The Andersons, Inc. (ANDE) Stock Analysis

The Andersons runs two segments from approximately 180 locations across the United States, Canada, and six other countries: Agribusiness, which merchandises grain (principally corn, wheat, and soybeans), manufactures nutrients, and operates grain elevators; and Renewables, which operates four ethanol plants in Iowa, Indiana, Michigan, and Ohio with combined nameplate capacity of 405 million gallons. The company employs 2,137 people and completed full consolidation of its ethanol operations on July 31, 2025 by acquiring the remaining 49.9% of The Andersons Marathon Holdings.

The Andersons generates margins by buying, conditioning, and selling physical agricultural commodities — earnings accrue through basis appreciation between cash and futures prices, spread between futures contract months, and storage fees at grain elevators. The Renewables segment converts corn into ethanol and co-products; since ethanol prices track petroleum-based gasoline, segment margins depend on the corn-to-energy price spread. The Agribusiness segment also manufactures and distributes potash, phosphate, and nitrogen-based nutrients, inputs subject to volatile global supply and demand. The company manages commodity price risk through exchange-traded futures and options contracts, though basis movements on large inventory positions can significantly affect profitability. For fertilizer procurement, the 10-K notes that large volumes are sourced from a small number of suppliers and purchasing power is important to delivering competitive pricing.