MAUMEE, Ohio, May 6, 2025 /PRNewswire/ -- The Andersons, Inc. (NASDAQ:ANDE) announces financial results for the first quarter ended March 31, 2025.
First Quarter Highlights:
- Company reported net income attributable to The Andersons of $0.3 million, or $0.01 per diluted share and adjusted net income of $4 million, or $0.12 per diluted share
- Adjusted EBITDA was $57 million
- Renewables reported pretax income of $25 million and pretax income attributable to The Andersons of $15 million on strong operating performance and solid merchandising
- Agribusiness recorded a pretax loss of $10 million and breakeven adjusted pretax income attributable to The Andersons on stagnant market conditions
"We had mixed results in a turbulent first quarter. The Renewables segment performed well and our ethanol plants had strong operating efficiency and financial results. Coupled with the performance of our ethanol and renewable diesel feedstock merchandising, the segment produced one of its best first quarters. In Agribusiness, we faced challenging markets as global trade uncertainties disrupted typical grain flows and caused many of our commercial customers to focus on just-in-time purchasing. Our agronomy team is off to a good start with product well-positioned for the upcoming planting season," said President and CEO Bill Krueger. "As planting progresses, we see ample second quarter opportunities for our agronomy teams with the expected increase in corn acres this year. Strong system-wide corn and wheat production should provide a good environment for storage and handling in our assets later in the year. We also expect continued demand for our ethanol products, both domestic and export, as we enter the spring maintenance and driving season. We remain pleased with our overall asset and merchandising footprint. With the combination of the former Trade and Nutrient businesses, we are reviewing the portfolio to find synergies and process improvements."
"We continue to pursue growth opportunities. Our longer lead time capital projects in Agribusiness are progressing well and are expected to be completed by mid-2026," continued Krueger. "Our Renewables projects are focused on improving efficiency, co-product yields and lowering the carbon intensity of our high-performing ethanol plants."
$ in millions, except per share amounts | |||
Q1 2025 | Q1 2024 | Variance | |
Pretax Income | $ 3.2 | $ 14.0 | $ (10.8) |
Pretax Income (Loss) Attributable to the Company1 | (1.8) | 6.9 | (8.7) |
Adjusted Pretax Income (Loss) Attributable to the Company1 | 3.2 | 6.6 | (3.4) |
Agribusiness1 | (0.1) | 5.4 | (5.5) |
Renewables1 | 15.3 | 14.1 | 1.2 |
Other | (12.0) | (12.9) | 0.9 |
Net Income Attributable to the Company | 0.3 | 5.6 | (5.3) |
Adjusted Net Income Attributable to the Company1 | 4.1 | 5.6 | (1.5) |
Diluted Earnings Per Share ("EPS") | 0.01 | 0.16 | (0.15) |
Adjusted EPS1 | 0.12 | 0.16 | (0.04) |
EBITDA1 | 50.6 | 51.4 | (0.8) |
Adjusted EBITDA1 | $ 57.3 | $ 51.2 | $ 6.1 |
1 Non-GAAP financial measures; see appendix for explanations and reconciliations. | |||
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continue to generate strong cash flows, although working capital needs in the first quarter typically require significant funding leading to a use of cash from operations. However, our debt remains at a modest level," said Executive Vice President and CFO Brian Valentine. "We remain well below our long-term debt to EBITDA target of less than 2.5 times and are pleased with the strength of our balance sheet. For 2025, we anticipate increased spending on growth projects for previously announced long-term opportunities."
The company used cash from operating activities of $350 million and $240 million in the first quarter of 2025 and 2024, respectively. Cash from operations before working capital changes in the same periods was $57 million and $48 million, respectively. Cash spent on capital projects in the quarter totaled $47 million, a $20 million increase from 2024.
First Quarter Segment Overview
Agribusiness Challenged in Changing Markets
Agribusiness recorded a pretax loss of $10 million and breakeven adjusted pretax income attributable to the company for the quarter compared to pretax income of $3 million and adjusted pretax income of $5 million in the first quarter of 2024.
Results from our ag supply chain businesses were lower with limited trade flows due to market uncertainty. Assets were significantly impacted as basis levels were challenged in our western locations, including those recently acquired as part of the Skyland Grain, LLC investment. The nutrient business showed year-over-year improvement with good fertilizer volume and positioning in advance of an expected increase in corn acres.
The portfolio mix of assets, ingredients, and merchandising businesses provides a solid foundation to navigate challenging market conditions. Sizeable corn planting intentions are favorable, allowing for higher nutrient volumes as well as providing opportunities for storage and handling at harvest. In addition, lower corn stocks entering the year should allow for merchandising opportunities and good early harvest margins in the last half of 2025.
Agribusiness's first quarter adjusted EBITDA was $31 million, compared to $29 million in 2024.
Renewables has Strong Quarter on Efficient Operations and Favorable Ethanol Margins
The Renewables segment reported pretax income of $25 million and pretax income attributable to the company of $15 million in the first quarter. For the same period in 2024, the segment reported pretax income of $24 million and adjusted pretax income attributable to the company of $14 million.
Results from the ethanol production facilities improved year-over-year on efficient operations and higher yields, also benefiting from better year-over-year board crush margins. Plant co-product values were lower, with corn-based feed ingredients competing against an oversupply of alternative protein sources. Ethanol demand is expected to strengthen into the summer with some concerns about cost of inputs. Values of feed ingredient co-products are expected to remain challenged.
Renewables had first quarter EBITDA of $37 million in 2025, compared to adjusted EBITDA of $34 million in 2024.
Income Taxes
The company recorded an income tax benefit for the quarter of $2.1 million, resulting in an effective rate of (66)% for the period. This rate was impacted by a discrete adjustment for a decrease in unrecognized tax benefits related to prior period tax positions. We anticipate a full-year adjusted effective rate of approximately 18% - 22%.
Conference Call
The company will host a webcast on Wednesday, May 7, 2025, at 8:30 a.m. ET, to discuss its performance and provide its outlook for the remainder of 2025. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 2480571). It is recommended that you call 10 minutes before the conference call begins.
To access the webcast, click on the link: https://app.webinar.net/XQ59rnDKz3D and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at www.andersonsinc.com.
Forward-Looking Statements
This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.
Non-GAAP Measures
This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.
Company Description
The Andersons, Inc., is a diversified company rooted in agriculture that conducts business in the agribusiness and renewables sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.
The Andersons, Inc. Condensed Consolidated Statements of Operations (unaudited)
| |||
Three months ended | |||
(in thousands, except per share data) | 2025 | 2024 | |
Sales and merchandising revenues | $ 2,659,098 | $ 2,718,217 | |
Cost of sales and merchandising revenues | 2,506,226 | 2,589,897 | |
Gross profit | 152,872 | 128,320 | |
Operating, administrative and general expenses | 145,754 | 119,358 | |
Interest expense, net | 13,096 | 6,522 | |
Other income, net | 9,191 | 11,528 | |
Income before income taxes | 3,213 | 13,968 | |
Income tax (benefit) provision | (2,118) | 1,303 | |
Net income | 5,331 | 12,665 | |
Net income attributable to noncontrolling interests | 5,047 | 7,084 | |
Net income attributable to The Andersons, Inc. | $ 284 | $ 5,581 | |
Earnings per share attributable to The Andersons, Inc. common shareholders: | |||
Basic earnings: | $ 0.01 | $ 0.16 | |
Diluted earnings: | $ 0.01 | $ 0.16 | |
The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited)
| |||||
(in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ 219,219 | $ 561,771 | $ 283,902 | ||
Accounts receivable, net | 812,482 | 764,550 | 701,706 | ||
Inventories | 1,249,047 | 1,286,811 | 994,543 | ||
Commodity derivative assets – current | 155,028 | 148,801 | 178,623 | ||
Other current assets | 92,968 | 88,344 | 55,134 | ||
Total current assets | 2,528,744 | 2,850,277 | 2,213,908 | ||
Property, plant and equipment, net | 860,246 | 868,151 | 689,113 | ||
Other assets, net | 408,692 | 402,886 | 358,052 | ||
Total assets | $ 3,797,682 | $ 4,121,314 | $ 3,261,073 | ||
Liabilities and equity | |||||
Current liabilities: | |||||
Short-term debt | $ 222,691 | $ 166,614 | $ 10,148 | ||
Trade and other payables | 661,202 | 1,047,436 | 625,836 | ||
Customer prepayments and deferred revenue | 223,702 | 194,025 | 174,651 | ||
Commodity derivative liabilities – current | 69,648 | 59,766 | 67,079 | ||
Current maturities of long-term debt | 62,675 | 36,139 | 27,617 | ||
Accrued expenses and other current liabilities | 194,390 | 227,192 | 177,953 | ||
Total current liabilities | 1,434,308 | 1,731,172 | 1,083,284 | ||
Long-term debt, less current maturities | 588,087 | 608,151 | 556,174 | ||
Other long-term liabilities | 180,853 | 182,155 | 145,965 | ||
Total liabilities | 2,203,248 | 2,521,478 | 1,785,423 | ||
Total equity | 1,594,434 | 1,599,836 | 1,475,650 | ||
Total liabilities and equity | $ 3,797,682 | $ 4,121,314 | $ 3,261,073 | ||
The Andersons, Inc. Condensed Consolidated Statements of Cash Flows (unaudited)
| |||
Three months ended March 31, | |||
(in thousands) | 2025 | 2024 | |
Operating Activities | |||
Net income | $ 5,331 | $ 12,665 | |
Adjustments to reconcile net income to cash used in operating activities: | |||
Depreciation and amortization | 34,340 | 30,949 | |
Other | 17,303 | 4,795 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (53,268) | 57,725 | |
Inventories | 38,531 | 169,083 | |
Commodity derivatives | 1,076 | (28,498) | |
Other current and non-current assets | (8,558) | 1,923 | |
Payables and other current and non-current liabilities | (384,775) | (488,269) | |
Net cash used in operating activities | (350,020) | (239,627) | |
Investing Activities | |||
Purchases of property, plant and equipment and capitalized software | (46,548) | (26,775) | |
Other | 2,717 | 4,723 | |
Net cash used in investing activities | (43,831) | (22,052) | |
Financing Activities | |||
Net proceeds (payments) under short-term lines of credit | 56,044 | (31,913) | |
Proceeds from issuance of long-term debt | 14,700 | — | |
Payments of long-term debt | (8,416) | (6,870) | |
Dividends paid | (6,693) | (6,516) | |
Value of shares withheld for taxes | (3,837) | (8,071) | |
Distributions to noncontrolling interest owner | — | (44,910) | |
Other | (1,353) | — | |
Net cash provided by (used in) financing activities | 50,445 | (98,280) | |
Effect of exchange rates on cash and cash equivalents | 854 | 7 | |
Decrease in cash and cash equivalents | (342,552) | (359,952) | |
Cash and cash equivalents at beginning of period | 561,771 | 643,854 | |
Cash and cash equivalents at end of period | $ 219,219 | $ 283,902 | |
The Andersons, Inc. Adjusted Net Income Attributable to The Andersons, Inc. A non-GAAP financial measure (unaudited)
| |||
Three months ended | |||
(in thousands, except per share data) | 2025 | 2024 | |
Net income | $ 5,331 | $ 12,665 | |
Net income attributable to noncontrolling interests | 5,047 | 7,084 | |
Net income attributable to The Andersons, Inc. | 284 | 5,581 | |
Adjustments: | |||
Transaction related compensation | 2,103 | 2,852 | |
Insured inventory and property damage | 2,926 | — | |
Gain on deconsolidation of joint venture | — | (3,117) | |
Income tax impact of adjustments1 | (1,257) | 279 | |
Total adjusting items, net of tax | 3,772 | 14 | |
Adjusted net income attributable to The Andersons, Inc. | $ 4,056 | $ 5,595 | |
Diluted earnings per share attributable to The Andersons, Inc. common shareholders | $ 0.01 | $ 0.16 | |
Impact on diluted earnings per share | $ 0.11 | $ — | |
Adjusted diluted earnings per share | $ 0.12 | $ 0.16 | |
1 The income tax impact of adjustments is taken at the blended federal, state, and local tax rate of 25% with the exception of certain transaction related compensation in 2024. |
Adjusted net income (loss) attributable to The Andersons, Inc. reflects reported net income (loss) available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings per share attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) per share amount for each specified item. |
The Andersons, Inc. Segment Data (unaudited) | |||||||
(in thousands) | Agribusiness | Renewables | Other | Total | |||
Three months ended March 31, 2025 | |||||||
Sales and merchandising revenues | $ 1,993,287 | $ 665,811 | $ — | $ 2,659,098 | |||
Gross profit | 118,598 | 34,274 | — | 152,872 | |||
Operating, administrative and general expenses | 124,489 | 9,783 | 11,482 | 145,754 | |||
Other income (loss), net | 9,041 | 1,088 | (938) | 9,191 | |||
Income (loss) before income taxes | (9,676) | 24,881 | (11,992) | 3,213 | |||
Income (loss) attributable to noncontrolling interests | (4,522) | 9,569 | — | 5,047 | |||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ (5,154) | $ 15,312 | $ (11,992) | $ (1,834) | |||
Adjustments to income (loss) before income taxes2 | 5,029 | — | — | 5,029 | |||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ (125) | $ 15,312 | $ (11,992) | $ 3,195 | |||
Three months ended March 31, 2024 | |||||||
Sales and merchandising revenues | $ 2,061,439 | $ 656,778 | $ — | $ 2,718,217 | |||
Gross profit | 99,519 | 28,801 | — | 128,320 | |||
Operating, administrative and general expenses | 96,921 | 8,777 | 13,660 | 119,358 | |||
Other income, net | 6,571 | 4,760 | 197 | 11,528 | |||
Income (loss) before income taxes | 2,538 | 24,327 | (12,897) | 13,968 | |||
Income attributable to noncontrolling interests | — | 7,084 | — | 7,084 | |||
Income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 2,538 | $ 17,243 | $ (12,897) | $ 6,884 | |||
Adjustments to income (loss) before income taxes2 | 2,852 | (3,117) | — | (265) | |||
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1 | $ 5,390 | $ 14,126 | $ (12,897) | $ 6,619 | |||
1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $1.6 million difference in insured inventory and property damages in the Agribusiness segment for the three months ended March 31, 2025. |
The Andersons, Inc. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) A non-GAAP financial measure (unaudited)
| |||||||
(in thousands) | Agribusiness | Renewables | Other | Total | |||
Three months ended March 31, 2025 | |||||||
Net income (loss) | $ (9,676) | $ 24,881 | $ (9,874) | $ 5,331 | |||
Interest expense (income) | 12,826 | 698 | (428) | 13,096 | |||
Tax provision (benefit) | — | — | (2,118) | (2,118) | |||
Depreciation and amortization | 21,685 | 11,891 | 764 | 34,340 | |||
EBITDA | 24,835 | 37,470 | (11,656) | 50,649 | |||
Adjusting items impacting EBITDA: | |||||||
Transaction related compensation | 2,103 | — | — | 2,103 | |||
Insured inventory and property damage | 4,502 | — | — | 4,502 | |||
Total adjusting items | 6,605 | — | — | 6,605 | |||
Adjusted EBITDA | $ 31,440 | $ 37,470 | $ (11,656) | $ 57,254 | |||
Three months ended March 31, 2024 | |||||||
Net income (loss) | $ 2,538 | $ 24,327 | $ (14,200) | $ 12,665 | |||
Interest expense (income) | 6,631 | 457 | (566) | 6,522 | |||
Tax provision | — | — | 1,303 | 1,303 | |||
Depreciation and amortization | 17,048 | 11,965 | 1,936 | 30,949 | |||
EBITDA | 26,217 | 36,749 | (11,527) | 51,439 | |||
Adjusting items impacting EBITDA: | |||||||
Transaction related compensation | 2,852 | — | — | 2,852 | |||
Gain on deconsolidation of joint venture | — | (3,117) | — | (3,117) | |||
Total adjusting items | 2,852 | (3,117) | — | (265) | |||
Adjusted EBITDA | $ 29,069 | $ 33,632 | $ (11,527) | $ 51,174 | |||
Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure. |
The Andersons, Inc. Trailing Twelve Months of EBITDA and Adjusted EBITDA A non-GAAP financial measure (unaudited)
| |||||||||
Three Months Ended, | Twelve months | ||||||||
(in thousands) | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | |||||
Net income | $ 52,470 | $ 51,461 | $ 54,104 | $ 5,331 | $ 163,366 | ||||
Interest expense | 6,611 | 8,361 | 10,266 | 13,096 | 38,334 | ||||
Tax provision (benefit) | 4,876 | 10,731 | 13,146 | (2,118) | 26,635 | ||||
Depreciation and amortization | 30,269 | 30,408 | 36,178 | 34,340 | 131,195 | ||||
EBITDA | 94,226 | 100,961 | 113,694 | 50,649 | 359,530 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 4,049 | 1,668 | 2,536 | 2,103 | 10,356 | ||||
Insured inventory and property damage (recoveries) | — | (5,204) | (4,446) | 4,502 | (5,148) | ||||
Acquisition costs | — | — | 3,193 | — | 3,193 | ||||
Loss on cost method investment | — | — | 1,535 | — | 1,535 | ||||
Total adjusting items | 4,049 | (3,536) | 2,818 | 6,605 | 9,936 | ||||
Adjusted EBITDA | $ 98,275 | $ 97,425 | $ 116,512 | $ 57,254 | $ 369,466 | ||||
Three Months Ended, | Twelve months | ||||||||
June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | ||||||
Net income | $ 82,686 | $ 30,523 | $ 78,437 | $ 12,665 | $ 204,311 | ||||
Interest expense | 13,953 | 8,188 | 8,101 | 6,522 | 36,764 | ||||
Tax provision | 21,732 | 7,862 | 13,324 | 1,303 | 44,221 | ||||
Depreciation and amortization | 30,365 | 31,215 | 31,306 | 30,949 | 123,835 | ||||
EBITDA | 148,736 | 77,788 | 131,168 | 51,439 | 409,131 | ||||
Adjusting items impacting EBITDA: | |||||||||
Transaction related compensation | 939 | 1,999 | 3,212 | 2,852 | 9,002 | ||||
Gain on deconsolidation of joint venture | (6,544) | — | — | (3,117) | (9,661) | ||||
Goodwill impairment | — | — | 686 | — | 686 | ||||
Gain on sale of assets | — | (5,643) | — | — | (5,643) | ||||
Gain on cost method investment | — | (4,798) | — | — | (4,798) | ||||
Impairment on equity method investments | — | 963 | — | — | 963 | ||||
Insured inventory expenses | 1,310 | — | — | — | 1,310 | ||||
Total adjusting items | (4,295) | (7,479) | 3,898 | (265) | (8,141) | ||||
Adjusted EBITDA | $ 144,441 | $ 70,309 | $ 135,066 | $ 51,174 | $ 400,990 | ||||
The Andersons, Inc. Cash from Operations Before Working Capital Changes A non-GAAP financial measure (unaudited)
| |||
Three months ended | |||
(in thousands) | 2025 | 2024 | |
Cash used in operating activities | $ (350,020) | $ (239,627) | |
Changes in operating assets and liabilities | |||
Accounts receivable | (53,268) | 57,725 | |
Inventories | 38,531 | 169,083 | |
Commodity derivatives | 1,076 | (28,498) | |
Other current and non-current assets | (8,558) | 1,923 | |
Payables and other current and non-current liabilities | (384,775) | (488,269) | |
Total changes in operating assets and liabilities | (406,994) | (288,036) | |
Cash from operations before working capital changes | $ 56,974 | $ 48,409 | |
Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The Company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other assets, and payables and accrued expenses from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure. |
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SOURCE The Andersons, Inc.