Andersons, Inc.
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
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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, 2026 · Filed Aug 4, 2026
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 2026-03-31; filed 2026-05-06.
0000821026-26-000070
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0000821026-26-000122
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 55 previous paragraphs and 78 current paragraphs.
22 unchanged; 20 reworded; 35 added; 13 removed; 0 previous and 1 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 (35)
Current report
The Agribusiness segment’s second quarter operating results showed a modest improvement in a dynamic and challenging environment. The Company's fertilizer business led the improvement with higher margins on lower volumes. The merchandising results also improved, driven by higher commodity prices and increased volatility early in the quarter, partially offset by fuel surcharges. Grain asset performance was comparable to the prior year as basis values remained muted and producers remained reluctant to market stored grains.
Current report
The Company is continuing to monitor growing conditions and crop progress. Currently, the eastern corn belt has experienced favorable growing conditions, which could support harvest volumes and grain ownership opportunities this fall. Drier conditions in western production regions could pressure grain asset earnings; however, any resulting market dislocations and volatility should create additional merchandising opportunities. Above-average corn acreage should support demand for fall fertilizer applications, although grower economics could influence purchasing decisions. The Company's diversified agribusiness portfolio remains well positioned to capitalize on both harvest-related opportunities and periods of increased market volatility in the second half of the year.
Current report
The Renewables segment achieved its highest second quarter results to date on efficient plant operations and improved margins. Strong ethanol export demand and healthy domestic consumption drove higher board crush margins year-over-year, partially offset by firmer corn basis levels. Second quarter results include $24.2 million of clean fuel production credits. Our merchandising businesses also delivered improved results, benefiting from market volatility surrounding the Renewable Volume Obligation ("RVO") announcement, resulting in higher distillers corn oil and Renewable Identification Number ("RIN") values.
Current report
Ethanol market fundamentals remain supportive as we anticipate continued strong demand, driven by increasing global blend rates and favorable domestic blending economics. Renewable feedstocks are also expected to benefit from healthy bio-based diesel demand and supportive renewable fuel markets.
Current report
Operating results for the Agribusiness segment increased from the same period of the prior year. Sales and merchandising revenues decreased by $301.7 million and cost of sales and merchandising revenues decreased by $316.5 million resulting in increased gross profit of $14.7 million. The majority of the decreases in sales and merchandising revenues and the related cost of sales and merchandising revenues were attributable to the Company's ongoing portfolio optimization efforts, including actions taken to reduce its participation in underperforming merchandising businesses. Gross profit increased $14.7 million compared to the prior year period, primarily due to a $9.8 million improvement in the Company's merchandising businesses, driven by higher commodity prices and favorable market volatility early in the quarter. Additionally, recent growth investments contributed positively to gross profit, while ongoing portfolio optimization efforts improved overall profitability. These benefits were partially offset by higher fuel surcharge costs. The year-over-year increase also reflects modest improvements in gross profit across the remainder of the Company's business portfolio.
Current report
Operating, administrative and general expenses increased by $8.1 million, primarily driven by increased incentives from the Company's strong operating performance.
Current report
Interest expense, net increased $2.0 million from the prior year due to increased borrowings on the Company's revolving credit facility.
Current report
Other income, net decreased by $3.7 million, primarily reflecting a $5.5 million reduction in property insurance recoveries recognized in the current quarter.
Current report
Operating results for the Renewables segment increased by $55.3 million compared to the same quarter of the prior year, primarily reflecting the recognition of clean fuel production credits in the current year and the benefits of full ownership of the ethanol plants. Sales and merchandising revenues increased by $263.5 million, while related cost of sales and merchandising revenues increased by $212.9 million, resulting in a $50.6 million increase in gross profit year-over-year. Substantially all of the increases in sales and merchandising revenues and the related cost of sales and merchandising revenues were attributable to higher volumes and commodity values within the Renewables segment's renewable feedstocks business. The $50.6 million increase in gross profit for the current period was primarily attributable to a $40.8 million increase in earnings from the Company's ethanol plants, reflecting strong ethanol margins. In addition, the merchandising businesses contributed a $9.0 million increase in gross profit compared to the prior year, benefiting from continued favorable market conditions driven by the final RVO policy and higher RIN values in 2026.
Current report
Operating, administrative and general expenses increased by $25.1 million, primarily due to a $10.6 million impairment charge related to capitalized engineering and design costs, $11.6 million of additional litigation expenses associated with the receivership of a former consolidated subsidiary, and a $2.5 million increase in incentives driven by the Company's strong operating performance.
Current report
Interest expense, net increased $1.6 million from the prior year due to increased borrowings on the Company's revolving credit facility.
Current report
Other income, net increased by $23.7 million compared to the prior year, primarily due to $24.2 million of clean fuel production credits recognized in the current year.
Current report
For the three months ended June 30, 2026, the Company recorded an income tax expense of $13.4 million. The Company's effective tax rate was 19.9% on income before taxes of $67.3 million. The difference between the 19.9% effective tax rate and the U.S. federal statutory tax rate of 21% is primarily attributable to nontaxable clean fuel production credits offset by state and local taxes, nondeductible compensation, valuation allowances on losses in foreign tax jurisdictions, and other taxes.
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 of $24.8 million. The difference between the 32.3% effective tax rate and the U.S. federal statutory tax rate of 21.0% was 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
Operating, administrative, and general expenses increased by $5.0 million compared to the prior year, reflecting higher incentive expense from Company's improved financial performance.
Current report
Other income, net decreased by $4.1 million, primarily reflecting a $4.5 million reduction in property insurance recoveries recognized in the current quarter.
Current report
The Renewables segment's operating results improved $79.6 million compared to the second quarter of the prior year, primarily reflecting strong ethanol margins, the recognition of clean fuel production credits in the current year, the benefits of full ownership of the ethanol plants. Substantially all of the increases in sales and merchandising revenues and the related cost of sales and merchandising revenues were attributable to higher volumes and commodity values within the Renewables segment's renewable feedstocks business. Gross profit increased by $43.0 million, primarily due to a $27.9 million improvement at the ethanol plants, reflecting strong ethanol margins. In addition, the merchandising businesses contributed a $15.0 million increase in gross profit compared to the prior year, benefiting from continued favorable market conditions driven by the final RVO policy and higher RIN values in 2026.
Current report
Operating, administrative and general expenses increased by $25.7 million, primarily due to a $10.6 million impairment charge related to capitalized engineering and design costs, $11.3 million of additional litigation expenses associated with the receivership of a former consolidated subsidiary, and $4.1 million of increased incentives as a result of the Company's strong operating performance.
Current report
Interest expense, net increased $4.0 million from the prior year due to increased borrowings on the Company's revolving credit facility.
Current report
Other
Current report
Results declined by $7.1 million, primarily due to increased incentive costs driven by improved Renewables results along with a $1.5 million impairment charge on a cost method investment.
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 income 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
The Company believes it has sufficient liquidity to meet its operating needs, capital expenditures, and debt service requirements. As of June 30, 2026, the Company had consolidated cash and cash equivalents of $66.5 million and total long-term debt of $586.4 million, with $22.9 million payable within the next twelve months.
Current report
The Company's is also party to borrowing arrangements with a syndicate of banks that provide a total borrowing capacity of $1,799.2 million. As of June 30, 2026, the Company had $314.4 million of short-term debt on these borrowing arrangements and $1,481.9 million capacity available for borrowing. A significant portion of the Company's short-term borrowings support grain inventories and other working capital assets that are considered RMIs and are readily convertible to cash through normal merchandising and processing activities. Accordingly, management evaluates liquidity in conjunction with the value of these inventories, available borrowing capacity, and expected operating cash flows, rather than based solely on outstanding debt balances. As of June 30, 2026, the Company had $646.1 million of RMI which exceeded the Company's outstanding short-term debt balances.
Current report
The Company's debt structure includes both recourse indebtedness at the parent and certain subsidiaries and non-recourse indebtedness at a consolidated subsidiary. Obligations under the non-recourse debt agreements are limited to the assets and operations of Skyland, a 65% owned and consolidated subsidiary, along with a separate facility under the Company's wholly owned Canadian subsidiary, and are not guaranteed by the parent company.
Current report
Recourse Financing Arrangements
Current report
As of June 30, 2026, the Company had $1,152.7 million recourse capacity available for borrowing under its various credit facilities and was in compliance with all financial covenants. The Company does not expect any challenges in complying with the covenant requirements of its recourse debt agreements during the next twelve months. Certain recourse long-term borrowings are collateralized by mortgages on various facilities.
Current report
Non-Recourse Financing Arrangements
Current report
Skyland maintains a non-recourse credit facility that is secured by substantially all of the assets of the subsidiary. As of June 30, 2026, Skyland had approximately $149.3 million of short-term borrowings and $81.4 million of term debt outstanding, including $9.0 million classified as current maturities of long-term debt.
Current report
During the second quarter of 2026, Skyland and its lenders executed an amendment to its credit facilities that modified certain financial covenant requirements and increased available liquidity through an additional $10.0 million term loan commitment. As amended, Skyland had approximately $165.8 million of remaining borrowing availability under its credit facilities as of June 30, 2026.
Current report
Separately, management determined that Skyland was not in compliance with the debt service coverage ratio covenant as of June 30, 2026. Subsequent to June 30, 2026, Skyland obtained a waiver from the lender with respect to the debt service coverage ratio covenant violation. Other than the waiver of the noncompliance, the credit agreement remained unchanged, and the lender did not exercise its rights to accelerate repayment of the outstanding borrowings.
Current report
Based on current operating forecasts and expected market conditions, management believes Skyland will remain in compliance with the amended covenant requirements throughout the next twelve months. The Company continues to closely monitor Skyland's operating results, liquidity position, and covenant compliance and will evaluate potential operational, financing, and capital structure alternatives to support Skyland's financial position and compliance with its debt obligations.
Current report
Skyland's credit facility is non-recourse to the Company, and therefore, obligations and covenant compliance under the amended credit agreement are generally limited to the assets and operations of Skyland and are not expected to materially impact the Company's broader liquidity position.
Current report
The Company's Canadian subsidiary also maintains a non-recourse revolving credit facility that is secured by substantially all of the assets of the subsidiary. As of June 30, 2026, this subsidiary had approximately $5.7 million of short-term borrowings outstanding and $163.5 million available for borrowing. The Company's Canadian subsidiary was in compliance with all its financial covenants as of June 30, 2026.
Removed paragraphs (13)
Previous report
Agribusiness
Previous report
The Agribusiness segment’s first quarter operating results improved from the prior year. The diversified portfolio showed the resilience of its earnings as the segment experienced more volatility return to the market this quarter. As prices rallied during the quarter, more old crop bushels came to market, which provided opportunities for the merchandising businesses. The grain asset footprint saw less basis appreciation than expected as the price rally put pressure on basis values. Fertilizer results improved on higher margins.
Previous report
Market conditions remain dynamic, and there is the potential of continued volatility that could provide opportunities through 2026 as the group will remain nimble as conditions change. If the volatility continues, more opportunities should shift to the merchandising businesses. We expect the asset footprint, especially in the west, to capture some of the delayed basis appreciation over the next few quarters. Anticipated corn plantings are above the five-year average with expanded margin opportunities in this higher priced environment. The fertilizer business is well positioned heading into the second quarter and the application season for planting.
Previous report
Renewables
Previous report
The Renewables segment's first quarter operating results improved from the prior year as a result of efficient plant operations and record production. Ethanol demand drove board crush higher year over year but was offset by firmer corn basis and higher natural gas expense. First quarter results include $26.2 million of Section 45Z clean fuel production credits. As expected, each of the ethanol plants qualified for the next tier of credits following rule changes effective in 2026. The merchandising businesses had improved performance, largely driven by volatility surrounding the Renewable Volume Obligations (RVO) announcement, resulting in higher distillers corn oil and RIN values.
Previous report
Ethanol fundamentals continue to be supportive as we anticipate elevated demand, including increasing global blend rates, high gasoline prices, and planned industry maintenance. Renewable feedstocks should also continue to benefit from the robust RVO.
Previous report
Agribusiness
Previous report
Operating, administrative, and general expenses decreased by $3.1 million compared to the prior year, reflecting $5.0 million of higher bad debt expense in the prior period.
Previous report
Renewables
Previous report
The Renewables segment had a strong first quarter as operating results increased by $24.3 million from prior year as the Company now has full ownership of the ethanol plants and is recording a significant amount of clean fuel production credits. Sales and merchandising revenues and cost of sales and merchandising revenues were slightly higher than the prior year due to both increased volumes and values in renewable feedstocks that were partially offset by lower ethanol sales volumes as ethanol values remained consistent with the prior year. Gross profit decreased by $7.6 million, primarily due to a $12.8 million decline at the ethanol plants. Although the plants operated efficiently with solid yields and higher production, this was offset by firmer corn basis and higher natural gas expenses in the quarter. Partially offsetting the decline at the ethanol plants was the improvement in Company's trading businesses on the final RVO policy and higher RIN values in the quarter.
Previous report
Interest expense, net increased $2.4 million from the prior year due to increased borrowings on the Company's revolving credit facility.
Previous report
For the three months ended March 31, 2025, the Company recorded an income tax benefit of $2.1 million. The Company’s effective tax rate was (65.9)% on income before income taxes of $3.2 million. The difference between the (65.9)% effective tax rate and the U.S. federal statutory rate of 21.0% was primarily attributable to a discrete adjustment of unrecognized tax benefits related to prior period U.S. federal research and development tax credits.
Previous report
Certain long-term borrowings include covenants that, among other things, impose minimum levels of working capital and various debt leverage ratios. The Company is in compliance with all covenants as of March 31, 2026. In addition, certain long-term borrowings are collateralized by mortgages on various facilities.
Reworded paragraphs (20)
Previous wording
The critical accounting policies and critical accounting estimates, as described in the 2025 Form 10-K, have not materially changed through the first quarter of 2026.
Current wording
The critical accounting policies and critical accounting estimates, as described in the 2025 Form 10-K, have not materially changed through the second quarter of 2026.
Previous wording
Total Agribusiness grain storage capacity at company-owned or leased grain facilities, including temporary pile storage, was approximately 266 million and 280 million bushels at March 31, 2026 and 2025, respectively. The storage capacity at our nutrient facilities was evenly split between dry and liquid storage with a total capacity of approximately one million tons at March 31, 2026 and 2025.
Current wording
Total Agribusiness grain storage capacity at company-owned or leased grain facilities, including temporary pile storage, was approximately 266 million and 278 million bushels at June 30, 2026 and 2025, respectively. The storage capacity at our nutrient facilities was evenly split between dry and liquid storage with a total capacity of approximately one million tons at June 30, 2026 and 2025.
Previous wording
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 amounts reported under GAAP.
Current wording
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.
Previous wording
Results declined by $1.1 million, primarily due to increased incentive costs driven by improved results.
Current wording
Results declined by $6.0 million, primarily due to increased incentive costs driven by improved Renewables results along with a $1.5 million impairment charge on a cost method investment.
Previous wording
Operating results for the Agribusiness segment increased by $16.4 million from the prior year. Sales and merchandising revenues decreased by $73.3 million, and cost of sales and merchandising revenues decreased by $88.6 million for an increased gross profit impact of $15.3 million. The modest decrease in sales and merchandising revenues and cost of sales and merchandising revenues can be attributed to lower sales volumes in the merchandising businesses. The $15.3 million improvement in gross profit from the prior year reflects a $9.8 million improvement in the Company’s merchandising businesses from recent capital investments and favorable market conditions, along with a $5.0 million increase the Nutrient business driven by stronger margins.
Current wording
Operating results for the Agribusiness segment increased by $21.2 million from the prior year. Sales and merchandising revenues decreased by $375.1 million, and cost of sales and merchandising revenues decreased by $405.1 million for an increased gross profit impact of $30.0 million. The majority of the decrease in sales and merchandising revenues and the related cost of sales and merchandising revenues were attributable to the Company's ongoing portfolio optimization efforts, including actions taken to reduce its participation in underperforming merchandising businesses. The $30.0 million improvement in gross profit from the prior year was primarily driven by a $21.1 million improvement in the Company's merchandising businesses, reflecting favorable market conditions, the benefits of recent capital investments, and the continued optimization of the Company's merchandising portfolio. Also contributing to the increase was a $6.7 million improvement in the Nutrient business, driven by stronger margins.
Previous wording
Interest expense increased by $0.9 million, due to increased borrowings on the Company's revolving credit facility.
Current wording
Interest expense increased by $2.9 million, due to increased borrowings on the Company's revolving credit facility.
Previous wording
Other income, net increased by $25.2 million compared to the prior year, primarily driven by the recognition of $26.2 million of clean fuel production credits in the current year.
Current wording
Other income, net increased by $48.9 million compared to the prior year, primarily driven by the recognition of $50.4 million of clean fuel production credits in the current year.
Previous wording
For the three months ended March 31, 2026, the Company recorded income tax expense of $4.6 million. The Company's effective tax rate was 13.5% on income before taxes of $33.9 million. The difference between the 13.5% effective tax rate and the U.S. federal statutory rate of 21.0% is primarily attributable to nontaxable clean fuel production credits offset by state and local income taxes and nondeductible compensation.
Current wording
For the six months ended June 30, 2026, the Company recorded an income tax expense of $17.9 million. The Company's effective tax rate was 17.7% on income before taxes of $101.2 million. The difference between the 17.7% effective tax rate and the U.S. federal statutory rate of 21.0% is primarily attributable to nontaxable clean fuel production credits offset by state and local taxes, nondeductible compensation, valuation allowances on losses in foreign tax jurisdictions, and other taxes.
Previous wording
The Company and its subsidiary partnership returns are under U.S. federal and certain state tax examinations for tax years 2018 through 2024. 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 $8.7 million.
Current wording
The Company and its subsidiary partnership returns are under U.S. federal and certain state tax examinations for tax years 2018 through 2024. 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 ongoing examinations and the expiration of applicable statutes of limitations could change our unrecognized tax benefits and favorably impact income tax expense by a range of zero to $10.2 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. Additional OECD guidance issued on January 5, 2026 introduced a "side-by-side" framework which provides relief from certain Pillar Two charging provisions for eligible U.S.-parented multinational groups while keeping foreign country minimum tax regimes in place. The impact of Pillar Two legislation in our relevant jurisdictions is not expected to materially affect the Company's effective tax rate for 2026.
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. Additional OECD guidance issued on January 5, 2026 introduced a "side-by-side" framework which provides relief from certain Pillar Two charging provisions for eligible U.S.-parented multinational groups while keeping foreign country minimum tax regimes in place. Future enactment of the OECD's "side-by-side" framework by our relevant jurisdictions is expected to reduce the Company's exposure to UTPR-related taxes. The impact of other Pillar Two related taxes is not expected to materially impact the Company's effective tax rate.
Previous wording
At March 31, 2026, the Company had working capital of $686.5 million, a decrease of $408.0 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, 2026, the Company had working capital of $702.7 million, a decrease of $392.1 million from the prior year. This decrease was attributable to changes in the following components of current assets and current liabilities:
Previous wording
As of March 31, 2026, current assets increased by $28.4 million compared to the prior year, primarily driven by higher inventory values resulting from increased commodity prices and an additional $62.0 million of clean fuel production credits in Other current assets. These increases were partially offset by a $146.8 million decrease in cash related to the acquisition of the remaining interest in TAMH later in 2025.
Current wording
As of June 30, 2026, current assets decreased by $93.7 million compared to the prior year, primarily driven by lower cash on hand of $284.4 million from the prior year related to the acquisition of the remaining interest in TAMH later in 2025. The decrease in cash on hand was partially offset by a $189.1 million increase in inventory as a result of increased commodity prices compared to the prior year.
Previous wording
Current liabilities increased $436.3 million year over year, primarily driven by $493.8 million of additional borrowings under the Company's revolving credit facilities, reflecting lower cash balances than the prior year following the TAMH transaction and increased market volatility in 2026. The increase in short‑term debt was partially offset by lower current maturities of long‑term debt due to the timing of scheduled debt maturities.
Current wording
Current liabilities increased $298.5 million year over year, primarily driven by $209.9 million of additional borrowings under the Company's revolving credit facilities, reflecting lower cash balances than the prior year following the TAMH transaction and increased market volatility in 2026.
Previous wording
Operating activities used $393.7 million of cash during the first three months of 2026, compared to $350.0 million of cash used in the same period of 2025. The $43.7 million year-over-year increase in cash use was primarily attributable to a $54.8 million unfavorable shift in operating assets and liabilities through normal business operations, partially offset by stronger earnings in the current year. Excluding the changes in operating assets and liabilities, cash generation from operations has improved from prior year.
Current wording
Operating activities provided $94.2 million of cash during the first six months of 2026, compared to $50.7 million of cash used in the same period of 2025. The $144.9 million year-over-year increase in cash provided was attributable to a $63.7 million favorable shift in operating assets and liabilities through normal business operations, a $61.1 million improvement to earnings in the current year, and the impact of $15.7 million of noncash impairment charges recognized in the current year.
Previous wording
Investing activities used $49.5 million of cash during the first three months of 2026, up from $43.8 million in the prior year. The $5.6 million increase was primarily driven by $5.2 million in higher capital expenditures to support previously announced growth initiatives. Management expects to invest approximately $225 million in property, plant, and equipment in 2026; roughly split 50% between growth and maintenance capital.
Current wording
Investing activities used $123.3 million of cash during the first six months of 2026, up from $75.7 million in the prior year. The $47.6 million increase was primarily attributable to $31.9 million in higher capital expenditures related to previously announced growth initiatives along with $12.9 million of additional property insurance proceeds received in the prior year. Management expects to invest approximately $225 million in property, plant, and equipment in 2026; roughly split 50% between growth and maintenance capital.
Previous wording
Cash provided by financing activities totaled $417.8 million for the three months ended March 31, 2026, compared to $50.4 million for the same period in 2025. The $367.3 million year-over-year increase was primarily driven by $411.5 million of additional borrowings on the Company's short-term lines of credit. This was partially offset by additional net payments of long-term debt of $36.8 million from the prior year.
Current wording
Financing activities used $2.2 million of cash during the six months ended June 30, 2026, compared to $87.0 million for the same period in 2025. The $84.8 million year-over-year reduction was primarily driven by 130.3 million of additional borrowings on the Company's short-term lines of credit. This was partially offset by additional net payments of long-term debt of $34.8 million from the prior year.
Previous wording
The Company paid $6.8 million in dividends in the first three months of 2026 compared to $6.7 million paid in the prior period. The Company paid dividends of $0.20 and $0.195 per common share in January of 2026 and 2025, respectively. On February 12, 2026, the Company declared a cash dividend of $0.20 per common share, payable on April 22, 2026, to shareholders of record on April 1, 2026.
Current wording
The Company paid $13.6 million in dividends in the first six months of 2026 compared to $13.4 million paid in the prior period. The Company paid dividends of $0.20 and $0.195 per common share in January and April of 2026 and 2025, respectively. On June 18, 2026, the Company declared a cash dividend of $0.20 per common share, payable on July 22, 2026, to shareholders of record on July 1, 2026.
Previous 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.
Current wording
The Company is typically in a net short-term borrowing position during the first half of the year due to the seasonal nature of its agricultural merchandising and trading activities. Short-term borrowings are primarily used to finance grain inventory purchases and other working capital assets that are expected to be converted to cash in the ordinary course of business. As commodity prices increase, the value of these inventories and related financing requirements generally increase, which may result in higher short-term borrowings and additional margin deposit requirements on exchange-traded futures contracts. Conversely, periods of declining commodity prices or inventory turnover generally release working capital and margin deposits, providing a source of liquidity that may be used to reduce outstanding borrowings. Because a substantial portion of these borrowings bear interest at variable rates, increases in interest rates could have a significant impact on the Company's profitability.
Previous wording
The Company is party to borrowing arrangements with a syndicate of banks that provide a total borrowing capacity of $1,802.5 million, reflecting the amendment that reduced the Company's revolving credit facility by $250.0 million, as discussed within Note 1 to the Condensed Financial Statements. As of March 31, 2026, the Company had $1,083.1 million available for borrowing.
Current wording
The Company's recourse debt is party to borrowing arrangements with a syndicate of banks that provide a total borrowing capacity of $1,315.0 million, reflecting the amendment that reduced the Company's revolving credit facility by $250.0 million, as discussed within Note 1 to the Condensed Financial Statements.
Previous wording
Management believes the Company's sources of liquidity will be adequate to fund operations, capital expenditures and service indebtedness. At March 31, 2026, the Company had standby letters of credit outstanding of $2.8 million.
Current wording
At June 30, 2026, the Company had standby letters of credit outstanding of $2.9 million.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Comparison of the six months ended June 30, 2026, with the six months ended June 30, 2025, including a reconciliation of GAAP to non-GAAP measures: