The Andersons reports $8m Q2 net income, expands renewables business
US-based grain terminal operator the Andersons recently published its financial results for the second quarter ended June 30, 2025.
Reported net income and adjusted net income attributable to the Andersons during Q2 2025 totalled US$8 million, or US$0.23 per diluted share and $0.24 per diluted share on an adjusted basis. Adjusted gross operating profit meanwhile reached US$65 million.
The company also acquired the remaining 49.9 per cent ownership interest in the Andersons Marathon Holdings (TAMH) from a subsidiary of Marathon Petroleum Corporation for US$425 million, inclusive of US$40 million of working capital (a net purchase price of US$385 million). The transaction, which closed on Thursday, July 31, makes Andersons the full owner of TAMH, now renamed the Andersons Renewables.
"This transaction doubles our financial ownership in the ethanol industry, a key growth pillar within our renewables strategy," said the Andersons' President and CEO Bill Krueger.
Construction meanwhile continues on the Andersons' Houston port project, which was initiated to improve the efficiency and capacity of the company's grain operations and add export capacity for US soybean meal. Completion of the project is scheduled for the middle of 2026.
"Our businesses continue to generate strong cash flows, allowing us to fund a significant portion of our growth projects internally," added the Andersons' Vice President and CFO Brian Valentine. "As such, our debt remains at a modest level and we funded [the TAMH] purchase with cash on hand and existing credit facilities.
"As a result of this transaction, we will have unrestricted access to 100 per cent of the cash flows from the TAMH entity, which will give us more flexibility to deploy capital across the entire enterprise."
Valentine remarked that the company remains below its long-term debt to gross operating profit target of less than 2.5 times.
Valentine said the Andersons is, "pleased with the strength of our balance sheet."
Cash provided by operating activities was US$299 million and US$304 million in the second quarter of 2025 and 2024, respectively. Cash from operations before working capital changes in the same periods was US$43 million and US$89 million, respectively.
Cash spent on capital projects in the quarter totaled US$49 million, a US$20 million increase from 2024.
The Andersons' renewables segment reported pretax income of US$17 million and pretax income attributable to the company of US$10 million in the second quarter. For the same period in 2024, the segment reported pretax income of US$39 million and pretax income attributable to the company of US$23 million.
The company said its ethanol plants continue to run efficiently, resulting in higher year-over-year yields and production. Lower board crush, higher eastern corn basis, and increased natural gas costs led to lower overall margins.
Although later than expected, an uptick in the ethanol board crush occurred in July and is expected to remain through the summer driving season. This expectation is bolstered by strong demand, including exports, and an expected reduction in corn costs post-harvest.
