On this page of StockholderLetter.com we present the 3/28/2025 shareholder letter from Andersons, Inc. — ticker symbol ANDE. Reading current and past ANDE letters to shareholders can bring important insights into the investment thesis.
2024 ANNUAL REPORT
FINANCIAL HIGHLIGHTS OPERATING RESULTS (IN MILLIONS) Sales and merchandising revenues 2O24 2O23 $11,258 $14,750 Gross profit 694 745 Operating, administrative, and general expenses 504 492 201 170 Income before income taxes 114 101 Earnings before interest, taxes, depreciation, and amortization 360 342 Cash provided by operating activities 332 947 Net income attributable to The Andersons, Inc. FINANCIAL POSITION (IN MILLIONS) $4,121 $3,855 Working capital 1,119 1,171 Readily marketable inventories 945 863 Total assets Short-term debt Long-term debt, including current maturities of long-term debt Total shareholders equity of The Andersons, Inc. 167 43 644 591 1,366 1,283 PER SHARE DATA $3.32 Diluted earnings attributable to The Andersons, Inc. (EPS) $2.94 3.40 3.44 Dividends declared 0.765 0.745 Year-end market value 40.52 57.54 Adjusted EPS1 RATIOS AND OTHER DATA 1.8 1.5 Diluted weighted-average shares outstanding (in thousands) 34,322 34,382 Effective tax rate from continuing operations 15.0 % 21.8 % Long-term debt, including current maturities to Adjusted EBITDA2 Adjusted EPS1 Adjusted EBITDA2 (In Millions) $412 $4.05 $3.44 $2.89 $353 $3.40 $405 Cash from Operations Before Working Capital Changes3 (In Millions) $363 $322 $315 $330 $323 2021 2022 2023 2024 $201 $170 ($0.04) 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 1 Adjusted EPS is a non-GAAP financial measure. The measure excludes after-tax charges for transaction related compensation, acquisition costs, loss on a cost method investment and after-tax gains on deconsolidation of a joint venture and insurance recoveries for 2024; after-tax charges for asset impairments (including equity method investments), transaction related compensation, goodwill impairment and after-tax gains on a cost method investment, asset sales, deconsolidation of a joint venture, and insurance recoveries for 2023; after-tax charges for asset impairments (including equity method investments), insured inventory expenses and after-tax gains on asset sales for 2022; after-tax charges for transaction related compensation, asset impairments, loss on a cost method investment and an after-tax gain of the sale of a business for 2021; and after-tax charges for severance and transaction related compensation, as well as income tax benefits resulting from the Coronavirus Aid, Relief, and Economic Security (CARES) Act for 2020. 2 EBITDA and Adjusted EBITDA are both non-GAAP financial measures. EBITDA is calculated as interest expense, tax expense, depreciation, and amortization added back to net income (loss) from continuing operations. Reconciliations of EBITDA and Adjusted EBITDA to net income from continuing operations can be found in our fourth quarter earnings release and investor presentation posted to the Investor Relations webpage at https://investors.andersonsinc.com/presentations. 3 Cash from operations before working capital changes is a non-GAAP financial measure. This measure is calculated by adding back changes in working capital to cash provided by (used in) operating activities as stated in the audited statement of cash flows. Reconciliations of cash from operations before working capital changes to cash provided by (used in) operating activities can be found in our fourth quarter earnings release and investor presentation posted to the Investor Relations webpage at https://investors.andersonsinc.com/presentations.
DEAR SHAREHOLDERS AND FRIENDS, Our 77th year was both exciting and dynamic, marked by change and challenges. As we highlighted in last year s shareholder letter, we began the year with less favorable market fundamentals but are pleased to report our 2024 earnings. Ending the year with a record fourth quarter in our Trade segment, we achieved very solid full-year adjusted operating results. This result was notable as we accomplished it in well-supplied commodity markets, faced with low prices and limited volatility throughout the year. Significant internal changes took place during 2024 as well. Pat announced a transition into retirement and Bill was named President and CEO at the start of the fourth quarter. Earlier in the year, Mike Anderson retired from his position as Chair of the Board of Directors, a position now filled by Pat. Mike served as our CEO from 1999 through 2015 along with many years in commercial roles in the company. We thank both Pat and Mike for their years of service to the company. With these changes and a focus on our refreshed strategy, we also announced changes to our business segments and segment leadership effective January 1, 2025. We believe that these changes position us well in the markets in which we serve. Our teams are focused on meeting the needs of our customers to achieve mutual success. We are grateful for the support of our suppliers and the hard work of our teams in achieving these goals. We spent time during 2024 to review and refresh our growth strategy and are focused on our agribusiness and renewables position as a nimble North American ag company. This strategy contemplates continued growth within those segments while earning appropriate shareholder returns and providing outstanding service to our customers. We were also proud to receive several awards in 2024, including being named one of The Americas Fastest Growing Companies by the Financial Times and one of America s Climate Leaders by USA Today. Now to dig a bit deeper into our 2024 results: Our 2024 net income attributable to the company was $114 million, or $3.32 per diluted share, an improvement over 2023. Adjusted net income was $117 million, or $3.40 per diluted share, a very small decline from the prior year. Our 2024 adjusted EBITDA from continuing operations was $363 million, a decline from the last two years of record EBITDA, which was expected in these markets. With a large 2023 harvest, after several years of tight global supplies and volatility, we anticipated a shift to carry markets, where we earn income on our grain space. This came to fruition in 2024 as market volatility was low and our commodity merchandising teams had to work even harder for their results. The financial performance achieved by our teams confirmed our portfolio s versatility and resilience. Left to right: Pat Bowe, Bill Krueger
We continue to make steady progress executing on our growth strategy, which includes M&A and capital projects. We again ended the year with a sizable cash balance of $562 million. With the investment in Skyland Grain, LLC, our debt balance grew modestly but our long-term debt to EBITDA ratio remains well below our target of 2.5 times. We continue to have capacity for growth but will remain disciplined in our approach. We have a robust pipeline of M&A and organic growth projects that includes several exciting opportunities. The TRADE segment started the year with quiet carry markets after the 2023 harvest. We had solid returns for these market conditions, including variable storage (VSR) income on our wheat inventory. Some of the quieter early results were a result of an intentional reduction of global positions due to continuing geopolitical risks. In the last half of the year we had strong results, capitalizing on an early and plentiful harvest by acquiring grain at good basis values in our eastern assets. Our premium ingredient portfolio, in which we have recently invested, also showed significant growth over the prior year. Trade recorded adjusted pre-tax attributable earnings of $95 million and adjusted EBITDA of $161 million, both increases over 2023. The RENEWABLES segment had an outstanding production year, setting a record for gallons produced in our plants. However, we were not able to match the record financial performance we realized in 2023 as ethanol board crush was $0.05 / gallon lower than 2023, which was offset by a $20 million year-over-year benefit from lower corn basis. Co-product values, an important component of our profitability, declined on lower commodity prices despite an overall increase in volume. Renewables recorded adjusted pre-tax attributable earnings of $80 million and adjusted EBITDA of $189 million. Our NUTRIENT & INDUSTRIAL segment experienced lower year-over-year volumes in its agricultural supply chain businesses and continued stagnant market pricing also reduced margin opportunities. We have made significant improvements in our manufactured products business over the past year, with additional optimization expected in 2025. Nutrient & Industrial recorded pre-tax attributable earnings of $19 million and EBITDA of $57 million. We remain focused on our longer-term growth strategy and have capacity to fund good projects with the strength of our balance sheet. During 2024, we announced two significant growth projects that we are very excited about that align well with our strategy. Our fourth quarter investment in Skyland brings us merchandising synergies and doubles our farm center agronomy business. It also helps to improve our asset portfolio in our North American asset footprint and connects us to more than 7,000 additional farmers. We also extended our lease at the Port of Houston and are making a significant investment to improve operations and add storage capacity for the expected growth in soybean meal exports, a result of increased U.S. soy crush capacity. While we work to integrate Skyland and complete the project at the port, we continue to evaluate additional growth opportunities in both Agribusiness and Renewables. With our focus on improving value for our shareholders, as well as maintaining sustainable businesses and operations, we will remain disciplined in our plans to acquire and invest at amounts that deliver appropriate returns. As we share this report in the first quarter of 2025, we are prepared to continue to navigate the challenges of these commodity markets. To date, farmers have been slow to engage at these lower relative price levels. With the lower ending U.S. corn stocks, we expect that 2025 planted corn acreage will increase, which is potentially a benefit to both our agronomy businesses and our grain asset portfolio. Demand for products that we merchandise is expected to remain solid and our teams continue to search for opportunities to achieve profitable growth. We also believe that demand for our premium ingredient products will remain strong. With the high yields realized from the 2024 harvest and some concern about global supply, we believe that demand for our fertilizers and specialty nutrients will increase. We also anticipate further improvement in our manufactured product lines. The new Agribusiness segment combines our farmer-facing businesses within Trade and Nutrient which is also expected to bring synergies. Once again, ethanol crush margins have softened to begin the year, as is typical, but we expect to see improvement with industry maintenance shutdowns and expected fuel demand increases in the spring. We also expect continued strong exports. We have made it a priority to keep our ethanol production facilities well-maintained and are evaluating projects to improve yields, gain efficiencies and expand capacity. We are evaluating investments to lower the carbon intensity of ethanol we produce through sequestration and utilization projects at our eastern plants, where geological conditions are favorable, although we acknowledge some uncertainty in the regulatory environment. Finally, we continue to actively evaluate acquisitions of additional production capacity that meet our criteria. Our people are energized by the opportunities in front of us and remain the source of our success. We have successfully managed our business through a significant market shift from demand-driven, volatile conditions to markets with strong supplies. We will continue to focus on operating safely and efficiently, working on growth aligned with our longer-term strategies, as we become a more nimble North American agriculture company. We look forward to providing extraordinary service to our customers, supporting our suppliers and communities, and rewarding our employees and shareholders for many more years to come. Thank you for your continued support, Pat Bowe Executive Chair, Board of Directors Bill Krueger President and Chief Executive Officer
 • shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/28/2024 ANDE Stockholder Letter
 • stockholder letter icon 3/27/2026 ANDE Stockholder Letter
 • stockholder letter icon More "Agriculture & Farm Products" Category Stockholder Letters
 • Benford's Law Stocks icon ANDE Benford's Law Stock Score = 82


ANDE 3/28/2025 Shareholder/Stockholder Letter Transcript:

2024 ANNUAL REPORT

FINANCIAL HIGHLIGHTS
OPERATING RESULTS (IN MILLIONS)
Sales and merchandising revenues
2O24
2O23
$11,258
$14,750
Gross profit
694
745
Operating, administrative, and general expenses
504
492
201
170
Income before income taxes
114
101
Earnings before interest, taxes, depreciation, and amortization
360
342
Cash provided by operating activities
332
947
Net income attributable to The Andersons, Inc.
FINANCIAL POSITION (IN MILLIONS)
$4,121
$3,855
Working capital
1,119
1,171
Readily marketable inventories
945
863
Total assets
Short-term debt
Long-term debt, including current maturities of long-term debt
Total shareholders equity of The Andersons, Inc.
167
43
644
591
1,366
1,283
PER SHARE DATA
$3.32
Diluted earnings attributable to The Andersons, Inc. (EPS)
$2.94
3.40
3.44
Dividends declared
0.765
0.745
Year-end market value
40.52
57.54
Adjusted EPS1
RATIOS AND OTHER DATA
1.8
1.5
Diluted weighted-average shares outstanding (in thousands)
34,322
34,382
Effective tax rate from continuing operations
15.0 %
21.8 %
Long-term debt, including current maturities to Adjusted EBITDA2
Adjusted EPS1
Adjusted EBITDA2
(In Millions)
$412
$4.05
$3.44
$2.89
$353
$3.40
$405
Cash from Operations Before
Working Capital Changes3
(In Millions)
$363
$322
$315
$330
$323
2021
2022
2023
2024
$201
$170
($0.04)
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
1
Adjusted EPS is a non-GAAP financial measure. The measure excludes after-tax charges for transaction related compensation, acquisition costs, loss on a cost method investment and after-tax gains on deconsolidation of a joint venture and insurance
recoveries for 2024; after-tax charges for asset impairments (including equity method investments), transaction related compensation, goodwill impairment and after-tax gains on a cost method investment, asset sales, deconsolidation of a joint venture,
and insurance recoveries for 2023; after-tax charges for asset impairments (including equity method investments), insured inventory expenses and after-tax gains on asset sales for 2022; after-tax charges for transaction related compensation, asset
impairments, loss on a cost method investment and an after-tax gain of the sale of a business for 2021; and after-tax charges for severance and transaction related compensation, as well as income tax benefits resulting from the Coronavirus Aid, Relief,
and Economic Security (CARES) Act for 2020.
2
EBITDA and Adjusted EBITDA are both non-GAAP financial measures. EBITDA is calculated as interest expense, tax expense, depreciation, and amortization added back to net income (loss) from continuing operations. Reconciliations of EBITDA and Adjusted
EBITDA to net income from continuing operations can be found in our fourth quarter earnings release and investor presentation posted to the Investor Relations webpage at https://investors.andersonsinc.com/presentations.
3
Cash from operations before working capital changes is a non-GAAP financial measure. This measure is calculated by adding back changes in working capital to cash provided by (used in) operating activities as stated in the audited statement of cash
flows. Reconciliations of cash from operations before working capital changes to cash provided by (used in) operating activities can be found in our fourth quarter earnings release and investor presentation posted to the Investor Relations webpage at
https://investors.andersonsinc.com/presentations.

DEAR SHAREHOLDERS
AND FRIENDS,
Our 77th year was both exciting and dynamic, marked by
change and challenges. As we highlighted in last year   s
shareholder letter, we began the year with less favorable
market fundamentals but are pleased to report our 2024
earnings. Ending the year with a record fourth quarter
in our Trade segment, we achieved very solid full-year
adjusted operating results. This result was notable as we
accomplished it in well-supplied commodity markets, faced
with low prices and limited volatility throughout the year.
Significant internal changes took place during 2024 as
well. Pat announced a transition into retirement and Bill
was named President and CEO at the start of the fourth
quarter. Earlier in the year, Mike Anderson retired from his
position as Chair of the Board of Directors, a position now
filled by Pat. Mike served as our CEO from 1999 through
2015 along with many years in commercial roles in the
company. We thank both Pat and Mike for their years of
service to the company. With these changes and a focus
on our refreshed strategy, we also announced changes to
our business segments and segment leadership effective
January 1, 2025. We believe that these changes position us
well in the markets in which we serve.
Our teams are focused on meeting the needs of our
customers to achieve mutual success. We are grateful
for the support of our suppliers and the hard work of our
teams in achieving these goals. We spent time during 2024
to review and refresh our growth strategy and are focused
on our agribusiness and renewables position as a nimble
North American ag company. This strategy contemplates
continued growth within those segments while earning
appropriate shareholder returns and providing outstanding
service to our customers. We were also proud to receive
several awards in 2024, including being named one of The
Americas    Fastest Growing Companies by the Financial
Times and one of America   s Climate Leaders by USA Today.
Now to dig a bit deeper into our 2024 results:
Our 2024 net income attributable to the company was
$114 million, or $3.32 per diluted share, an improvement
over 2023. Adjusted net income was $117 million, or $3.40
per diluted share, a very small decline from the prior year.
Our 2024 adjusted EBITDA from continuing operations was
$363 million, a decline from the last two years of record
EBITDA, which was expected in these markets.
With a large 2023 harvest, after several years of tight
global supplies and volatility, we anticipated a shift to carry
markets, where we earn income on our grain space. This
came to fruition in 2024 as market volatility was low and our
commodity merchandising teams had to work even harder
for their results. The financial performance achieved by our
teams confirmed our portfolio   s versatility and resilience.
Left to right: Pat Bowe, Bill Krueger

We continue to make steady progress executing on our
growth strategy, which includes M&A and capital projects.
We again ended the year with a sizable cash balance of
$562 million. With the investment in Skyland Grain, LLC,
our debt balance grew modestly but our long-term debt
to EBITDA ratio remains well below our target of 2.5 times.
We continue to have capacity for growth but will remain
disciplined in our approach. We have a robust pipeline of
M&A and organic growth projects that includes several
exciting opportunities.
The TRADE segment started the year with quiet carry
markets after the 2023 harvest. We had solid returns for
these market conditions, including variable storage (VSR)
income on our wheat inventory. Some of the quieter early
results were a result of an intentional reduction of global
positions due to continuing geopolitical risks. In the last
half of the year we had strong results, capitalizing on an
early and plentiful harvest by acquiring grain at good
basis values in our eastern assets. Our premium ingredient
portfolio, in which we have recently invested, also showed
significant growth over the prior year. Trade recorded
adjusted pre-tax attributable earnings of $95 million and
adjusted EBITDA of $161 million, both increases over 2023.
The RENEWABLES segment had an outstanding
production year, setting a record for gallons produced in
our plants. However, we were not able to match the record
financial performance we realized in 2023 as ethanol board
crush was $0.05 / gallon lower than 2023, which was
offset by a $20 million year-over-year benefit from lower
corn basis. Co-product values, an important component
of our profitability, declined on lower commodity prices
despite an overall increase in volume. Renewables recorded
adjusted pre-tax attributable earnings of $80 million and
adjusted EBITDA of $189 million.
Our NUTRIENT & INDUSTRIAL segment experienced lower
year-over-year volumes in its agricultural supply chain
businesses and continued stagnant market pricing also
reduced margin opportunities. We have made significant
improvements in our manufactured products business over
the past year, with additional optimization expected in
2025. Nutrient & Industrial recorded pre-tax attributable
earnings of $19 million and EBITDA of $57 million.
We remain focused on our longer-term growth strategy
and have capacity to fund good projects with the strength
of our balance sheet. During 2024, we announced two
significant growth projects that we are very excited
about that align well with our strategy. Our fourth quarter
investment in Skyland brings us merchandising synergies
and doubles our farm center agronomy business. It also
helps to improve our asset portfolio in our North American
asset footprint and connects us to more than 7,000
additional farmers. We also extended our lease at the
Port of Houston and are making a significant investment
to improve operations and add storage capacity for the
expected growth in soybean meal exports, a result of
increased U.S. soy crush capacity.
While we work to integrate Skyland and complete the
project at the port, we continue to evaluate additional
growth opportunities in both Agribusiness and Renewables.
With our focus on improving value for our shareholders, as
well as maintaining sustainable businesses and operations,
we will remain disciplined in our plans to acquire and invest
at amounts that deliver appropriate returns.
As we share this report in the first quarter of 2025, we are
prepared to continue to navigate the challenges of these
commodity markets. To date, farmers have been slow to
engage at these lower relative price levels. With the lower
ending U.S. corn stocks, we expect that 2025 planted corn
acreage will increase, which is potentially a benefit to both
our agronomy businesses and our grain asset portfolio.
Demand for products that we merchandise is expected
to remain solid and our teams continue to search for
opportunities to achieve profitable growth. We also believe
that demand for our premium ingredient products will
remain strong. With the high yields realized from the 2024
harvest and some concern about global supply, we believe
that demand for our fertilizers and specialty nutrients will
increase. We also anticipate further improvement in our
manufactured product lines. The new Agribusiness segment
combines our farmer-facing businesses within Trade and
Nutrient which is also expected to bring synergies.
Once again, ethanol crush margins have softened to begin
the year, as is typical, but we expect to see improvement
with industry maintenance shutdowns and expected fuel
demand increases in the spring. We also expect continued
strong exports. We have made it a priority to keep our
ethanol production facilities well-maintained and are
evaluating projects to improve yields, gain efficiencies
and expand capacity. We are evaluating investments to
lower the carbon intensity of ethanol we produce through
sequestration and utilization projects at our eastern plants,
where geological conditions are favorable, although
we acknowledge some uncertainty in the regulatory
environment. Finally, we continue to actively evaluate
acquisitions of additional production capacity that meet
our criteria.
Our people are energized by the opportunities in front of us
and remain the source of our success. We have successfully
managed our business through a significant market shift
    from demand-driven, volatile conditions to markets with
strong supplies. We will continue to focus on operating
safely and efficiently, working on growth aligned with
our longer-term strategies, as we become a more nimble
North American agriculture company. We look forward to
providing extraordinary service to our customers, supporting
our suppliers and communities, and rewarding our
employees and shareholders for many more years to come.
Thank you for your continued support,
Pat Bowe
Executive Chair,
Board of Directors
Bill Krueger
President and
Chief Executive Officer


shareholder letter icon 3/28/2025 Letter Continued (Full PDF)
 

ANDE Stockholder/Shareholder Letter (Andersons, Inc.) 3/28/2025 | www.StockholderLetter.com
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