Group 1 - The Andersons, Inc. (NASDAQ: ANDE) is identified as a value play with potential upside from ethanol but is also exposed to risks associated with corn prices [1] - Tyson Foods (NYSE: TSN) stands to benefit from lower corn prices due to reduced feed costs, indicating a favorable position in the current market [1] Group 2 - The analysis emphasizes a mix of fundamental valuation and technical analysis in evaluating companies, particularly those in the technical sector that meet valuation criteria and have growth potential [1] - The author expresses a keen interest in understanding how society is adapting to economic, societal, and environmental pressures, which may influence investment decisions [1]

Group 1 - The Andersons, Inc. will release its financial results for Q2 2025 on August 4, 2025, after 4 p.m. Eastern Time [1] - A webcast to discuss the results and provide a company update will be held on August 5, 2025, at 8:30 a.m. Eastern Time [1] - The company can be contacted via phone for the webcast, with specific numbers provided for U.S. and international callers [2] Group 2 - The Andersons, Inc. is a diversified company focused on agriculture, operating in the agribusiness and renewables sectors [3] - The company is committed to providing exceptional service to customers, supporting employee development, and enhancing community value [3] - More information about the company can be found on its official website [3]

Group 1 - The Andersons, Inc. announced a third quarter 2025 cash dividend of 19.5 cents ($0.195) per share, payable on July 22, 2025, to shareholders of record as of July 01, 2025 [1] - This marks The Andersons' 115th consecutive quarterly cash dividend since its listing on Nasdaq in February 1996 [1] Group 2 - The Andersons, Inc. is a diversified company rooted in agriculture, operating in the agribusiness and renewables sectors [2] - The company is committed to providing extraordinary service to its customers, helping employees improve, supporting communities, and increasing company value [2]

Summary of The Andersons (ANDE) Conference Call Company Overview - The Andersons is a diversified agribusiness operating in grain trading, ethanol production, and plant nutrients, with a strong presence in the Eastern Corn Belt and recent expansion into the Western Corn Belt through the Skylin grain investment [2][6] Key Points and Arguments Leadership Transition - CEO Bill Krueger has been in the role since October, succeeding Pat Bo, and has been with the company since the Lansing acquisition [3] - The company has tripled in size since January 1, 2019, indicating significant growth and transformation [3] Business Segments and Strategy - The Andersons has combined its nutrient business with its trade group to enhance operational efficiency [5] - The company has adopted a more asset-light model since 2019, allowing for greater flexibility and nimbleness in operations [7][8] - The Skylin investment has filled gaps in the company's asset footprint, particularly in Southwest Kansas and the Texas Panhandle [6][21] Market Dynamics - The wheat market is currently balanced, with the U.S. showing a slight oversupply at a carryout of 1.6 million bushels [10][11] - Global corn demand is well-structured, but competition from Milo and wheat is affecting corn demand in the U.S. [11][12] - Fertilizer demand remains high despite a weaker financial position for some farmers, attributed to precision agriculture practices [14][15] Tariffs and Trade - Recent changes to tariffs and port fees have reduced risks for The Andersons, particularly regarding exports from the Great Lakes [18][20] - The company is well-positioned to navigate the current tariff environment, especially concerning fertilizer and wheat imports [18] Financial Performance and Outlook - The Skylin investment is expected to contribute $30 million to $40 million in EBITDA on a run-rate basis [25] - Ethanol margins are expected to improve through Q2 and Q3, driven by increased gasoline demand and potential E15 mandates [31][32] - The company anticipates a stable inventory level for ethanol, similar to the previous year, with a positive outlook on exports [36] Renewable Diesel and Feedstock Opportunities - The Renewable Volume Obligation (RVO) is expected to drive demand for feedstocks, positively impacting The Andersons' renewable diesel feedstock business [40][41] - The company has a target to increase its renewable diesel feedstock trading from 1.5 billion pounds to 2 billion pounds [42] Capital Expenditure and Growth Strategy - The company plans to invest approximately $200 million in CapEx for 2025, focusing on efficiency improvements and potential acquisitions [52] - The current environment is seen as favorable for acquisitions, with a preference for larger deals (doubles and triples) rather than smaller ones [53][54] Key Milestones and Monitoring - Investors should monitor the growing season, proposed legislation, and the company's carbon sequestration permit filing in Indiana [63][64] - The company is focused on optimizing its portfolio and addressing underperforming profit centers [66][67] Additional Important Insights - The Andersons has a robust internal growth project pipeline, with significant investments planned for the Port of Houston and other projects [51] - The company is considering share repurchase options, balancing this with potential acquisition opportunities [59][60] This summary encapsulates the key discussions and insights from The Andersons' conference call, highlighting the company's strategic direction, market dynamics, and financial outlook.

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents the unaudited condensed consolidated financial statements for Q1 2025, reflecting a segment realignment [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Reports a significant decline in Q1 2025 net income due to lower revenues and higher operating expenses Q1 2025 vs Q1 2024 Statement of Operations Highlights (in thousands, except per share data) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Sales and merchandising revenues | $2,659,098 | $2,718,217 | | Gross profit | $152,872 | $128,320 | | Income before income taxes | $3,213 | $13,968 | | Net income attributable to The Andersons, Inc. | $284 | $5,581 | | Diluted earnings per share | $0.01 | $0.16 | [Condensed Consolidated Statements of Comprehensive (Loss) Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20(Loss)%20Income) Shows a comprehensive loss in Q1 2025, reversing a prior-year gain due to unfavorable hedge and currency impacts Q1 2025 vs Q1 2024 Comprehensive Income (in thousands) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $5,331 | $12,665 | | Other comprehensive (loss) income | $(3,728) | $546 | | Comprehensive (loss) income attributable to The Andersons, Inc. | $(3,701) | $6,127 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details an expanded balance sheet as of March 31, 2025, with increased assets, liabilities, and equity Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Total current assets | $2,528,744 | $2,850,277 | $2,213,908 | | Total assets | $3,797,682 | $4,121,314 | $3,261,073 | | Total current liabilities | $1,434,308 | $1,731,172 | $1,083,284 | | Total liabilities | $2,203,248 | $2,521,478 | $1,785,423 | | Total equity | $1,594,434 | $1,599,836 | $1,475,650 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Indicates increased cash usage in operating and investing activities, offset by cash provided from financing Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(350,020) | $(239,627) | | Net cash used in investing activities | $(43,831) | $(22,052) | | Net cash provided by (used in) financing activities | $50,445 | $(98,280) | | **Decrease in cash and cash equivalents** | **$(342,552)** | **$(359,952)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides key disclosures on segment realignment, the Skyland acquisition, inventory levels, and derivative use - Effective January 1, 2025, the company realigned its structure, combining the former Trade and Nutrient & Industrial segments into a new **Agribusiness segment**, with prior periods recast[20](index=20&type=chunk)[66](index=66&type=chunk)[93](index=93&type=chunk) - On November 1, 2024, the company acquired a **65% ownership interest in Skyland Grain LLC for $85.0 million**, expanding its grain and fertilizer business in Kansas, Colorado, Oklahoma, and Texas[85](index=85&type=chunk) - The company uses commodity derivatives to manage price risk, with **net pretax gains of $50.0 million in Q1 2025** compared to $19.3 million in Q1 2024[29](index=29&type=chunk)[34](index=34&type=chunk) Inventory Breakdown (in thousands) | Inventory Class | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Grain and other agricultural products | $833,477 | $669,373 | | Ethanol and co-products | $133,352 | $104,878 | | Nutrients and cob products | $269,538 | $205,838 | | **Total inventories** | **$1,249,047** | **$994,543** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes segment performance, liquidity, and capital resources, highlighting challenges in Agribusiness and stability in Renewables [Executive Overview & Segment Performance](index=25&type=section&id=Executive%20Overview%20%26%20Segment%20Performance) Summarizes quarterly performance, noting market headwinds for the Agribusiness segment and improved results for Renewables - Agribusiness: Q1 operating results fell behind the prior year due to **limited trade flows and challenged basis levels** in western locations, including those from the Skyland investment[97](index=97&type=chunk) - Renewables: Q1 operating results were **slightly improved** compared to the prior year, driven by efficient ethanol production and higher yields, benefiting from better board crush margins[100](index=100&type=chunk) - The company's grain storage capacity **increased to approximately 280 million bushels** from 170 million bushels year-over-year, primarily due to the Skyland acquisition[99](index=99&type=chunk) [Operating Results](index=27&type=section&id=Operating%20Results) Details segment financial performance, showing a pre-tax loss in Agribusiness and stable income in Renewables Segment Income (Loss) Before Income Taxes (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Agribusiness | $(9,676) | $2,538 | | Renewables | $24,881 | $24,327 | | Other | $(11,992) | $(12,897) | | **Total** | **$3,213** | **$13,968** | - The Agribusiness segment's operating results decreased by $7.7 million (non-GAAP attributable to the company) from the prior year, primarily due to a **$27.6 million increase in operating expenses**, substantially all from the new Skyland business[106](index=106&type=chunk)[107](index=107&type=chunk) - The Renewables segment's operating results decreased by $1.9 million (non-GAAP attributable to the company) as a **$5.5 million increase in gross profit was more than offset by a $3.7 million decrease in other income**, net[110](index=110&type=chunk)[111](index=111&type=chunk) - The effective tax rate for Q1 2025 was **(65.9)%** due to a discrete adjustment for prior period U.S. federal research and development tax credits[112](index=112&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Reviews the company's liquidity, noting decreased working capital, higher cash usage, and significant borrowing capacity - **Working capital was $1,094.4 million** at March 31, 2025, a decrease of $36.2 million from the prior year[117](index=117&type=chunk) - Net cash used in operating activities **increased by $110.4 million YoY to $350.0 million**, mainly due to unfavorable changes in operating assets and liabilities[119](index=119&type=chunk)[120](index=120&type=chunk) - Management expects to invest approximately **$175 million to $200 million** in property, plant and equipment in 2025[121](index=121&type=chunk) - As of March 31, 2025, the Company had **$1,935.1 million available for borrowing** under its credit facilities and was in compliance with all debt covenants[124](index=124&type=chunk)[125](index=125&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) States no material changes occurred in market risk during Q1 2025, referencing the 2024 Form 10-K - There were **no material changes in market risk**, specifically commodity and interest rate risk, during the three months ended March 31, 2025[129](index=129&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures with no material changes to internal controls in Q1 2025 - The company's principal executive officer and principal financial officer concluded that **disclosure controls and procedures were effective** as of March 31, 2025[130](index=130&type=chunk) - **No material changes** in the Company's internal control over financial reporting were identified during the first quarter of 2025[131](index=131&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) Reports involvement in ordinary course legal proceedings not expected to have a material adverse financial impact - The company is subject to legal proceedings in the ordinary course of business, but management believes there is **no reasonable possibility of incurring a material loss** from these claims[134](index=134&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) Refers to the 2024 Form 10-K for a comprehensive discussion of factors that could materially affect the business - The company refers to the "Risk Factors" section in its 2024 Form 10-K for a comprehensive discussion of potential risks affecting its business, financial condition, and operating results[136](index=136&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q1 2025 share repurchase activity, with $96.5 million remaining available under the current plan Share Repurchase Activity (Q1 2025) | Metric | Value | | :--- | :--- | | Total Shares Purchased | 122,190 | | Average Price Paid Per Share | $41.09 | | Value Remaining Under Plan (as of Mar 31, 2025) | $96,521,201 | [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) Reports no adoption, modification, or termination of Rule 10b5-1 trading plans by directors or officers in Q1 2025 - **No directors or executive officers adopted, modified, or terminated** a Rule 10b5-1 trading plan or any non-Rule 10b5-1 trading arrangement in Q1 2025[139](index=139&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the report, including certifications, credit agreements, and XBRL data - Lists exhibits filed with the report, such as the First Amendment to the Amended and Restated Credit Agreement, CEO/CFO certifications, and Inline XBRL documents[140](index=140&type=chunk)

Financial Performance - Q1 2025 - Sales and Merchandising Revenues reached $2,659 million, slightly down from $2,718 million in YTD '24[14] - Gross Profit increased to $153 million compared to $128 million in YTD '24[14] - Pretax Income decreased to $3 million from $14 million in YTD '24[14] - Adjusted EPS was $0.12, compared to $0.16 in YTD '24[14] - Adjusted EBITDA increased to $57 million from $51 million in YTD '24[14] Agribusiness - Q1 2025 - Agribusiness revenues were $1,993 million, down from $2,061 million in YTD '24[21] - Agribusiness gross profit increased to $119 million from $100 million in YTD '24[21] - Agribusiness reported a Pretax loss of $10 million, compared to a $3 million profit in YTD '24[21] - Agribusiness Adjusted EBITDA was $31 million, compared to $29 million in YTD '24[21] Renewables - Q1 2025 - Renewables revenues increased to $666 million from $657 million in YTD '24[27] - Renewables gross profit increased to $34 million from $29 million in YTD '24[27] - Renewables Pretax income increased to $25 million from $24 million in YTD '24[27] - Renewables Adjusted EBITDA was $37 million, compared to $34 million in YTD '24[27] Cash and Debt - Cash from Operations Before Working Capital Changes was $57 million in Q1'25, compared to $48 million in Q1'24[16, 45] - Short-term Debt was $223 million as of 3/31/2025[16] - Long-term Debt was $651 million as of 3/31/2025[18] - Capital Spending for Q1'25 was $47 million[18]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net income of $300,000 or $0.01 per diluted share, and adjusted net income of $4,000,000 or $0.12 per diluted share, compared to net income of $6,000,000 or $0.16 per diluted share in Q1 2024 [10] - Revenues declined slightly due to lower commodity prices, while gross profit improved despite increased expenses [11] - Adjusted EBITDA for Q1 2025 was $57,000,000, up from $51,000,000 in 2024, with trailing twelve months adjusted EBITDA totaling $369,000,000 [11][12] Business Line Data and Key Metrics Changes - Agribusiness segment reported a pretax loss of $5,000,000, down from adjusted pretax income of $5,000,000 in Q1 2024, with adjusted EBITDA of $31,000,000 compared to $29,000,000 in the same period [14][15] - Renewables segment generated pretax income of $15,000,000, up from adjusted pretax income of $14,000,000 in Q1 2024, with EBITDA of $37,000,000 compared to $34,000,000 last year [16][17] Market Data and Key Metrics Changes - Global trade uncertainty impacted grain flows and commodity values, particularly affecting the Agribusiness segment [6][7] - The Western Corn Belt faced declining grain basis and reduced exports of wheat and sorghum due to trade flow uncertainties [7][14] Company Strategy and Development Direction - The company is focused on integrating Nutrien and trade groups to achieve commercial, operational, and functional synergies [18] - Continued investment in safety culture and growth projects, including improvements at the Port of Houston and potential acquisitions in the ethanol production sector [20][22] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the Agribusiness outlook, expecting reduced market uncertainties and increased storage and handling opportunities in the latter half of the year [19] - The Renewables segment is expected to maintain efficient production, with solid demand for ethanol and co-products [20][21] Other Important Information - The company generated cash flow from operations before changes in working capital of $57,000,000 in Q1 2025, an increase of over $8,000,000 from 2024, resulting in a cash position of $219,000,000 at the end of the quarter [12][13] - Capital spending in Q1 was $47,000,000, up from $27,000,000 in 2024, with expectations to reach $200,000,000 for the year [13] Q&A Session Summary Question: Fertilizer business visibility for Q2 profits - Management noted that the planting season has started well, with opportunities in the fertilizer and nutrient business expanding due to increased corn acres and solid supplier planning [27] Question: Ethanol business performance and corn basis differences - Management explained that the Western Corn Belt has seen less demand this year, leading to higher corn basis in the Eastern Belt due to reduced exports and competition for grain [29] Question: Renewable diesel feedstock trading performance - Management indicated that internal visibility on the renewable diesel market is similar to industry expectations, with positive sentiment around RVO announcements expected in May [32] Question: Skyland acquisition performance - Management acknowledged that while the first quarter was tough, they remain positive about long-term fundamentals and integration synergies from the Skyland acquisition [40][42] Question: Investments in Houston and international trade flows - Management confirmed that investments are proceeding as planned, with confidence in the strategy to support increased demand for soybean oil and meal exports [44] Question: Ethanol exports to Canada - Management noted that Q1 exports were strong but may represent a pull forward, with expectations to maintain pace with last year's exports [50] Question: Grain storage income potential - Management expressed optimism about storage income opportunities in the latter half of the year, contingent on the size and quality of the wheat crop and fall harvest [52]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net income of $300,000 or $0.01 per diluted share, and adjusted net income of $4,000,000 or $0.12 per diluted share, compared to net income of $6,000,000 or $0.16 per diluted share in Q1 2024 [8] - Revenues declined slightly due to lower commodity prices, while gross profit improved despite increased expenses [9] - Adjusted EBITDA for Q1 2025 was $57,000,000, up from $51,000,000 in 2024, with trailing twelve months adjusted EBITDA totaling $369,000,000 [9][10] Business Line Data and Key Metrics Changes - Agribusiness segment reported a pretax loss of $5,000,000, down from adjusted pretax income of $5,000,000 in Q1 2024, with adjusted EBITDA of $31,000,000 compared to $29,000,000 in the same period last year [12][13] - Renewables segment generated pretax income of $15,000,000, up from adjusted pretax income of $14,000,000 in Q1 2024, with EBITDA of $37,000,000 compared to $34,000,000 last year [14][15] Market Data and Key Metrics Changes - Global trade uncertainty impacted grain flows and commodity values, particularly affecting the Agribusiness segment [5][6] - The Western Corn Belt faced declining grain basis and reduced exports of wheat and sorghum due to trade flow uncertainties [6][12] Company Strategy and Development Direction - The company is focused on integrating Nutrien and trade groups to achieve commercial, operational, and functional synergies [16] - Continued investment in safety culture and growth projects, including improvements at the Port of Houston and potential acquisitions in the ethanol production sector [18][20] Management Comments on Operating Environment and Future Outlook - Management remains optimistic about the Agribusiness outlook, anticipating reduced market uncertainties and increased storage and handling opportunities in the latter half of the year [17] - The Renewables segment is expected to maintain efficient production, with solid demand for ethanol and co-products [19][20] Other Important Information - The company generated cash flow from operations before changes in working capital of $57,000,000 in Q1 2025, an increase of over $8,000,000 from 2024, resulting in a cash position of $219,000,000 at the end of the quarter [10][11] - Capital spending in Q1 was $47,000,000, up from $27,000,000 in 2024, with expectations to reach $200,000,000 for the year [11] Q&A Session Summary Question: Fertilizer business visibility for Q2 profits - Management indicated that the current planting season is off to a strong start, with expectations for increased fertilizer and nutrient business opportunities compared to the last two years [25] Question: Ethanol business performance and corn basis differences - Management explained that the Western Corn Belt has seen less demand this year, leading to higher corn basis in the Eastern Belt due to reduced exports and competition for grain [27][28] Question: Renewable diesel feedstock trading performance - Management noted that internal visibility on renewable diesel feedstock transactions is similar to industry expectations, with anticipation of more information on RVO announcements in May [30] Question: Skyland acquisition performance - Management acknowledged that the Skyland acquisition faced challenges in Q1 but remains positive about long-term integration and synergies, with expected EBITDA in the range of $30,000,000 to $40,000,000 for the year [39][40] Question: Investments in Houston and international trade flows - Management confirmed that investments in Houston are proceeding as planned, with confidence in the strategy to support increased demand for soybean oil and meal exports [42]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net income of $300,000 or $0.01 per diluted share, and adjusted net income of $4,000,000 or $0.12 per diluted share, compared to net income of $6,000,000 or $0.16 per diluted share in Q1 2024 [10] - Revenues declined slightly due to lower commodity prices, while gross profit improved despite increased expenses [10][11] - Adjusted EBITDA for Q1 2025 was $57,000,000, up from $51,000,000 in 2024, with trailing twelve months adjusted EBITDA totaling $369,000,000 [11] Business Line Data and Key Metrics Changes - The Agribusiness segment reported a pretax loss of $5,000,000, down from adjusted pretax income of $5,000,000 in Q1 2024, while adjusted EBITDA for Agribusiness was $31,000,000 compared to $29,000,000 in the same period [14][15] - The Renewables segment generated pretax income of $15,000,000, up from adjusted pretax income of $14,000,000 in Q1 2024, with EBITDA of $37,000,000 compared to $34,000,000 last year [16][17] Market Data and Key Metrics Changes - Global trade uncertainty due to threatened tariffs and pork fees disrupted typical grain flows, negatively impacting commodity values and limiting merchandising activity [5] - The Western Corn Belt faced declining grain basis and reduced exports of wheat and sorghum, while the agronomy business experienced increased volumes and margins [6][14] Company Strategy and Development Direction - The company is focused on integrating Nutrien and trade groups to achieve commercial, operational, and functional synergies through 2025 [18] - Continued investment in safety culture and growth projects, including improvements at the Port of Houston and potential acquisitions of ethanol production facilities [21][23] Management's Comments on Operating Environment and Future Outlook - Management remains positive about the outlook despite near-term challenges in Agribusiness, anticipating improved market conditions with reduced uncertainties regarding tariffs [20] - The company expects strong fertilizer and agronomy business performance in Q2, driven by increased corn plantings and nutrient requirements [20] Other Important Information - Cash flow from operations before changes in working capital was $57,000,000 in Q1 2025, an increase of over $8,000,000 from 2024, resulting in a cash position of $219,000,000 at the end of the quarter [12] - Capital spending in Q1 was $47,000,000, up from $27,000,000 in 2024, with expectations to reach $200,000,000 for the year [13] Q&A Session Summary Question: Fertilizer business visibility for Q2 profits - Management indicated that the current planting season is off to a strong start, with expectations for higher profits compared to the last two years due to increased corn acres and solid supplier planning [26][28] Question: Ethanol business performance and corn basis differences - Management explained that the Western Corn Belt has seen less demand this year, leading to higher corn basis in the Eastern Belt due to reduced exports and competition for grain [29][30] Question: Renewable diesel feedstock trading performance - Management acknowledged improved performance in renewable diesel feedstock trading, with expectations for more clarity on RVO announcements in May [32][33] Question: Skylands acquisition performance - Management noted that while the first quarter was tough, they remain positive about the long-term fundamentals of the Skylands acquisition, with expected EBITDA in the range of $30,000,000 to $40,000,000 for the year [38][43] Question: Investments in Houston and international trade flows - Management confirmed that investments in Houston are ongoing and strategically aligned with expected increases in RVOs, which will boost demand for soybean oil and meal exports [44][46] Question: Ethanol exports to Canada - Management indicated that Q1 exports were strong but may represent a pull forward, with expectations to maintain pace with last year's exports [49][50] Question: Grain storage income potential - Management expressed optimism about storage income opportunities in the latter half of the year, contingent on the size and quality of the wheat crop and fall harvest [52][53]

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) The company reported mixed Q1 2025 results with strong Renewables performance offsetting Agribusiness challenges, while managing seasonal cash use and maintaining a strong balance sheet [Overall Performance](index=1&type=section&id=Overall%20Performance) The company reported mixed Q1 2025 results, with strong Renewables performance offsetting challenges in the Agribusiness segment Q1 2025 Key Financial Metrics ($ in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income Attributable to Company | $0.3 | $5.6 | | Adjusted Net Income Attributable to Company | $4.1 | $5.6 | | Diluted EPS | $0.01 | $0.16 | | Adjusted Diluted EPS | $0.12 | $0.16 | | Adjusted EBITDA | $57.3 | $51.2 | - The Renewables segment performed well due to strong operating efficiency and merchandising, producing one of its **best first quarters**[4](index=4&type=chunk) - The Agribusiness segment faced challenging markets as global trade uncertainties disrupted grain flows, leading commercial customers to focus on **just-in-time purchasing**[4](index=4&type=chunk) - The company is pursuing growth opportunities, with capital projects in Agribusiness expected to be completed by **mid-2026** and Renewables projects focused on improving efficiency and lowering carbon intensity[4](index=4&type=chunk) [Cash, Liquidity, and Debt Management](index=2&type=section&id=Cash%2C%20Liquidity%2C%20and%20Long-Term%20Debt%20Management) The company experienced seasonal cash usage in Q1 2025, maintaining a strong balance sheet with modest debt and increased capital project spending - The company's debt remains at a **modest level**, staying well below its long-term debt to EBITDA target of **less than 2.5 times**[7](index=7&type=chunk) Q1 Cash Flow and Capital Expenditures ($ in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities | $350 | $240 | | Cash from operations before working capital changes | $57 | $48 | | Capital project spending | $47 | $27 | [Segment Performance](index=2&type=section&id=First%20Quarter%20Segment%20Overview) The Agribusiness segment faced market challenges leading to a pretax loss, while Renewables delivered a strong quarter driven by efficient operations [Agribusiness](index=2&type=section&id=Agribusiness%20Challenged%20in%20Changing%20Markets) The Agribusiness segment reported a pretax loss due to market uncertainty and limited trade flows, despite improvement in the nutrient business Agribusiness Q1 Financial Results ($ in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Pretax Income (Loss) | $(10.0) | $3.0 | | Adjusted Pretax Income Attributable to Company | $0.0 | $5.0 | | Adjusted EBITDA | $31.0 | $29.0 | - Results were negatively impacted by limited trade flows due to market uncertainty and challenged basis levels in **western locations**[9](index=9&type=chunk) - The nutrient business demonstrated **year-over-year improvement** with good fertilizer volume and positioning, anticipating an increase in corn acres[9](index=9&type=chunk) [Renewables](index=3&type=section&id=Renewables%20has%20Strong%20Quarter%20on%20Efficient%20Operations%20and%20Favorable%20Ethanol%20Margins) The Renewables segment delivered a strong quarter with increased pretax income and EBITDA, driven by efficient operations and favorable ethanol margins Renewables Q1 Financial Results ($ in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Pretax Income | $25.0 | $24.0 | | Pretax Income Attributable to Company | $15.0 | $14.0 (Adjusted) | | EBITDA | $37.0 | $34.0 (Adjusted) | - Ethanol production facilities improved due to **efficient operations**, higher yields, and better year-over-year board crush margins[13](index=13&type=chunk) - Plant co-product values were lower, as corn-based feed ingredients faced competition from an **oversupply of alternative protein sources**[13](index=13&type=chunk) [Other Financial Information](index=3&type=section&id=Other%20Financial%20Information) The company recorded an anomalous Q1 income tax benefit due to a discrete adjustment, anticipating a normalized full-year effective tax rate [Income Taxes](index=3&type=section&id=Income%20Taxes) The company recorded an anomalous Q1 income tax benefit due to a discrete adjustment, with a normalized full-year rate anticipated - Recorded an income tax benefit of **$2.1 million** for the quarter, resulting in an effective rate of **(66)%**[15](index=15&type=chunk) - The rate was impacted by a discrete adjustment for a decrease in unrecognized tax benefits related to **prior period tax positions**[15](index=15&type=chunk) - The company anticipates a full-year adjusted effective tax rate of approximately **18% - 22%**[15](index=15&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) The unaudited consolidated financial statements show decreased sales and net income, significant seasonal cash usage, and a stable balance sheet [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 sales and merchandising revenues decreased to **$2.66 billion**, with net income attributable to the company significantly declining to **$0.3 million** Q1 Statement of Operations Highlights (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sales and merchandising revenues | $2,659,098 | $2,718,217 | | Gross profit | $152,872 | $128,320 | | Income before income taxes | $3,213 | $13,968 | | Net income attributable to The Andersons, Inc. | $284 | $5,581 | | Diluted earnings per share | $0.01 | $0.16 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$3.80 billion**, with a significant decrease in cash due to seasonal working capital usage Balance Sheet Highlights (in thousands) | Account | Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $219,219 | $561,771 | $283,902 | | Total current assets | $2,528,744 | $2,850,277 | $2,213,908 | | Total assets | $3,797,682 | $4,121,314 | $3,261,073 | | Total liabilities | $2,203,248 | $2,521,478 | $1,785,423 | | Total equity | $1,594,434 | $1,599,836 | $1,475,650 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw increased cash usage from operating activities, leading to a net decrease in cash and cash equivalents of **$342.6 million** Q1 Statement of Cash Flows Highlights (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(350,020) | $(239,627) | | Net cash used in investing activities | $(43,831) | $(22,052) | | Net cash provided by (used in) financing activities | $50,445 | $(98,280) | | Decrease in cash and cash equivalents | $(342,552) | $(359,952) | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides reconciliations for non-GAAP financial measures, including adjusted net income, segment performance, EBITDA, and cash from operations before working capital changes [Reconciliation of Adjusted Net Income](index=8&type=section&id=Adjusted%20Net%20Income%20Attributable%20to%20The%20Andersons%2C%20Inc.) The company reconciled GAAP net income to an adjusted non-GAAP figure, with Q1 2025 adjusted net income reaching **$4.1 million** Q1 2025 Reconciliation to Adjusted Net Income (in thousands) | Description | Amount | | :--- | :--- | | Net income attributable to The Andersons, Inc. (GAAP) | $284 | | Adjustments (Transaction compensation, inventory damage, etc.) | $3,772 | | **Adjusted net income attributable to The Andersons, Inc. (Non-GAAP)** | **$4,056** | [Segment Data and Reconciliations](index=9&type=section&id=Segment%20Data) This section details Q1 2025 segment performance, showing Agribusiness revenue of **$2.0 billion** with a pretax loss, and Renewables revenue of **$666 million** with pretax income Q1 2025 Segment Performance (in thousands) | Segment | Sales and merchandising revenues | Income (loss) before income taxes | | :--- | :--- | :--- | | Agribusiness | $1,993,287 | $(9,676) | | Renewables | $665,811 | $24,881 | | Other | $— | $(11,992) | | **Total** | **$2,659,098** | **$3,213** | [Reconciliation of Adjusted EBITDA](index=10&type=section&id=Adjusted%20Earnings%20Before%20Interest%2C%20Taxes%2C%20Depreciation%2C%20and%20Amortization%20%28EBITDA%29) Total company Adjusted EBITDA for Q1 2025 increased to **$57.3 million**, with contributions from both Agribusiness and Renewables segments Q1 Adjusted EBITDA by Segment (in thousands) | Segment | Q1 2025 Adjusted EBITDA | Q1 2024 Adjusted EBITDA | | :--- | :--- | :--- | | Agribusiness | $31,440 | $29,069 | | Renewables | $37,470 | $33,632 | | Other | $(11,656) | $(11,527) | | **Total** | **$57,254** | **$51,174** | [Trailing Twelve Months EBITDA and Adjusted EBITDA](index=11&type=section&id=Trailing%20Twelve%20Months%20of%20EBITDA%20and%20Adjusted%20EBITDA) The company's trailing twelve-month Adjusted EBITDA as of March 31, 2025, was **$369.5 million**, a decrease from the prior year TTM Adjusted EBITDA (in thousands) | Period | TTM Adjusted EBITDA | | :--- | :--- | | Twelve months ended March 31, 2025 | $369,466 | | Twelve months ended March 31, 2024 | $400,990 | [Reconciliation of Cash from Operations Before Working Capital Changes](index=12&type=section&id=Cash%20from%20Operations%20Before%20Working%20Capital%20Changes) Cash from operations before working capital changes increased to **$57.0 million** in Q1 2025, indicating stronger underlying cash generation Cash from Operations Before Working Capital Changes (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash used in operating activities (GAAP) | $(350,020) | $(239,627) | | Total changes in operating assets and liabilities | $(406,994) | $(288,036) | | **Cash from operations before working capital changes (Non-GAAP)** | **$56,974** | **$48,409** |