The Andersons, Inc.

What they do

The Agribusiness segment merchandises and manages logistics for grains, feed ingredients, and plant nutrients, operates grain elevators and nutrient facilities, and provides grain marketing and risk management services. The Renewables segment produces and sells ethanol and co-products from four plants, including dried distillers grains and renewable feedstocks.

Revenue drivers

• Agribusiness merchandising and elevation margins — Earns income from buying/selling commodities, basis and spread appreciation, and storage fees; revenue impacted by commodity prices, volumes, and market volatility.
• Renewables ethanol production — Produces ethanol and co-products; 2025 volumes shipped were 789 million gallons of ethanol and 1.45 billion pounds of renewable feedstocks. Benefits from 45Z tax credits ($35 million in 2025).
• Fertilizer and nutrients — Distributes and retails agricultural fertilizers and high-value nutrient products; heaviest sales in spring and fall. Performance improved in Q2 2026 on better margins.

Recent performance

In Q2 2026, the company reported net income attributable to The Andersons of $56.6 million, or $1.65 per diluted share, up from $7.9 million ($0.23) in Q2 2025. Renewables recorded record second quarter pretax income of $65 million, including $24 million of 45Z tax credits. Agribusiness pretax income attributable to the company was $20.3 million. For the first half of 2026, net income attributable was $89.8 million ($2.62 per diluted share). Cash from operations in Q2 2026 was $488 million.

Strategy

Management is investing in debottlenecking at the Clymers, Indiana ethanol facility and pursuing carbon-intensity reduction to maximize 45Z credits, including advancing a Class VI well permit. The company expects Port of Houston's soybean meal export capabilities to become operational in the fourth quarter. Management emphasizes growth in renewable fuels and feedstocks supply chains, and continues to evaluate opportunities to expand low-carbon fuel production.

Risks

• Commodity price and volatility risk — The business is affected by supply/demand of commodities; adverse price movements or low volatility can pressure margins, as experienced in Agribusiness in 2025.
• Corn cost pressure in Renewables — Higher corn prices, particularly basis, without corresponding fuel price increases can reduce ethanol margins and make production uneconomical.
• Weather and crop seasonality — Grain handling is seasonal, with harvests typically in July (wheat) and Sept-Nov (corn/soybeans); unfavorable weather can disrupt volumes and increase hedging costs.
• Operational and facility risks — Grain storage capacity decreased due to an incident at a Sunray, Texas grain terminal and closure of underperforming locations, highlighting operational and asset-reliability risks.

Outlook

Management expects Agribusiness to benefit from traditional basis appreciation in the west and continued export demand for eastern assets; sorghum exports remain strong into 2026. Favorable biofuels policies, elevated export demand, and planned industry maintenance support ethanol fundamentals. The company expects higher corn plantings to drive nitrogen demand, but volumes depend on farmer economics.