The Andersons, Inc.

In Q2 2026, The Andersons reported net income attributable to The Andersons of $57 million, or $1.65 per diluted share, and adjusted net income of $74 million, or $2.15 per diluted share, versus adjusted net income of $8 million, or $0.24 per diluted share in Q2 2025. Gross profit increased over 40% year over year, adjusted pretax earnings rose to $93 million from $15 million, and adjusted EBITDA was $140 million versus $65 million last year. Agribusiness adjusted pretax income was $20 million versus $17 million, and Renewables adjusted pretax income was $88 million versus $10 million; Renewables also recorded $24 million of 45Z tax credits. Cash flow from operations before working capital was $113 million versus $43 million, Q2 capital spending was $76 million versus $49 million, and long-term debt-to-EBITDA was 1.3x. For 2026, management expects capital spending of approximately $225 million excluding acquisitions and a full-year adjusted effective tax rate of 14% to 18%. On 45Z, management said it still expects $90 million to $100 million for the year.

Bill Krueger emphasized that the quarter reflected strong execution in an unpredictable first half and was led by record renewables earnings and improved agribusiness performance. He pointed to supportive policy developments for U.S. corn and soybeans, including the finalized RVO and updated 45ZCF GREET model, and said the company’s diversified portfolio and growth projects should support shareholder value. His tone was confident but measured, repeatedly noting weather, policy, and geopolitical variables that could still affect the back half of the year.

Brian Valentine highlighted the hard numbers: $57 million of net income, $74 million of adjusted net income, $93 million of adjusted pretax earnings, and $140 million of adjusted EBITDA. He also called out gross profit up over 40%, cash flow from operations before working capital of $113 million, and capital spending of $76 million in the quarter, while reiterating full-year capex of about $225 million excluding acquisitions. On balance sheet and capital allocation, he said long-term debt-to-EBITDA was 1.3x versus a target of less than 2.5x, and noted the company has a strong balance sheet to support acquisitions and organic growth. He also guided to a 14% to 18% full-year adjusted effective tax rate and $90 million to $100 million of 45Z tax credits for 2026.

Analysts pressed management on fertilizer seasonality, elevated fertilizer prices, and Skyland/Western Belt crop conditions; management said fertilizer activity was slightly more weighted to Q1, Q2 pricing dropped late in the quarter, and the uplift came from efficiencies, integration, and good volume placement rather than just prices. On ethanol, questions focused on blend-rate durability, 45Z cadence, and SRE risk; management said blend rates should continue rising at roughly recent trends, 45Z should total $90 million to $100 million for the year, and small-refinery exemptions do not appear material to The Andersons. Management also said the Houston soybean meal export project is progressing toward Q4 operation and that it has been working for months with destination customers to build the required book.