[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) The company reported a decline in Q2 2025 net income and adjusted net income, while strategically acquiring full ownership of its ethanol business and advancing port projects [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) The Andersons, Inc. reported a decline in Q2 2025 net income and adjusted net income, with Renewables and Agribusiness segments still achieving pre-tax income, alongside the full acquisition of The Andersons Marathon Holdings LLC (TAMH) | Metric | Q2 2025 | Q2 2024 | Change | | :--------------------------------- | :------ | :------ | :----- | | Net Income Attributable to The Andersons (million USD) | 8 | 36 | (28) | | Adjusted Net Income Attributable to The Andersons (million USD) | 8 | 39.5 | (31.5) | | Diluted EPS (USD) | 0.23 | 1.05 | (0.82) | | Adjusted Diluted EPS (USD) | 0.24 | 1.15 | (0.91) | | Adjusted EBITDA (million USD) | 65 | 98.3 | (33.3) | | Renewables Pre-Tax Income (million USD) | 17 | 39 | (22) | | Agribusiness Pre-Tax Income (million USD) | 19 | 29 | (10) | [Strategic Developments](index=1&type=section&id=Strategic%20Developments) The company completed the acquisition of the remaining 49.9% stake in The Andersons Marathon Holdings LLC (TAMH), securing 100% ownership in the ethanol industry to grow earnings through renewable energy investments, while advancing the Houston port project to enhance grain operations and export capabilities - The company acquired the remaining 49.9% stake in TAMH for **$425 million** (net purchase price of **$385 million**), doubling its ownership in the ethanol industry, aligning with its renewable energy growth strategy[4](index=4&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) - TAMH operates four ethanol plants with a total annual capacity of **500 million gallons**, and has been renamed The Andersons Renewables, LLC following the acquisition[7](index=7&type=chunk) - Construction of the Houston port project is ongoing, expected to be completed by mid-2026, aiming to enhance grain operational efficiency and U.S. soybean meal export capacity[5](index=5&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) The company's Q2 2025 consolidated net income and diluted EPS significantly decreased year-over-year, with strong operating cash flow in Q2 but a net outflow for the first half [Consolidated Financial Results](index=7&type=section&id=Consolidated%20Financial%20Results) In Q2 2025, the company's consolidated net income and diluted EPS significantly decreased year-over-year, with total assets and liabilities declining on the balance sheet, and operating cash flow remaining strong in Q2 but showing a net outflow for the first half [Income Statement](index=7&type=section&id=Income%20Statement) In Q2 2025, the company's sales and merchandising revenues increased by 12.2% year-over-year, while gross profit decreased by 9.7%, and income before income taxes and net income attributable to The Andersons declined by 56.7% and 78.1% respectively 2025 Second Quarter Income Statement Key Data (thousand USD) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--------------------------------- | :------ | :------ | :------- | | Sales and Merchandising Revenues | 3,135,869 | 2,795,205 | 12.2 | | Gross Profit | 158,416 | 175,371 | (9.7) | | Income Before Income Taxes | 24,835 | 57,346 | (56.7) | | Net Income Attributable to The Andersons | 7,857 | 35,976 | (78.1) | | Diluted EPS | 0.23 | 1.05 | (78.1) | [Balance Sheet](index=8&type=section&id=Balance%20Sheet) As of June 30, 2025, total assets were **$3.446 billion**, a 16.4% decrease from December 31, 2024, with cash and cash equivalents down 37.5% and inventories down 39.9% Balance Sheet Key Data (thousand USD) | Metric | June 30, 2025 | December 31, 2024 | Change (%) | | :-------------------- | :----------- | :------------- | :------- | | Cash and Cash Equivalents | 350,970 | 561,771 | (37.5) | | Inventories | 771,868 | 1,286,811 | (39.9) | | Total Assets | 3,446,491 | 4,121,314 | (16.4) | | Short-Term Debt | 104,467 | 166,614 | (37.3) | | Long-Term Debt (Less Current Maturities) | 578,464 | 608,151 | (4.8) | | Total Liabilities | 1,835,981 | 2,521,478 | (27.2) | [Cash Flow Statement](index=9&type=section&id=Cash%20Flow%20Statement) In the first half of 2025, net cash used in operating activities was **$50.7 million**, compared to a net inflow of **$64.8 million** in the prior year, with cash used in investing activities increasing to **$75.7 million** primarily due to higher property, plant, and equipment purchases 2025 First Half Cash Flow Statement Key Data (thousand USD) | Metric | YTD 2025 | YTD 2024 | Change (thousand USD) | | :----------------------- | :------- | :------- | :------------ | | Net Cash Provided by (Used in) Operating Activities | (50,699) | 64,807 | (115,506) | | Net Cash Used in Investing Activities | (75,707) | (58,138) | (17,569) | | Net Cash Used in Financing Activities | (87,008) | (119,926) | 32,918 | | Decrease in Cash and Cash Equivalents | (210,801) | (113,468) | (97,333) | | Cash and Cash Equivalents at End of Period | 350,970 | 530,386 | (179,416) | - Operating cash flow for Q2 2025 was **$299 million**, compared to **$304 million** in Q2 2024[9](index=9&type=chunk) - Capital project expenditures totaled **$49 million** for the quarter, an increase of **$20 million** from 2024[9](index=9&type=chunk) 2025 Second Quarter and First Half Consolidated Income Statement Summary | Metric (thousand USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------- | :------ | :------ | :------- | :------- | | Sales and Merchandising Revenues | 3,135,869 | 2,795,205 | 5,794,967 | 5,513,422 | | Gross Profit | 158,416 | 175,371 | 311,288 | 303,691 | | Income Before Income Taxes | 24,835 | 57,346 | 28,048 | 71,314 | | Net Income | 16,807 | 52,470 | 22,138 | 65,135 | | Net Income Attributable to The Andersons | 7,857 | 35,976 | 8,141 | 41,557 | | Diluted EPS | 0.23 | 1.05 | 0.24 | 1.21 | Consolidated Balance Sheet Summary (thousand USD) | Metric (thousand USD) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------- | :----------- | :------------- | :----------- | | Total Assets | 3,446,491 | 4,121,314 | 3,299,813 | | Total Liabilities | 1,835,981 | 2,521,478 | 1,779,551 | | Total Equity | 1,610,510 | 1,599,836 | 1,520,262 | Consolidated Cash Flow Statement Summary (thousand USD) | Metric (thousand USD) | YTD 2025 | YTD 2024 | | :-------------- | :------- | :------- | | Net Cash Provided by (Used in) Operating Activities | (50,699) | 64,807 | | Net Cash Used in Investing Activities | (75,707) | (58,138) | | Net Cash Used in Financing Activities | (87,008) | (119,926) | | Cash and Cash Equivalents at End of Period | 350,970 | 530,386 | [Segment Performance](index=3&type=section&id=Segment%20Performance) Agribusiness and Renewables segments both experienced year-over-year declines in pre-tax income, with Agribusiness impacted by grain market oversupply and weak demand, and Renewables by lower crush margins and higher natural gas costs despite efficient operations [Agribusiness Segment](index=3&type=section&id=Agribusiness%20Segment) The Agribusiness segment reported **$19 million** in pre-tax income for Q2 2025, down from **$29 million** in the prior year, impacted by grain market oversupply, low prices, and limited forward contracting despite increased nutrient sales Agribusiness Segment Key Financial Data (million USD) | Metric | Q2 2025 | Q2 2024 | Change (million USD) | | :--------------------------------- | :------ | :------ | :-------------- | | Pre-Tax Income | 19 | 29 | (10) | | Adjusted Pre-Tax Income Attributable to the Company | 17 | 33 | (16) | | Adjusted EBITDA | 46 | 56 | (10) | - Nutrient sales increased year-over-year, primarily driven by higher nitrogen fertilizer demand due to increased corn acres planted[12](index=12&type=chunk) - Grain oversupply in western markets and weak customer demand resulted in depressed grain prices and limited forward contracting[12](index=12&type=chunk) - Significant grain volumes are expected to come to market at favorable prices in the second half of 2025, presenting opportunities for sales and merchandising in late 2025 and 2026[13](index=13&type=chunk) [Renewables Segment](index=3&type=section&id=Renewables%20Segment) The Renewables segment reported **$17 million** in pre-tax income for Q2 2025, significantly down from **$39 million** in the prior year, due to lower crush margins, higher eastern corn basis, and increased natural gas costs, despite efficient ethanol plant operations Renewables Segment Key Financial Data (million USD) | Metric | Q2 2025 | Q2 2024 | Change (million USD) | | :--------------------------------- | :------ | :------ | :-------------- | | Pre-Tax Income | 17 | 39 | (22) | | Pre-Tax Income Attributable to the Company | 10 | 23 | (13) | | EBITDA | 30 | 52 | (22) | - Ethanol plants continued to operate efficiently, with production and output increasing year-over-year[16](index=16&type=chunk) - Lower crush margins, higher eastern corn basis, and increased natural gas costs contributed to reduced overall profitability[16](index=16&type=chunk) - Ethanol crush margins are expected to rebound in July and continue through the summer driving season, supported by strong demand and anticipated lower corn costs[17](index=17&type=chunk) 2025 Second Quarter Segment Pre-Tax Income (million USD) | Segment | Q2 2025 Pre-Tax Income | Q2 2024 Pre-Tax Income | Change (million USD) | | :--------- | :--------------- | :--------------- | :-------------- | | Agribusiness | 19 | 29 | (10) | | Renewables | 17 | 39 | (22) | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP financial measures such as adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA, and cash from operations before working capital changes to better assess underlying business performance and period-over-period comparability - Non-GAAP financial measures aim to provide additional information, helping investors evaluate the company's operating performance and liquidity, and enhance period-over-period comparability[24](index=24&type=chunk) [Adjusted Net Income and EPS](index=10&type=section&id=Adjusted%20Net%20Income%20and%20EPS) In Q2 2025, adjusted net income attributable to The Andersons was **$8.365 million** and adjusted diluted EPS was **$0.24**, both lower than the prior year period Adjusted Net Income and EPS (thousand USD) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------- | :------- | | Adjusted Net Income Attributable to The Andersons | 8,365 | 39,494 | 12,421 | 45,088 | | Adjusted Diluted EPS | 0.24 | 1.15 | 0.36 | 1.31 | [EBITDA and Adjusted EBITDA](index=13&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) In Q2 2025, the company's EBITDA was **$69.401 million** and adjusted EBITDA was **$65.192 million**, both decreasing year-over-year, with Agribusiness and Renewables segments also showing a downward trend EBITDA and Adjusted EBITDA (thousand USD) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------- | :------ | :------ | :------- | :------- | | EBITDA | 69,401 | 94,226 | 120,050 | 145,665 | | Adjusted EBITDA | 65,192 | 98,275 | 122,445 | 149,448 | Segment Adjusted EBITDA (thousand USD) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--------- | :------ | :------ | :------- | :------- | | Agribusiness | 46,420 | 56,007 | 77,859 | 85,075 | | Renewables | 30,167 | 52,177 | 67,637 | 85,809 | [Cash from Operations Before Working Capital Changes](index=16&type=section&id=Cash%20from%20Operations%20Before%20Working%20Capital%20Changes) In Q2 2025, cash from operations before working capital changes significantly decreased to **$42.886 million** from **$88.765 million** in the prior year, with the year-to-date figure also declining from **$137.174 million** to **$99.860 million** Cash from Operations Before Working Capital Changes (thousand USD) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--------------------------------- | :------ | :------ | :------- | :------- | | Net Cash Provided by (Used in) Operating Activities | 299,321 | 304,434 | (50,699) | 64,807 | | Cash from Operations Before Working Capital Changes | 42,886 | 88,765 | 99,860 | 137,174 | [Outlook and Forward-Looking Information](index=5&type=section&id=Outlook%20and%20Forward-Looking%20Information) The company anticipates future earnings to include all ethanol plant contributions, expects an accretive impact, and is exploring new regulatory opportunities like carbon capture well permits [Future Expectations and Strategic Initiatives](index=5&type=section&id=Future%20Expectations%20and%20Strategic%20Initiatives) The company expects future quarterly earnings to include contributions from all ethanol plants, including those previously attributable to non-controlling interests, anticipating an accretive impact, and is exploring new regulatory opportunities such as carbon capture well permits - Future quarterly results will include earnings from all ethanol plants, including those previously attributable to non-controlling interests, which is expected to be accretive[18](index=18&type=chunk) - The company is exploring new regulatory opportunities, including applying for a Class VI well permit at its Clymers, Indiana facility for potential carbon capture[18](index=18&type=chunk) [Income Tax Outlook](index=5&type=section&id=Income%20Tax%20Outlook) The company recorded an **$8 million** income tax provision in Q2 with an effective tax rate of **32%**, and anticipates a full-year adjusted effective tax rate of approximately **22% to 25%** due to the TAMH transaction and elimination of non-controlling interest income Income Tax Information | Metric | Q2 2025 | | :---------- | :------ | | Income Tax Provision | $8 million | | Effective Tax Rate | 32% | - The full-year adjusted effective tax rate is projected to be approximately **22% to 25%**, primarily benefiting from the TAMH transaction and the elimination of non-controlling interest income[20](index=20&type=chunk) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) The company will host a webcast conference call on August 5, 2025, at 8:30 AM ET to discuss results and provide an outlook for the remainder of 2025 - A conference call will be held on August 5, 2025, at 8:30 AM ET to discuss results and the 2025 outlook[21](index=21&type=chunk) - Participation in the webcast is available via dial-in or a link on the company's website[21](index=21&type=chunk)[22](index=22&type=chunk) [Forward-Looking Statements Disclaimer](index=5&type=section&id=Forward-Looking%20Statements%20Disclaimer) This press release contains forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from expectations, including economic, weather, regulatory, competitive, and geopolitical risks - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations[23](index=23&type=chunk) - Risk factors include economic, weather, regulatory conditions, competition, geopolitical risks, and those listed in the company's filings with the U.S. Securities and Exchange Commission[23](index=23&type=chunk) [Company Information & Non-GAAP Explanation](index=6&type=section&id=Company%20Information%20%26%20Non-GAAP%20Explanation) The Andersons, Inc. is a North American agricultural company operating in agribusiness and renewables, committed to customer service, employee growth, community support, and shareholder value, with detailed explanations of non-GAAP financial measures [Company Description](index=6&type=section&id=Company%20Description) The Andersons, Inc. is a North American agricultural company with operations in agribusiness and renewables, dedicated to providing excellent customer service, fostering employee growth, supporting communities, and enhancing company value - The Andersons, Inc. is a North American agricultural company with operations in agribusiness and renewables[25](index=25&type=chunk) - The company is committed to providing excellent customer service, fostering employee growth, supporting communities, and enhancing company value[25](index=25&type=chunk) [Investor Relations Contact](index=6&type=section&id=Investor%20Relations%20Contact) Investors can contact Mike Hoelter, Vice President, Corporate Controller, and Investor Relations, via phone or email for further information - Investor Relations Contact: Mike Hoelter, Vice President, Corporate Controller, and Investor Relations[26](index=26&type=chunk) - Contact Phone: **419-897-6715**; Email: investorrelations@andersonsinc.com[26](index=26&type=chunk) [Non-GAAP Measures Explanation](index=6&type=section&id=Non-GAAP%20Measures%20Explanation) The company utilizes non-GAAP financial measures such as pre-tax income (loss) attributable to the company, adjusted pre-tax income (loss), adjusted net income attributable to the company, adjusted diluted EPS, EBITDA, adjusted EBITDA, and cash from operations before working capital changes to provide additional insights into operational performance and liquidity - Non-GAAP financial measures include: Pre-Tax Income (Loss) Attributable to the Company, Adjusted Pre-Tax Income (Loss), Adjusted Net Income Attributable to the Company, Adjusted Diluted EPS, EBITDA, Adjusted EBITDA, and Cash from Operations Before Working Capital Changes[24](index=24&type=chunk) - These metrics aim to provide additional information to help investors assess the company's operating performance and liquidity and enhance period-over-period comparability, but should not replace GAAP financial measures[24](index=24&type=chunk)

Core Insights - The Andersons, Inc. reported its financial results for the second quarter ended June 30, 2025, and announced the acquisition of full ownership interest in The Andersons Marathon Holdings LLC (TAMH) [1][2][4]. Strategic Acquisition - The acquisition of TAMH, which operates four ethanol plants with a total annual production capacity of 500 million gallons, aligns with the company's strategy to grow earnings through investments in ethanol [2][4]. - This transaction doubles the company's financial ownership in the ethanol industry, a key growth area within its Renewables strategy, and is expected to provide immediate accretion in earnings per share [2][4][5]. Financial Performance - For Q2 2025, the company reported a pretax income of $24.8 million, down from $57.3 million in Q2 2024, with net income attributable to the company of $7.9 million compared to $36 million in the prior year [7][8]. - Adjusted EBITDA for Q2 2025 was $65 million, a decrease from $98.3 million in Q2 2024 [9][39]. - The company’s cash provided by operating activities was $299 million in Q2 2025, slightly down from $304 million in Q2 2024 [6]. Segment Overview - The Agribusiness segment recorded a pretax income of $19 million, down from $29 million in Q2 2024, while the Renewables segment reported a pretax income of $17 million, down from $39 million in the same period [10][13]. - The Renewables segment's adjusted EBITDA was $30 million in Q2 2025, compared to $52 million in Q2 2024 [17][39]. Cash and Debt Management - The company funded the acquisition of TAMH with cash on hand and existing credit facilities, maintaining a modest level of debt and remaining below its long-term debt to EBITDA target of less than 2.5 times [6][18]. - Cash and cash equivalents at the end of Q2 2025 were $350.97 million, down from $561.77 million at the end of 2024 [26][28]. Future Outlook - The company anticipates a large fall harvest and expects to benefit from increased support for renewable fuels, which may enhance its operational efficiency and profitability [3][12][16].

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]