Key Highlights

  • USD 1.36 Diluted Earnings per Share for the third quarter, up from USD 0.59 a year earlier, while adjusted earnings reached USD 1.38 against USD 0.84.
  • Renewables posted record third-quarter pretax income of USD 63 million, helped by USD 27 million of 45Z producer tax credits recognized in the period.
  • Adjusted EBITDA rose to USD 101.4 million from USD 78.3 million, and nine-month adjusted EBITDA reached USD 333.1 million against USD 200.7 million.
  • Cash used in Operating Activities was USD 124 million in the quarter, compared with USD 234 million provided a year earlier.

Record Renewables Quarter Drives the Earnings Jump

The Andersons (NASDAQ:ANDE) reported third-quarter results on November 3, 2026, with Net Income attributable to the company of USD 46.4 million, or USD 1.36 per diluted share (GAAP). That compares with USD 20.1 million, or USD 0.59, in the third quarter of 2025. Adjusted net income was USD 47.2 million, or USD 1.38 a share, versus USD 28.5 million, or USD 0.84. Sales and merchandising revenues rose to USD 2.83 billion from USD 2.68 billion. Renewables pretax income was USD 63.0 million, while Agribusiness adjusted pretax income attributable to the company was about USD 9 million against about USD 2 million a year earlier. Management said efficient plant operations, higher co-product values and lower eastern corn basis lifted ethanol profitability even as board crush margins were lower than in the prior quarter.

How 45Z Credits and Grain Volatility Shaped Profit

The company is a North American agriculture and renewable fuels business, and the quarter shows how much of its profit now depends on policy. The 45Z producer tax Credit rewards low-carbon fuel production, and USD 27 million was booked in the quarter. The effective tax rate was 13% because those credits are not taxable, and management expects a full-year adjusted rate of about 14% to 18%. It also said it agreed to sell most of its 2026 45Z credits, with most of the cash expected later this year. In Agribusiness, merchandising improved on higher Commodity prices and volatility tied to western grain belt weather, while grain Assets weakened on a later eastern harvest and lower wheat space income.

Cash Flow, Short-Term Debt and the Clymers Project

The weaker point is cash. Operating Cash Flow for the nine months was an outflow of USD 30.0 million versus an inflow of USD 183.2 million, and short-term debt stood at USD 495.2 million on September 30, 2026, compared with USD 141.4 million a year earlier. Cash and equivalents were USD 58.3 million. Management said long-term debt to EBITDA remains below its target of under 2.5 times. Inventories, commodity derivative positions and the timing of 45Z cash receipts can swing working capital, so quarterly cash can diverge from earnings. On growth, the Port of Houston soybean meal export project is operational, and the Clymers, Indiana ethanol de-bottlenecking is on track to add 30 million gallons in mid-2027. Risks include weather, a western drought that hurt crop volumes and quality, and regulatory changes to credit rules. The Earnings Call is scheduled for November 4, 2026, at 8:30 a.m. ET.

Where Things Stand

The jump came mainly from Renewables, not from a broad rebound. The Andersons (NASDAQ:ANDE) more than doubled GAAP earnings per share to USD 1.36 as efficient plants, better co-product values and USD 27 million of 45Z credits lifted Renewables to a record, while merchandising gains added to Agribusiness. Offsetting that, Operating Cash Flow was negative and short-term borrowing rose. Next markers are the November 4 call, the Cash Receipt from the credit sale, fourth-quarter harvest-driven merchandising and the mid-2027 Clymers capacity addition.