10-Q · August 4, 2026
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…
Earnings analysis · 10-Q
ANDE earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
The quarter showed a mixed operating profile: revenue of $2.834 billion increased 5.7% year over year but declined 8.6% sequentially and missed consensus, while adjusted EPS of $1.38 exceeded estimates by 24.3%.…
Read full summary
The quarter showed a mixed operating profile: revenue of $2.834 billion increased 5.7% year over year but declined 8.6% sequentially and missed consensus, while adjusted EPS of $1.38 exceeded estimates by 24.3%. Renewables was a clear bright spot, producing record $63 million pretax income with $27 million of 45Z tax credits, and adjusted EBITDA rose 29% to $101.4 million. However, negative operating cash flow, uncertain litigation exposure, and the absence of quantitative revenue or EPS guidance temper the outlook.
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.
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
- $1.38
- Segment
- Renewables: $63 million pretax income, including $27 million of 45Z tax credits.
What stood out
-
Revenue grew year over year but missed estimates
Revenue was $2.834 billion, down approximately 8.6% from $3.1 billion in Q2 2026 but up approximately 5.7% from $2.68 billion in Q3 2025. Revenue was approximately 2.2% below the $2.898 billion consensus estimate.
-
Adjusted EPS beat consensus
Adjusted EPS was $1.38 versus the $1.11 consensus estimate, a $0.27 beat or approximately 24.3%.
-
Renewables delivered record profit
Renewables generated record pretax income of $63 million, supported in part by $27 million of 45Z tax credits.
-
Adjusted EBITDA increased 29%
Adjusted EBITDA increased 29% to $101.4 million, according to the earnings release information accompanying the filing.
-
Share repurchases continued
The company repurchased 212,160 shares under its public plan during the quarter, and $63.28165 million remained available under the plan at September 30, 2026.
What to watch
-
Operating cash flow turned negative
Operating cash flow was negative in the quarter, although the exact amount is not disclosed in the supplied 10-Q text. Negative operating cash generation can pressure liquidity even with adjusted EPS of $1.38.
-
Litigation exposure remains uncertain
The company states that litigation outcomes are inherently uncertain and could materially adversely affect results; no dollar reserve or exposure amount is provided. The disclosure appears in the 10-Q's Item 1 legal proceedings section.
-
Repurchases consume available capital
As of September 30, 2026, approximately $36.7 million of the $100 million repurchase authorization had been utilized, leaving approximately $63.3 million available; continued repurchases could reduce liquidity.
-
CEO severance obligation increased
The CEO's severance benefit period outside a change in control was increased from 1 year to 2 years effective November 3, 2026, potentially increasing future compensation obligations.
-
No new quantified market-risk disclosure
The filing reports no material changes in commodity or interest-rate market risk during the 9 months ended September 30, 2026, but retains the risk factors from the 2025 Form 10-K without identifying quantitative offsets.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. The available outlook commentary indicates a full-year adjusted effective tax-rate expectation of approximately 14%-18%; broader outlook was deferred to the November 4 conference call.
Earlier filings 4
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…
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…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.