The Andersons achieves record Q1FY2026 performance driven by renewables
Strong results in Renewables and improvements in the Agribusiness segment contributed to record first-quarter earnings for The Andersons.
USA – The Andersons, Inc. has reported a record-breaking performance for the first quarter of 2026, signaling a robust start to the year fueled by significant gains in its renewables division and a resilient showing in its agribusiness operations.
According to the company’s financial disclosure released on May 5, 2026, net income attributable to the company reached a record US$33 million, or US$0.97 per diluted share.
This marks a staggering leap from the US$0.3 million reported in the same period last year.
On an adjusted basis, the company posted a net income of US$38 million, or US$1.12 per diluted share, easily outpacing analyst expectations.
The Renewables segment posted pretax income of US$40 million in the first quarter, up from US$25 million for the same period in 2025. EBITDA was US$54 million in the first quarter of 2026, compared with US$37 million in 2025.
This surge was attributed to record ethanol production levels and efficient plant operations.
Notably, the company capitalized on US$26 million in Section 45Z clean fuel production credits, a key federal biofuels policy provision that significantly boosted the segment’s bottom line.
Despite higher natural gas costs and a firmer corn basis, strong demand for ethanol and distillers corn oil helped maintain favorable margins throughout the quarter.
The Agribusiness segment recorded pretax income of US$7 million and adjusted pretax income attributable to the company of US$18 million for the quarter, compared with a pretax loss of US$10 million and break-even adjusted pretax income in the first quarter of 2025.
Adjusted first quarter EBITDA was US$49 million, compared with US$31 million in 2025.
CEO Bill Krueger highlighted that the premium ingredients business performed exceptionally well, more than doubling its results year-over-year by catering to key consumer packaged goods (CPG) customers.
Furthermore, the fertilizer business saw improved margins as the company strategically positioned inventory ahead of the spring planting season.
Looking forward, The Andersons remains committed to its long-term strategic growth plan, aiming for a run-rate earnings per share (EPS) of US$7.00 by the end of 2028.
The company is currently executing several capital projects, including expanding soybean meal export capacity at Port Houston and modernizing grain storage at its Toledo port facilities.
While the company reported a negative operating cash flow of US$393.7 million due to seasonal working capital movements, Executive Vice President and CFO Brian Valentine noted that the balance sheet remains strong, with a modest debt-to-EBITDA ratio of 1.6x, well below the long-term target of 2.5x.
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