The Andersons (ANDE) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net income of $33.2 million ($0.97 per diluted share) and adjusted net income of $38 million ($1.12 per share), driven by strong Renewables and improved Agribusiness performance, with significant clean fuel production credits and robust cash flows.

• Renewables segment delivered $40 million pretax income on record production, robust merchandising, and $26 million in 45Z producer tax credits, benefiting from full ownership of ethanol plants.

• Agribusiness posted $18 million adjusted pre-tax income and $49 million adjusted EBITDA, reflecting resilient merchandising and improved fertilizer margins.

• Strategic capital investments and growth projects are progressing, including facility upgrades, soybean meal export capacity at Port Houston, and ethanol plant expansion in Indiana.

• Working capital decreased by $408 million year-over-year, primarily due to increased short-term borrowings and the TAMH acquisition.

Financial highlights

• Sales and merchandising revenues were $2.63 billion, slightly down from $2.66 billion in Q1 2025.

• Gross profit increased to $161 million from $153 million year-over-year.

• Adjusted EBITDA reached $91 million, up from $57 million in Q1 2025.

• Net income attributable was $33 million ($0.97 per diluted share); adjusted net income was $38 million ($1.12 per share), up from $4 million ($0.12 per share) year-over-year.

• Other income rose sharply to $34.8 million, mainly due to $26.2 million in Section 45Z clean fuel production credits.

Outlook and guidance

• Optimistic for 2026, with favorable agribusiness outlook, reduced regulatory uncertainty for renewables, and continued market volatility expected to create merchandising opportunities.

• Expect a year-over-year shift from corn to soybeans, but corn plantings to remain above five-year average.

• Capital expenditures for 2026 projected at $225 million, split evenly between growth and maintenance.

• Reaffirmed long-range EPS target of $7 per share by end of 2028.

• 45Z tax credits expected to be earned ratably throughout the year.