Andersons Net Income Rises on Renewables Growth
The company reported $56.6 million in net income attributable to shareholders for the second quarter.
The Andersons (ANDE), an agricultural services and industrial company, reported a substantial increase in second-quarter net income attributable to the company, which rose to $56.6 million from $7.9 million in the prior-year period.
The result reflects a sharp acceleration in profitability driven by the company's energy transition efforts. Adjusted EBITDA for the quarter reached $140.3 million, more than doubling the $65.2 million reported in the second quarter of 2024. This figure also represents a sequential increase from the $91.5 million recorded in the first quarter of 2025.
The Renewables segment served as the primary catalyst for the growth. The unit reported record pretax income of $65 million and adjusted pretax income of $88.4 million, compared to $17 million pretax and $9.6 million adjusted pretax income in the second quarter of 2024. Adjusted EBITDA for the segment grew to $103 million from $30 million in the same period last year.
Tax incentives played a role in the segment's performance. Its low-carbon strategy contributed $24 million in 45Z tax credits during the quarter.
Agribusiness also saw modest gains. Adjusted pretax income attributable to the company rose to $20.3 million from $16.8 million in the second quarter of 2024. This increase was due to higher fertilizer margins, which offset lower volumes. Adjusted EBITDA for the segment increased to $53 million from $46 million.
Cash flow improved alongside earnings. Cash provided by operating activities rose to $488 million from $299 million in the prior-year quarter. Cash from operations before working capital changes increased to $113 million from $43 million.
Looking forward, the company expects soybean meal export capabilities at the Port of Houston to be operational in the fourth quarter of 2025. The company anticipates a full-year adjusted effective tax rate between 14% and 18%.