The Andersons Q3 Profit Hits Record $46.4 Million as Renewables Grows

The Andersons (ANDE ) announced its third-quarter results on November 3, 2026, reporting record third-quarter net income attributable to the company of $46.4 million for the period ended September 30, 2026, compared with $20.1 million a year earlier. Diluted earnings per share rose to $1.36 from $0.59, while Renewables also set a third-quarter pretax income record.

Sales and merchandising revenues increased to $2.834 billion from $2.678 billion, and gross profit rose to $182.0 million from $170.9 million. Adjusted net income attributable to the company was $47.2 million, or $1.38 per diluted share, compared with $28.5 million, or $0.84, in the prior-year quarter. The only third-quarter 2026 adjustment was $1.0 million of pretax severance expense, or $756,000 after tax, leaving reported earnings close to the adjusted measure. Adjusted EBITDA, which the company defines as earnings before interest, taxes, depreciation and amortization, with further adjustments for specified items, was $101.4 million versus $78.3 million.

Renewables Leads the Earnings Improvement

Renewables revenue climbed to $984.8 million from $688.8 million, while pretax income increased to $63.0 million from $43.5 million. President and Chief Executive Officer Bill Krueger attributed the production improvement to efficient plant operations, higher co-product values and lower corn basis at the eastern plants, and said ethanol and corn-oil yields improved year over year.

The segment’s results included $27 million of 45Z producer tax credits, connecting a significant part of the quarter’s earnings to its low-carbon strategies. The non-taxable 45Z credits also affected the company’s 13% effective tax rate.

The strength was not uniform. Board crush margins declined sequentially, and merchandising results fell year over year as foreign feedstocks pressured domestic values and bio-based diesel plants reduced run rates. All four production plants completed scheduled fall maintenance during the quarter, including an extended shutdown at Clymers, Indiana, to prepare for future debottlenecking.

Agribusiness Improves Despite Lower Revenue

Agribusiness revenue declined to $1.849 billion from $1.989 billion, but pretax income rose to $5.2 million from $1.5 million. Adjusted pretax income attributable to The Andersons reached $8.8 million, compared with $2.5 million. Krueger said merchandising delivered the segment’s largest year-over-year improvement as higher commodity prices and volatility created opportunities amid western grain belt weather variability and production uncertainty.

Grain asset performance declined because of a later eastern harvest and lower wheat space income, while fertilizer results were comparable year over year in a seasonally low quarter. Western drought significantly affected crop volumes and quality, but eastern corn yields and quality were favorable. “We expect market dislocations and a solid eastern grain belt harvest to provide opportunities in the fourth quarter and into 2027,” Krueger said.

Working Capital Offsets Stronger Earnings

The cash-flow figures supplied the main qualification to the earnings record. Operating activities used $124.2 million of cash in the quarter, compared with $233.9 million provided a year earlier. Cash from operations before working-capital changes, a company-defined measure that excludes changes in operating assets and liabilities, improved to $83.4 million from $68.5 million.

Those working-capital movements reduced quarterly operating cash by $207.7 million, after adding $165.4 million in the third quarter of 2025. Earnings and pre-working-capital cash generation therefore improved together, but the balance-sheet movements kept reported operating cash flow negative.

Capital-project spending totaled $60 million, down from $67 million, covering growth investments and maintenance of existing operations. Chief Financial Officer Brian Valentine disclosed a recent agreement to sell the majority of the company’s 2026 45Z tax credits, with most of the cash expected later in 2026, and said long-term debt to EBITDA remained well below the company’s target of less than 2.5 times.

Krueger said completed organic growth projects were delivering at or above their original estimates and identified two operating milestones: the Port of Houston soybean-meal export project is operational, with shipments being booked for the remainder of 2026 and into 2027, and the Clymers ethanol debottlenecking project remains on track to bring an additional 30 million gallons online in mid-2027.

The central question for subsequent results is whether expected tax-credit proceeds and new export and ethanol capacity coincide with stronger cash conversion, after working-capital movements drove operating cash flow negative despite record third-quarter earnings.