The Andersons (ANDE) Q4 2023 earnings summary

Executive summary

• Q4 net income from continuing operations attributable to shareholders was $51.2M, or $1.49 diluted EPS; adjusted net income was $54.6M, or $1.59 adjusted diluted EPS.

• Q4 adjusted EBITDA rose 30% YoY to $135.1M; FY adjusted EBITDA was $405.1M, below the prior-year $411.9M but above the previously disclosed $350M–$375M range.

Financial highlights

• Q4 revenue was $3.213B vs. $4.677B; gross profit was $217.7M vs. $170.0M. FY revenue was $14.750B vs. $17.325B; gross profit rose to $745.4M from $684.2M.

• Q4 EBITDA was $131.2M vs. $78.7M; adjusted EBITDA was $135.1M vs. $103.7M. FY EBITDA was $341.5M vs. $386.2M; adjusted EBITDA was $405.1M vs. $411.9M.

• FY net income from continuing operations attributable to shareholders was $101.2M vs. $119.1M; diluted EPS was $2.94 vs. $3.46, and adjusted diluted EPS was $3.44 vs. $4.05.

Outlook and guidance

• Trade’s balanced portfolio and grain assets are expected to support steady earnings amid abundant grain supply.

• Renewables expects seasonally low Q1 crush margins; industry maintenance and a spring driving rebound may support plant economics, while softer spot margins and weaker corn prices remain headwinds.

• Nutrient & Industrial expects a good spring application season as nutrient prices stabilize and farm economics support crop-input applications.

• 2024 capital spending is expected at $150M–$175M; growth priorities include carbon-reduction plans, renewable-diesel feedstock merchandising, facility investments and potential M&A.