Key Highlights

  • Diluted EPS came in at USD 1.36 for the third quarter versus USD 0.59 a year earlier, and adjusted EPS reached USD 1.38 against USD 0.84.
  • Renewables produced a record third-quarter pretax income of USD 63 million, helped by USD 27 million of 45Z producer tax credits recorded in the period.
  • Adjusted EBITDA moved up to USD 101.4 million from USD 78.3 million, and nine-month adjusted EBITDA hit USD 333.1 million compared with USD 200.7 million.
  • Operating activities used USD 124 million of cash this quarter, against USD 234 million that was provided in the same quarter last year.

Renewables Records a Quarter as Earnings Accelerate

The Andersons (NASDAQ:ANDE) published third-quarter results on November 3, 2026. GAAP Net Income attributable to the company was USD 46.4 million, or USD 1.36 per diluted share, compared with USD 20.1 million, or USD 0.59, a year earlier. Adjusted net income rose to USD 47.2 million, or USD 1.38 a share, from USD 28.5 million, or USD 0.84. Sales and merchandising Revenue increased to USD 2.83 billion from USD 2.68 billion. Renewables pretax income reached USD 63.0 million, and Agribusiness adjusted pretax income attributable to the company was about USD 9 million, up from about USD 2 million. Leadership credited efficient plants, stronger co-product values and a narrower eastern corn basis for better ethanol margins, even though board crush margins fell from the previous quarter.

45Z Credits and Grain Swings Shape the Profit Mix

This is an agriculture and renewable fuels business, and the quarter illustrates how heavily its profit now hinges on policy. The 45Z producer Credit subsidizes low-carbon fuel output, and USD 27 million of it landed in the quarter. Since those credits are untaxed, the effective rate dropped to 13%, and management projects a full-year adjusted rate of about 14% to 18%. The company agreed to sell most of its 2026 45Z credits, with the bulk of proceeds expected later this year. Agribusiness merchandising gained from higher Commodity prices and Volatility linked to weather in the western grain belt, while grain Assets slipped because of a later eastern harvest and reduced wheat space income.

Cash Flow, Short-Term Borrowing and the Clymers Expansion

Cash is where the story weakens. Nine-month operating Cash Flow was negative USD 30.0 million, compared with a positive USD 183.2 million a year before, and Short-Term Debt reached USD 495.2 million on September 30, 2026, up from USD 141.4 million. Cash and equivalents amounted to USD 58.3 million. Management noted that long-term debt to EBITDA remains below its target of under 2.5 times. Inventory, commodity hedges and the timing of 45Z receipts can swing working capital, so quarterly cash may not track earnings. Growth projects include the operational Port of Houston soybean meal export Facility and the Clymers, Indiana ethanol debottlenecking, scheduled to add 30 million gallons in mid-2027. Risks include weather, a western drought that reduced crop volumes and quality, and regulatory changes to credit rules. The Earnings Call takes place November 4, 2026 at 8:30 a.m. ET.

Where Things Stand

Renewables, rather than a broad recovery, drove diluted EPS to USD 1.36 from USD 0.59. The Andersons (NASDAQ:ANDE) more than doubled GAAP EPS as efficient plants, stronger co-product values and USD 27 million of 45Z credits pushed Renewables to a record, with merchandising adding to Agribusiness. Operating Cash Flow turned negative and short-term borrowing rose, which offsets the gains. Next markers are the November 4 call, the cash from the credit sale, fourth-quarter harvest-linked merchandising and the Clymers capacity addition due in mid-2027.