The Andersons Inc. released second-quarter earnings on August 3 that showed substantial year-over-year improvement. Net income attributable to the company reached $57 million, or $1.65 per diluted share, compared with $7.9 million, or $0.23 per share, in the same period of 2025. Adjusted net income totaled $74 million, or $2.15 per share, versus $8.4 million, or $0.24 per share, in the prior-year quarter.
The renewable fuels segment drove the earnings expansion, posting record second-quarter pretax income of $65 million, with adjusted figures reaching $88 million. The company benefited from record plant output, strong merchandising performance, $24 million in 45Z producer tax credits during the quarter, and gains from distillers corn oil and renewable identification number pricing. Segment adjusted EBITDA climbed to $103 million, more than triple the $30 million recorded a year earlier. The finalization of Renewable Volume Obligations early in the period also opened additional trading opportunities for the merchandising operation.
The agribusiness segment contributed more modest gains, with pretax income of $20 million on both GAAP and adjusted bases, up from $17 million in the prior-year quarter. Fertilizer margins expanded despite lower volumes, while merchandising benefited from elevated commodity prices and early-quarter market volatility. Operating cash flow for the quarter reached $488 million, up from $299 million a year earlier, supporting ongoing capital projects while maintaining long-term debt to EBITDA below the company’s 2.5-times target.
Certain financial positions raised questions about operational flexibility. Cash and cash equivalents fell to $66.5 million at quarter-end from $351 million a year earlier, while short-term debt increased to $314 million from $104 million. The company attributed much of this shift to working capital timing and investment spending rather than operational distress. In the agribusiness unit, gains in fertilizer and merchandising were partially offset by fuel surcharges, and management cautioned that drier conditions in western growing regions could pressure grain-asset profits in coming months.
Renewables segment profitability carries exposure to policy changes, as both the 45Z credits and Renewable Volume Obligation benefits depend on federal regulations. The quarter’s 20% effective tax rate reflected non-taxable 45Z income, while full-year guidance of 14% to 18% adjusted tax rate assumes continued credit availability. Hedge fund ownership increased to 31 funds from 29 in the prior quarter, while short interest remained at 4.12% of float. As of September 2, shares traded at a forward price-to-earnings multiple of 20.92.
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