Earnings call transcript: The Andersons Misses Q2 2025 EPS Forecast, Stock Falls

The Andersons, Inc. (ANDE) reported its second-quarter earnings for 2025, revealing a significant miss in earnings per share (EPS) compared to market expectations. The company posted an EPS of $0.24, falling short of the forecasted $0.53, a negative surprise of 54.72%. Despite a revenue beat, the company’s stock declined by 2.11% in post-market trading, reflecting investor concerns over profitability. According to InvestingPro data, the company trades at a P/E ratio of 10.74, suggesting an attractive valuation despite recent challenges. InvestingPro identified 8 key investment factors for ANDE, including its consistent 30-year dividend payment history.

Key Takeaways

• The Andersons’ Q2 2025 EPS was $0.24, missing the forecast by 54.72%.
• Revenue exceeded expectations with a 9.79% surprise.
• Stock price fell by 2.11% following the earnings announcement.
• The company faces challenging agricultural market conditions.
• Strategic expansions and acquisitions could boost future performance.

Company Performance

The Andersons reported a mixed performance for Q2 2025. While revenue showed a slight increase, the company’s net income and gross profit declined compared to the previous year. InvestingPro analysis reveals a concerning gross profit margin of 6.42%, highlighting operational challenges. The agricultural sector’s challenging conditions and oversupply issues contributed to this performance. Despite these hurdles, the company remains focused on strategic growth and operational efficiency, particularly in its ethanol and grain businesses. The company maintains strong liquidity with a current ratio of 1.76, providing financial flexibility for its growth initiatives.

Financial Highlights

• Revenue: $3.14 billion, up from $2.86 billion forecasted.
• Earnings per share: $0.24, down from $1.15 in Q2 2024.
• Adjusted EBITDA: $65 million, down from $98 million in Q2 2024.
• Cash balance: Over $350 million.

Earnings vs. Forecast

The Andersons’ EPS of $0.24 was significantly below the market forecast of $0.53, resulting in a negative surprise of 54.72%. This miss is notable when compared to the previous year’s EPS of $1.15, highlighting potential profitability challenges.

Market Reaction

Following the earnings announcement, The Andersons’ stock fell by 2.11% to $34.65. This decline brings the stock closer to its 52-week low of $31.03, indicating investor concerns over the company’s profitability and market conditions. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with a defensive beta of 0.76 indicating lower volatility compared to the broader market. For comprehensive valuation insights and additional analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

Outlook & Guidance

The Andersons anticipates improved performance in the second half of 2025, driven by strategic expansions and potential tax credits for its ethanol plants. With a market capitalization of $1.15 billion and strong financial health metrics from InvestingPro, the company remains committed to meeting its EPS run rate target by 2026 and continues to evaluate growth projects and acquisitions. Analysts maintain optimistic price targets, with detailed forecasts and comprehensive analysis available through the InvestingPro Research Report.

Executive Commentary

CEO Bill Krueger expressed optimism about the future, stating, "We are positive about the last half of the year. We’re prepared for the fall harvest and are excited about the opportunities ahead of us." He emphasized the company’s strong balance sheet and strategic focus on growth and shareholder value.

Risks and Challenges

• Agricultural market volatility and oversupply issues.
• Potential impact of macroeconomic pressures on commodity prices.
• Execution risks related to strategic expansions and acquisitions.
• Dependence on favorable weather conditions for crop yields.
• Regulatory changes affecting the ethanol industry.

Q&A

During the earnings call, analysts inquired about the rationale behind the ethanol plant acquisition and the performance of Skyland Grain assets. The potential for 45Z tax credits and the company’s investment strategy at the Port of Houston were also discussed, with executives providing insights into future growth opportunities.

Full transcript - The Andersons Inc (ANDE) Q2 2025:

Joe, Conference Call Coordinator: Morning, ladies and gentlemen, and welcome to the Andersons twenty twenty five Second Quarter Earnings Conference Call. My name is Joe, and I’ll be your coordinator for today. At this time, all participants are in a listen only mode. Later, we will facilitate a question and answer session. On today’s call, we ask that you please limit yourself to one question and one follow-up during Q and A.

You may re queue if you have additional questions. As a reminder, this conference call is being recorded for replay purposes. I will now hand the presentation to your host for today, Mr. Mike Holter, Vice President, Corporate Controller and Investor Relations. Please proceed.

Mike Holter, Vice President, Corporate Controller and Investor Relations, The Andersons: Thanks, Joe. Good morning, everyone, and thank you for joining us for the Anderson second quarter earnings call. We have provided a slide presentation that will enhance today’s discussion. If you are viewing this presentation from our webcast, the slides and commentary will be in sync. This webcast is being recorded and the recording and the supporting slides will be made available on the Investors page of our website shortly.

Please direct your attention to the disclosure statement on Slide two, as well as the disclaimers in the press release related to forward looking statements. Certain information discussed today constitutes forward looking statements that reflect the company’s current views with respect to future events, financial performance and industry conditions. These forward looking statements are subject to various risks and uncertainties. Actual results could differ materially as a result of many factors, which are described in the company’s reports on file with the SEC. We encourage you to review these factors.

This presentation and today’s prepared remarks contain non GAAP financial measures. Reconciliations of the GAAP to non GAAP measures are included within the appendix of this presentation. On the call with me today are Bill Krueger, President and Chief Executive Officer and Brian Valentine, Executive Vice President and Chief Financial Officer. After our prepared remarks, we will be happy to take your questions. I will now turn the call over to Bill.

Bill Krueger, President and Chief Executive Officer, The Andersons: Thanks, and good morning, everyone. Thank you for joining the call to discuss our second quarter results and outlook for the remainder of 2025. I’d like to start off by thanking all our employees for their continued hard work navigating the current markets, while also evaluating several growth and M and A opportunities. Since our last earnings call, we have been able to advance our strategy through a number of projects. The most significant action was the purchase of our partner share of our four ethanol plants.

We have evaluated several ethanol opportunities and determined that this acquisition was the best use of our capital. I will talk more about this on the next slide. We have two significant long term construction projects that we expect to have fully completed by mid-twenty twenty six. Construction continues at the Port Of Houston, which include improvements to the grain facility as well as the expansion that will allow us to export soybean meal. In June, the EPA released the proposed RVOs for 2026 and 2027.

This signaled further regulatory support for biomass based diesel production, which in turn should drive increased domestic soybean crush, allowing the Houston expansion project to be well positioned to export the surplus meal. We have another project that builds on current capacity and serves a commercial need for a major energy company. We expect financial contributions from both projects starting in 2026. We have also recently completed projects to convert excess capacity at four of our grain elevators to perform light processing of premium ingredients for CPG companies, allowing us to better serve our customers and further improve our strong farmer relationships. With the current macro conditions in the ag industry, we remain focused on working hard for our customers and furthering our strategy.

Our renewables business had a solid quarter with strong production numbers, including record yields and increased demand. In agribusiness, we had improved fertilizer results with increased volume and margin, as the increase in corn acres required additional nitrogen. We recently completed the wheat harvest and our facilities are prepared for the increased corn volumes expected at harvest. With the next slide, we’ll discuss the ethanol acquisition. Our process to evaluate plants includes both strategic and financial criteria, and we have been disciplined in our approach.

The strategic requirements include large and efficient production, the right geographic location to support the ethanol supply chain, and the capability to produce low carbon intensity ethanol. As we were actively evaluating options, we kept returning to our own plants. We know the plants since we have been operating them for over a decade and know that they have been well maintained. We have plans to improve both efficiency and profitability moving forward. Completing this transaction affirms our commitment to the ethanol industry.

Details of the transaction are listed on the slide. We purchased approximately two fifty million gallons for a $1.54 per gallon before considering working cap. We have limited integration risk given that we already manage and operate these sites. Plant management, marketing, and administrative support will remain the same going forward under the new name of the Andersons Renewables LLC. We were able to fund this transaction with cash on hand of $300,000,000 and borrowings under our existing credit facility.

This transaction should be immediately accretive to EPS and will better align our reported EPS and EBITDA, as we now control 100% of the EBITDA within the Renewables segment. Cash can be managed across the enterprise, allowing more flexibility and will drive efficiencies in capital deployment. Next, Brian will cover some key financial data on the second quarter. After that, I’ll be back to discuss our forward strategy and outlook.

Brian Valentine, Executive Vice President and Chief Financial Officer, The Andersons: Thanks, Bill. We’re now turning to our second quarter results on slide number six. In the 2025, the company’s reported and adjusted net income attributable to The Andersons was $8,000,000 resulting in earnings per diluted share of $0.23 and $0.24 on an adjusted basis. This compares to adjusted net income of $39,000,000 or $1.15 per share in the 2024. Revenues increased slightly with the addition of Skyland, despite overall lower commodity prices.

Gross profit declined due to challenging ag fundamentals and an outsized year over year comparative in renewals. Expenses also increased with the majority relating to the addition of Skyland. Adjusted pretax earnings were $15,000,000 for the quarter compared to $45,000,000 in 2024 with the decline coming from both segments. Adjusted EBITDA for the second quarter was $65,000,000 compared to $98,000,000 in 2024. Our effective tax rate varies each quarter based primarily on the amount of income or loss attributable to non controlling interests, as well as tax credits.

With the ethanol transaction Bill discussed and the reduction in income attributable to non controlling interests, our full year adjusted effective tax rate is now expected to be in the range of 22% to 25%. Next, we’ll move to slide seven to discuss cash, liquidity, and debt. We generated cash flow from operations before changes in working capital of $43,000,000 in the second quarter compared to $89,000,000 in the 2024. While down year over year, this continues to demonstrate our ability to generate positive cash flows throughout the ag cycle. Our readily marketable grain inventories continue to be well in excess of our short term debt and we ended the quarter with a cash balance of more than $350,000,000 Next, we’ll take a look at capital spending and long term debt on slide eight.

Second quarter capital spending was $49,000,000 compared to $29,000,000 in 2024, with the increase attributable to spending on long term growth projects, as well as normal maintenance capital on the addition of the Skylane Grain assets. We continue to take a disciplined responsible approach to capital spending, which we expect could reach $200,000,000 for the year, excluding acquisitions. Our long term debt to EBITDA is approximately 1.9 times, which remains well below our stated target of less than 2.5 times. We funded the post quarter ethanol transaction using cash on hand and borrowings on our line of credit and continue to have a balance sheet with significant capacity to support further growth investments. We are evaluating additional projects in our pipeline, including projects to improve efficiency and increase capacity at our existing facilities, as well as further M and A opportunities that align with our growth strategy.

Now, we’ll move on to a review of each of our businesses, beginning with Agribusiness on slide nine. The Agribusiness segment reported pretax income attributable to the company of $18,000,000 and adjusted pretax income of $17,000,000 compared to adjusted pretax income of $33,000,000 in the 2024. As expected, our nutrient business benefited from strong demand driven by the high corn plantings. Volumes were up substantially and we saw a modest increase in margins as well. Similar to the first quarter, over supplies of grain and weak demand in the Western Grain Belt impacted our asset locations and merchandising businesses as end users continued to make short term purchasing decisions.

We continue to evaluate opportunities to optimize our business portfolio as well as achieve efficiencies from combining the management of the former trade and nutrient business segments. During the quarter, we made the decision to exit a few underperforming businesses and minority investments that no longer align with our strategy. We will continue to review our portfolio, which could result in some additional changes going forward. Agribusiness had adjusted EBITDA for the quarter of $46,000,000 compared to $56,000,000 in the 2024. Moving to slide 10.

Renewables generated pretax income attributable to the company of $10,000,000 compared to $23,000,000 in the 2024. Ethanol margins remained favorable on efficient plant operations and elevated demand. Plant production remained high with record yields and gallons produced up year over year. Partially offsetting these factors were lower ethanol board crush and increased input costs, including higher eastern corn basis and natural gas costs. Feed values were lower and are expected to remain challenged with a surplus of soybean meal in the market.

Renewables had EBITDA of $30,000,000 in the second quarter compared to $52,000,000 last year. And with that, I’ll turn things back over to Bill for some comments about our outlook for the remainder of the year.

Bill Krueger, President and Chief Executive Officer, The Andersons: Thanks, Brian. We’re positive about the last half of the year. We’re prepared for the fall harvest and are excited about the opportunities ahead of us. In our Renewables segment, the recent uptick in board crush and continuing increased demand suggests a stronger margin environment through the 2025. We could see record exports and expect that a large harvest will lower Eastern corn basis.

We are interested in pursuing additional opportunities in ethanol and renewable feedstocks. We continue to make progress on plans to improve efficiencies, increase capacity, and lower the carbon intensity of our ethanol. We expect that all four of our plants will begin to generate 45Z tax credits over the next year. A class six well permit has been filed on our behalf for a potential carbon sequestration project at our climbers Indiana production facility, which if approved, would allow us to generate additional tax credits through on-site sequestration in the future. Agribusiness should see improvement in the last half of the year as wheat harvest includes and fall harvest has the potential to be one of the largest in recent history.

Our U. S. Grain asset footprint should allow us additional storage and handling opportunities as we accumulate large quantities of grain at reasonable values. That will be positioned for both domestic and export use. Additional clarity on trade negotiations will help reduce market uncertainties.

The third quarter is generally quiet for the fertilizer business, but we could see increased post harvest application as weather permits. We are going to primarily focus on completing our long term capital projects and integration in agribusiness. We continue to evaluate additional growth projects and acquisitions aligned with our strategy. As mentioned earlier, with the near term macro challenges in U. S.

Agricultural markets, we are taking this opportunity to assess our portfolio businesses and the enterprise organizations that support them to extract more value for the shareholder. We will continue to invest in our safety practices and culture, particularly around assets newer to our portfolio. We had previously provided a run rate target of $475,000,000 of EBITDA by 2026. With the acquisition of the minority interest in our ethanol plant and the potential impact of tax credits to be delivered from our renewables segment, we are now converting our existing EBITDA target into an EPS measure. At the time we set the target, the $475,000,000 EBITDA would have equated to EPS of approximately $4.3 per share.

We anticipate meeting the run rate EPS target by the 2026. I’m proud of our team’s resilience in this dynamic environment. Our balance sheet remains strong, allowing us to fund additional growth. We will continue to make responsible decisions that benefit our customers and maximize shareholder value as we execute on our strategy. And with that, we are happy to answer your questions.

Joe, Conference Call Coordinator: We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you’re using a speakerphone, please pick up your handset before pressing the keys. And to withdraw a question, you may press star then 2. At this time, we will pause just momentarily to assemble our roster.

And we will take our first question here. Our first question will come from Ben Klieve with Lake Street Capital. Please go ahead.

Ben Klieve, Analyst, Lake Street Capital: Thanks for taking my questions and congratulations on the transaction you announced. It’s really great to see. First question on this, you noted the kind of regulatory dynamic here is supportive of the space, which is just seems to certainly be clear and in an accelerating fashion. And I’m wondering two things. One, did the timing of the transaction was that correlated to this kind of regulatory tailwinds?

And then also you noted that there are some opportunity to unlock more capacity within the existing four facilities given regulatory tailwinds. Can you talk about kind of the incremental capacity that you could potentially introduce into these four facilities here given the regulatory dynamic?

Bill Krueger, President and Chief Executive Officer, The Andersons: Yeah, thanks. Good morning. I would, tell you that we’ve been pretty clear over the past, eight quarters that we’ve been looking at ethanol, additional ethanol capacity. I would not say that the recent regulatory changes, which were actually only signed into law July 4, really had a material, effect on the transaction. We’d been working on this, transaction for a few months prior to that.

In terms of additional capacity that that we can unlock, as I mentioned in my, stated remarks, Ben, that we do have a class six well permit that was filed on our behalf that we’re waiting for approval, which would unlock, more opportunity at the Climbers Indiana facility. If we do that, both our our Climbers Indiana facility and potentially Albion would be locations where we have plenty of corn supply, again, our criteria that we could look at expansion opportunities.

Ben Klieve, Analyst, Lake Street Capital: Got it. Thank you. On the Agribusiness segment, you noted some non strategic exits. Can you characterize what those businesses were and what the financial impact you know, was either in the quarter or on a full year basis?

Brian Valentine, Executive Vice President and Chief Financial Officer, The Andersons: Yeah, sure, Ben. We could go through those. I would say it’s a couple of things. There were a couple minority investments that were probably it was an impact of about $7,000,000 in the adjustments. And then there was a wind down and sale of a couple facilities.

We sold a facility in Idaho and also announced some closure on our some of our contract manufacturing business on the fertilizer side. So net net those were probably a few million dollars. Actually, there was a small gain on one of those sales. And then there were a few other modest adjustments, but those were the main pieces.

Ben Klieve, Analyst, Lake Street Capital: Got it. Okay, that’s helpful. Thank you, Brian. And then I guess one more for me, and I’ll get back in queue. You talked about the conditions on the ground here where you’ve got kind of a stale grain network here over the past quarter and then also a bumper crop coming up.

Given these conditions, can you talk about the outlook here for the mix between merchandising and storage for the second half of the year?

Mike Holter, Vice President, Corporate Controller and Investor Relations, The Andersons: Sure, Ben.

Bill Krueger, President and Chief Executive Officer, The Andersons: As we look at the wheat harvest that was just completed, there’s been more opportunity on space utilization than pure merchandising opportunities. And obviously, we still have to finish what appears to be a very large corn crop, but that also should allow us to generate more income from our elevators than from our traditional merchandising. But with the size of the crop that we’re looking at, we expect both of those opportunities to be improved in the second half of the year.

Ben Klieve, Analyst, Lake Street Capital: Got it. Very good. All right. Well, plenty more to talk about, but I’ll leave it there. Congratulations again, and I’ll get back in queue.

Joe, Conference Call Coordinator: And our next question will come from Ben Mayhew with BMO Capital. Please go ahead.

Ben Mayhew, Analyst, BMO Capital: Hey. Good morning, guys. Congratulations on on the deal. I think it’s great that you’re bringing it in house. So on that topic, can you discuss why acquiring the balance of TamH ethanol assets was the right move now for the Andersons?

And how does this deal fit into your longer term strategic objectives to grow your EBITDA? And I think you said at the end of the prepared remarks there that you expected to hit your your EBITDA run rate by ’26. So I’m assuming that this all kinda ties into that. But if you could just elaborate, please. Thank you.

Bill Krueger, President and Chief Executive Officer, The Andersons: Thanks for the question, Ben. I will hit the first part of the question and then have Brian address the EBITDA versus EPS portion of the question. So from our perspective, if if we want to invest more in ethanol, have taken the opportunity to acquire 50% of four plants, three of which we’ve built. The fourth one we’ve been operating since 2014, felt like a better deployment of capital, allowing us to be able to capture, more EPS for shareholders. And and quite honestly, as I mentioned, very little integration risk.

All the employees are Anderson employees. The management, the marketing will all remain the exact same. We just simply have more financial opportunity from this investment versus buying plants that may need, additional capital investment and that we don’t know the marketplace as well as we do around the four plants that we already own. So in terms of something right down the center of the fairway for us, this feels like it’s it couldn’t hardly be better. Second of all, it also allows us to grow in the space and not have to take additional risk in terms of integration, allowing us to continue to look at additional plants and or opportunities in renewable

Brian Valentine, Executive Vice President and Chief Financial Officer, The Andersons: And Ben, just to comment on kind of the EBITDA versus EPS. You know, since Anderson’s was already consolidating TAM into the results, Our EBITDA already included 100% of TAM because EBITDA is before non controlling interest. But from a practical perspective, Anderson shareholders were really only benefiting from about 50% of that plant’s EBITDA. So now going forward, we’ll really have the full earnings benefit as well as the full cash flow benefit and impact to those cash flows on sort of an unrestricted basis because it won’t be in a joint venture anymore. And I guess just to kind of frame the context from an EPS perspective, if we kind of did a pro form a over the last four years, the incremental EPS impact for us would be sort of in the range of zero seven zero dollars to $0.75 per share on an annual basis, kind of if you look at ’twenty one to ’twenty four.

In a peak year like 2023, it frankly could be north of $1 a share. So that’s why between now owning 100 percent of it and getting the full earnings per share, as well as going forward things like tax credits aren’t factored in to an EBITDA number either, we felt it made more sense to convert to an earnings per share number and focus on that going forward.

Ben Mayhew, Analyst, BMO Capital: Got it. That’s very clear. Thank you for the context there. And then just staying on ethanol, just the the fundamental environment, it it seems like I mean, clearly, half, had its struggles, higher corn basis in the Eastern Belt, higher nat gas costs there, during periods of times. But it seems like we we may have turned a corner here headed into the second half, and I was just hoping if you guys could just, you know, give a little more, updated outlook kinda detail wise on on where you think things are headed margin wise.

And, if you if you think ’26 could potentially be better with all of the, you know, with all the policy stuff that’s going on? Thank you.

Bill Krueger, President and Chief Executive Officer, The Andersons: Yeah. I’ll I’ll take the that question, man. So, again, until we, get to new crop harvest where we, will, have some relief, to the eastern corn basis, we will have to, focus on the current margin structure. However, I would tell you that I believe our team has done an excellent job in getting ownership of the corn basis in the East at or below the market, through this period of time. So that’s that’s one of the benefits that having the large corn program has has brought to us.

But if you look at exports, you look at driving demand, the balance of ’25 feels like it it should be better than the ’25 has been. And then as you look into ’26, there are a lot opportunities that we are evaluating today in order to drive more free cash flow out of our plants, using the entire, set of regulatory and traditional methods of, managing the ethanol plants. I do think it’s important to understand that these plants have been successful without regulatory changes for a number of years. And we feel very confident, in their location and their ability to continue to generate profits like they have in the past, with the potential addition of some regulatory benefits, with the extension of ’45 c through 2029.

Ben Mayhew, Analyst, BMO Capital: Okay. I’m gonna sneak one more in here. On the Port Of Houston investment, you know, soybean meal prices have been falling. Crush capacity, is expanding in The US. Obviously, the RVO has, you know, very important implications for that.

Can you just walk us through, like, how this investment works even with lower prices? I mean, is it a is it a situation where you’re taking advantage of, you know, the elevation margin aspect, of the of the soybean meal transaction? And this might actually be more beneficial because you’re getting it at, you know, at at cheaper, at cheaper interior costs, and then you’re shipping it overseas for for more expensive prices. Just kinda allay allay any concerns over, you know, lower soybean meal prices and the impact that might have on that investment. And and that’ll be it for me.

Thanks.

Bill Krueger, President and Chief Executive Officer, The Andersons: Yeah. Good question. So for the the export execution of soybean meal, the flat price or even the basis of the meal is not nearly as relevant as the fact that The US is likely going to produce more soybean meal than there is demand. So with the shelf life of soybean meal being very different than wheat or corn because it has to ship, we believe that there’s gonna be opportunities, where soybean meal is forced to move to export parity. That’s gonna be driven by price.

That’s gonna be driven by much more than just The US crush industry. It’s gonna be driven by global s and d’s, specifically South America, soybean meal. So as that price drop goes lower, it actually will make us more competitive. So as you think through it, for the export arm of our facility in Houston, the price of the meal only matters in order to drive it to export parity versus how it affects the crush margin for the soybean plant.

Ben Mayhew, Analyst, BMO Capital: Thank you very much.

Joe, Conference Call Coordinator: Our next question here will come from Piran Sharma with Stephens Inc. Please go ahead.

Piran Sharma, Analyst, Stephens Inc.: Good morning. Thanks. Thanks for the question. I just wanted to ask about Skyland. You mentioned in the prepared comments that there was some revenue contribution.

Was wondering if you could detail what that was from the quarter? And I believe last time you had mentioned that you were anticipating achieving the lower end of the 30 to 40,000,000 EBITDA guide and and was just wondering if you could provide some updated thoughts on Skyland.

Bill Krueger, President and Chief Executive Officer, The Andersons: Yeah, I will start with that, Perron. Good to talk to you this morning. So as we mentioned in with the first quarter results, the lack of export demand for Milo or sorghum specifically and hard wheat has had made it very difficult for Western assets to generate the expected profitability, that we were looking at. That did not change in q two as as we had hoped it had. So the Skyland assets were faced with an environment where they had to compete for the domestic feed demand, which was lower due to the cattle on feed in in the region.

As we sit here today, forward, the setup for Western grain assets looks very good. The we had, above expected hard wheat or, wheat, handle at Skyland. The carries in the wheat market are very good to pay us for our space income and following right behind that is a corn crop that in that area sometimes, can run the risk of not yielding quite as good because there is a fair amount of dry land corn. So, from our perspective, the results coming out of Skyland for the first half were below expectations. The results coming out of Skyland potentially for the last half, should meet and hopefully, exceed expectations.

But all just to be clear, and as I said after Q1, Western Grain assets had a struggle in the 2025, Skyland was not immune to that.

Brian Valentine, Executive Vice President and Chief Financial Officer, The Andersons: And Prahna, just to provide a little context from a financial perspective, you asked about revenue. It was about $200,000,000 in each of the first two quarters, so just a little under $400,000,000 year to date. And with regard to the full year EBITDA outlook, you’re right, we previously said we thought it would be on the low end of that $30,000,000 to $40,000,000 range. If we had to characterize it today, I would probably put it somewhere in the 25,000,000 to $30,000,000 EBITDA range for the full year.

Piran Sharma, Analyst, Stephens Inc.: Okay. Appreciate the color there, gentlemen. Wanted to also ask about you mentioned in the prepared comments that all four plants did get 45z tax credits over over the next year. Was just wondering if you could help us flush that out a little bit. What type of CI score are you ultimately trying to get to or what type of how much of a tax credit do you think you could squeeze out of out of your plans?

Bill Krueger, President and Chief Executive Officer, The Andersons: Ron, I would tell you that, today, we are still working on the benefit of that tax credit, and we will be much more prepared to talk about that at the ’3 and into Q4 as we get some clarity on the legislation that was passed on 07/04/2025.

Piran Sharma, Analyst, Stephens Inc.: Okay, I appreciate that. Nonetheless, I think it’s positive that you’ll be getting those credits, but maybe we could understand the deal a little bit more here. You know, you mentioned in the prepared comments, I believe you said you bought the incremental $2.50 at a dollar 54 a gallon. So from a, you know, per gallon perspective, what else is kind of out there? You think because 1.54 sounds like a steal, but I’m assuming I’m comparing this to a Red Trail and GIVO asset that was at $3.23 a gallon, but that had all the bells and whistles in terms of sequestration.

So just wanted to get a sense of what you saw out there in the marketplace and why, you know, ultimately, a $1.54

Joe, Conference Call Coordinator: was the best choice for you.

Bill Krueger, President and Chief Executive Officer, The Andersons: To, to be clear, that $1.54 was for the structural assets. And when we add back, working capital is closer to a dollar 70, but, we have to compare it against, the the new builds or the, expansion gallons. And so that’s why we use the dollar 54, but you can do the math when you add the $40,000,000 back. Know, ethanol plants are very interesting and we’ve looked at many, certainly more than 20 plants over the course of the last eighteen months. And to be able to say, what have we been able to see out there?

And as we’ve we’ve talked about location, size, technology, the, ability to originate corn, all bring in a different dynamic for, as I mentioned, both the strategic and financial criteria. But we, as as an organization, we felt like the purchase price, that that we paid for the remaining 49.9% was fair to both parties.

Piran Sharma, Analyst, Stephens Inc.: Okay. Appreciate that detail. I will jump back in the queue.

Joe, Conference Call Coordinator: And this will conclude our question and answer session. I’d like to turn the conference back over to Mike Holter for any closing remarks.

Mike Holter, Vice President, Corporate Controller and Investor Relations, The Andersons: Thanks, Joe. We want to thank you all for joining us this morning. Our next earnings conference call is scheduled for Wednesday, November 5 at 08:30 a. Eastern Time, when we will review our third quarter results. As always, thank you for your interest in The Andersons, and we look forward to speaking with you again soon.

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