10-Q · May 6, 2026
The Andersons, Inc. reported a solid Q1 2026 performance with a record EPS of $1.12, significantly beating estimates of $0.70. However, revenue of $2.63 billion was slightly below expectations of $2.71 billion, driven…
Earnings analysis · 10-Q
ANDE earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
The Andersons' Q2 earnings and profitability improved materially: GAAP EPS reached $1.65 versus $0.23 a year earlier, with gross margin expanding 217 basis points to 7.22%, despite revenue declining 1.2% to $3.098…
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The Andersons' Q2 earnings and profitability improved materially: GAAP EPS reached $1.65 versus $0.23 a year earlier, with gross margin expanding 217 basis points to 7.22%, despite revenue declining 1.2% to $3.098 billion. Renewables was the principal driver, supported by strong ethanol margins, $24.2 million of clean fuel production credits, and improved merchandising, while Agribusiness improved gross profit despite lower sales. Liquidity remains an area to monitor, as cash declined to $66.5 million, short-term debt increased to $314.4 million, and Skyland required a covenant waiver.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.65
What stood out
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Revenue modestly lower year over year
Q2 revenue was $3.098 billion, down $38.2 million, or 1.2%, from $3.136 billion a year ago, but increased $467.7 million, or 17.8%, from $2.630 billion in Q1 2026. Management notes commodity-price changes generally affect sales and cost of sales similarly, making gross profit more indicative of performance.
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Margins expanded sharply
Gross profit increased to $223.7 million from $158.4 million, lifting gross margin to 7.22% from 5.05% a year ago (+217 basis points). Operating income, calculated as gross profit less operating, administrative and general expense, rose to $50.0 million from $23.8 million, lifting operating margin to 1.61% from 0.76%.
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EPS rose substantially
GAAP diluted EPS was $1.65, up $1.42 from $0.23 in Q2 2025 and up $0.68 from $0.97 in Q1 2026. Income before taxes rose to $67.3 million from $24.8 million, while the effective tax rate fell to 19.9% from 32.3%.
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Renewables delivered the earnings step-up
Renewables gross profit rose $50.6 million to $77.0 million. Management attributed the gain principally to a $40.8 million increase in ethanol-plant earnings, a $9.0 million merchandising gross-profit gain, and $24.2 million of clean fuel production credits in other income.
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Agribusiness improved profitability
Agribusiness gross profit rose $14.7 million to $146.8 million despite a $301.7 million sales decline. The improvement included a $9.8 million merchandising improvement, while portfolio optimization reduced participation in underperforming merchandising businesses.
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Operating cash flow turned positive
First-half operating cash flow improved to an inflow of $94.2 million from an outflow of $50.7 million, a $144.9 million favorable swing. The company used $123.3 million in investing activities, including $31.9 million more capital expenditures for growth initiatives than in the prior-year period.
What to watch
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Skyland covenant breach required a waiver
Skyland was not compliant with its debt-service-coverage covenant at June 30, 2026, though it subsequently obtained a lender waiver. Skyland had $149.3 million of short-term borrowings and $81.4 million of term debt outstanding; management expects compliance with amended covenants over the next 12 months.
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Liquidity cushion and cash balance declined
Working capital declined $392.1 million year over year to $702.7 million as cash fell $284.4 million to $66.5 million and short-term debt rose $209.9 million to $314.4 million. Management cites the TAMH acquisition and increased 2026 market volatility as drivers.
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Impairment and litigation costs increased
Renewables incurred $10.6 million of impairment charges for capitalized engineering and design costs and $11.6 million of litigation expense tied to the receivership of a former consolidated subsidiary. These items contributed to a $25.1 million increase in segment operating, administrative and general expense.
Management's outlook
No explicit revenue or EPS outlook was provided in the 10-Q. Management expects approximately $225 million of 2026 property, plant and equipment investment, roughly 50% growth capital and 50% maintenance capital; it anticipates supportive ethanol demand and renewable-fuel markets.
Earlier filings 4
10-K · February 18, 2026
The Andersons presents a two-segment strategy (Agribusiness and Renewables) focused on asset-backed grain handling, specialty nutrients and fully owned ethanol operations after completing the July 31, 2025 acquisition…
10-Q · August 5, 2025
The Andersons reported Q2 sales of $3,135,869 (thousands), up 12.2% year-over-year, but gross profit and margins compressed and diluted EPS fell to $0.23 from $1.05 a year ago. Operating cash flow for the six months…
10-Q · May 7, 2025
The Andersons reported Q1 sales of $2.659B and gross profit of $152.9M (5.8% gross margin) while diluted EPS collapsed to $0.01 from $0.16 a year ago. Operating cash flow was negative $350.0M and free cash flow was…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.