The Andersons, Inc. Reports Second Quarter Results and Acquires Full Ownership Interest in The Andersons Marathon Holdings LLC
MAUMEE, Ohio, Aug. 4, 2025 /PRNewswire/ -- The Andersons, Inc. (NASDAQ:ANDE) announces financial results for the second quarter ended June 30, 2025. Additionally, the Company announces it has acquired the full ownership interest in The Andersons Marathon Holdings LLC (TAMH).
Second Quarter Highlights:
Reported net income and adjusted net income attributable to The Andersons of $8 million, or $0.23 per diluted share and $0.24 per diluted share on an adjusted basis
Adjusted EBITDA was $65 million
Renewables reported pretax income of $17 million and pretax income attributable to The Andersons of $10 million on strong operating performance
Agribusiness recorded a pretax income of $19 million and adjusted pretax income attributable to The Andersons of $17 million
Strategic Acquisition of Full Ownership Interest of TAMH:
Acquired the remaining 49.9% ownership interest in TAMH from a subsidiary of Marathon Petroleum Corp. (Marathon) for $425 million, inclusive of $40 million of working capital (a net purchase price of $385 million)
The transaction closed on July 31, 2025, funded with cash on hand and debt from existing credit facilities
"Over the past couple of years, we have shared our intent to utilize a disciplined capital deployment approach to grow earnings through additional investment in ethanol. After evaluating several opportunities, we have acquired Marathon's ownership in TAMH, in line with our stated strategy. This transaction doubles our financial ownership in the ethanol industry, a key growth pillar within our Renewables strategy. Importantly, we currently operate the four plants with Andersons employees, thus limiting our execution risk. The acquisition is attractive from a financial perspective and we expect immediate accretion in earnings per share. These production facilities are poised to further benefit from increased support for renewable fuels," said President and CEO Bill Krueger.
"Construction continues on our Houston port project, which was initiated to improve the efficiency and capacity of our grain operations and add export capacity for U.S. soybean meal, which should be supported by potential changes from the EPA's proposed renewable volume obligations (RVOs). We expect completion of this project by mid-2026. Finally, we are continuing to optimize our portfolio and improve the efficiency of our operations. Work continues on integrating the former Trade and Nutrient businesses, including the addition of Skyland Grain, LLC assets into our agribusiness portfolio. As we finish a successful wheat harvest, we are preparing our facilities for an anticipated large fall harvest. Near record corn plantings in the U.S. should provide opportunities for both our merchandising and grain asset footprint into 2026," continued Krueger.
Strategic Acquisition of the Full Ownership Interest of TAMH
TAMH operates four ethanol plants with total annual production capacity of 500 million gallons located in Albion, Michigan, Clymers, Indiana, Greenville, Ohio and Denison, Iowa. With this acquisition, The Andersons now owns 100% of TAMH. Upon completion of the transaction, TAMH was renamed The Andersons Renewables, LLC.
"We are proud of what we built at TAMH through our partnership with Marathon and are excited to bring the business fully under The Andersons' leadership given its strong alignment with our long-term strategy. As the sole owner and operator of these assets, we will be able to streamline decision making and unlock greater efficiency," said Krueger. "We deeply appreciate our partnership with Marathon and look forward to continuing our long-standing commercial relationship. As one of the largest consumers of ethanol in the United States, Marathon remains a valued customer."
The Andersons, Inc. was advised on the transaction by Goldman Sachs & Co. LLC.
Cash, Liquidity, and Long-Term Debt Management
"Our businesses continue to generate strong cash flows, allowing us to fund a significant portion of our growth projects internally. As such, our debt remains at a modest level and we funded this purchase with cash on hand and existing credit facilities," said Executive Vice President and CFO Brian Valentine. "As a result of this transaction, we will have unrestricted access to 100% of the cash flows from the TAMH entity, which will give us more flexibility to deploy capital across the entire enterprise. We remain below our long-term debt to EBITDA target of less than 2.5 times and are pleased with the strength of our balance sheet."
Cash provided by operating activities was $299 million and $304 million in the second quarter of 2025 and 2024, respectively. Cash from operations before working capital changes in the same periods was $43 million and $89 million, respectively. Cash spent on capital projects in the quarter totaled $49 million, a $20 million increase from 2024.
Second Quarter Segment Overview
$ in millions, except per share amounts
Q2 2025
Q2 2024
Variance
YTD 2025
YTD 2024
Variance
Pretax Income
$ 24.8
$ 57.3
$ (32.5)
$ 28.0
$ 71.3
$ (43.3)
Pretax Income Attributable to the Company1
15.9
40.9
(25.0)
14.1
47.7
(33.6)
Adjusted Pretax Income (Loss) Attributable to the Company1
15.0
44.9
(29.9)
18.2
51.5
(33.3)
Agribusiness1
16.8
32.6
(15.8)
16.7
38.0
(21.3)
Renewables1
9.6
23.0
(13.4)
25.0
37.1
(12.1)
Other
(11.5)
(10.7)
(0.8)
(23.5)
(23.6)
0.1
Net Income Attributable to the Company
7.9
36.0
(28.1)
8.1
41.6
(33.5)
Adjusted Net Income Attributable to the Company1
8.4
39.5
(31.1)
12.4
45.1
(32.7)
Diluted Earnings Per Share ("EPS")
0.23
1.05
(0.82)
0.24
1.21
(0.97)
Adjusted EPS1
0.24
1.15
(0.91)
0.36
1.31
(0.95)
EBITDA1
69.4
94.2
(24.8)
120.1
145.7
(25.6)
Adjusted EBITDA1
$ 65.2
$ 98.3
$ (33.1)
$ 122.4
$ 149.4
$ (27.0)
1 Non-GAAP financial measures; see appendix for explanations and reconciliations.
Nutrient Volumes and Margins Increase; Grain Markets Remain Over-Supplied
Agribusiness recorded a pretax income of $19 million and adjusted pretax income attributable to the company of $17 million for the quarter, compared to pretax income of $29 million and adjusted pretax income of $33 million in the second quarter of 2024.
Nutrient results improved year-over-year with increased sales volumes on customer demand for nitrogen due to the increase in planted corn acres. A surplus of grain and weak customer demand continue to exist in western markets. This has resulted in low grain prices and limited forward contracting. Both physical assets and merchandising have been impacted by these stagnant markets.
An anticipated large harvest and on-farm storage limitations are expected to make large quantities of grain available at favorable values in the last half of 2025. This should provide sales and merchandising opportunities in the latter part of 2025 and into 2026. The balanced asset and merchandising portfolio enables opportunities in various market conditions, including this period of higher supply.
Agribusiness's second quarter adjusted EBITDA was $46 million, compared to $56 million in 2024.
Renewables with Solid Quarter on Efficient Operations
The Renewables segment reported pretax income of $17 million and pretax income attributable to the company of $10 million in the second quarter. For the same period in 2024, the segment reported pretax income of $39 million and pretax income attributable to the company of $23 million.
The ethanol plants continue to run efficiently, resulting in higher year-over-year yields and production. Lower board crush, higher eastern corn basis, and increased natural gas costs led to lower overall margins. Plant co-product values also declined, with corn-based feed ingredients continuing to compete against an oversupply of soybean meal.
Although later than expected, an uptick in the ethanol board crush occurred in July and is expected to remain through the summer driving season. This expectation is bolstered by strong demand, including exports, and an expected reduction in corn costs post-harvest.
In future quarters, results will include all the ethanol plants' earnings, including the share previously attributable to the noncontrolling interest. As the company previously consolidated the entity and managed the plants, there should be limited costs to achieve these accretive results. The regulatory environment may support new opportunities, including at our Clymers, Indiana, facility, where a Class VI well permit has been filed on our behalf with the EPA for potential carbon sequestration.
Renewables had second quarter EBITDA of $30 million in 2025, compared to EBITDA of $52 million in 2024.
Income Taxes
The company recorded an income tax provision for the quarter of $8 million, resulting in an effective rate of 32% for the period. With the TAMH transaction and the elimination of a majority of our income attributable to noncontrolling interests, we now anticipate a full-year adjusted effective rate of approximately 22% - 25%.
Conference Call
The company will host a webcast on Tuesday, August 5, 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 9563079). 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/k4oVL4Njwl0 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 North American agriculture company 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 June 30,
Six months ended June 30,
(in thousands, except per share data)
2025
2024
2025
2024
Sales and merchandising revenues
$ 3,135,869
$ 2,795,205
$ 5,794,967
$ 5,513,422
Cost of sales and merchandising revenues
2,977,453
2,619,834
5,483,679
5,209,731
Gross profit
158,416
175,371
311,288
303,691
Operating, administrative and general expenses
134,589
116,614
280,343
235,972
Interest expense, net
11,495
6,611
24,591
13,133
Other income, net
12,503
5,200
21,694
16,728
Income before income taxes
24,835
57,346
28,048
71,314
Income tax provision
8,028
4,876
5,910
6,179
Net income
16,807
52,470
22,138
65,135
Net income attributable to noncontrolling interests
8,950
16,494
13,997
23,578
Net income attributable to The Andersons, Inc.
$ 7,857
$ 35,976
$ 8,141
$ 41,557
Earnings per share attributable to The Andersons, Inc. common shareholders:
Basic earnings:
$ 0.23
$ 1.06
$ 0.24
$ 1.22
Diluted earnings:
$ 0.23
$ 1.05
$ 0.24
$ 1.21
The Andersons, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
June 30, 2025
December 31, 2024
June 30, 2024
Assets
Current assets:
Cash and cash equivalents
$ 350,970
$ 561,771
$ 530,386
Accounts receivable, net
783,892
764,550
743,550
Inventories
771,868
1,286,811
686,540
Commodity derivative assets, current
147,937
148,801
180,189
Other current assets
120,780
88,344
108,634
Total current assets
2,175,447
2,850,277
2,249,299
Property, plant and equipment, net
883,985
868,151
694,136
Other assets, net
387,059
402,886
356,378
Total assets
$ 3,446,491
$ 4,121,314
$ 3,299,813
Liabilities and equity
Current liabilities:
Short-term debt
$ 104,467
$ 166,614
$ 4,021
Trade and other payables
572,232
1,047,436
607,083
Customer prepayments and deferred revenue
73,545
194,025
124,424
Commodity derivative liabilities, current
79,253
59,766
128,847
Current maturities of long-term debt
64,210
36,139
27,671
Accrued expenses and other current liabilities
186,902
227,192
192,683
Total current liabilities
1,080,609
1,731,172
1,084,729
Long-term debt, less current maturities
578,464
608,151
549,378
Other long-term liabilities
176,908
182,155
145,444
Total liabilities
1,835,981
2,521,478
1,779,551
Total equity
1,610,510
1,599,836
1,520,262
Total liabilities and equity
$ 3,446,491
$ 4,121,314
$ 3,299,813
The Andersons, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Six months ended June 30,
(in thousands)
2025
2024
Operating Activities
Net income
$ 22,138
$ 65,135
Adjustments to reconcile net income to cash (used in) provided by operating activities:
Depreciation and amortization
67,411
61,218
Other
10,311
10,821
Changes in operating assets and liabilities:
Accounts receivable
(23,396)
15,284
Inventories
521,356
477,723
Commodity derivatives
19,857
36,010
Other current and non-current assets
(31,730)
(50,587)
Payables and other current and non-current liabilities
(636,646)
(550,797)
Net cash (used in) provided by operating activities
(50,699)
64,807
Investing Activities
Purchases of property, plant and equipment and capitalized software
