The Andersons, Inc. Q4 FY2025 earnings call

Bill Krueger thanked the team for hard work. Fall harvest in Western Grain Belt had larger - than - expected volumes, exports of wheat and sorghum increased. Eastern Grain Belt focused on sourcing corn for export and ethanol demand. Renewables acquired full ownership of ethanol plants, announced investment in Clymers Indiana facility, and planned to begin operations at a renewable feedstock storage and blending facility. Agribusiness continued improvements in Skyland asset footprint, worked on Port of Houston expansion project and mineral processing facility buildout

Agribusiness: Fourth quarter pretax income was $46 million and adjusted pretax income attributable was $45 million, compared to $56 million in 2024. Adjusted EBITDA for fourth quarter was $80 million vs $88 million in 2024, full year adjusted EBITDA was $187 million vs $218 million in 2024. Renewables: Fourth quarter pretax income attributable to the company was $54 million, a significant increase from $17 million in 2024. EBITDA in fourth quarter of 2025 was $69 million vs $41 million in 2024, full year adjusted EBITDA was $203 million vs $189 million in 2024

Expect better financial results in Agribusiness in 2026 with more certainty in global grain markets. Renewables expect ongoing domestic and global demand to support ethanol prices and volume. Anticipate several large capital projects completed in 2026, including completion of grain elevator upgrades, soybean meal export capacity online, and second phase of mineral processing facility. Expect 45Z tax credits to increase in 2026 and optimistic about year - round E15 legislation

Q: Congratulations on a really great end of the year here. First, I think the biggest surprise to me in the quarter was really the strength of the legacy Skyland business. I'm wondering if you can elaborate on a couple of things. First of all, was that performance something that kind of surprised you guys? Or did that fall in line with your expectations throughout the quarter? And then second, with 1 -- with a full year now of Skyland integrated, can you break down the EBITDA contribution of that business within 2025.

A: Bill Krueger said the large fall harvest made the performance not surprising. Brian Valentine said when originally talking about the transaction, they expected a run rate of $30 million to $40 million per year, last year it was about half that range, and it finished the year just shy of $20 million Q: You guys talked about the kind of outlook for fertilizer application this year. I'm wondering, kind of given the kind of big variables that you outlined, how you're positioning that business here going into the spring application season. Has kind of the relative uncertainty here kind of change your kind of inventory build thus far in the season? Or are you really -- is really the strategy in '26 unchanged relative to the historic years despite the relative uncertainty that I think is in this space.

A: Bill Krueger said in the Western U.S., substantial applications of ammonia were seen due to a nearly perfect application season, and in the east, they are well poised for stronger - than - normal applications in Q1 and early Q2. The strategy in '26 is not completely unchanged but has considerations based on various factors Q: Around the agribusiness segment outlook for 2026. And I'm just wondering if you can highlight the biggest potential profit opportunities for the Agribusiness segment and '26 versus '25. And kind of like what needs to fundamentally happen to make these realization?

A: Bill Krueger said the biggest potential profit opportunities include more certainty around policy on exports in the first half of 2026, more nitrogen applications due to higher - than - normal planted acres, and continued biofuels policy with RVOs coming out as proposed Q: About the strength in the fourth quarter earnings was very apparent. And I'm just wondering about momentum in the first quarter, '26, particularly with the ethanol business. So I was hoping you could just update us on year - to - date kind of where we are with the board crush and with -- before we head into maintenance season, it seems like the inventory levels have maybe picked up a little bit. So if you could just kind of reconcile the ethanol segment and where we're at right now and where you expect to be throughout the year profit - wise.

A: Bill Krueger said as they entered Q1, they had slightly stronger board crush than the industry expected, fundamentals of ethanol remain strong, and there is opportunity to drive efficiency at plants. Brian Valentine said Q1 is seasonally low, but export demand remains high, and they expect the full year impact of full plant ownership and 45Z tax credits in the range of $90 million to $100 million Q: Wanted to start off with Skylands. I understand you said it finished the year with just shy of $20 million, but it does sound like you're off to a strong start. You did quote you did note of strong basis appreciation opportunity for your Western assets. And so I just wanted to maybe ask about Skylands contribution for 2026. Do you think that this business will be able to achieve the $30 million to $40 million that you had initially targeted just given the stronger start to 2026?

A: Bill Krueger said when talking about Western asset footprint, it's larger than just Skyland. Brian Valentine said for 2026, their expectation is probably somewhere in the $25 million to $35 million range for EBITDA Q: Wanted to understand a little bit about farmer selling dynamics. Now you said on the prepared comments, there's still a lot of crops on -- in storage. And I wanted to get your sense on what do you think drives more selling here? Is it more clarity in the RVO? And do you have a sense as to kind of timing when that occurs, when farmers would be willing to be more commercial.

A: Brian Valentine said the easy answer is higher prices, farmers will hold off as long as they can, payments this month help them go longer, and a large rally in price can change the forecast