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** |

Financial Performance - The company reported total sales and merchandising revenues of $11,257.5 million for the year ended December 31, 2024, down from $14,750.1 million in 2023 [126]. - Sales and merchandising revenues decreased to $11,257,548 in 2024 from $14,750,112 in 2023, representing a decline of approximately 23.8% [190]. - Gross profit for 2024 was $693,926, a slight decrease from $745,363 in 2023, indicating a gross margin of 6.2% [190]. - Net income from continuing operations increased to $170,700 in 2024, up from $132,529 in 2023, reflecting a growth of approximately 28.8% [190]. - Earnings per share attributable to The Andersons, Inc. common shareholders increased to $3.35 in 2024 from $3.00 in 2023, marking an increase of 11.7% [190]. - The company reported a comprehensive income of $160,420 in 2024, compared to $134,910 in 2023, reflecting an increase of about 19% [193]. - Net income for the year ended December 31, 2024, was $170.7 million, an increase from $132.5 million in 2023, representing a growth of approximately 28.8% [201]. Segment Performance - The Trade segment's sales and merchandising revenues decreased by $2,804 million, while cost of sales decreased by $2,797.7 million, resulting in a slight gross profit decrease of $6.3 million [128]. - The Renewables segment shipped 793,554 thousand gallons of ethanol in 2024, an increase from 774,550 thousand gallons in 2023, and E-85 shipments rose to 47,073 thousand gallons from 42,270 thousand gallons [117]. - The Nutrient & Industrial segment's total tons sold decreased to 1,865 thousand tons in 2024 from 1,938 thousand tons in 2023, with Ag Supply Chain sales down to 1,288 thousand tons from 1,376 thousand tons [121]. - Renewables segment operating results increased by $48.3 million from the prior year, but gross profit decreased by $33.2 million due to a $578.3 million drop in sales and merchandising revenues attributed to a 22% decline in ethanol prices [131][134]. - Nutrient & Industrial segment results decreased by $7.1 million, with sales and merchandising revenues down $110.3 million and gross profit down $11.9 million, primarily due to a 5% decrease in volumes sold and margin compression [134]. - The Nutrient & Industrial segment reported total sales and merchandising revenues of $833,141 thousand for 2024, a decrease of 11.7% from $943,397 thousand in 2023 [281]. Cash Flow and Assets - Net cash provided by operating activities was $331.5 million in 2024, a significant decrease from $946.8 million in 2023, largely due to favorable changes in operating assets and liabilities in the prior year [145]. - Total current assets increased by $43.3 million to $2,850.3 million, while current liabilities rose by $94.8 million to $1,731.2 million, resulting in a working capital decrease of $51.5 million [142][143]. - The Company retained $561.8 million in cash on hand as of December 31, 2024, reflecting strong cash generation from core businesses despite a decrease in operating cash flow [145]. - Total assets rose to $4,121,314 in 2024, compared to $3,855,007 in 2023, representing an increase of approximately 6.9% [196]. - Cash and cash equivalents decreased to $561,771 in 2024 from $643,854 in 2023, a decline of about 12.7% [196]. - The company sold $201.7 million of accounts receivable in 2024, compared to $311.6 million in 2023, indicating a decrease of about 35.4% [213]. Debt and Liabilities - The Company had total outstanding long-term debt of $646.8 million as of December 31, 2024, with future interest payments totaling $162.2 million [155][156]. - Total liabilities increased to $2,521,478 in 2024 from $2,338,620 in 2023, an increase of approximately 7.8% [196]. - The fair value of the Company's long-term debt, including current maturities, was estimated at $635,387 thousand as of December 31, 2024, compared to $585,137 thousand in 2023 [174]. - The Company had a total short-term borrowing capacity of $2,161.7 million as of December 31, 2024, with $1,991.3 million available for borrowing [255]. - The Company’s long-term debt maturities include $36.1 million due in 2025 and $194.9 million due in 2029 [261]. Expenses and Costs - Operating, administrative, and general expenses increased by $7.9 million compared to the prior year, primarily due to $12.8 million in additional costs related to the Skyland acquisition [129]. - Interest expense decreased by $10.6 million due to reduced short-term borrowings resulting from lower commodity prices [130]. - Total interest paid decreased to $31.1 million in 2024 from $47.0 million in 2023, marking a decline of approximately 33.5% [256]. - The effective tax rate for 2024 was 15.0%, down from 21.8% in 2023 [289]. - The company reported net income taxes paid of $31.5 million in 2024, compared to $45.7 million in 2023 [289]. Inventory and Capital Expenditures - Agricultural inventories on hand increased to 174.2 million bushels as of December 31, 2024, compared to 127.6 million bushels in the previous year, with total storage capacity rising to approximately 291 million bushels [114]. - Capital expenditures for 2024 totaled $149.2 million, with expectations to invest approximately $175 million to $200 million in property, plant, and equipment in 2025 [148]. - As of December 31, 2024, total inventories increased to $1,286.8 million from $1,166.7 million in 2023, representing a growth of approximately 10.3% [250]. Shareholder Returns - The Company declared a cash dividend of $0.195 per common share for January 2025, compared to $0.185 per share in January 2023 [151]. - The company declared dividends of $0.765 per common share in 2024, totaling $26.1 million, compared to $25.2 million in 2023 [201]. Risk Management - The Company uses forward purchase and sale contracts and derivatives to manage commodity inventories, with fair value adjustments recorded as part of cost of sales [164]. - The Company enters into currency exchange contracts to mitigate risks from foreign currency fluctuations, primarily involving the Euro, British pound, and other currencies [173]. - The Company has established "unhedged" position limits to mitigate price risk associated with commodity contracts and inventories [214]. Other Comprehensive Income - The total Accumulated Other Comprehensive Income (AOCI) ending balance decreased to $12.585 million in 2024 from $22.865 million in 2023, reflecting a significant loss in currency translation adjustments [302]. - The company reported a net loss of $10.888 million in other comprehensive income before reclassifications for currency translation adjustments in 2024, compared to a gain of $5.622 million in 2023 [302].

February 19, 2025 SAFE HARBOR AND NON-GAAP FINANCIAL MEASURES FOURTH QUARTER EARNINGS CALL Certain information discussed today constitutes forward-looking statements. Actual results could differ materially from those presented in the forward-looking statements as a result of many factors including general economic, weather, and regulatory conditions, competition, geopolitical risk, and additional factors that are described in the company's publicly-filed documents, including its '34 Act filings and the pros ...

Financial Data and Key Metrics Changes - The company reported adjusted pretax income of $147 million and adjusted EBITDA of $363 million for 2024, despite facing oversupplied agricultural markets with low prices and limited volatility [9][17] - Net income attributable to the company was $45 million or $1.31 per diluted share, compared to adjusted net income of $55 million or $1.59 per diluted share in Q4 2023 [16] - Full year gross profit decreased by 7% to $694 million from $745 million in 2023, primarily due to lower ethanol margins [17] Business Line Data and Key Metrics Changes - The trade segment reported record fourth quarter adjusted pretax income of $54 million, up from $47 million in Q4 2023, driven by strong harvest execution and stable elevation margins [22] - Renewables generated fourth quarter pretax income of $16 million, down from $33 million in 2023, with EBITDA of $40 million compared to $73 million in the previous year [25][26] - Nutrient and industrial business reported a slight increase in adjusted pretax income to $3 million, while full year EBITDA decreased to $57 million from $62 million in 2023 [27] Market Data and Key Metrics Changes - The company noted that the agricultural businesses were lower due to soft industry fundamentals and limited grower engagement [13] - The effective tax rate for the quarter was 20%, with a full year rate of 15%, influenced by federal tax credits related to cellulosic ethanol production [18] Company Strategy and Development Direction - The company is focusing on integrating operations with Skyland Grain to optimize outcomes and enhance its presence in the North American agricultural supply chain [14][31] - A new segment reporting structure will be implemented in 2025 to streamline operational efficiency and enhance collaboration across trade and nutrient businesses [29] - The company anticipates an increase in US corn planted acres, which is expected to benefit its nutrient and agronomy business [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the agribusiness outlook despite challenges from lower grain prices and reduced farmer engagement [32] - The company plans to continue investing in projects aimed at reducing carbon intensity in ethanol production and expanding renewable diesel feedstock merchandising [37][39] - Management acknowledged uncertainty around the regulatory environment but remains committed to responsible decision-making to optimize shareholder value [39] Other Important Information - The company generated cash flow from operations of $100 million in Q4 2024, down from $122 million in Q4 2023, with a year-end cash position of $562 million [19][20] - Capital spending for the year was $149 million, with a long-term debt to EBITDA ratio of 1.8 times, below the target of less than 2.5 times [21] Q&A Session Summary Question: Can you elaborate on the investment opportunities around lowering carbon intensity? - Management indicated that the return profile of these investments is evolving and will be included in the capital expenditure environment as clarity increases [42][44] Question: What are the expected synergies from the consolidation of the NNI and Trade Group? - Management noted that while there are opportunities for consolidation, the primary goal is to create a unified solution for producers, enhancing operational efficiency [45][47] Question: How did the company manage to deliver solid results despite margin compression in ethanol? - Management attributed the strong performance to effective execution of their business model, focusing on controllable costs and maximizing core operations [49][51] Question: What are the potential impacts of trade tariffs on the business? - Management stated that the company is not significantly affected by major tariff swings due to its domestic focus, although some aspects may be impacted [56][58] Question: Can you provide an update on the integration of Skyland? - Management confirmed that the integration is progressing well, with expectations for a $30 to $40 million EBITDA contribution in 2025 [59][62] Question: How does the nutrient input requirement differ between corn and soybeans? - Management explained that corn requires substantially more nutrient input, leading to higher margins compared to other crops [68] Question: What is the outlook for the merchandising environment for corn in 2025? - Management noted that recent price appreciation has led to increased optimism among farmers, although some may have sold their crops prematurely [81][84]

Financial Performance - Full year net income attributable to The Andersons was $114 million, or $3.32 per diluted share, with an adjusted basis of $117 million, or $3.40 per diluted share[5]. - Fourth quarter net income attributable to The Andersons was $45 million, or $1.31 per diluted share, and $47 million, or $1.36 per diluted share, on an adjusted basis[5]. - Adjusted EBITDA for the full year was $363 million, with $117 million for the fourth quarter[5]. - Net income for the three months ended December 31, 2024, was $54,104 thousand, a decrease of 30.9% compared to $78,437 thousand in the same period of 2023[28]. - Adjusted net income attributable to The Andersons, Inc. for the twelve months ended December 31, 2024, was $116,664 thousand, slightly down from $118,267 thousand in 2023, reflecting a decrease of 1.4%[30]. - The net income for the three months ended December 31, 2024, was $54,104, compared to $78,437 in the same period of 2023, a decrease of 30.9%[33]. - The net income for the twelve months ended December 31, 2024, was $170,700,000, compared to $132,529,000 in 2023, reflecting an increase of approximately 28.8%[34]. Revenue and Sales - For the three months ended December 31, 2024, total sales and merchandising revenues reached $3,123,138, a slight decrease from $3,213,000 in the same period of 2023, representing a 2.8% decline[31]. - For the twelve months ended December 31, 2024, total sales and merchandising revenues were $11,257,548, down from $14,750,112 in 2023, a decrease of 23.8%[32]. Expenses and Liabilities - Operating, administrative, and general expenses for the three months ended December 31, 2024, totaled $147,154, up from $132,712 in the same period of 2023, an increase of 10.9%[31]. - Total current liabilities increased to $1,731,172 thousand as of December 31, 2024, compared to $1,636,331 thousand in 2023, marking an increase of 5.8%[27]. - Total liabilities increased to $2,521,478 thousand as of December 31, 2024, from $2,338,620 thousand in 2023, reflecting an increase of 7.8%[27]. Cash Flow and Position - The company generated $269 million in cash from operating activities for Q4 2024, compared to $251 million in Q4 2023[7]. - Cash position at year-end was over $560 million, with a long-term debt to adjusted EBITDA ratio of 1.8 times[7]. - Cash and cash equivalents decreased to $561,771 thousand at the end of December 2024, down from $643,854 thousand at the end of December 2023, a decline of 12.7%[28]. - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $331,506 thousand, down from $946,750 thousand in 2023, a decrease of 65.0%[28]. - Cash provided by operating activities for the twelve months ended December 31, 2024, was $946,750,000, a decrease from $1,000,000,000 in 2023[35]. - The cash provided by operating activities for Q4 2024 was $268,811,000, an increase from $250,663,000 in Q4 2023, representing a growth of approximately 7.4%[35]. Inventory and Assets - The company reported a significant increase in inventories, which rose to $1,286,811 thousand in December 2024, compared to $1,166,700 thousand in December 2023, an increase of 10.3%[27]. - Total assets increased to $4,121,314 thousand as of December 31, 2024, up from $3,855,007 thousand in 2023, representing a growth of 6.9%[27]. Segment Performance - Trade segment reported record fourth quarter pretax income of $54 million, up from $44 million in the prior year[9]. - Renewables segment reported pretax income of $25 million in Q4 2024, down from $60 million in Q4 2023[13]. - Nutrient & Industrial recorded pretax income of $3 million in Q4 2024, an improvement from the prior year[17]. - The company reported a net loss in the "Other" segment of $78,216,000 for the twelve months ended December 31, 2024, compared to a loss of $79,929,000 in 2023, showing a slight improvement[34]. Future Outlook - The company anticipates a significant increase in planted corn acres and strong ethanol exports in 2025[4]. - The company is actively pursuing growth in the Renewables space, including evaluating expansion and acquisition opportunities[4].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended 09/30/2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 000-20557 blackandwhiteandelog THE ANDERSONS, INC. (Exact name of the registrant as specified in its charter) Ohio 34-1562374 (Sta ...