Andersons, Inc. Q3 FY2024 earnings call

• Thanks to Pat Bo for his leadership and recognized employee hard work. - Each segment showed year-over-year improvement. Renewables had a record quarter with increased production, higher ethanol and corn yields, and higher margins. Trade saw improved results due to grain asset and merchandising. Nutrient & Industrial improved in a seasonally quiet quarter with higher margins in specialty liquid and manufactured products. - Renewables completed all fall maintenance during the period. - Trade's grain asset footprint benefited from carries returning to the market. - Nutrient & Industrial's ag business returned to more typical margins.

Trade: Third quarter pre-tax income was $26 million and adjusted pre-tax income was $23 million, compared to $5 million in the same period of 2023. Adjusted EBITDA for the quarter was $38 million compared to $21 million in Q3 2023. Renewables: Had a record third quarter with pre-tax income attributable to the company of $28 million compared to $26 million last year. EBITDA was $65 million in Q3 2024 compared to $69 million last year. Nutrient & Industrial: Reported a pre-tax loss of $6 million, an improvement from a loss of $8 million in 2023. EBITDA was $5 million for the quarter compared to $0.5 million in 2023.

• Target EBITDA run rate of $475 million by the end of 2026, a one-year delay from the original 2025 target. - Skyland acquisition expected to contribute $30-40 million EBITDA annually. - Houston port investment expected to deliver $15-20 million EBITDA annually by 2026. - Renewables expects consistent production in Q4, favorable margins, and volume growth in renewable diesel feedstock. - Nutrient & Industrial expects continued financial improvements with operational enhancements.

• Forward-looking statements are subject to various risks and uncertainties, including commodity price volatility, foreign currency risks, and industry-specific risks like renewable diesel margin pressures.

Q: Ben Klieve inquired about conditions in Q3, the Skyland acquisition, and the Houston port investment.

A: Bill Krueger responded on precedents of producers carrying old crop, the benefits of the Skyland acquisition, and the rationale behind the Houston port investment.

Q: Pooran Sharma asked about ethanol details, carbon credits, and acquisitions.

A: Bill Krueger and Brian Valentine discussed ethanol demand, carbon intensity initiatives, and the acquisition pipeline.

Q: Craig Irwin questioned capital investments, buyback authorization, and sustainable aviation fuel (SAF).

A: Brian Valentine and Bill Krueger commented on capital deployment, share repurchases, and SAF monitoring.

Q: Ben Mayhew asked about merchandising outlook, ethanol plants, and soy crush.

A: Bill Krueger responded on 2025 merchandising outlook, ethanol plant acquisition interest, and soy crush dynamics.