The Andersons, Inc. (Nasdaq: ANDE) reported record third-quarter net income attributable to the company of $46 million, or $1.36 per diluted share, for the period ended September 30, 2026 — more than doubling the $20 million, or $0.59 per diluted share, recorded in the same quarter a year earlier. Adjusted net income came in at $47 million, or $1.38 per diluted share, against $29 million adjusted in Q3 2025.
The Numbers
Total sales and merchandising revenues reached $2.8 billion for the quarter, up from $2.7 billion a year prior. Adjusted EBITDA of $101 million improved sharply from $78 million in Q3 2025. For the nine months ended September 30, 2026, net income attributable to the company totalled $136 million versus $28 million in the prior-year period, and year-to-date adjusted EBITDA of $333 million compares with $201 million through the same stretch of 2025. The company recorded income tax expense of $7 million for the quarter, yielding an effective tax rate of 13%, depressed by non-taxable 45Z credits; management guided to a full-year adjusted effective rate of 14% to 18%.
Renewables Leads, Agribusiness Improves
The Renewables segment was the headline driver, posting pretax income of $63 million — a record for a third quarter — against $43 million in Q3 2025. Operational efficiency at the company's four ethanol production facilities, lower eastern corn basis, and stronger co-product values all contributed. The quarter also captured $27 million of 45Z clean-fuel producer tax credits under the company's low-carbon intensity strategy, a figure management has already agreed to monetize through a sale of the majority of its 2026 credits, with proceeds expected before year-end. Renewables adjusted EBITDA reached $78 million, up from $67 million in the prior year. All four plants completed scheduled fall maintenance shutdowns during the period, including an extended outage at the Clymers, Indiana, facility in preparation for a debottlenecking project that is expected to bring an additional 30 million gallons of annual ethanol capacity online in mid-2027.
The Agribusiness segment recorded pretax income of $5 million and adjusted pretax income attributable to the company of $9 million, compared with $1 million and $2 million, respectively, in Q3 2025. Grain merchandising generated the largest year-over-year gain, capitalizing on higher commodity prices and elevated volatility driven by western drought and production uncertainty. Grain asset performance lagged the prior year due to a delayed eastern harvest and lower wheat space income. Agribusiness adjusted EBITDA rose to $40 million from $29 million. The company's Port of Houston soybean meal export facility — a previously announced organic growth project — is now operational, with shipments being booked through the remainder of 2026 and into 2027. Operators and grain merchandisers tracking North American agribusiness supply-chain developments will note that The Andersons sees market dislocations from the western drought as a potential source of additional merchandising opportunity in Q4.
Balance Sheet and Outlook
Capital expenditures for the quarter totalled $60 million, versus $67 million in Q3 2025. Cash used in operating activities was $124 million in Q3 2026, compared with cash provided of $234 million in the year-earlier period, a swing driven primarily by working-capital timing. Cash from operations before working capital changes — a metric the company uses to assess underlying cash generation — came in at $83 million, ahead of $68 million in Q3 2025. Long-term debt to EBITDA remains below the company's stated ceiling of 2.5 times, according to Executive Vice President and Chief Financial Officer Brian Valentine. Management cited growing worldwide demand for low-carbon intensity ethanol, expanding global blend rates, and healthy bio-based diesel markets as structural tailwinds heading into 2027. For food and beverage supply-chain participants dependent on grain and oilseed feedstock markets, the company's view that a solid eastern corn harvest will support space income and ethanol plant economics is a constructive near-term signal.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
