The Andersons(US:ANDE)2025-11-04 21:28Financial 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].