The Andersons, Inc. Reports Decline in Net Income Despite Revenue Growth in Q2 2025

The Andersons, Inc. reported a decline in financial performance for the second quarter of 2025, with sales and merchandising revenues reaching $3.14 billion, a 12.2% increase from $2.80 billion in the same period last year. However, net income attributable to the company fell significantly to $7.86 million, down from $35.98 million in Q2 2024. This resulted in basic earnings per share of $0.23, compared to $1.06 in the prior year. The decrease in profitability was attributed to increased costs of sales and operational expenses, which rose to $2.98 billion and $134.59 million, respectively, leading to a gross profit of $158.42 million, down from $175.37 million a year earlier.

The company experienced notable changes in its operational structure, including the acquisition of a 65% stake in Skyland Grain LLC in November 2024, which contributed to the increase in sales and merchandising revenues. The acquisition allowed The Andersons to expand its grain storage and handling capabilities across several states, including Kansas and Texas. The integration of Skyland's operations is expected to enhance the company's market position, particularly in the Agribusiness segment, which reported revenues of $2.41 billion in Q2 2025, up from $2.11 billion in Q2 2024.

Operationally, The Andersons reported a total current asset decrease to $2.18 billion as of June 30, 2025, down from $2.25 billion a year prior, primarily due to lower average commodity prices. Current liabilities also saw a slight decline, totaling $1.08 billion, reflecting a decrease in customer prepayments and deferred revenue. The company’s total assets stood at $3.45 billion, down from $4.12 billion at the end of 2024, while total liabilities decreased to $1.84 billion from $2.52 billion. The company’s working capital was reported at $1.09 billion, a decrease of $69.7 million from the previous year.

Looking ahead, The Andersons anticipates that favorable market conditions, including a large harvest and increased grain availability, will provide sales opportunities in the latter half of 2025. The company expects to leverage its expanded storage capacity and merchandising portfolio to navigate the current market challenges. Additionally, the recent acquisition of the remaining 49.9% interest in The Andersons Marathon Holdings LLC is expected to enhance earnings from ethanol production, further solidifying the company's position in the renewables sector. Management remains optimistic about the long-term outlook, despite the current challenges in the agricultural commodity markets.