The Andersons raises EPS targets, backs growth with US$60M ethanol expansion

USA – The Andersons has set a run-rate earnings per share (EPS) target of US$7 by the end of 2028, implying a compounded annual growth rate of more than 35%, as the company sharpens its focus on optimization, disciplined capital allocation and selective growth initiatives.

The strategy was outlined by company leadership during The Andersons Investor Day 2025.

According to the American agribusiness giant, it is positioning the diversified agribusiness and renewables group for sustained earnings growth without relying heavily on large-scale mergers and acquisitions.

As part of this roadmap, Bill Krueger, president and chief executive officer, announced an additional US$60 million investment in the company’s Clymers, Indiana, US, ethanol facility.

The expansion will lift total production capacity at the plant to 170 million gallons by mid-2027, reinforcing the company’s commitment to renewable fuels within its broader integrated platform.

“You can expect more of these announcements as we find both targeted and opportunistic capital projects that fit the strategy that you’ve heard of today,” Krueger said, adding that the company have a lot of confidence in where they have been and where they are going.

Krueger emphasized that The Andersons’ competitive strength lies in its broad geographic footprint and the integration of its Agribusiness and Renewables segments.

 “We believe that we’re integral to the North American agriculture and renewable supply chain, connecting production to demand,” he said, highlighting long-standing relationships from farmers through to global consumer packaged goods companies.

The EPS target does not assume the need for substantial new M&A activity. Over the past four years, the company deployed significant capital, including the acquisition of Skyland Grain assets across southwest Kansas, Colorado and Texas, which added more than 40 facilities and 100 million bushels of storage capacity.

It also completed a US$425 million transaction to acquire full ownership of its ethanol facilities and is advancing a US$70 million expansion of its export terminal at the Port of Houston, scheduled for completion in 2026.

Brian Valentine, executive vice president and chief financial officer, said the company’s three-year average capital expenditure has been about US$170 million, split evenly between growth and maintenance.

Capital spending in the current year is expected to approach US$200 million, rising to between US$200 million and US$225 million annually over the next few years.

Any investments are assessed for strategic and cultural fit, customer value, geographic alignment and the potential to provide scale or move the business up the value chain.

Agribusiness remains central to the growth outlook. The segment operates more than 175 facilities and trades over 33 million tonnes of grains and feed ingredients annually, with corn accounting for about 60% of volumes.

Weston Heide, executive vice president, Agribusiness, said investments such as the Port of Houston expansion position the company to benefit from excess soybean meal supply and rising domestic consumption, while also supporting evolving customer requirements around food safety, sustainability and traceability.

In Renewables, the company produces more than 500 million gallons of ethanol across four facilities and leverages horizontal integration with Agribusiness to improve corn origination efficiency.

Mark Simmons, executive vice president, Renewables, said this integration enhances netbacks and creates multiple revenue streams from each kernel of corn processed, extending value beyond ethanol into feed products, renewable feedstocks and CO₂ utilization.

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