The Andersons, Inc. (ANDE): Business Model Canvas [Dec-2025 Updated]

You're looking to really understand how a diversified agriculture player like The Andersons, Inc. actually makes its money, beyond just the headline numbers. Honestly, when you see a TTM revenue figure hitting $11.6 billion as of September 30, 2025, you need to see the engine driving it-that's what this Business Model Canvas lays bare. We're talking about a complex operation that connects North American farms to global markets through grain trading, fuel production, and nutrient services, all supported by a physical footprint of about 180 key locations. Dive into the nine blocks below to see exactly how their key activities, resources, and revenue streams-from merchandising margins to renewable fuel sales-are structured to deliver value in this dynamic sector.

The Andersons, Inc. (ANDE) - Canvas Business Model: Key Partnerships

You're building out the Key Partnerships section for The Andersons, Inc. (ANDE) and need the hard numbers to back up the strategic relationships. Honestly, these partnerships are what let The Andersons move massive amounts of product across North America and manage the associated risks. Here's the breakdown based on their late 2025 financial reporting.

Logistics providers for rail, truck, and barge transport

The Trade segment is all about managing logistics for commodities like corn, wheat, and soybeans, which requires deep ties to transportation networks. Their investment in Iowa Northern Railway Company shows a direct partnership in rail capacity. Trucking is implied through their general operations and the need to move product to and from their facilities, which include grain storage capacity of 150M bushels across 8 states. Furthermore, they are executing long-term projects, like adding soybean meal export capacity at their Port of Houston facility, which necessitates strong barge and deep-water logistics partners.

• Grain storage capacity: 150M bushels (as of TTM 2024).
• Commodities traded volume: 33M Tonnes (TTM 2024).
• Investment in rail infrastructure via Iowa Northern Railway Company.

Strategic alliances with major energy companies (e.g., Marathon, now a customer)

The Renewables segment is tightly linked to the energy sector, especially ethanol production. While a direct, current customer relationship with Marathon isn't explicitly detailed in the latest filings, the segment's focus is clear: producing and merchandising ethanol and co-products. They operate 4 Ethanol Facilities. Their merchandising volume for ethanol was 506M Gallons (TTM 2024). The segment's focus on lowering carbon intensity and utilizing 45Z tax credits means they partner closely with regulatory bodies and potentially fuel blenders or distributors who need low-carbon intensity fuel components. They recognized a cumulative catch-up for 45Z tax credits totaling $9 million in Q3 2025.

Technology and data partners for risk management and trading platforms

The Trade segment manages risk across its portfolio, which involves significant use of forward contracts for grain purchases and sales. While specific technology vendors aren't named, the need for robust platforms is evident in their operations. The company's overall Trailing 12-Month Revenue as of September 30, 2025, was $11.6B, requiring sophisticated systems to manage that volume. Their commitment to transparency through external reporting frameworks like Sedex and EcoVadis suggests partnerships with data assurance and sustainability reporting platforms.

Suppliers of raw materials for nutrient and industrial products

The Nutrient & Industrial business line relies on securing raw materials like Nitrogen, Phosphate, and Potash (NPK) fertilizers. They sold 1.9M Tons of Nutrients (TTM 2024). In their premium ingredients business, they are investing capital to meet customer demand for cleaned corn used in chip, tortilla, and pet food markets. Their sustainability efforts point to partnerships with farmers for educational tools and equipment to reduce emissions throughout the supply chain.

Financial institutions for commodity financing and credit facilities

Managing working capital for commodity inventory is a major function, requiring strong relationships with banks for credit facilities. The Andersons, Inc. reported a cash balance of more than $350 million at the end of Q2 2025. They funded a post-quarter ethanol transaction using cash on hand and borrowings on their line of credit, demonstrating active use of these facilities. Their financial health, with a debt-to-equity ratio of 0.36 and a long-term debt to EBITDA ratio of approximately 1.9 times (below the target of less than 2.5 times) as of Q2 2025, makes them an attractive borrower for these facilities.

Here's a quick look at their financial footing supporting these credit lines:

The fact that their readily marketable grain inventories are 'well in excess' of their short-term debt shows the collateral base supporting their financing partnerships is solid. Finance: review the covenants on the revolving line of credit against the 1.9 times debt/EBITDA ratio by next Tuesday.

The Andersons, Inc. (ANDE) - Canvas Business Model: Key Activities

You're looking at the core engine of The Andersons, Inc. as of late 2025. The key activities here aren't just about moving product; it's about controlling the flow from the field to the final consumer, especially now with the full integration of recent buys.

Global commodity merchandising and trading of grains

This is about connecting supply and demand across vast distances. The Andersons, Inc. is one of the top 10 U.S. players in the Trade industry, based on capacity. They merchandise over 100+ Commodities across their network. For the twelve months ending June 30, 2025, the company reported total revenue of approximately $11.5 billion. The Agribusiness segment, which includes this trading, saw its Q1 2025 adjusted EBITDA reach $31 million, up from $29 million in Q1 2024, showing the activity's importance even in turbulent markets.

Efficient operation of ethanol production facilities

The Renewables segment focuses heavily on running its 4 Ethanol Facilities efficiently. This activity is now bolstered by full ownership of these assets, which added approximately $12 million in pretax earnings to the Q3 2025 results alone. The plants produced 506 million gallons of ethanol in the trailing twelve months ending June 30, 2025. Furthermore, the drive for efficiency and compliance is clear, as The Andersons, Inc. recorded $20 million in 45Z clean fuel production tax credits year-to-date in Q3 2025. The segment's Q3 2025 adjusted pretax income attributable to the company was $46 million.

Providing value-added agronomy and nutrient services to farmers

This involves getting the right inputs to producers and managing the resulting output. The Agribusiness segment sold 1.9 million Tons of Nutrients in the last twelve months ending June 30, 2025. The agronomy teams are a key part of this, and following the Skyland integration, the retail farm center business effectively doubled in size. This service helps farmers manage their operations, which is critical when global trade flows are uncertain, as seen in Q1 2025.

Managing extensive grain storage and logistics infrastructure

The physical network is a massive key activity. The Andersons, Inc. manages approximately 290 million Bushel of grain storage capacity across its network. This infrastructure supports the trading activity, allowing the company to merchandise 1.6X the amount of ethanol it produces. Solid elevation margins and space income from these core grain assets drove strong results in Q4 2024. The company operates across approximately 180 locations total.

Here's a quick look at the scale of these operational activities as of mid-2025:

Executing strategic acquisitions and portfolio review (e.g., Skyland integration)

This activity ensures the asset footprint remains competitive. The finalization of majority ownership in Skyland Grain, LLC in late 2024 was a major move, bringing 50 locations with grain, agronomy, cotton, and fuel assets into the fold. The integration is ongoing; Q1 2025 results noted that assets recently acquired as part of the Skyland Grain, LLC investment faced challenged basis levels. Also, in Q3 2025, The Andersons, Inc. acquired the full ownership interest in The Andersons Marathon Holdings LLC, which operates 4 ethanol plants. The company maintains a strong balance sheet, with a long-term debt to adjusted EBITDA ratio of 1.8 times, well below its target of 2.5 times, providing capital flexibility for these moves.

The core operational outputs supporting these activities include:

• Merchandising 1.6X the volume of ethanol produced.
• Producing 1.1M Tons of Feed Products in the trailing twelve months.
• Trading 33M Tonnes of Commodities.
• Generating $363 million in Adjusted EBITDA for the full year 2024.

Finance: draft 13-week cash view by Friday.

The Andersons, Inc. (ANDE) - Canvas Business Model: Key Resources

You're looking at the physical and intellectual assets The Andersons, Inc. (ANDE) relies on to run its business as of late 2025. These aren't just line items; they are the operational backbone connecting the farm gate to the end user, especially now with the full integration of their ethanol assets.

The physical footprint is substantial, built over decades of connecting agricultural production with demand centers. This network is key to their ability to handle massive commodity flows and process renewables efficiently.

Here's a quick look at how the stated resources map to the latest reported figures from their August and November 2025 investor materials:

The company's physical assets are anchored by its grain handling and renewable fuel infrastructure. For instance, The Andersons Marathon Holdings LLC (TAMH), now fully owned and renamed The Andersons Renewables, LLC, operates 4 ethanol plants with a combined annual production capacity of 500 million gallons. This full ownership, completed in July 2025, is a major resource shift, giving them full control over these strategic assets.

The physical network includes:

• ~180 locations across North America.
• Grain storage capacity totaling ~290 million bushels.
• Four ethanol plants located in Michigan, Indiana, Ohio, and Iowa.

On the financial side, a critical resource is the balance sheet strength, which supports ongoing capital projects like the Port of Houston expansion, expected to finish in mid-2026. The Andersons management noted they remain below their long-term debt to EBITDA target of less than 2.5 times as of Q3 2025. Furthermore, cash generation remains a core strength; cash provided by operating activities was $234 million in the third quarter of 2025. This financial footing allows them to fund growth projects internally.

The intellectual capital is just as important. The Andersons is recognized as a Top 10 U.S. player in Trade & Renewables industries by capacity. This is built on deep, practical expertise in managing the volatility inherent in these markets. They use proprietary tools for price discovery and risk transfer execution to manage market price risk for their customers and their own book. This expertise is vital, especially when the Agribusiness segment faces challenges like low grain prices and trade policy uncertainty, as seen in Q3 2025.

You can see the scale of their trading and processing capabilities in their reported volumes for the trailing twelve months ended June 30, 2025:

The integration of Skyland Grain, LLC assets into the Agribusiness segment is also a key resource being actively managed to expand volume and geographic reach.

The Andersons, Inc. (ANDE) - Canvas Business Model: Value Propositions

You're looking at the core promises The Andersons, Inc. makes to its customers as of late 2025. These aren't just mission statements; they are backed by real operational scale and financial performance.

Reliable connection of farm production to global food, feed, and fuel markets is delivered primarily through the Trade segment, which handles the movement of physical commodities like whole grains, feed ingredients, and domestic fuel products. This segment generates the majority of the company's revenue, which stood at $11.60B for the trailing twelve months ending September 30, 2025. For the third quarter of 2025, the company posted revenue of $2.68 billion, a 2.2% increase year-over-year. The Trade segment itself reported record fourth quarter pretax income of $54 million in the fourth quarter of 2024.

The value proposition of Risk management services to stabilize farmer and commercial customer margins is embedded within the Trade segment's offerings, which explicitly include grain marketing and risk management services. While specific dollar amounts for risk management revenue aren't public, the focus on stabilizing margins is a key differentiator for commercial customers.

For High-quality, efficiently produced renewable fuels (ethanol, renewable diesel feedstock), the Renewables segment shows clear operational metrics. Ethanol production volumes for the first nine months of 2025 reached 620.7 million gallons, up from 585.2 million gallons in the same period of 2024. The efficiency of this production is underscored by the combined Carbon Intensity (CI) score of their ethanol facilities being 49.54 gCO2e/MJ, which is lower than the Renewable Fuels Association baseline estimate of 53.3 gCO2e/MJ. The segment delivered pretax income attributable to the company of $15 million in the first quarter of 2025. The company is aiming for a run rate EBITDA target of $475 million by 2025, supported by growth in this area.

The offering of Comprehensive agronomy solutions and specialty nutrient products falls under the Nutrient & Industrial segment. This segment saw year-over-year improvement in the fourth quarter of 2024, driven by manufactured product lines. For the first quarter of 2025, the Agribusiness segment (which includes Nutrient & Industrial) recorded adjusted EBITDA of $31 million. The company also achieved an Environmental Regulatory Incident Rate (ERIR) of 0.57 in 2024, which was below the target of 0.91.

Finally, Extraordinary customer service and integrity, rooted in a 1947 founding, is a foundational element. The company's founding year is 1947. This commitment is reflected in their financial results, such as reporting a net income attributable to The Andersons, Inc. of $20.1 million for the third quarter of 2025, with a diluted EPS of $0.59 for the same period. The company's overall financial health supports this long-term view, with a cash balance of $562 million reported at the end of 2024.

Here's a look at some key performance indicators across the operating segments as of late 2025 data points:

The company's overall revenue for the last twelve months ending September 30, 2025, was $11.60B.

The Andersons, Inc. (ANDE) - Canvas Business Model: Customer Relationships

You're looking at how The Andersons, Inc. manages its diverse customer base, which spans from individual growers to large CPG (Consumer Packaged Goods) entities. The relationship style changes significantly based on the business line you're dealing with.

Dedicated account managers for large commercial customers

For major industrial and CPG customers, The Andersons, Inc. focuses on deep, customized engagement. They have entered into multi-year commitments with end-users to ensure ingredient and feedstock delivery aligns with specific sustainability platforms and protocols. This involves developing customized sourcing solutions centered on regenerative practices. This approach solidifies relationships beyond simple transactions, aiming for supply chain resiliency for the customer.

High-touch, local service at farm centers for growers

The relationship with the grower community is built on proximity and accessibility. The Andersons, Inc. operates approximately ~175 Facilities as of August 2025, providing a broad geographic footprint close to production areas. This physical presence supports the high-touch service model at these local points. The company is actively integrating the Skyland Grain, LLC assets into its Agribusiness segment to further enhance this local reach.

The scale of the Agribusiness customer-facing operations can be seen here:

Long-term, strategic relationships for ethanol and co-product off-take

In the Renewables segment, relationships are strategic and often involve significant capital commitment. Following the acquisition of full ownership interest in The Andersons Marathon Holdings LLC (TAMH) in Q2 2025, The Andersons, Inc. now controls 4 ethanol plants with a total annual production capacity of 500 million gallons. Management is actively evaluating and implementing enhancements to lower the carbon intensity of this ethanol, a key factor for strategic off-take partners seeking low CI fuels. The company also continues to invest in its premium food corn business due to growing customer demand.

Transactional relationships for spot commodity trading

For the core grain and commodity flows, relationships can be more transactional, especially when market conditions are volatile. The company merchandised 33M Tonnes of Commodities in the trailing twelve months ending March 31, 2025. In Q1 2025, global trade uncertainties caused some commercial customers to focus on just-in-time purchasing, which is characteristic of shorter-term, transactional interactions.

Digital tools for market information and transaction processing

The Andersons, Inc. is actively deploying digital tools to streamline customer interactions across segments. The Plant Nutrient Group rolled out a new web-based customer portal for wholesale agriculture customers, providing up-to-date information on contracts, load shipping details, and invoice totals, with availability expanding to all Plant Nutrient customers later in 2025. For grain customers, the AgConnect Mobile App is available across various regions, offering access to key data points:

• Contracts
• Tickets (users can see Ticket information from the past two years)
• Commodity Balances
• Location Info (hours, contact details)
• Futures and Market Commentary

The mobile apps are segmented by geography, with specific features for customers working with locations in Idaho, Louisiana, New York, and Midwest Trucking (Colorado), while other apps serve Indiana, Iowa, Kansas, Kentucky, Michigan, Nebraska, and Ohio.

Finance: draft 13-week cash view by Friday.

The Andersons, Inc. (ANDE) - Canvas Business Model: Channels

You're looking at how The Andersons, Inc. moves product from the field and plant to the customer as of late 2025. It's a physical game, so the network size matters.

The physical network is anchored by facilities across the U.S. and Canada. The company realigned its structure effective January 1, 2025, into two main segments, which helps define the channel footprint:

• The Trade segment operates approximately 130 Facilities.
• The Nutrient & Industrial segment operates approximately 50 Facilities, which includes about 20 Farm Centers.

This network supports a total grain storage capacity of approximately 290M Bushel across these assets, though other data points suggest capacity exceeding 190 million bushels based on year-end 2024 figures. The total physical footprint aligns near the suggested ~180 locations.

The scale of commodity movement through these channels is substantial, as shown by the trailing twelve months volumes as of December 31, 2024, which inform the current logistics requirements:

The global trading desks facilitate the movement of these commodities, evidenced by the 33M Tonnes of commodities traded in the trailing twelve months ending December 31, 2024. The United States is the largest market, but Canada and Mexico also show strong performance in revenue contribution.

For the Nutrient and Industrial products, the direct sales channel moves product volume like the 1.9M Tons sold in the trailing twelve months ending December 31, 2024. The segment also holds over 30 U.S. Patents which are part of the industrial product offering.

Physical delivery relies on the integrated logistics capabilities using rail, truck, and barge. The company's Q3 2025 total sales and merchandising revenues reached $2,677.7 million, with the Agribusiness segment alone contributing $1,988,907 thousand for the three months ended September 30, 2025, showing the massive throughput these channels manage.

Engagement with capital markets is a channel for funding operations and growth. The Andersons, Inc. presented its Q3 2025 results on November 4, 2025, and is scheduled to present at the Stephens Annual Investment Conference on November 19, 2025.

The Andersons, Inc. (ANDE) - Canvas Business Model: Customer Segments

You're looking at the key customer groups The Andersons, Inc. (ANDE) served as of late 2025, based on their Q3 2025 segment performance data. It's about connecting the farmgate to the end-user.

North American Farmers and Growers (the farmgate)

This group is the primary source for the Agribusiness segment. The Andersons, Inc. reported revenues for the Agribusiness segment of $\$1,989$ million for the third quarter ended September 30, 2025. The company noted completing its wheat harvest with higher-than-expected volumes during this period. The Agribusiness segment generated an adjusted EBITDA of $\$29.1$ million in Q3 2025, down from $\$45.0$ million in Q3 2024.

Food, Feed, and Industrial Processors (e.g., millers, feedlots)

These customers take the commodities handled by the Agribusiness segment. The company is integrating Skyland Grain, LLC assets, which feed into this chain. The Port of Houston project is a strategic investment to add export capacity for soybean meal, directly serving international processors. The Andersons, Inc. is also investing in its premium food corn business to increase capacity due to growing customer demand.

Domestic and International Ethanol/Renewable Fuel Blenders and Distributors

This group is served by the Renewables segment, which saw strong operating performance. The Renewables segment reported revenues of $\$688.80$ million for Q3 2025. The segment delivered an adjusted EBITDA of $\$67$ million in Q3 2025, up from $\$63$ million in Q3 2024. A key driver was the recognition of year-to-date 45Z tax credits, totaling $\$20$ million reflected in the Q3 results. The company completed the acquisition of full ownership of its ethanol plants at the end of July 2025.

• Renewables Segment Adjusted Pretax Income Attributable (Q3 2025): $\$46.3$ million
• Ethanol Plants Produced Gallons: $506$ Million (as of 12/31/2024)
• Renewables Segment Facilities: $\sim 50$ (as of March 1, 2025)

Industrial and Specialty Product Buyers (e.g., turf, corncob products)

While the company realigned segments in 2025, this customer base was historically served by the Nutrient & Industrial segment, which had $\sim 4$ facilities as of early 2025. The company holds over $30$ U.S. Patents, which likely support specialty product offerings. The company is investing in capacity for premium food corn, indicating continued focus on specialized grain streams.

Institutional Investors and Shareholders

Shareholder value is driven by earnings and balance sheet strength. The reported adjusted net income attributable to The Andersons for Q3 2025 was $\$29$ million, resulting in an adjusted diluted EPS of $\$0.84. Cash generation remains a focus, with cash provided by operating activities in Q3 2025 reaching $\$234$ million. The company reiterated a long-term debt to adjusted EBITDA target of less than $2.5$ times, ending Q3 2025 at $\sim 2$x. The quarterly dividend declared was $\$0.20 per share, representing an annualized yield of $1.54\%$.

Finance: draft 13-week cash view by Friday.

The Andersons, Inc. (ANDE) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive The Andersons, Inc.'s operations as of late 2025. This structure is heavily influenced by volatile commodity markets and significant capital investment for expansion.

Cost of Revenue: Primarily commodity purchases (e.g., corn, wheat) and input costs

The largest component of cost is the Cost of Sales, which directly relates to commodity purchases for merchandising and processing. For the first quarter of 2025, the Cost of Sales was reported at $2.506 billion, against total revenues of $2.659 billion for the same period. This reflects the high volume, low-margin nature of the agribusiness and renewables trading business.

Operating Expenses: Labor costs for approximately 2,600 employees

The Andersons, Inc. supports its operations with approximately 2,600 total employees, inclusive of the Skyland assets. Labor is a key part of the Operating Expenses. While specific labor cost figures aren't isolated, the broader Operating, Administrative, and General (O&A&G) expenses rose in Q1 2025, partly due to the integration and scaling of the Skyland acquisition. The company's Gross Profit for Q1 2025 was $152.872 million.

The breakdown of key Q1 2025 financial costs is summarized below:

Capital Expenditures: Spending on growth projects, totaling $47 million in Q1 2025

The Andersons, Inc. is actively investing in its footprint. Capital spending in the first quarter of 2025 totaled $47 million, a significant increase from the $27 million spent in Q1 2024. This spending is tied to long-term growth projects and maintenance capital for newly added assets like Skylane Grain. For the full year 2025, management expects capital investments could reach approximately $200 million.

Logistics and Transportation Costs: Moving commodities across the supply chain

Logistics and transportation are embedded within the Cost of Sales and operating expenses, particularly given the company's extensive asset footprint of approximately 180 locations. These costs are subject to fluctuations based on fuel prices and the efficiency of moving bulk commodities like corn and wheat across the supply chain, which was impacted by global trade uncertainties in Q1 2025.

Interest Expense: Financing working capital and long-term debt

Financing costs are a notable expense, driven by the need to fund working capital for commodity inventories and long-term debt obligations. The reported Interest Expense for the first quarter of 2025 was $13.096 million, more than double the $6.522 million recorded in the first quarter of 2024. Despite this increase, the balance sheet remains strong, with the long-term debt to adjusted EBITDA ratio holding at approximately 1.8 times, which is well below the stated target of less than 2.5 times.

Key financial health metrics related to debt and liquidity as of Q1 2025 include:

• Long-Term Debt to Adjusted EBITDA: approximately 1.8 times.
• Cash and Cash Equivalents: $219.219 million.
• Current Ratio: 1.65.

The Andersons, Inc. (ANDE) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for The Andersons, Inc.'s revenue generation as of late 2025. Here's the quick math on how the pieces fit together based on the Q3 2025 results.

The Andersons, Inc. reported total revenue of $2.68 billion for the third quarter ending September 30, 2025. For the trailing twelve months ending September 30, 2025, total revenue stood at $11.60B.

Net income attributable to The Andersons, Inc. for Q3 2025 was $20 million.

The revenue streams are primarily segmented across Agribusiness and Renewables, with the Agribusiness segment generating $1.99 billion in revenue during the third quarter of 2025.

Grain Merchandising and Service Fees

Revenue from grain-related activities, which includes both merchandising and related services, falls under the Agribusiness segment. This segment recorded a pretax income of $1 million for the quarter, with adjusted pretax income attributable to the company at $2 million. Lower margins across grain assets and merchandising, alongside reduced put-through volumes, contributed to a decline in gross profit compared to Q3 2024. Opportunities for elevation margins and merchandising are expected to increase in the fourth quarter due to the fall harvest.

Key components contributing to this revenue stream include:

• Grain storage revenue.
• Handling revenue.
• Risk management service fees.
• Margins from buying, storing, and selling commodities.

Renewable Fuels Sales

The Renewables segment is a significant revenue driver, reporting $688.80 million in revenue for Q3 2025. This segment delivered a strong pretax income of $43 million in the third quarter. The results reflect two months of full ownership of the ethanol plants.

The segment's performance was bolstered by:

• Strong operating performance.
• Efficient ethanol plant yields and production.
• Year-to-date recording of 45Z tax credits totaling $20 million.

Nutrient and Industrial Product Sales

Sales of fertilizers, specialty nutrients, and industrial products are integrated within the Agribusiness segment's overall revenue of $1.99 billion in Q3 2025. During this seasonally slow quarter, the nutrient business experienced increased margins and higher year-over-year volumes.

Here is a comparison of the segment performance for Q3 2025:

The Board declared a Q3 2025 dividend of $0.195/share.