The Andersons Hits Record Q4 Profit on Renewable Fuels Boom

MAUMEE, Ohio – February 17, 2026 – The Andersons, Inc. (Nasdaq: ANDE) announced record-breaking fourth-quarter financial results, powered by an exceptionally strong performance in its Renewables segment that underscored the success of its strategic investments in biofuels. The agricultural giant reported a record adjusted net income of $70 million, or $2.04 per diluted share, for the quarter ending December 31, 2025, demonstrating remarkable momentum even as its Agribusiness division navigated what company leadership described as "challenging ag markets."

The results highlight a pivotal moment for the company, where its focus on renewable energy is not just supplementing its traditional agricultural operations but is becoming a primary engine for growth and profitability. This performance stands in contrast to mixed results from some industry peers, positioning The Andersons as a deft navigator of both volatile commodity markets and the burgeoning green economy.

The Renewable Fuels Engine

The standout story of the quarter was the Renewables segment, which posted a staggering $54 million in pretax income, a massive leap from the $17 million attributable to the company in the same period last year. This surge was driven by a confluence of factors, including record production at the company's ethanol plants, solid merchandising, and the significant financial tailwind of new government biofuels policies.

A key contributor was the Section 45Z Clean Fuel Production Credit, which became effective at the start of 2025. The Andersons reported that these tax credits accounted for $15 million of its fourth-quarter income, bringing the full-year benefit to $35 million. This federal incentive, designed to reward producers for lowering the carbon intensity (CI) of their fuel, is reshaping the economics of the ethanol industry. For efficient producers like The Andersons, it can effectively double plant income, creating a powerful motive to invest in low-carbon technologies and feedstocks.

"Our record fourth quarter results reflect solid execution in both Renewables and Agribusiness," said President and CEO Bill Krueger in a statement. "Recent investments in both businesses, including full ownership of the ethanol plants, contributed to this quarter's financial performance."

The company's operational excellence was also on full display. Its ethanol facilities achieved record production volumes, capitalizing on ethanol board crush margins that improved by $0.15 per gallon over the prior year. This efficiency helped offset headwinds from a firmer corn basis and higher natural gas expenses. Looking ahead, the company anticipates continued support for ethanol fundamentals from favorable biofuels policies, strong export demand, and seasonal increases in summer gasoline consumption.

Harvesting Resilience in a Tough Market

While Renewables captured the spotlight, The Andersons' core Agribusiness segment demonstrated notable resilience, recording $46 million in pretax income for the quarter. This steady performance was achieved against a backdrop of difficult agricultural markets in 2025, which were characterized by financial stress for many farmers as lower commodity prices for staples like corn failed to keep pace with elevated production input costs.

The Andersons successfully weathered these conditions by leveraging its diversified geographic footprint and executing with precision. The company's western assets, including the recently acquired Skyland Grain locations, capitalized on a record corn harvest by securing large corn and sorghum positions at favorable prices. This strategy paid dividends with strong basis appreciation and the resumption of sorghum exports through the company's Houston port elevator.

In contrast, the company's eastern assets benefited from different market dynamics. Increased corn demand from ethanol producers and export programs drove high elevation margins, though it also kept basis levels elevated, potentially limiting merchandising opportunities in the region moving into 2026.

Krueger praised the company's ability to manage these regional complexities, stating, "Our Skyland locations were able to accumulate large corn and sorghum positions at favorable values and saw the return of sorghum exports through our Houston port elevator. Eastern assets realized seasonally high elevation margins on higher volumes from increased corn demand... I'm pleased with our ability to serve our customers."

A Blueprint for Growth and Stability

Underpinning the strong quarterly performance is a disciplined financial strategy that provides a robust foundation for future growth. The company's balance sheet remains exceptionally strong, with a long-term debt-to-adjusted-EBITDA ratio of 1.8 times, comfortably below its stated target of less than 2.5 times.

"Our businesses generated solid operating cash flows into the fourth quarter on improved earnings, allowing us to continue to fund growth projects," noted Executive Vice President and CFO Brian Valentine. "We are pleased with the strength of our balance sheet and the flexibility it provides as we execute against our strategy."

This financial flexibility is being actively deployed into a series of strategic capital projects. The company is progressing on a newly announced $60 million investment to expand its Clymers, Indiana, ethanol facility, which will boost its annual capacity by 30 million gallons by mid-2027. Critically, the project includes plans to explore carbon capture and sequestration (CCS) by drilling a test well, a move that would further lower the plant's carbon intensity and maximize benefits from the 45Z tax credit program.

Other key investments are also moving forward. The company recently began operations at a new mineral processing facility in Carlsbad, New Mexico, and is completing a multi-year expansion of its export terminal at the Port of Houston. Later this quarter, it expects to begin operating a bio-based diesel feedstock storage and blending facility, further deepening its commitment to the renewable fuels ecosystem. "We intend to actively pursue additional growth projects, including lowering the carbon intensity of our ethanol plants as well as evaluating process improvements and further expansion and acquisition opportunities," Krueger added.

Standing Out Among Peers

The Andersons' fourth-quarter success is even more striking when viewed in the context of the broader industry. While the company celebrated record adjusted earnings, some of its larger, more diversified competitors reported more muted results.

For example, Archer-Daniels-Midland (ADM) saw a 31% year-over-year decrease in operating profit for its Ag Services & Oilseeds segment in Q4, citing weaker soybean crush margins and export activity. ADM specifically noted that "uncertainty around U.S. biofuel policy created a challenging operating environment" in 2025—the very policy environment The Andersons successfully leveraged. Similarly, while Bunge Global SA beat analyst expectations, it issued a conservative outlook for 2026 due to "dynamic market conditions."

In contrast, Green Plains Inc., a more focused ethanol producer, mirrored The Andersons' success, reporting a significant earnings beat and crediting the 45Z tax credits for $23.4 million of its Q4 income. This comparison suggests that companies with a clear, well-executed strategy in the renewables space are currently outperforming more diversified players struggling with broader market volatility. The Andersons' ability to deliver strong results in both its Renewables and Agribusiness segments demonstrates a balanced and potent strategy that is well-positioned for the evolving agricultural and energy landscapes.