The Andersons, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to The Andersons was $46 million ($1.36 diluted EPS) for Q3 2026, compared to $20.1 million ($0.59 diluted EPS) in Q3 2025.
• Adjusted net income attributable to The Andersons was $47 million ($1.38 diluted EPS) for Q3 2026, compared to $28.5 million ($0.84 diluted EPS) in Q3 2025.
• Adjusted EBITDA was $101 million for Q3 2026, up from $78.3 million in Q3 2025.
• Pretax income attributable to the company was $53.2 million for Q3 2026, compared to $19.9 million in Q3 2025.
• Sales and merchandising revenues were $2.83 billion for Q3 2026, compared to $2.68 billion in Q3 2025.
• Cash used in operating activities was $124 million for Q3 2026, compared to cash provided of $234 million in Q3 2025.
• Cash from operations before working capital changes was $83 million for Q3 2026, compared to $68 million in Q3 2025.
• Capital expenditures totaled $60 million in Q3 2026, compared to $67 million in Q3 2025.
• Long-term debt to EBITDA remains below the target of 2.5 times.

Guidance and Future Outlook:

• Management expects market dislocations and a solid eastern grain belt harvest to provide opportunities in Q4 2026 and into 2027.
• The Port of Houston's soybean meal export project is operational, with active bookings 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 anticipates a full-year adjusted effective tax rate of 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 for Q3 2026, compared to $43 million in Q3 2025. Adjusted EBITDA was $78 million, up from $67 million. Performance was driven by efficient operations, higher co-product values, and lower corn basis at eastern plants. The segment recognized $27 million in 45Z tax credits.
• Agribusiness: Reported pretax income of $5 million and adjusted pretax income of $9 million for Q3 2026, compared to $1 million and $2 million respectively in Q3 2025. Adjusted EBITDA was $40 million, up from $29 million. Merchandising businesses improved due to higher commodity prices and volatility, while 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 Q3 2026, compared to a loss of $17.7 million in Q3 2025.

Market and Competitive Landscape:

• Western grain belt weather variability and production uncertainty created market dislocations and volatility, benefiting merchandising opportunities.
• Corn yields and quality are favorable in the east, supporting space income opportunities and benefiting eastern ethanol plants.
• Large harvested corn acreage is expected to support fall fertilizer demand, though high input costs may influence purchasing decisions.
• Fall wheat planting is nearing completion with optimism for higher acreage next year.
• Foreign feedstocks pressured domestic values, and reduced run rates at bio-based diesel plants impacted Renewables merchandising results.

Risks and Challenges:

• Weather delays have pushed harvest behind the five-year average, with western droughts significantly impacting crop volumes and quality.
• High input costs could influence purchasing decisions for fall fertilizer applications.
• Forward-looking statements involve risks including economic, weather, regulatory conditions, competition, and geopolitical risk.

Management Commentary and Tone:

• President and CEO Bill Krueger stated that results reflect significant year-over-year improvement in both Renewables and Agribusiness.
• Krueger noted that ethanol and corn-oil yields improved year-over-year and that completed organic growth projects are delivering at or above original estimates.
• Executive Vice President and CFO Brian Valentine highlighted 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 announced an agreement to sell the majority of its 2026 45Z tax credits, with most cash expected to be received later in the year.
• Income tax expense for the quarter was $7 million, resulting in an effective tax rate of 13%, impacted by non-taxable 45Z tax credits.
• Common stock repurchases totaled $19.1 million for the nine months ended September 30, 2026.
• Dividends paid totaled $20.4 million for the nine months ended September 30, 2026.
• The company recorded $27 million of 45Z tax credits in the quarter as a result of low-carbon strategies.