The Andersons, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported record third quarter net income attributable to The Andersons of $46 million ($1.36 per diluted share) and adjusted net income of $47 million ($1.38 per diluted share), compared to $20.1 million ($0.59 per share) and $28.5 million ($0.84 per share) in Q3 2025.
• Adjusted EBITDA for the quarter was $101 million, an increase from $78.3 million in Q3 2025.
• Pretax income attributable to the company was $53.2 million in Q3 2026 versus $19.9 million in Q3 2025.
• Year-to-date (YTD) net income attributable to the company was $136.2 million compared to $28.3 million in the prior year period.
• YTD adjusted net income attributable to the company was $158.9 million compared to $40.9 million in the prior year period.
• Sales and merchandising revenues for the quarter were $2.83 billion, up from $2.68 billion in Q3 2025.
• Cash used in operating activities for the quarter was $124 million, compared to $234 million provided in Q3 2025.
• Cash from operations before working capital changes was $83 million in Q3 2026 versus $68 million in Q3 2025.
• Capital expenditures totaled $60 million in the quarter, down from $67 million in the prior year period.
• Long-term debt to EBITDA remains below the target of 2.5 times.
• Effective tax rate for the quarter was 13%, impacted by non-taxable 45Z tax credits.

Guidance and Future Outlook

• Management anticipates market dislocations and a solid eastern grain belt harvest will provide opportunities in the fourth quarter and into 2027.
• The Port of Houston's soybean meal export project is operational, with shipments actively booked for the remainder of 2026 and into 2027.
• The ethanol de-bottlenecking project in Clymers, Indiana, is on track to add 30 million gallons of capacity in mid-2027.
• The company expects to recognize $27 million of 45Z tax credits from the sale of the majority of its 2026 credits, with cash expected later in the year.
• Full-year adjusted effective tax rate is anticipated to be approximately 14% to 18%.
• Management remains optimistic about opportunities in renewable fuels and feedstocks supply chains driven by worldwide demand for low-carbon fuels.

Business Segments and Product Lines

• Renewables: Reported record pretax income of $63 million, up from $46.3 million in Q3 2025, driven by efficient operations, higher co-product values, and lower eastern corn basis. Adjusted EBITDA was $78 million compared to $67 million in the prior year. Ethanol and corn-oil yields improved year-over-year. Merchandising results were lower due to foreign feedstock pressure and reduced run rates at bio-based diesel plants.
• Agribusiness: Reported pretax income of $5 million and adjusted pretax income of $9 million, compared to $1 million and $2 million respectively in Q3 2025. Adjusted EBITDA was $40 million versus $29 million in the prior year. Merchandising businesses improved due to higher commodity prices and volatility. Grain asset performance declined due to a later eastern harvest and reduced wheat space income.
• Other: Reported a pretax loss of $17.6 million for the quarter.

Market and Competitive Landscape

• Western grain belt weather variability and production uncertainty created increased market volatility and dislocations, benefiting merchandising opportunities.
• Western drought significantly impacted crop volumes and quality, while corn yields and quality remained favorable in the east.
• Ethanol market fundamentals remain supportive with anticipated continued strong demand for low carbon intensity ethanol driven by increasing global blend rates.
• Renewable feedstocks are expected to benefit from healthy bio-based diesel demand and supportive renewable fuel markets.
• Fall wheat planting is nearing completion with optimism for higher acreage next year.

Risks and Challenges

• Forward-looking statements involve risks including economic, weather, and regulatory conditions, competition, and geopolitical risk.
• Weather delays have pushed harvest behind the five-year average.
• High input costs could influence purchasing decisions for fall fertilizer applications.
• Western drought conditions may negatively impact western assets.
• Foreign feedstocks are pressuring domestic values.

Management Commentary and Tone

• President and CEO Bill Krueger stated results reflect significant year-over-year improvement in both Renewables and Agribusiness.
• Krueger highlighted operational execution, higher co-product values, and lower eastern corn basis as key drivers for Renewables.
• Krueger noted that Agribusiness improvement was driven by merchandising businesses executing on market opportunities amidst higher commodity prices.
• Executive Vice President and CFO Brian Valentine emphasized that strong earnings and cash flow enable continued investment in growth opportunities.
• Management expressed confidence in the balance sheet's flexibility to support the growth strategy.

Other Key Points

• The company recognized $27 million of 45Z producer tax credits in the quarter.
• All four production plants completed scheduled fall maintenance shutdowns, including an extended shutdown at the Clymers, Indiana, facility.
• The company sold the majority of its 2026 45Z tax credits, with cash receipts expected later in the year.
• YTD operating expenses were $467.7 million compared to $452.9 million in the prior year period.
• Interest expense, net, was $13.4 million for the quarter compared to $10.5 million in the prior year.
• The company has a trailing twelve-month adjusted EBITDA of $469.6 million as of September 30, 2026.