Andersons, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 3 November 2026: press release. Guidance figures: 1 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and EPS rose: Net income attributable to the company was $46.4 million, or $1.36 diluted EPS, against $20.1 million, or $0.59, a year earlier. Adjusted EPS was $1.38 versus $0.84. Adjusted EBITDA was $101.4 million, up from $78.3 million. Source
• Renewables drove the quarter: Renewables pretax income was $63 million against $43 million a year earlier. Management attributed the result to efficient plant operations and higher co-product values. Source
• Agribusiness pretax income rose: Agribusiness pretax income was $5 million and adjusted pretax income attributable was $9 million, against $1 million and $2 million a year earlier. Merchandising showed the largest improvement. Source
• Soybean meal export project operational: The Port of Houston soybean meal export project is operational, and the company is booking shipments through 2026 and into 2027. The second-quarter release had expected it in the fourth quarter. Source
• Western drought hit crop volumes: Yields varied sharply between the eastern and western grain belt. Management said the western drought significantly affected crop volumes and quality, which may weigh on western assets. Source
• Operating cash used in quarter: Operating activities used $124 million in the quarter, against $234 million provided a year earlier. Before working capital changes, cash from operations was $83 million versus $68 million. Source
• Majority of 2026 45Z credits sold: The company announced a recent agreement to sell the majority of the 2026 45Z tax credits it is generating, with most of the cash expected later this year. Source
• Clymers de-bottlenecking on track: The Clymers, Indiana ethanol de-bottlenecking project remains on track to add 30 million gallons in mid-2027. Source

“Our third quarter results reflect significant year-over-year improvement in both Renewables and Agribusiness,”

President and CEO Bill Krueger

Guidance

What changed from last quarter

• Guidance kept: The full-year adjusted effective tax rate range of approximately 14% to 18% was repeated without change from the second-quarter release. Source
• New: The company announced a recent agreement to sell the majority of the 2026 45Z tax credits it is generating, with most of the cash expected later this year. Source
• New: The Port of Houston soybean meal export project is now operational. The second-quarter release had expected it to be operational in the fourth quarter. Source
• New: The Clymers de-bottlenecking project was described in the second-quarter release only as being prepared for. The third-quarter release gives a 30 million gallon addition in mid-2027. Source

Results and growth drivers

• Net income and EPS rose: Net income attributable to the company was $46.4 million, or $1.36 diluted EPS, against $20.1 million, or $0.59, a year earlier. Adjusted EPS was $1.38 versus $0.84. Adjusted EBITDA was $101.4 million, up from $78.3 million. Source
• Renewables drove the quarter: Renewables pretax income was $63 million against $43 million a year earlier. Management attributed the result to efficient plant operations and higher co-product values. Source
• 45Z credits recognized in quarter: The company recognized $27 million of 45Z tax credits in the quarter, which management linked to its low-carbon strategies. The second-quarter figure was $24 million. Source
• Year-to-date earnings up sharply: Nine-month net income attributable was $136.2 million against $28.3 million. Nine-month adjusted EPS was $4.63 versus $1.19, and adjusted EBITDA was $333.1 million against $200.7 million. Source
• Other category loss held steady: The Other category reported a pretax loss of $17.6 million for the quarter, against $17.7 million a year earlier. Source

Segments and regions

• Agribusiness pretax income rose: Agribusiness pretax income was $5 million and adjusted pretax income attributable was $9 million, against $1 million and $2 million a year earlier. Merchandising showed the largest improvement. Source
• Grain assets earned less: Grain asset performance was down from 2025, which the company attributed to a later eastern harvest and a decline in space income for wheat. Source
• Agribusiness EBITDA higher: Agribusiness adjusted EBITDA was $40 million for the quarter, against $29 million in 2025. Source
• Renewables plant profitability improved: Management said board crush margins were lower year over year, but overall plant profitability improved. Renewables merchandising results were lower than last year. Source
• Renewables adjusted EBITDA higher: Renewables adjusted EBITDA was $78 million for the quarter, against $67 million in 2025. Source

“The completed organic growth projects we have discussed in past quarters are delivering at or above our original estimates.”

President and CEO Bill Krueger

Products and customers

• Soybean meal export project operational: The Port of Houston soybean meal export project is operational, and the company is booking shipments through 2026 and into 2027. The second-quarter release had expected it in the fourth quarter. Source
• Fertilizer seasonally low in quarter: Management said the third quarter is seasonally low for fertilizer, and fertilizer results were comparable with a year earlier. Source
• Low-carbon ethanol demand expected: Management said it anticipates continued demand for low-carbon-intensity ethanol, citing rising global blend rates and favorable domestic blending economics. Source
• Foreign feedstocks pressured domestic values: Merchandising results were lower than last year because foreign feedstocks pressured domestic values, and bio-based diesel plants ran at reduced rates. Source

Costs, margins and pricing

• Operating expenses fell: Gross profit was $182.0 million against $170.9 million. Operating, administrative and general expenses fell to $149.2 million from $172.6 million. Source
• Interest expense up, other income down: Net interest expense was $13.4 million against $10.5 million a year earlier. Other income, net was $31.3 million against $38.0 million. Source
• Quarterly effective tax rate 13%: The company recorded $7 million of income tax expense, an effective rate of 13%. Management said the rate was affected by non-taxable 45Z credits. Source
• Legal settlement costs in nine months: Legal settlement and related expenses totaled $18.7 million for the nine months. None was recorded in the third quarter. Source

“We are also pleased to announce a recent agreement to sell the majority of the 2026 45Z tax credits that we are generating, with most of the cash expected to be received later this year.”

Executive Vice President and CFO Brian Valentine

Demand and the order book

• Western drought hit crop volumes: Yields varied sharply between the eastern and western grain belt. Management said the western drought significantly affected crop volumes and quality, which may weigh on western assets. Source
• Harvest behind five-year average: Weather delays left the harvest behind the five-year average. Management said progress typically speeds up once conditions allow. Source
• Volatility seen aiding merchandising: Management expects market dislocations and a solid eastern harvest to provide merchandising opportunities in the fourth quarter and into 2027. Source
• Fall fertilizer demand faces input costs: Large harvested corn acreage is expected to support fall fertilizer demand, while high input costs could affect purchasing decisions. Source

Capital, cash and shareholder returns

• Operating cash used in quarter: Operating activities used $124 million in the quarter, against $234 million provided a year earlier. Before working capital changes, cash from operations was $83 million versus $68 million. Source
• Capital spending slightly lower: Capital project spending was $60 million, against $67 million in 2025. Management said the spending covers growth investments and maintenance of existing operations. Source
• Majority of 2026 45Z credits sold: The company announced a recent agreement to sell the majority of the 2026 45Z tax credits it is generating, with most of the cash expected later this year. Source
• Short-term debt higher: Short-term debt was $495.2 million at September 30, 2026, against $249.4 million at December 31, 2025. Management said long-term debt to EBITDA is well below its target of less than 2.5 times. Source
• Dividends and buybacks year to date: Nine-month dividends paid were $20.4 million and common stock repurchased was $19.1 million, against $19.9 million and $15.4 million a year earlier. Source

Strategy and investment

• Clymers de-bottlenecking on track: The Clymers, Indiana ethanol de-bottlenecking project remains on track to add 30 million gallons in mid-2027. Source
• Organic projects at or above estimates: Management said completed organic growth projects discussed in past quarters are delivering at or above original estimates. Source
• Carbon intensity reduction pursued: Management said it is pursuing further opportunities to reduce carbon intensity at all plants, to maximize the value of low-carbon ethanol. Source
• Fall maintenance completed at four plants: All four production plants completed scheduled fall maintenance in the quarter, including an extended Clymers shutdown in preparation for future debottlenecking. Source

Coming up, as management said on 3 November 2026

• Clymers capacity due mid-2027: The Clymers de-bottlenecking project is expected to allow an additional 30 million gallons to come online in mid-2027. Source
• Soybean meal shipments booking: The company is actively booking soybean meal export shipments through the Port of Houston for the remainder of 2026 and into 2027. Source
• Fourth quarter and 2027 opportunities: Management expects market dislocations and a solid eastern harvest to provide opportunities in the fourth quarter and into 2027. Source

Risks management discussed

• External: Western drought significantly affected crop volumes and quality, which management said may have a negative impact on western assets. Source
• External: Weather delays left the harvest behind the five-year average. Source
• External: Foreign feedstocks pressured domestic values, lowering merchandising results compared with last year. Source
• Demand: High input costs could influence growers' fall fertilizer purchasing decisions. Source
• Operational: Grain asset performance was down from 2025 because of a later eastern harvest and lower space income for wheat. Source

Earlier plans management reported on

• On track: Management states the Clymers project remains on track to add 30 million gallons in mid-2027. Source
• Met: The second-quarter release expected the Port of Houston export capabilities to be operational in the fourth quarter. The third-quarter release states the project is now operational.
• Met: Management states completed organic growth projects are delivering at or above original estimates. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.