Summary of The Andersons 2025 Investor Day Company Overview - **Company**: The Andersons (NasdaqGS:ANDE) - **Event**: 2025 Investor Day held on December 09, 2025 - **Key Focus**: Long-term growth strategy, business insights, and financial performance Core Messages and Strategic Insights 1. **Strengthened Company Position**: The Andersons is a materially stronger company with a seasoned team and deep expertise in agriculture and renewable fuels, poised for profitable growth [6][7][10] 2. **Diversified Portfolio**: The company has a balanced and diversified portfolio that has shown resilience through market cycles, particularly in North American agriculture and renewable supply chains [7][10] 3. **Renewables Growth Engine**: The renewables segment, particularly ethanol assets, has been a high-return business with ongoing investment opportunities, including a recent $425 million acquisition to enhance ethanol production [10][11] 4. **Disciplined Capital Allocation**: The Andersons employs a disciplined capital allocation strategy, leveraging consistent cash flows to drive long-term shareholder value [7][10] Financial Performance - **Q3 2025 Adjusted EPS**: $2.56 per share, with a target of $4.30 per share by the end of 2026 [11] - **Debt Management**: Long-term debt to EBITDA reduced by over 2.5 turns since 2020 while deploying $1 billion in capital [10] - **Earnings Power**: Demonstrated strong earnings power during the peak of the agricultural cycle in 2022 and 2023 [10] Business Segments Agribusiness 1. **Integrated Supply Chain**: The agribusiness segment connects producers to end users, trading over 800 million bushels of corn annually and supplying 165 million bushels to ethanol plants [13][14] 2. **Fertilizer and Grain Handling**: The company operates a network of grain elevators and fertilizer distribution, contributing 25%-30% of normalized EBITDA from fertilizers and 30%-35% from grain assets [17][19] 3. **Merchandising Expertise**: The asset-light merchandising model generates 35%-40% of normalized EBITDA, leveraging market analysis and logistics to optimize grain flows [20][22] Renewables 1. **Ethanol Production**: The Andersons operates four ethanol plants with a nameplate capacity of 393 million gallons, currently exceeding 500 million gallons in production [24][62] 2. **Co-Products**: The company maximizes revenue from co-products like dry distillers grains and corn oil, which contribute significantly to overall revenue [24][62] 3. **Market Position**: The renewables segment is positioned to benefit from low carbon fuel standards and the 45Z clean fuel production credits, enhancing profitability [27][60] Growth Strategy 1. **Macro Trends**: The Andersons is well-positioned to capitalize on favorable macro trends in energy and agriculture, focusing on organic growth and strategic acquisitions [30][31] 2. **Operational Excellence**: Continuous improvement and optimization of operations are key to driving efficiencies and cost savings [31][56] 3. **Customer-Centric Approach**: The company emphasizes a customer-first culture, enhancing relationships and delivering tailored solutions [54][55] Future Outlook - **Long-Term EPS Target**: A publicly stated target of $7 per share by the end of 2028 [33] - **Market Opportunities**: The Andersons aims to leverage its integrated capabilities and market knowledge to capture growth in both agribusiness and renewables [60][63] Additional Insights - **Sustainability Initiatives**: The company is actively developing sustainability programs and regenerative farming practices to meet evolving consumer and stakeholder requirements [47] - **Export Infrastructure**: Investments in export facilities, such as the Port of Houston, are aimed at enhancing market access and efficiency [53][46] This summary encapsulates the key points discussed during The Andersons 2025 Investor Day, highlighting the company's strategic direction, financial performance, and growth opportunities in the agribusiness and renewables sectors.

Company Overview - The Andersons is a materially stronger company poised for continued profitable growth, with a balanced, diversified portfolio rooted in North American ag and renewables supply chains[11] - The company reported revenue of $116 billion and adjusted EBITDA of $317 million for the trailing twelve months ended September 30, 2025[20] - Adjusted EPS was $256 for the same period[20] - The company expects run-rate EPS to reach $700 by 2028[64] Agribusiness Segment - The Agribusiness segment's adjusted EBITDA was $195 million for the trailing twelve months ended September 30, 2025, representing 53% of the company's total adjusted EBITDA[20, 69] - The segment traded 33 million tonnes of commodities and sold 19 million tons of fertilizer[69] - The segment has 275 million bushels of grain storage capacity[69] Renewables Segment - The Renewables segment's adjusted EBITDA was $175 million for the trailing twelve months ended September 30, 2025, representing 47% of the company's total adjusted EBITDA[20, 103] - The segment produced 506 million gallons of ethanol at 4 facilities[103] - The segment merchandised 335 million gallons of 3rd-party ethanol[103] Financial Strategy - The company has a long-term debt to EBITDA target of less than 25x[197] - The company deployed approximately $11 billion in capital, with 45% allocated to capital expenditures and 45% to return cash to shareholders[200] - The company anticipates $30 million - $35 million annual impact from 45Z tax credit in 2025, increasing to $90 million - $100 million annually from 2026-2028, cumulating to $300 million+[210]

Core Insights - The Andersons, Inc. is hosting its Investor Day in New York City on December 9, 2025, from 9 a.m. to 12 p.m. ET [1] - The executive management team will present the company's strategic growth plan, financial outlook, and initiatives for sustainable performance and long-term shareholder value [2] Event Details - Registration for the live webcast of the Investor Day is available online, with an archived version accessible within 24 hours and available for 12 months [3] Company Overview - The Andersons, Inc. is a North American agricultural and renewable fuels company focused on customer service, employee development, community support, and increasing company value [4]

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Agribusiness Performance - Agribusiness segment's sales and merchandising revenues increased by $112.9 million to $1,988.9 million, while cost of sales rose by $105.3 million to $1,862.0 million, resulting in a gross profit increase of $7.6 million [112]. - Operating results for the Agribusiness segment were negatively impacted by trade policy uncertainty and low prices, leading to reduced gross profit in grain assets and merchandising businesses [99]. - The Agribusiness segment's sales and merchandising revenues increased by $350.2 million, primarily due to the acquisition of Skyland, which contributed $478.6 million in revenues [122]. Financial Results - The company reported a net income before income taxes of $25.8 million for Q3 2025, compared to $62.2 million in Q3 2024 [110]. - For the nine months ended September 30, 2025, total sales and merchandising revenues increased to $8,472.7 million, up from $8,134.4 million in the same period of 2024, representing a growth of 4.2% [120]. - Gross profit for the nine months ended September 30, 2025, was $482.2 million, slightly up from $480.8 million in the prior year, reflecting a marginal increase of 0.3% [120]. Expenses and Costs - Operating, administrative, and general expenses increased by $35.5 million, largely due to $30.8 million in costs associated with the Skyland acquisition [113]. - Operating, administrative, and general expenses rose by $79.2 million, largely attributed to the acquired Skyland business [123]. Tax and Income - The effective tax rate for Q3 2025 was (0.9)% on income before taxes of $25.8 million, influenced by nontaxable clean fuel production credits [117]. - The company recorded an income tax expense of $5.7 million for the nine months ended September 30, 2025, with an effective tax rate of 10.5% on income before taxes of $53.9 million [129]. Cash Flow and Investments - Net cash provided by operating activities for the first nine months of 2025 was $183.2 million, a significant increase of $120.5 million compared to $62.7 million in the same period of 2024 [138]. - Cash used in financing activities totaled $538.0 million for the nine months ended September 30, 2025, compared to $162.6 million in the same period of 2024, driven by a $425.0 million cash outlay for the TAMH acquisition [140]. - The company anticipates total investments in property, plant, and equipment for 2025 to be approximately $200 million, reflecting a focus on growth initiatives [139]. Assets and Liquidity - Current assets decreased by $369.9 million year-over-year, primarily due to cash used for the acquisition of the remaining interest in TAMH [134]. - As of September 30, 2025, the company had working capital of $630.7 million, a decrease of $522.5 million from the prior year [134]. - As of September 30, 2025, the Company had standby letters of credit outstanding amounting to $2.8 million, suggesting adequate liquidity for operations and capital expenditures [145]. Market and Risk Management - There were no material changes in market risk, specifically commodity and interest rate risk, during the nine months ended September 30, 2025, indicating stable risk management [147]. - The Company is typically in a net short-term borrowing position in the first half of the year, with most short-term borrowings at variable interest rates, indicating potential profitability impact from rising interest rates [144]. Production and Sales Trends - The third quarter nutrient business experienced increased margins and higher year-over-year volumes, with expectations for higher margins in the fourth quarter, although demand may be impacted by low grain prices [101]. - Ethanol production volumes decreased to 182,469 thousand gallons in Q3 2025 from 212,336 thousand gallons in Q3 2024, while renewable feedstocks volumes fell to 348,252 thousand pounds from 415,505 thousand pounds [105]. - The company expects elevation margins and merchandising opportunities to increase in the fourth quarter due to a large harvest and low market prices [100]. Capacity and Growth - Total Agribusiness grain storage capacity increased to approximately 275 million bushels as of September 30, 2025, up from 170 million bushels in 2024, primarily due to the Skyland acquisition [102]. - The Renewables segment's operating results improved by $11.1 million, with year-to-date 2025 45Z tax credits recorded at $20.2 million, despite a decline in sales and merchandising revenues by $56.1 million [114][103].

Financial Data and Key Metrics Changes - The company reported net income of $20 million, or $0.59 per diluted share, and adjusted net income of $29 million, or $0.84 per diluted share for Q3 2025, compared to adjusted net income of $25 million, or $0.72 per diluted share in Q3 2024 [8] - Revenues increased slightly due to the addition of Skyland, despite lower overall commodity prices [8] - Adjusted EBITDA for Q3 was $78 million, down from $97 million in 2024 [9] Business Line Data and Key Metrics Changes - Agribusiness segment reported adjusted pre-tax income of $2 million, down from $19 million in Q3 2024, with adjusted EBITDA of $29 million compared to $45 million in 2024 [11][12] - Renewables segment generated adjusted pre-tax income of $46 million, up from $26 million in Q3 2024, with adjusted EBITDA of $67 million compared to $63 million last year [13][14] Market Data and Key Metrics Changes - The egg cycle remains in a trough due to abundant domestic supply and trade policy uncertainty, impacting export trade flows for some commodities [6] - Fertilizer business saw improved margins and volume in a typically quiet quarter, indicating potential for better results in the next planting season [12][44] Company Strategy and Development Direction - The company is focused on strategic growth in renewable fuels and agribusiness, with investments in facility expansions and improvements [4][5] - Plans include two significant long-term construction projects expected to be operational in 2026, including soybean meal export capacity and a mineral processing plant [5] - The company is evaluating additional capital investments and M&A opportunities due to current economic pressures [6][11] Management's Comments on Operating Environment and Future Outlook - Management expects a reduction in corn prices as harvest progresses and anticipates record production across the grain belt despite lower yield expectations [15][17] - Clarity on trade policy is expected to improve merchandising and sales opportunities, with a focus on integrating agribusiness segments and optimizing the portfolio [18] - The company aims to reach a run rate EPS of $4.30 by 2026, driven by improved agribusiness results and increased ethanol plant ownership [19] Other Important Information - The company generated cash flow from operations of $68 million in Q3 2025, down from $86 million in Q3 2024, with a cash balance of $82 million at the end of the quarter [9][10] - Capital spending for Q3 was $67 million, with expectations of approximately $200 million for the year, primarily for growth projects [10] Q&A Session Summary Question: Insights on 45Z tax credits and future expectations - Management expects a $10-$15 million EBITDA benefit from 45Z tax credits for Q4 2025, with further guidance on 2026 to be provided at the investor day [22][23] Question: Impact of trade policy clarity on agribusiness - Management indicated that clarity on trade policy could lead to immediate benefits, particularly in sorghum exports, but guidance on earnings normalization cannot be provided until purchases are confirmed [24][26] Question: Ethanol demand and margin outlook - Management noted that while board crush margins have decreased, the overall ethanol margins may not necessarily be down due to regional variations and reduced corn basis levels [30][33] Question: Future M&A opportunities - Management emphasized a disciplined approach to capital allocation and indicated that expected cash flows from tax credits may allow for larger M&A projects in the future [34][35] Question: Fertilizer business outlook - Management reported improved volumes and margins in the fertilizer business, with cautious optimism from farmers regarding input spending for the next marketing year [43][44]

Financial Performance - Q3 2025 - Sales and Merchandising Revenues increased to $2678 million, compared to $2621 million in Q3 2024[14] - Gross Profit was $171 million, slightly lower than the $177 million in Q3 2024[14] - Pretax Income Attributable to ANDE decreased to $20 million, compared to $38 million in Q3 2024[14] - Adjusted Pretax Income Attributable to ANDE was $31 million, compared to $35 million in Q3 2024[14] - Adjusted EPS was $084, compared to $072 in Q3 2024[14] Segment Highlights - Agribusiness revenues increased to $1989 million, compared to $1876 million in Q3 2024[24] but Pretax income decreased to $1 million, compared to $23 million in Q3 2024[24] - Renewables revenues decreased to $689 million, compared to $745 million in Q3 2024[30] but Pretax income attributable to ANDE increased to $37 million, compared to $26 million in Q3 2024[30] Capital and Debt - Capital investments are expected to be around $200 million for 2025[20] - The company is focused on maintaining a long-term debt-to-EBITDA ratio below 25x, currently at 20x[20] Agribusiness - Agribusiness Adjusted EBITDA decreased to $29 million, compared to $45 million in Q3 2024[24] Renewables - Renewables Adjusted EBITDA increased to $67 million, compared to $63 million in Q3 2024[30]

Core Insights - The agricultural company reported a net income decrease to $20.1 million due to customers limiting purchases to immediate needs amid trade uncertainty [1] Financial Performance - Net income fell to $20.1 million, indicating a significant impact on financial results [1]

Financial Performance - Reported net income attributable to The Andersons was $20 million, or $0.59 per diluted share, with adjusted net income of $29 million, or $0.84 per diluted share[3]. - Adjusted EBITDA for the third quarter was $78 million, compared to $97.4 million in Q3 2024, reflecting a decrease of 19.1%[5]. - Net income for the nine months ended September 30, 2025, was $48,209, a decline of 59% compared to $116,596 in the same period of 2024[24]. - Adjusted net income attributable to The Andersons, Inc. for the nine months ended September 30, 2025, was $40,937, compared to $69,801 in 2024, reflecting a decrease of 41%[25]. - The net income attributable to The Andersons, Inc. for the nine months ended September 30, 2025, was $33,961, down from $85,833 in 2024, a decline of 60.4%[27]. - Net income for the twelve months ended September 30, 2025, was $102,313,000, showing a significant increase compared to the previous periods[30]. Revenue and Sales - Sales and merchandising revenues for Q3 2025 were $2.68 billion, a slight increase from $2.62 billion in Q3 2024[22]. - Total sales and merchandising revenues for the nine months ended September 30, 2025, reached $8,472,679, an increase from $8,134,410 in the same period of 2024, representing a growth of 4.2%[27]. - The Agribusiness segment reported sales of $6,397,021 for the nine months ended September 30, 2025, up from $6,046,832 in 2024, marking an increase of 5.8%[27]. - The Renewables segment generated revenues of $2,075,658 for the nine months ended September 30, 2025, slightly down from $2,087,578 in 2024, a decrease of 0.6%[27]. Expenses and Liabilities - Operating, administrative, and general expenses for the nine months ended September 30, 2025, totaled $452,897, compared to $356,466 in 2024, an increase of 27%[27]. - Interest expense for the nine months ended September 30, 2025, was $35,069, an increase from $21,494 in 2024, representing a rise of 63.2%[29]. - Total current liabilities decreased to $1,330,473, down 23% from $1,731,172 as of December 31, 2024[23]. Cash Flow and Assets - Cash provided by operating activities was $234 million, with a minimal increase in operating line debt, maintaining a long-term debt to EBITDA ratio below 2.5 times[4]. - Cash and cash equivalents dropped significantly to $81,630, down 85% from $561,771 at the beginning of the period[24]. - Net cash provided by operating activities was $183,183 for the nine months ended September 30, 2025, significantly higher than $62,695 in 2024[24]. - Cash provided by operating activities for the three months ended September 30, 2025, was $233,882,000, a notable recovery from a cash outflow of $2,112,000 in the same period of 2024[31]. - The net cash flow from operating activities before working capital changes for the nine months ended September 30, 2025, was $168,321,000, demonstrating strong operational cash generation[31]. Segment Performance - The Renewables segment reported pretax income of $43 million and adjusted pretax income attributable to the company of $46 million, benefiting from strong operating performance and year-to-date 45Z tax credits[11]. - Agribusiness recorded pretax income of $1 million, a significant decrease from $23 million in Q3 2024, attributed to trade policy uncertainty and low market prices[7]. - The ethanol plants contributed approximately $12 million, or $0.28 per share, to the quarter's results due to full ownership and operational efficiencies[12]. Tax and Adjustments - The anticipated full-year adjusted effective tax rate is approximately 15% - 18%, influenced by non-taxable 45Z income credits[15]. - The company reported a total adjusting items impact on EBITDA of $11,726 for the nine months ended September 30, 2025[29]. - Total adjusting items impacting EBITDA for the twelve months ended September 30, 2025, amounted to $14,545,000, indicating various operational adjustments[30]. Future Outlook - The company expects to meet its run-rate EPS target by the end of 2026, with further growth opportunities anticipated in the agricultural environment[2]. - The company is progressing on the Port of Houston project, expected to enhance export capacity and efficiency by mid-2026[2].

Industry Overview - The Zacks Agriculture - Products industry is currently facing challenges due to lower commodity prices, high input costs, and labor shortages, but increasing consumer awareness regarding food ingredients and a preference for healthier alternatives are expected to support the industry [1][4] - The industry includes companies involved in storing agricultural commodities, distributing ingredients, and farming crops, livestock, and poultry products [3] Current Trends - Agricultural commodity prices are under pressure from ample supply, while rising labor, packaging, and distribution costs are impacting profitability [4] - The global population is projected to grow to 8.6 billion by 2030 and 9.8 billion by 2050, leading to a 50% increase in global food demand, which will drive industry growth [5] - Hydroponics and vertical farming are emerging as key agricultural technologies, providing benefits such as faster crop growth and higher yields [6] Market Performance - The Zacks Agriculture - Products industry has underperformed compared to the Basic Materials sector and the S&P 500 over the past 12 months, with a decline of 9.4% compared to a 2.6% rise in the sector and an 18.4% gain in the S&P 500 [10] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 6.83X, significantly lower than the S&P 500's 18.50X and the Basic Materials sector's 14.16X [11] Company Highlights - GrowGeneration has shown improvements in gross margin and adjusted EBITDA, focusing on a leaner, product-driven organization, with proprietary brand sales growing to nearly 32% of total revenues [16] - GrowGeneration's recent acquisition of Viagrow is expected to enhance its retail presence and support its goal of maintaining 30%+ gross margins [16] - Andersons has acquired full ownership of TAMH, which operates four ethanol plants, and is expected to be immediately accretive to earnings per share [22]