Nasdaq:ANDE
Andersons, Inc.
Andersons, Inc. is a major North American agricultural services company providing crop protection, seeds, and financing solutions to millions of acres.
Key Metrics
Investment Thesis
Bull Case
Andersons offers an attractive entry point for value investors seeking exposure to the essential agricultural sector with a strong balance sheet holding nearly $1B in cash and equivalents. The company's diversified product mix and dominant market share provide stability during commodity cycles, while its consistent execution in cost management allows it to weather periods of low margins better than peers. As input costs normalize and farmer spending power recovers, the potential for multiple expansion makes current valuations compelling relative to historical averages.
Bear Case
The significant year-over-year revenue decline over the past three years suggests a secular headwind or structural weakness in the company's core crop protection business that could persist. With a substantial retained earnings deficit of $1.04B and heavy capital expenditures, the company faces margin compression risks if it cannot successfully pass on rising input costs to customers. The shrinking revenue trend combined with volatile net income makes earnings predictability difficult, increasing the risk of further downside volatility in an already competitive ag-service landscape.
About Andersons, Inc.
Andersons, Inc. (ANDE) is a leading North American agricultural services provider operating across crop protection, seed distribution, and farm equipment financing markets. The company serves millions of acres through its extensive network of dealerships, offering integrated solutions that help farmers manage risk and maximize profitability. With a diversified portfolio spanning over 20 states, ANDE leverages scale to deliver essential inputs and technology-driven services to the modern agribusiness sector.
Analysis
Management Discussion
Management's recent performance reflects a challenging macroeconomic environment with total revenue declining from $17.33B in 2022 to $11.01B in 2025, likely due to reduced demand for crop protection products and lower seed pricing power. Despite the revenue contraction, the company maintained profitability with net income of $119.3M in 2025, though this represents a decrease from the $170.7M reported in 2024, indicating ongoing pressure on operating leverage. Cash flow from operations remained positive at $177.0M, providing liquidity to fund capital expenditures of $233.1M and return capital to shareholders via dividends and buybacks.
Industry Overview
The agricultural services industry is characterized by high capital intensity and strong ties to global commodity cycles, weather events, and government subsidies that influence farmer purchasing decisions. Competition is fierce among large multinational corporations and regional players, driving consolidation and demanding continuous innovation in seed genetics and digital farm management tools. Success in this sector requires a balanced approach between selling high-margin proprietary inputs and providing essential financing services to maintain dealer loyalty.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $17.33B | $14.75B | $11.26B | $11.01B |
| Cost of Revenue | $16.64B | $14.00B | $10.56B | $10.30B |
| Gross Profit | $684.2M | $745.4M | $693.9M | $713.7M |
| Operating Expenses | $489.6M | $575.8M | $493.2M | $572.2M |
| Operating Income | $194.6M | $169.6M | $200.8M | $141.5M |
| Stock-Based Comp | $11.2M | $12.9M | $13.6M | $17.0M |
| D&A | $134.7M | $125.1M | $127.8M | $133.3M |
| Amortization | $24.1M | $24.5M | $22.5M | $16.8M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Pre-Tax Income | $194.6M | $169.6M | $200.8M | $141.5M |
| Income Tax | $39.6M | $37.0M | $30.1M | $22.2M |
| Continuing Ops | $155.0M | $132.5M | $170.7M | $119.3M |
| Discontinued Ops | $12.0M | $0 | $0 | $0 |
| Net Income | $167.0M | $132.5M | $170.7M | $119.3M |
| Minority Interest | $35.9M | $31.3M | $56.7M | $23.6M |
| Net to Common | $131.1M | $101.2M | $114.0M | $95.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.47B | $2.81B | $2.85B | $2.38B |
| Cash & Equivalents | $115.3M | $643.9M | $561.8M | $98.3M |
| Inventory | $1.73B | $1.17B | $1.29B | $1.37B |
| Other Current Assets | $1.62B | $996.4M | $1.00B | $913.0M |
| Long-Term Assets | $1.14B | $1.05B | $1.27B | $1.34B |
| PP&E (Net) | $762.7M | $693.4M | $868.2M | $939.5M |
| Goodwill | $129.3M | $127.9M | $127.9M | $127.9M |
| Operating Leases | $61.9M | $54.2M | $104.6M | $108.8M |
| Other LT Assets | $188.1M | $172.6M | $170.4M | $160.3M |
| Total Assets | $4.61B | $3.86B | $4.12B | $3.71B |
| Current Liabilities | $2.52B | $1.64B | $1.73B | $1.69B |
| Current Debt | $110.2M | $27.6M | $36.1M | $63.4M |
| Current Leases | $25.4M | $22.3M | $25.8M | $27.1M |
| Deferred Revenue | $370.5M | $187.1M | $194.0M | $195.3M |
| Other Current Liab | $1.77B | $1.17B | $1.25B | $1.19B |
| Long-Term Liabilities | $656.9M | $702.3M | $790.3M | $736.2M |
| Long-Term Debt | $492.5M | $563.0M | $608.2M | $560.0M |
| LT Operating Leases | $37.1M | $31.7M | $65.3M | $71.5M |
| Other LT Liab | $-145.3M | $64.6M | $-49.8M | $-144.8M |
| Total Liabilities | $3.18B | $2.34B | $2.52B | $2.42B |
| Shareholders' Equity | $1.43B | $1.52B | $1.60B | $1.29B |
| Retained Earnings | $807.8M | $882.9M | $970.7M | $1.04B |
| AOCI | $20.5M | $22.9M | $12.6M | $11.3M |
| Treasury Stock | $15.0M | $10.3M | $2.9M | $14.1M |
| Total L&E | $4.61B | $3.86B | $4.12B | $3.71B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $167.0M | $132.5M | $170.7M | $119.3M |
| Non-Cash Adjustments | $-368.4M | $2.54B | $373.8M | $244.7M |
| Working Capital Changes | $488.5M | $-1.72B | $-213.0M | $-187.0M |
| Cash from Operations | $287.1M | $946.8M | $331.5M | $177.0M |
| Capital Expenditures | $108.3M | $150.4M | $149.2M | $233.1M |
| Cash from Investing | $-52.9M | $-153.9M | $-163.1M | $-195.3M |
| Debt Issuances | $0 | $100.0M | $67.0M | $14.7M |
| Debt Repayments | $30.0M | $49.6M | $83.6M | $36.2M |
| Share Buybacks | $12.7M | $1.7M | $2.3M | $15.4M |
| Dividends Paid | $24.6M | $25.4M | $26.3M | $26.8M |
| Cash from Financing | $-334.7M | $-264.0M | $-250.4M | $-447.1M |
| FX Effect | $-660.0K | $-293.0K | $-156.0K | $2.0M |
| Net Change in Cash | $-101.2M | $528.6M | $-82.1M | $-463.5M |
| Beginning Cash | $216.4M | $115.3M | $643.9M | $561.8M |
| Ending Cash | $115.3M | $643.9M | $561.8M | $98.3M |
Frequently Asked Questions
How does Andersons, Inc. make money?
The company's revenue is primarily driven by its Crop Protection segment, which includes fungicides, herbicides, and insecticides; the Seeds & Genetics segment offering corn, soybean, and canola varieties; and its Equipment Financing services that provide capital solutions for agricultural machinery dealers and farmers. These segments are supported by a robust distribution network and proprietary agronomic data platforms that enhance customer stickiness and operational efficiency.
What are the main risks for ANDE?
Investors must consider the cyclical nature of agriculture driven by weather patterns, input costs, and global grain prices which can impact margins significantly. Regulatory changes in seed markets and potential antitrust scrutiny regarding market concentration in crop protection could disrupt operations. Rising interest rates may increase borrowing costs for its equipment financing arm, while geopolitical instability affecting global supply chains poses a threat to inventory availability.
What is ANDE's competitive advantage?
Andersons maintains a formidable moat through its massive scale in seed and crop protection distribution, which grants it significant purchasing power with global chemical and biotech manufacturers. The company's deep-rooted relationships with millions of farmers and local dealerships create high switching costs, while its diversified revenue streams across multiple agricultural commodities provide inherent resilience against regional weather volatility or commodity price swings.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.