Andersons, Inc.
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
ANDE$55.12-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0000821026-25-000112
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000821026-25-000150
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 53 previous paragraphs and 64 current paragraphs.
24 unchanged; 19 reworded; 17 added; 10 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 5 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
The Agribusiness segment’s second quarter operating results fell behind the prior year as 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. Nutrient results improved year-over-year with increased sales volumes on customer demand for nitrogen due to the increase in planted corn acres, partially offsetting the difficult conditions in grain markets.
Current report
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.
Current report
The Renewables segment's second quarter operating results were lower than the prior year. 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.
Current report
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.
Current report
In future quarters, as a result of our acquisition of the remaining 49.9% interest in TAMH on July 31, 2025, 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 with the EPA for potential carbon sequestration.
Current report
Operating results for the Agribusiness segment declined from the same period of the prior year. Sales and merchandising revenues increased by $305.5 million and cost of sales and merchandising revenues increased by $301.5 million resulting in increased gross profit of $4.0 million. The majority of the increase in sales and merchandising revenues and cost of sales and merchandising revenues can be attributed to the acquisition of Skyland which added $212.1 million of sales and merchandising revenues and $194.2 million of cost of sales and merchandising revenues. The $4.0 million increase in gross profit can be attributed to $17.9 million of additional gross profit from the Skyland acquisition, which was partially offset by reduced results from our legacy asset and merchandising businesses from limited trade flows due to a surplus of grain supplies and weak customer demand.
Current report
Operating, administrative and general expenses increased by $16.1 million, with $21.2 million of the increase attributable to the newly acquired Skyland business, which was partially offset by lower incentive compensation expense.
Current report
Other income, net increased by $7.6 million as a result of $10.5 million of property insurance recoveries in the newly acquired Skyland business, which was partially offset by a $4.4 million impairment of an equity method investment.
Current report
Operating results for the Renewables segment declined by $13.3 million from the same period last year. Sales and merchandising revenues increased by $35.2 million and cost of sales and merchandising revenues increased by $56.2 million compared to prior year results. As a result, gross profit decreased by $21.0 million compared to 2024 results. Both sales and merchandising revenues and cost of sales and merchandising revenues were increased modestly when compared to the prior year. Increased ethanol sales volumes were almost fully offset by reduced volumes in our renewable feedstocks business as prices remained consistent with the prior year. The $21.0 million decrease to gross profit in the current period were mainly driven by a $16.8 million decrease at the ethanol plants. The plants continued to run efficiently with higher year-over-year yields and production, but could not overcome market headwinds stemming from lower ethanol crush margins and higher input costs in the current year.
Current report
For the three months ended June 30, 2025, the Company recorded income tax expense of $8.0 million. The Company's effective tax rate was 32.3% on income before taxes of $24.8 million. The difference between the 32.3% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily attributable to interest accrued on unrecognized tax benefits and valuation allowances on losses in foreign tax jurisdictions offset by the tax impact of noncontrolling interest.
Current report
For the three months ended June 30, 2024, the Company recorded income tax expense of $4.9 million. The Company's effective tax rate was 8.5% on income of $57.3 million. The difference between the 8.5% effective tax rate and the U.S. federal statutory tax rate of 21.0% was primarily attributable to the tax impact of noncontrolling interest, federal tax credits, and the reversal of certain unrecognized tax benefits offset by state and local income taxes and nondeductible compensation.
Current report
Operating Results
Current report
Other income, net increased by $10.1 million as a result of $14.2 million of property insurance recoveries and patronage income in the newly acquired Skyland business, which was partially offset by a $4.4 million impairment of an equity method investment.
Current report
Operating results for Renewables decreased by $15.3 million from the same period of the prior year. Sales and merchandising revenues increased by $44.2 million, and cost of sales and merchandising revenues increased by $59.7 million compared to prior year. As a result, gross profit decreased by $15.5 million. Both sales and merchandising revenues and cost of sales and merchandising revenues were increased modestly when compared to the prior year. Increased ethanol sales volumes were almost fully offset by reduced volumes in our renewable feedstocks business as prices remained consistent with the prior year. The $15.5 million decrease to gross profit in the current period results was mainly driven by an $11.7 million decrease at the ethanol plants. The plants continued to run efficiently with strong yields and production, but could not overcome market headwinds stemming from lower ethanol crush margins and higher input costs in the current year.
Current report
Income Taxes
Current report
For the six months ended June 30, 2025, the Company recorded income tax expense of $5.9 million. The Company's effective tax rate was 21.1% on income before taxes of $28.0 million. The 21.1% effective tax rate was consistent with the U.S. federal statutory tax rate of 21.0% as state and local income taxes and valuation allowances on losses in foreign tax jurisdictions offset the tax impact of noncontrolling interest.
Current report
On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act which provides for modification of the existing U.S. international tax framework plus permanent extension of certain Tax Cuts and Jobs Act provisions. The Company is currently assessing the impact of this legislation on our consolidated financial statements.
Removed paragraphs (10)
Previous report
Agribusiness
Previous report
The Agribusiness segment’s first quarter operating results fell behind the prior year. 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 investment. The nutrient business showed year-over-year improvement with good fertilizer volume and positioning in advance of an expected increase in corn acres.
Previous report
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.
Previous report
Renewables
Previous report
The Renewables segment's solid first quarter operating results were slightly improved when compared to the prior year. 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.
Previous report
Agribusiness
Previous report
Other income, net increased by $2.5 million as a result of increased patronage income in the acquired Skyland business.
Previous report
Renewables
Previous report
Operating results for Renewables decreased by $1.9 million from the same period of prior year. Sales and merchandising revenues increased by $9.0 million, and cost of sales and merchandising revenues increased by $3.6 million compared to prior year. As a result, gross profit increased by $5.5 million. Sales and merchandising revenues and cost of sales and merchandising revenues were level with the same period of prior year as slight increases in both volumes and prices in ethanol were almost fully offset by weakening DDG and renewable diesel feedstocks values. Sales volumes were higher than the prior year for the base ethanol business and decreased modestly in our E-85 and renewable diesel feedstocks products. Substantially all of the $5.5 million increase in gross profit from the prior period can mainly be attributed to improved results in our ethanol plants from firmer crush margins and mark-to-market gains in the quarter which were partially offset by lower DDG values.
Previous report
For the three months ended March 31, 2025, the Company recorded income tax benefit of $2.1 million. The Company's effective tax rate was (65.9)% on income before taxes of $3.2 million. The difference between the 65.9% effective tax rate and the U.S. federal statutory tax rate of 21.0% is primarily attributable to a discrete adjustment of unrecognized tax benefits related to prior period U.S. federal research and development tax credits.
Reworded paragraphs (19)
Previous wording
The critical accounting policies and critical accounting estimates, as described in the 2024 Form 10-K, have not materially changed through the first quarter of 2025.
Current wording
The critical accounting policies and critical accounting estimates, as described in the 2024 Form 10-K, have not materially changed through the second quarter of 2025.
Previous wording
The Company has considered the potential impact of the book value of the Company’s total shareholders’ equity briefly exceeding the Company’s market capitalization during the quarter for impairment indicators. Management ultimately concluded that an impairment triggering event had not occurred. The Company believes that the share price is not an accurate reflection of its current value as conditions are currently strong in both agriculture and renewables spaces with a positive long-term outlook. Management believes that the market’s impact on the Company’s equity value does not actually reflect the impact of these external factors on the Company. As a result of prior period tests, reviews of current operating results and other relevant market factors, the Company concluded that no impairment trigger existed as of March 31, 2025.
Current wording
The Company has considered the potential impact of the book value of the Company’s total shareholders’ equity exceeding the Company’s market capitalization during the quarter for impairment indicators. Management ultimately concluded that an impairment triggering event had not occurred. The Company believes that the share price is not an accurate reflection of its current value as conditions in both agriculture and renewables spaces remain stable with a positive long-term outlook. Management believes that the market’s impact on the Company’s equity value does not actually reflect the impact of these external factors on the Company. As a result of prior period tests, reviews of current operating results and other relevant market factors, the Company concluded that no impairment trigger existed as of June 30, 2025.
Previous wording
Total Agribusiness storage space capacity at company-owned or leased grain facilities, including temporary pile storage, was approximately 280 million and 170 million bushels at March 31, 2025 and 2024, respectively. The storage capacity at our nutrient facilities for was evenly split between dry and liquid storage at approximately 1.1 million and 1.0 million tons at March 31, 2025 and 2024, respectively. The increase in both grain and nutrient storage capacity from the same period of the prior year was due to the Skyland acquisition in the fourth quarter of 2024.
Current wording
Total Agribusiness storage space capacity at company-owned or leased grain facilities, including temporary pile storage, was approximately 278 million and 168 million bushels at June 30, 2025 and 2024, respectively. The increase in grain storage capacity from the same period of the prior year was due to the Skyland acquisition in the fourth quarter of 2024. The storage capacity at our nutrient facilities was evenly split between dry and liquid storage at approximately 1.0 million tons at June 30, 2025 and 2024.
Previous wording
Interest expense increased by $6.2 million due to increased borrowings in the acquired Skyland business.
Current wording
Interest expense increased by $5.2 million due to increased borrowings in the acquired Skyland business.
Previous wording
Operating results for the Agribusiness segment decreased by $7.7 million from the prior year. Sales and merchandising revenues decreased by $68.2 million, and cost of sales and merchandising revenues decreased by $87.2 million for an increased gross profit impact of $19.1 million. Sales and merchandising revenues and cost of sales and merchandising revenues decreased in the Agribusiness segment as a result of reduced commodity prices as the oversupply of commodities in combination with a decision to intentionally pull back on volumes traded in certain international regions. This decrease was partially offset by the acquisition of Skyland which added approximately $165 million of sales and merchandising revenues and approximately $147 million of cost of sales and merchandising revenues. Gross profit increased by $19.1 million from the prior year with $17.2 million of the increase as a result of the Skyland acquisition.
Current wording
Operating results for the Agribusiness segment decreased by $18.5 million from the prior year. Sales and merchandising revenues increased by $237.3 million, and cost of sales and merchandising revenues increased by $214.2 million for an increased gross profit impact of $23.1 million. The increase in sales and merchandising revenues and cost of sales and merchandising revenues can be attributed to the acquisition of Skyland which added $376.6 million of sales and merchandising revenues and $341.5 million of cost of sales and merchandising revenues. The increase in sales and merchandising revenues and cost of sales and merchandising revenues was partially offset by reduced commodity prices. Gross profit increased by $23.1 million from the prior year with $35.1 million of the increase as a result of the Skyland acquisition, which was partially offset by reduced results from our legacy asset and merchandising businesses from limited trade flows due to a surplus of grain supplies and weak customer demand.
Previous wording
Operating, administrative, and general expenses increased by $27.6 million from the prior year. Substantially all of the increase was attributable to the newly acquired Skyland business.
Current wording
Operating, administrative, and general expenses increased by $43.7 million from the prior year. Substantially all of the increase was attributable to the newly acquired Skyland business.
Previous wording
Other income, net decreased from the prior year by $3.7 million as the Company recorded an additional $3.1 million gain as a result of the deconsolidation of the ELEMENT ethanol plant in the prior year.
Current wording
Other income, net decreased from the prior year by $4.1 million as the Company recorded an additional $3.1 million gain as a result of the deconsolidation of the ELEMENT ethanol plant in the prior year.
Previous wording
For the three months ended March 31, 2024, the Company recorded an income tax expense of $1.3 million. The Company’s effective tax rate was 9.3% on income before income taxes of $14.0 million. The difference between the 9.3% effective tax rate and the U.S. federal statutory rate of 21.0% is primarily attributable to the tax impact of noncontrolling interest, stock-based compensation, and federal tax credits offset by state and local income taxes, nondeductible compensation, and other discrete tax items.
Current wording
For the six months ended June 30, 2024, the Company recorded income tax expense of $6.2 million. The Company’s effective tax rate was 8.7% on income before income taxes of $71.3 million. The difference between the 8.7% effective tax rate and the U.S. federal statutory rate of 21.0% is primarily attributable to the tax impact of noncontrolling interest, stock-based compensation, and federal tax credits partially offset by state and local income taxes, nondeductible compensation, and other discrete tax items.
Previous wording
The Company’s subsidiary partnership returns are under U.S. federal and certain state tax examinations for tax years 2018 through 2022. The Company’s subsidiary is under federal tax examination by the Mexican tax authorities for tax year 2015. The U.S. federal, state, and Mexican tax authorities’ examinations could potentially be resolved within the next 12 months. The resolution of these examinations could change our unrecognized tax benefits and favorably impact income tax expense by a range of zero to $10.1 million.
Current wording
The Company’s subsidiary partnership returns are under U.S. federal and certain state tax examinations for tax years 2018 through 2022. The Company’s subsidiary is under federal tax examination by the Mexican tax authorities for tax year 2015. The U.S. federal, state, and Mexican tax authorities’ examinations could potentially be resolved within the next 12 months. The resolution of these examinations could change our unrecognized tax benefits and favorably impact income tax expense by a range of zero to $10.7 million.
Previous wording
On December 20, 2021, the Organization for Economic Co-operation and Development ("OECD") issued Pillar Two model rules introducing a global minimum tax of 15% on large corporations. Although the U.S. has not adopted the Pillar Two model rules, several foreign countries have enacted legislation which closely follows OECD’s Pillar Two guidance to be effective January 1, 2024. The impact of Pillar Two legislation in our relevant jurisdictions is immaterial to the Company's 2025 effective tax rate.
Current wording
On December 20, 2021, the Organization for Economic Co-operation and Development ("OECD") issued Pillar Two model rules introducing a global minimum tax of 15% on large corporations. Although the U.S. has not adopted the Pillar Two model rules, several foreign countries have enacted legislation which closely follows OECD’s Pillar Two guidance. The impact of Pillar Two legislation in our relevant jurisdictions is immaterial to the Company's 2025 effective tax rate.
Previous wording
At March 31, 2025, the Company had working capital of $1,094.4 million, a decrease of $36.2 million from the prior year. This decrease was attributable to changes in the following components of current assets and current liabilities:
Current wording
At June 30, 2025, the Company had working capital of $1,094.8 million, a decrease of $69.7 million from the prior year. This decrease was attributable to changes in the following components of current assets and current liabilities:
Previous wording
Current assets as of March 31, 2025, increased $314.8 million in comparison to those as of March 31, 2024. The acquisition of Skyland resulted in a $311.3 million increase of current assets from the prior year. The remainder of current assets were consistent with the prior year.
Current wording
Current assets as of June 30, 2025, decreased $73.9 million in comparison to those as of June 30, 2024. Lower average commodity prices in the current year were the main contributor to the decrease. Partially offsetting the decrease was the acquisition of Skyland which resulted in a $211.0 million increase of current assets from the prior year.
Previous wording
Current liabilities increased $351.0 million from the prior year. The acquisition of Skyland resulted in a $258.2 million increase of current liabilities from the prior year. Excluding the impact of Skyland, current liabilities for the legacy business increased from the prior year due to the timing of current maturities of long-term debt and increased customer prepayments.
Current wording
Current liabilities slightly declined from the same period of the prior year. The acquisition of Skyland resulted in a $158.9 million increase of current liabilities from the prior year. However, similar to the move in current assets, lower average commodity prices in the current year were the main contributor to the decrease, excluding the impact of the Skyland acquisition.
Previous wording
Operating activities used cash of $350.0 million and $239.6 million in the first three months of 2025 and 2024, respectively. The $110.4 million increase in the amount of cash used in operating activities is mainly due to an unfavorable change of $119.0 million in operating assets and liabilities through the normal course of business. Cash generation excluding working capital changes remains consistent and strong in challenging markets.
Current wording
Operating activities used cash of $50.7 million and provided cash of $64.8 million in the first six months of 2025 and 2024, respectively. The $115.5 million change in the amount of cash used in operating activities is mainly due to an unfavorable change of $78.2 million in operating assets and liabilities through the normal course of business combined with a $43.0 million decrease in earnings as the Company continues to navigate challenging markets in the current year.
Previous wording
Investing activities used cash of $43.8 million through the first three months of 2025 compared to $22.1 million in the prior period. Cash used in investing activities increased from the prior year mainly due to increased capital spending in the current year. Management expects to invest approximately $175 million to $200 million in property, plant and equipment in 2025.
Current wording
Investing activities used cash of $75.7 million through the first six months of 2025 compared to $58.1 million in the prior period. Cash used in investing activities increased $17.6 million from the prior year due to $40.0 million of increased capital spending in the current year to fund previously announced growth projects, which was partially offset by $14.0 million of insurance proceeds in the current year and the acquisition of a business in the prior year. Management expects to invest approximately $175 million to $200 million in property, plant and equipment in 2025.
Previous wording
Financing activities provided cash of $50.4 million and used cash of $98.3 million for the three months ended March 31, 2025, and 2024, respectively. This $148.7 million change from the prior year was due to $88.0 million of additional cash proceeds from the Company's short-term credit facilities, a $44.9 million distribution to the noncontrolling interest in the prior year, and the issuance of $14.7 million of long-term debt in the current year.
Current wording
Financing activities used cash of $87.0 million and $119.9 million for the six months ended June 30, 2025, and 2024, respectively. This $32.9 million reduction from the prior year was due to $45.9 million less distributions to the noncontrolling interest and partially offset by additional net borrowings on the Company's short-term credit facilities in the current year.
Previous wording
The Company paid $6.7 million in dividends in the first three months of 2025 compared to $6.5 million paid in the prior period. The Company paid dividends of $0.195 and $0.19 per common share in January of 2025 and 2024, respectively. On February 12, 2025, the Company declared a cash dividend of $0.195 per common share payable on April 22, 2025, to shareholders of record on April 1, 2025.
Current wording
The Company paid $13.4 million in dividends in the first six months of 2025 compared to $13.0 million paid in the prior period. The Company paid dividends of $0.195 and $0.19 per common share in January and April of 2025 and 2024, respectively. On June 19, 2025, the Company declared a cash dividend of $0.195 per common share payable on July 22, 2025, to shareholders of record on July 1, 2025.
Previous wording
The Company is party to borrowing arrangements with a syndicate of banks that provide a total of $2,161.6 million in borrowing capacity. As of March 31, 2025, the Company had $1,935.1 million available for borrowing.
Current wording
The Company is party to borrowing arrangements with a syndicate of banks that provide a total of $2,161.6 million in borrowing capacity. As of June 30, 2025, the Company had $2,053.3 million available for borrowing.
Previous wording
The Company is typically in a net short-term borrowing position in the first two quarters of the year. The majority of these short-term borrowings bear interest at variable rates, and an increase in interest rates could have a significant impact on the Company's profitability. In addition, periods of high grain prices could require us to make additional margin deposits on exchange traded futures contracts. Conversely, in periods of declining prices, the Company could receive a return of cash.
Current wording
The Company is typically in a net short-term borrowing position in the first half of the year. The majority of these short-term borrowings bear interest at variable rates, and an increase in interest rates could have a significant impact on the Company's profitability. In addition, periods of high grain prices could require us to make additional margin deposits on exchange traded futures contracts. Conversely, in periods of declining prices, the Company could receive a return of cash.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
The Company uses Income (loss) before income taxes attributable to the Company, a non-GAAP financial measure as defined by the Securities and Exchange Commission, to evaluate the Company’s financial performance. This performance measure is not defined by accounting principles generally accepted in the United States and should be considered in addition to, and not in lieu of, GAAP financial measures. Management believes that Income (loss) before income taxes attributable to the Company is a useful measure of the Company’s performance as it provides investors additional information about the Company's operations, allowing evaluation of underlying business performance and period-to-period comparability. This measure is not intended to replace or be an alternative to Income (loss) before income taxes, the most directly comparable measure reported under GAAP.
Current report — wording carried from elsewhere
The following discussion focuses on the operating results as shown in the Condensed Consolidated Statements of Operations and includes a separate discussion by segment. Additional segment information is included herein in Note 9, Segment Information.
Current report — wording carried from elsewhere
Comparison of the six months ended June 30, 2025, with the six months ended June 30, 2024, including a reconciliation of GAAP to non-GAAP measures:
Current report — wording carried from elsewhere
Interest expense increased by $11.4 million due to increased borrowings in the acquired Skyland business, which was partially offset by lower incentive compensation.