clymers, Indiana, and continuing to seek ways to reduce operational carbon intensity to maximize the value of 45Z tax credits, including advancing Class VI well permits; the Houston port soybean meal export facility is expected to begin operations in the fourth quarter. Strong ethanol production, favorable export demand, low-carbon fuel adoption, and progress on strategic investments position the company to capture market opportunities and create long-term value for shareholders.

Regarding income taxes, the company recorded an income tax expense of $13 million in the second quarter, with an effective tax rate of 20%, which was impacted by non-taxable 45Z income; the full-year adjusted effective tax rate is expected to be approximately 14% to 18%.

The company will hold a webcast conference call on August 4, 2026, at 8:30 a.m. Eastern Time to discuss results and the outlook for the remainder of 2026. The Andersons, Inc. is a North American agricultural and renewable fuels company.