Document

"Trade had an excellent fourth quarter, with an early harvest, where we were able to accumulate higher-than-normal quality grain at good basis values. We also saw some improved merchandising opportunities and good results in our premium ingredients business. We are integrating Skyland Grain, LLC locations into our trade flows and this report includes two months of results from that recent investment. Renewables also had a very solid quarter but could not duplicate 2023 despite record ethanol production due to lower ethanol prices and co-product values. In Nutrient & Industrial, we had year-over-year improvement led by our manufactured product lines that helped offset soft ag supply chain results due to limited farmer engagement," said President and CEO Bill Krueger. "In these changing ag markets, I'm proud of our team."

"Looking forward, we see continued regulatory and geopolitical uncertainties coupled with potentially challenging agricultural economics. We also see signs of opportunity. We currently expect a significant increase in planted corn acres and continuing strong ethanol exports. Our mix of North American agribusiness and ethanol production assets along with our strength in merchandising, positions us well to withstand downward pressures from these market shifts," added Krueger. "In addition to the recent Skyland Grain investment, we are making progress on several longer-term capital investments that will enhance future results. We also continue to actively pursue growth in the Renewables space, both by lowering the carbon intensity of our ethanol plants as well as evaluating expansion and acquisition opportunities. In December, we announced some changes to improve the alignment of our commercial teams to serve our customers even better, gain operational efficiencies, and continue to drive growth. We are excited about the new Agribusiness and Renewables teams and are working hard to achieve our growth strategy."


$ in millions, except per share amounts
	Q4 2024		Q4 2023		Variance		YTD 2024		YTD 2023		Variance
Pretax Income	$	67.3	$	91.8	$	(24.5)	$	200.8	$	169.6	$	31.2
Pretax Income Attributable to the Company1	58.2		64.5		(6.3)		144.1		138.2		5.9
Adjusted Pretax Income (Loss) Attributable to the Company1	60.6		68.4		(7.8)		146.7		159.1		(12.4)
Trade1	53.6		47.0		6.6		94.6		83.3		11.3
Renewables1	16.0		32.7		(16.7)		79.8		97.7		(17.9)
Nutrient & Industrial1	3.5		2.1		1.4		18.9		25.7		(6.8)
Other1	(12.5)		(13.4)		0.9		(46.6)		(47.7)		1.1
Net Income Attributable to the Company	45.1		51.2		(6.1)		114.0		101.2		12.8
Adjusted Net Income Attributable to the Company1	46.9		54.6		(7.7)		116.7		118.3		(1.6)
Diluted Earnings Per Share (EPS)	1.31		1.49		(0.18)		3.32		2.94		0.38
Adjusted EPS1	1.36		1.59		(0.23)		3.40		3.44		(0.04)
EBITDA1	113.7		131.2		(17.5)		360.3		341.5		18.8
Adjusted EBITDA1	$	116.5	$	135.1	$	(18.6)	$	363.4	$	405.1	$	(41.7)

1 Non-GAAP financial measures; see appendix for explanations and reconciliations.

"Our businesses continued to generate solid operating cash flows into the fourth quarter. Our cash flows and lower commodity prices resulted in a cash position of more than $560 million at the end of the year. In addition, our debt remains at a modest level, inclusive of debt acquired as part of the Skyland Grain investment," said Executive Vice President and CFO Brian Valentine. "Our long-term debt to adjusted EBITDA ratio of 1.8 times is still well below our stated target of 2.5 times. We were pleased to be able to deploy more capital during the quarter and anticipate increased spending on some of the previously announced growth projects in 2025."

The portfolio mix of assets, ingredients, and merchandising businesses provides a solid foundation to benefit from large crops and carry markets, as well as tight, demand-driven markets. With a lower-than-expected corn carryout at the end of the year, an inverse has returned to the corn markets, which could result in an increase in corn acres planted and increased volatility in 2025. Domestic premium ingredient demand is also expected to stay solid and should continue to support recent capital growth investments.

Nutrient & Industrial recorded pretax income and pretax income attributable to the company of $3 million in the fourth quarter, an improvement from the prior year. The increased results are primarily due to improvements in manufactured products and one-time prior year expenses that did not repeat. Core agriculture product lines were down year-over-year on softer industry fundamentals. With high yields during harvest pulling more nutrients from the soil and an expected increase in corn acres planted, there may be an opportunity for increased volume in 2025.

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company’s filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein.

The Andersons, Inc., named in 2024 as one of The Americas' Fastest Growing Companies by the Financial Times and one of America's Climate Leaders by USA Today, is a diversified company rooted in agriculture that conducts business in the agribusiness and renewables sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.


	Three months ended December 31,				Twelve months ended December 31,
(in thousands, except per share data)	2024		2023		2024		2023
Sales and merchandising revenues	$	3,123,138	$	3,213,000	$	11,257,548	$	14,750,112
Cost of sales and merchandising revenues	2,910,028		2,995,286		10,563,622		14,004,749
Gross profit	213,110		217,714		693,926		745,363
Operating, administrative and general expenses	147,154		132,712		503,620		492,260
Asset impairment	—		—		—		87,156
Interest expense, net	10,266		8,101		31,760		46,867
Other income, net	11,560		14,860		42,211		50,483
Income before income taxes	67,250		91,761		200,757		169,563
Income tax provision	13,146		13,324		30,057		37,034
Net income	54,104		78,437		170,700		132,529


Net income attributable to noncontrolling interests	9,014		27,251		56,688		31,339
Net income attributable to The Andersons, Inc.	$	45,090	$	51,186	$	114,012	$	101,190

Earnings per share attributable to The Andersons, Inc. common shareholders:
Basic earnings:	$	1.32	$	1.52	$	3.35	$	3.00
Diluted earnings:	$	1.31	$	1.49	$	3.32	$	2.94


(in thousands)	December 31, 2024		December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	561,771	$	643,854
Accounts receivable, net	764,550		762,549
Inventories	1,286,811		1,166,700
Commodity derivative assets – current	148,801		178,083

Other current assets	88,344		55,777
Total current assets	2,850,277		2,806,963
Other assets:
Goodwill	127,856		127,856
Other intangible assets, net	69,345		85,579
Right of use assets, net	104,630		54,234

Other assets, net	101,055		87,010
Total other assets	402,886		354,679
Property, plant and equipment, net	868,151		693,365
Total assets	$	4,121,314	$	3,855,007

Liabilities and equity
Current liabilities:
Short-term debt	$	166,614	$	43,106
Trade and other payables	1,047,436		1,055,473
Customer prepayments and deferred revenue	194,025		187,054
Commodity derivative liabilities – current	59,766		90,849
Current maturities of long-term debt	36,139		27,561

Accrued expenses and other current liabilities	227,192		232,288
Total current liabilities	1,731,172		1,636,331
Long-term lease liabilities	65,312		31,659
Long-term debt, less current maturities	608,151		562,960
Deferred income taxes	55,005		58,581

Other long-term liabilities	61,838		49,089
Total liabilities	2,521,478		2,338,620
Total equity	1,599,836		1,516,387
Total liabilities and equity	$	4,121,314	$	3,855,007


	Three months ended December 31,				Twelve months ended December 31,
(in thousands)	2024		2023		2024		2023
Operating Activities


Net income	$	54,104	$	78,437	$	170,700	$	132,529
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	36,178		31,306		127,804		125,106
Bad debt expense, net	6,138		5,438		17,637		11,519
Stock-based compensation expense	3,611		3,493		13,629		12,857
Asset impairment	—		—		—		87,156
Deferred federal income tax	(1,997)		6,696		(2,911)		(1,596)






Other	1,862		(10,535)		(3,595)		(16,341)
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed:
Accounts and notes receivable	32,279		62,705		35,777		468,968
Inventories	(191,041)		(175,883)		87,906		572,235
Commodity derivatives	(34,322)		12,027		15,005		111,506
Other current and non-current assets	31,326		4,481		(28,050)		6,529
Payables and other current and non-current liabilities	330,673		232,498		(102,396)		(563,718)
Net cash provided by operating activities	268,811		250,663		331,506		946,750
Investing Activities
Acquisition of businesses, net of cash acquired	(19,611)		(313)		(29,172)		(24,698)
Purchases of property, plant and equipment and capitalized software	(55,957)		(41,725)		(149,187)		(150,443)

Property insurance proceeds	2,918		4,999		12,137		7,499
Proceeds from sale of business	—		—		—		10,318
Proceeds from sale of Rail assets	—		—		—		2,871


Other	168		423		3,148		574
Net cash used in investing activities	(72,482)		(36,616)		(163,074)		(153,879)
Financing Activities
Net (payments) receipts under short-term lines of credit	(64,897)		27,456		(91,951)		(233,696)
Proceeds from issuance of long-term debt	67,000		—		67,000		100,000
Payments of long-term debt	(62,940)		(6,886)		(83,589)		(49,620)
Distributions to noncontrolling interest owner	(14,970)		(2,114)		(102,295)		(46,418)
Dividends paid	(6,807)		(6,602)		(26,273)		(25,373)
Common stock repurchased	(2,295)		—		(2,295)		(1,747)



Payments of debt issuance costs	(2,851)		—		(2,851)		—

Value of shares withheld for taxes	(4)		(3)		(8,105)		(6,630)
Other	—		2		—		(509)
Net cash provided by (used in) financing activities	(87,764)		11,853		(250,359)		(263,993)
Effect of exchange rates on cash and cash equivalents	(859)		(101)		(156)		(293)
Increase (decrease) in Cash and cash equivalents	107,706		225,799		(82,083)		528,585
Cash and cash equivalents at the beginning of the period	454,065		418,055		643,854		115,269
Cash and cash equivalents at the end of the period	$	561,771	$	643,854	$	561,771	$	643,854


	Three months ended December 31,				Twelve months ended December 31,
(in thousands, except per share data)	2024		2023		2024		2023
Net income	$	54,104	$	78,437	$	170,700	$	132,529
Net income attributable to noncontrolling interests	9,014		27,251		56,688		31,339
Net income attributable to The Andersons, Inc.	45,090		51,186		114,012		101,190
Adjustments:
Transaction related compensation	2,536		3,212		11,104		7,818
Insurance recoveries	(4,446)		—		(9,650)		(16,080)
Gain on deconsolidation of joint venture	—		—		(3,117)		(6,544)
Acquisition costs	2,738		—		2,738		—
(Gain) loss on cost method investment	1,535		—		1,535		(4,798)
Asset impairment	—		—		—		45,413
Gain on sale of assets	—		—		—		(5,643)
Goodwill impairment	—		686		—		686
Income tax impact of adjustments1	(590)		(520)		42		(3,775)
Total adjusting items, net of tax	1,773		3,378		2,652		17,077
Adjusted net income attributable to The Andersons, Inc.	$	46,863	$	54,564	$	116,664	$	118,267

Diluted earnings per share attributable to The Andersons, Inc. common shareholders	$	1.31	$	1.49	$	3.32	$	2.94

Impact on diluted earnings per share	$	0.05	$	0.10	$	0.08	$	0.50
Adjusted diluted earnings per share attributable to The Andersons, Inc. common shareholders	$	1.36	$	1.59	$	3.40	$	3.44

Adjusted net income (loss) attributable to The Andersons, Inc. reflects reported net income (loss) available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company’s average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) per share amount for each specified item.


(in thousands)	Trade		Renewables		Nutrient & Industrial		Other		Total
Three months ended December 31, 2024
Sales and merchandising revenues	$	2,222,762	$	713,958	$	186,418	$	—	$	3,123,138
Gross profit	146,976		35,479		30,655		—		213,110
Operating, administrative and general expenses	95,504		10,901		27,811		12,938		147,154
Other income (loss), net	10,441		992		1,564		(1,437)		11,560
Income (loss) before income taxes	53,818		24,921		2,551		(14,040)		67,250
Income (loss) attributable to noncontrolling interests	1,018		8,941		(945)		—		9,014
Income (loss) before income taxes attributable to The Andersons, Inc.1	$	52,800	$	15,980	$	3,496	$	(14,040)	$	58,236
Adjustments to income (loss) before income taxes2	828		—		—		1,535		2,363
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1	$	53,628	$	15,980	$	3,496	$	(12,505)	$	60,599

Three months ended December 31, 2023
Sales and merchandising revenues	$	2,212,434	$	795,236	$	205,330	$	—	$	3,213,000
Gross profit	126,064		65,257		26,393		—		217,714
Operating, administrative and general expenses	88,097		7,933		24,091		12,591		132,712
Other income (loss), net	11,839		3,401		439		(819)		14,860
Income (loss) before income taxes	43,807		59,988		1,374		(13,408)		91,761
Income attributable to noncontrolling interests	—		27,251		—		—		27,251
Income (loss) before income taxes attributable to The Andersons, Inc.1	$	43,807	$	32,737	$	1,374	$	(13,408)	$	64,510
Adjustments to income (loss) before income taxes2	3,212		—		686		—		3,898
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1	$	47,019	$	32,737	$	2,060	$	(13,408)	$	68,408

2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $0.5 million difference in acquisition costs in the Trade segment for the three months ended December 31, 2024.


(in thousands)	Trade		Renewables		Nutrient & Industrial		Other		Total
Twelve months ended December 31, 2024
Sales and merchandising revenues	$	7,622,077	$	2,802,330	$	833,141	$	—	$	11,257,548
Gross profit	403,682		169,151		121,093		—		693,926
Operating, administrative and general expenses	316,390		35,493		103,238		48,499		503,620
Other income (loss), net	28,728		8,678		6,444		(1,639)		42,211
Income (loss) before income taxes	91,433		139,495		17,988		(48,159)		200,757
Income (loss) attributable to noncontrolling interests	1,018		56,615		(945)		—		56,688
Income (loss) before income taxes attributable to The Andersons, Inc.1	$	90,415	$	82,880	$	18,933	$	(48,159)	$	144,069
Adjustments to income (loss) before income taxes2	4,192		(3,117)		—		1,535		2,610
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1	$	94,607	$	79,763	$	18,933	$	(46,624)	$	146,679

Twelve months ended December 31, 2023
Sales and merchandising revenues	$	10,426,083	$	3,380,632	$	943,397	$	—	$	14,750,112
Gross profit	409,950		202,397		133,016		—		745,363
Operating, administrative and general expenses	308,470		32,737		103,342		47,711		492,260
Other income, net	29,988		15,056		2,391		3,048		50,483
Income (loss) before income taxes	96,234		91,175		25,049		(42,895)		169,563
Income attributable to noncontrolling interests	—		31,339		—		—		31,339
Income (loss) before income taxes attributable to The Andersons, Inc.1	$	96,234	$	59,836	$	25,049	$	(42,895)	$	138,224
Adjustments to income (loss) before income taxes2	(12,942)		37,906		686		(4,798)		20,852
Adjusted income (loss) before income taxes attributable to The Andersons, Inc.1	$	83,292	$	97,742	$	25,735	$	(47,693)	$	159,076


(in thousands)	Trade		Renewables		Nutrient & Industrial		Other		Total
Three months ended December 31, 2024
Net income (loss)	$	53,818	$	24,921	$	2,551	$	(27,186)	$	54,104
Interest expense (income)	8,095		649		1,857		(335)		10,266
Tax provision	—		—		—		13,146		13,146
Depreciation and amortization	12,559		14,079		8,585		955		36,178
EBITDA	74,472		39,649		12,993		(13,420)		113,694
Adjusting items impacting EBITDA:
Acquisition costs	3,193		—		—		—		3,193
Transaction related compensation	2,536		—		—		—		2,536
Insurance recoveries	(4,446)		—		—		—		(4,446)
Loss on cost method investment	—		—		—		1,535		1,535



Total adjusting items	1,283		—		—		1,535		2,818
Adjusted EBITDA	$	75,755	$	39,649	$	12,993	$	(11,885)	$	116,512

Three months ended December 31, 2023
Net income (loss)	$	43,807	$	59,988	$	1,374	$	(26,732)	$	78,437
Interest expense (income)	5,999		737		1,367		(2)		8,101
Tax provision	—		—		—		13,324		13,324
Depreciation and amortization	9,450		12,184		7,750		1,922		31,306
EBITDA	59,256		72,909		10,491		(11,488)		131,168
Adjusting items impacting EBITDA:
Transaction related compensation	3,212		—		—		—		3,212
Goodwill impairment	—		—		686		—		686





Total adjusting items	3,212		—		686		—		3,898
Adjusted EBITDA	$	62,468	$	72,909	$	11,177	$	(11,488)	$	135,066

Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company’s performance as it provides investors additional information about the company’s operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure.


(in thousands)	Trade		Renewables		Nutrient & Industrial		Other		Total
Twelve months ended December 31, 2024
Net income (loss)	$	91,433	$	139,495	$	17,988	$	(78,216)	$	170,700
Interest expense (income)	24,587		2,841		6,311		(1,979)		31,760
Tax provision	—		—		—		30,057		30,057
Depreciation and amortization	40,505		49,705		32,488		5,106		127,804
EBITDA	156,525		192,041		56,787		(45,032)		360,321
Adjusting items impacting EBITDA:
Transaction related compensation	11,104		—		—		—		11,104
Insurance recoveries	(9,650)		—		—		—		(9,650)
Acquisition costs	3,193		—		—		—		3,193
Gain on deconsolidation of joint venture	—		(3,117)		—		—		(3,117)
Loss on cost method investment	—		—		—		1,535		1,535


Total adjusting items	4,647		(3,117)		—		1,535		3,065
Adjusted EBITDA	$	161,172	$	188,924	$	56,787	$	(43,497)	$	363,386

Twelve months ended December 31, 2023
Net income (loss)	$	96,234	$	91,175	$	25,049	$	(79,929)	$	132,529
Interest expense (income)	35,234		6,385		7,016		(1,768)		46,867
Tax provision	—		—		—		37,034		37,034
Depreciation and amortization	36,109		51,408		29,268		8,321		125,106
EBITDA	167,577		148,968		61,333		(36,342)		341,536
Adjusting items impacting EBITDA:
Insurance recoveries	(16,080)		—		—		—		(16,080)
Gain on sale of assets	(5,643)		—		—		—		(5,643)
Transaction related compensation	7,818		—		—		—		7,818
Asset impairment including equity method investments	963		87,156		—		—		88,119
Gain on deconsolidation of joint venture	—		(6,544)		—		—		(6,544)
Goodwill impairment	—		—		686		—		686
Gain on cost method investment	—		—		—		(4,798)		(4,798)
Total adjusting items	(12,942)		80,612		686		(4,798)		63,558
Adjusted EBITDA	$	154,635	$	229,580	$	62,019	$	(41,140)	$	405,094


	Three months ended December 31,				Twelve months ended December 31,
(in thousands)	2024		2023		2024		2023
Cash provided by operating activities	$	268,811	$	250,663	$	331,506	$	946,750
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed:
Accounts receivable	32,279		62,705		35,777		468,968
Inventories	(191,041)		(175,883)		87,906		572,235
Commodity derivatives	(34,322)		12,027		15,005		111,506
Other current and non-current assets	31,326		4,481		(28,050)		6,529
Payables and other current and non-current liabilities	330,673		232,498		(102,396)		(563,718)
Total changes in operating assets and liabilities	168,915		135,828		8,242		595,520
Adjusting items impacting cash from operations before working capital changes:
Less: Insured inventory recoveries	—		—		—		(16,080)
Less: Unrealized foreign currency losses on receivables	—		7,270		—		(4,818)

Cash from operations before working capital changes	$	99,896	$	122,105	$	323,264	$	330,332

Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other current and non-current assets, and payables and other current and non-current liabilities; and adjusted by specific items from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company’s performance as it provides investors additional information about the company’s operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.