Analyst Ratings February 18, 2026

Benchmark Keeps Buy on The Andersons After Strong Q4; $75 Price Target Stays

Analyst house cites Renewables and Agribusiness strength, tax credits and healthy cash generation as drivers

By Avery Klein ANDE
Benchmark Keeps Buy on The Andersons After Strong Q4; $75 Price Target Stays
ANDE

Benchmark has reaffirmed its Buy rating and $75.00 price objective on The Andersons, Inc. following the company’s fourth-quarter 2025 report. The firm highlighted outperformance driven by Renewables and Agribusiness, supported by operational tailwinds and 45Z tax credits. The company reported adjusted EPS above expectations, a record adjusted net income for the quarter, and metrics pointing to solid cash generation and a long dividend record.

Key Points

  • Benchmark reaffirmed a Buy rating and a $75.00 price target on The Andersons after Q4 2025 results.
  • Renewables and Agribusiness drove a record adjusted net income of $70 million in the fourth quarter, with $54 million pretax from Renewables (record ethanol production) and $46 million pretax from Agribusiness (record corn harvest).
  • The company reported adjusted EPS of $2.04, above expectations of $1.56, while revenue of $2.54 billion missed the $3.28 billion consensus; financial health indicators include an 11% free cash flow yield and a 31-year dividend track record.

Summary: Benchmark maintained its Buy recommendation and left its $75.00 price target unchanged on The Andersons, Inc. after the company released fourth-quarter 2025 results. The research firm pointed to strength in the Renewables and Agribusiness segments, with operational tailwinds and 45Z tax credits cited as key contributors to the quarter’s performance. The company reported adjusted earnings per share above analyst consensus and a record adjusted net income for the period.

Benchmark’s reaffirmation comes while The Andersons shares traded at $66.25 and have delivered a 67.44% return over the trailing 12 months, according to InvestingPro data. The firm described the initial results as overwhelmingly positive and indicated it expects these tailwinds to carry into 2026.


Quarterly results and segment detail

For the fourth quarter ended in 2025, The Andersons reported adjusted earnings of $2.04 per share, topping analyst expectations of $1.56. The company recorded adjusted net income of $70 million for the quarter, a quarterly record. Those outcomes were led by the Renewables and Agribusiness segments.

The Renewables unit delivered a pretax income of $54 million, with the company citing record ethanol production as a primary driver. Agribusiness contributed $46 million in pretax income during what was characterized as a record corn harvest season. At the same time, consolidated revenue for the quarter was $2.54 billion, which missed the consensus estimate of $3.28 billion.


Cash flow, dividend track record and market reaction

Benchmark emphasized The Andersons’ strong cash generation, noting an 11% free cash flow yield and a 31-year history of consistent dividend payments. These metrics figure into the firm’s positive view on the company’s financial health. Shares were little changed in aftermarket trading following the earnings release.


Analyst view and forward look

Benchmark maintained that the operational advantages and the benefit from 45Z tax credits were meaningful contributors to the quarter’s beat and that those factors appear to be extending into 2026. The firm left its $75.00 price target intact, unchanged from its prior rating.

Conclusion

The Andersons reported an earnings beat and record adjusted net income for Q4 2025, supported by strong performance in Renewables and Agribusiness, while missing revenue consensus. Benchmark preserved its Buy rating and $75.00 price target, citing continued tailwinds and solid cash generation metrics.

Risks

  • Revenue for the quarter missed consensus estimates, which could weigh on market perception and valuation - impacts corporate earnings and equity markets.
  • Portions of the quarter’s outperformance were attributed to 45Z tax credits and operational tailwinds, indicating results are at least partly dependent on tax incentives and near-term operational strength - impacts Renewables and policy-dependent segments.
  • Market reaction was muted in aftermarket trading, reflecting uncertainty in how investors balance the earnings beat and record net income against the revenue shortfall - impacts investor sentiment in the equity market.

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