Core Insights - ADM will present at the 2025 Goldman Sachs Industrials & Materials Conference on December 3, 2025, in New York City, participating in a fireside chat at 3:30 p.m. Eastern Time [1] - The presentation will be available via live webcast and a replay will be accessible for a limited time [1] Company Overview - ADM is a global agricultural supply chain manager and processor, focusing on food security by connecting local needs with global capabilities [2] - The company offers a broad portfolio of human and animal nutrition products, emphasizing health and well-being through innovative solutions [2] - ADM is committed to sustainability, supporting a strong agricultural sector and a growing bioeconomy [2] Recent Developments - ADM has launched the world's largest bioethanol carbon capture facility in Columbus, Nebraska, in collaboration with Tallgrass, utilizing the Trailblazer pipeline for CO2 transportation [4] - The company declared a cash dividend of 51.0 cents per share, marking its 376th consecutive quarterly payment, with a record of over 94 years of uninterrupted dividends [5] - For the third quarter of 2025, ADM reported earnings of $108 million, with adjusted net earnings of $448 million, and an EPS of $0.22, with adjusted EPS of $0.92 [6]

Core Insights - Archer-Daniels-Midland Company (ADM) does not present any immediate standout positives that would make it an attractive investment at first glance [1] Group 1 - The analysis is conducted by an experienced investor with a background in Economics and ongoing CFA certification, focusing on uncovering mispriced assets [1] - The approach taken is fundamentals-first, acknowledging the importance of sentiment and technicals in today's algorithm-driven investment environment [1]

Core Insights - ADM has launched a new carbon capture and storage project at its Columbus, Nebraska Corn Processing Complex, making it the largest bioethanol carbon capture facility globally [1] - The project utilizes Tallgrass's Trailblazer pipeline to transport captured carbon dioxide (CO2) from ADM's ethanol plant to Tallgrass' Eastern Wyoming Sequestration Hub [1] Company Overview - ADM is recognized as a global leader in providing innovative solutions derived from nature [1] - The Columbus facility is a significant step in ADM's commitment to sustainability and reducing carbon emissions in the bioethanol production process [1] Industry Impact - The establishment of the largest bioethanol carbon capture facility is expected to set a benchmark in the industry for carbon management practices [1] - The collaboration with Tallgrass for CO2 transportation highlights the growing importance of infrastructure in supporting carbon capture initiatives [1]

Group 1 - Archer-Daniels-Midland Company (ADM) has been added to the Zacks Rank 5 (Strong Sell) List due to a 13% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - Associated British Foods plc (ASBFY) is also on the Zacks Rank 5 (Strong Sell) List, with a 22.2% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - Burford Capital Limited (BUR) has seen a 20.7% downward revision in the consensus estimate for its current year earnings over the last 60 days, leading to its inclusion in the Zacks Rank 5 (Strong Sell) List [2]

Core Insights - The eighth China International Import Expo (CIIE) took place in Shanghai from November 5 to 10, showcasing ADM's commitment to innovation and sustainability in the food and agricultural sector [1] - ADM's Asia Pacific President, Fabiana Bianchi, emphasized the expo as a vital platform for global and Chinese collaboration, highlighting the importance of openness, innovation, and mutual benefits [1] - ADM's China President, Zhu Linbo, expressed the company's aim to integrate global research with local innovation to address health, sustainability, and industrial upgrades in China [1] Company Developments - ADM signed a series of cooperation agreements with key partners and clients during the expo, with a total contract value exceeding 20 billion RMB [1] - The company is enhancing its localization capabilities, planning to establish its first Asia Pacific dietary supplement innovation center in Shanghai in 2024 [1] - ADM is also set to break ground on its second animal nutrition factory in Tianjin in 2024, expected to commence operations in 2026 [1] - The Wuxi R&D center focuses on innovative technology development in the food sector, while the Pinghu flavor factory is enhancing its innovation and production capabilities for flavor solutions [1]

Core Insights - Archer-Daniels-Midland Company (ADM) has a market cap of $27 billion and operates in the procurement, transportation, storage, processing, and merchandising of agricultural commodities globally [1] Performance Overview - ADM stock has underperformed the broader market, with a year-to-date increase of 12.3% and a 52-week gain of 6.5%, compared to the S&P 500 Index's gains of 14.3% in 2025 and 13.4% over the past year [2] - The stock has outperformed the Vaneck Agribusiness ETF (MOO), which saw an 8.4% increase year-to-date and a 2.2% decline over the past 52 weeks [3] Q3 Financial Results - In Q3, ADM reported a 2.2% year-over-year increase in revenue to $20.4 billion, missing expectations by 1.4% [4] - Adjusted EPS decreased from $1.09 to $0.92 but exceeded consensus estimates by 3.4% [4] Guidance and Analyst Ratings - The company revised its full-year EPS guidance down from $4.00 to a range of $3.25 - $3.50 [5] - Analysts expect an adjusted EPS of $3.45 for fiscal 2025, reflecting a 27.2% year-over-year decline [6] - The consensus rating among 11 analysts is a "Hold," with one "Strong Buy," seven "Holds," two "Moderate Sells," and one "Strong Sell" [6] Recent Downgrade - On November 5, JP Morgan downgraded ADM from "Equal-Weight" to "Underweight" and lowered the price target from $61 to $59 [7]

Core Insights - Top Wall Street analysts have revised their outlook on several prominent companies, indicating a shift in market sentiment and potential investment opportunities [1] Company Analysis - Analysts are considering buying TREX stock, suggesting a positive outlook for the company [1]

Core Viewpoint - Top Wall Street analysts have revised their outlook on several prominent companies, indicating potential shifts in investment sentiment and opportunities in the market [1] Company Analysis - Analysts are considering buying AMD stock, suggesting a positive outlook for the company amidst recent rating changes [1]

Financial Performance - Revenues for Q3 2025 were $20,372 million, a 2.2% increase from $19,937 million in Q3 2024[14] - Net earnings attributable to Archer-Daniels-Midland Company for Q3 2025 were $108 million, compared to $18 million in Q3 2024, representing a significant increase[14] - Gross profit for the nine months ended September 30, 2025, was $3,820 million, down 13.6% from $4,420 million in the same period of 2024[14] - The company reported a total comprehensive income of $292 million for Q3 2025, compared to $59 million in Q3 2024[15] - Basic earnings per common share for the nine months ended September 30, 2025, were $1.29, down from $2.49 in the same period of 2024[14] - The company reported net earnings of $622 million for the nine months ended September 30, 2025, compared to $1,233 million for the same period in 2024, a decrease of 49.5%[34] - The total earnings before income taxes for the three months ended September 30, 2025, was $147 million, a decrease from $108 million in the same period of 2024[169] Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 30, 2025, were $5,765 million, compared to $2,468 million in 2024, indicating strong operational performance[19] - Total assets decreased to $51,918 million as of September 30, 2025, from $53,271 million at the end of 2024[17] - As of September 30, 2025, total cash, cash equivalents, restricted cash, and restricted cash equivalents amounted to $5,875 million, up from $4,397 million as of September 30, 2024, representing a 33.6% increase[30] - The fair value of total assets as of September 30, 2025, was $8.097 billion, with Level 2 assets amounting to $2.962 billion[79] - The company had $5.1 billion of total lines of credit supporting U.S. and European commercial paper borrowing programs, with $190 million of commercial paper outstanding[144] Debt and Liabilities - Long-term debt decreased to $6,609 million as of September 30, 2025, from $7,580 million at the end of 2024, indicating a reduction in leverage[17] - The fair value of the company's long-term debt was estimated at $6.3 billion as of September 30, 2025, down from $7.1 billion as of December 31, 2024[142] - The closing balance of liabilities as of September 30, 2025, was $280 million, down from $426 million on July 1, 2025, representing a decrease of about 34.3%[98] Inventory Management - Inventories decreased to $8,700 million as of September 30, 2025, from $11,572 million at the end of 2024, reflecting improved inventory management[17] - The company's total inventories decreased to $8,700 million as of September 30, 2025, from $11,572 million as of December 31, 2024, reflecting a decline of 24.5%[37] Segment Performance - The Ag Services and Oilseeds segment generated revenues of $15.613 billion for the three months ended September 30, 2025, up from $15.089 billion in the same period of 2024[58][60] - The Carbohydrate Solutions segment reported revenues of $2.734 billion for the three months ended September 30, 2025, compared to $2.908 billion in the same period of 2024, indicating a decline of approximately 6%[58][60] - The Nutrition segment's revenues remained stable at $1.916 billion for the three months ended September 30, 2025, compared to $1.831 billion in the same period of 2024[58][60] - Segment operating profit for the Ag Services and Oilseeds segment was $379 million for the three months ended September 30, 2025, compared to $480 million in the same period of 2024, showing a decrease of about 21%[169] - The total segment operating profit for the three segments combined was $845 million for the three months ended September 30, 2025, down from $1,037 million in the same period of 2024, indicating a decline of approximately 18.5%[169] Legal and Regulatory Matters - The Company is involved in multiple legal actions, with potential damages claimed between approximately $500 million to over $2.0 billion due to alleged manipulation of ethanol derivatives pricing[206] - The Company is under investigation by the SEC and DOJ regarding intersegment sales, with no current ability to predict the outcome[209] - A purported stockholder filed a securities fraud class action against the Company and certain officers, with the court denying motions to dismiss on March 12, 2025[210] - The Company is facing several derivative lawsuits from purported stockholders seeking unspecified damages, which have been consolidated in the U.S. District Court for the District of Delaware[211] - The Company denies liability in ongoing legal actions and believes the outcomes will not materially affect its financial condition[208] Dividends and Shareholder Returns - The company declared dividends per common share of $0.51 for Q3 2025, slightly up from $0.50 in Q3 2024[14] - Cash dividends paid per share were $1.53 for the nine months ended September 30, 2025, totaling $743 million, compared to $1.50 per share totaling $744 million for the same period in 2024[34] - The company's stock repurchase program allows for the repurchase of up to an additional 100 million shares, with 115 million shares remaining under the program as of September 30, 2025[150] Impairments and Charges - The company recognized impairment losses of $187 million during the nine months ended September 30, 2025, reflecting challenges in its investment portfolio[40] - The Nutrition segment reported a $173 million impairment charge related to previously capitalized internal-use software for the nine months ended September 30, 2025[175] - The company incurred a penalty charge of $163 million related to its share of a penalty imposed on Wilmar during the nine months ended September 30, 2025[175] Future Outlook and Initiatives - The Company plans to adopt several new accounting standards, including ASU 2023-09 effective December 31, 2025, which will enhance income tax disclosures[50] - The company has targeted actions expected to deliver over $500 million in cost savings by fiscal 2029 through cost optimization initiatives[193]

Core Insights - Archer Daniels Midland Company (ADM) reported third-quarter 2025 results with revenues falling short of estimates but showing a year-over-year increase, while earnings exceeded estimates but declined compared to the previous year [1][2]. Financial Performance - Adjusted earnings were 92 cents per share, surpassing the Zacks Consensus Estimate of 89 cents, but down from $1.09 per share in the same quarter last year [2]. - Reported earnings were 22 cents per share, up from 4 cents in the year-ago quarter [2]. - Revenues increased by 2.2% year over year to $20.4 billion, missing the consensus estimate of $20.7 billion [2]. Segment Performance - Ag Services & Oilseeds revenues rose 3.5% year over year to $15.6 billion, while Carbohydrate Solutions revenues fell 5.9% to $2.7 billion, and Nutrition revenues increased 4.6% to $1.92 billion [3]. - Revenues from Other Business remained flat at $109 million compared to the prior year [3]. Profitability Metrics - Gross profit decreased by 7% year over year to $1.3 billion, with a gross margin of 6.2% [4]. - Selling, general and administrative expenses declined to $873 million from $905 million in the previous year [4]. - Adjusted segmental operating profit was $845 million, down 19% from the year-ago quarter [4]. Segmental Operating Profit Analysis - Adjusted operating profit for Ag Services & Oilseeds dropped 21% year over year to $379 million, despite a 78% increase in the Ag Services subsegment's operating profit [5]. - Crushing subsegment's operating profit plummeted 93% year over year due to lower margins and muted demand [6]. - Carbohydrate Solutions segment reported an operating profit of $336 million, reflecting a 26% decline from the previous year [8]. - Nutrition segment's operating profit increased by 24% to $130 million, with Human Nutrition subsegment gaining 12% year over year [11]. Financial Position - As of September 30, 2025, ADM had cash and cash equivalents of $1.24 billion, long-term debt of $7.6 billion, and shareholders' equity of $22.5 billion [13]. - The company generated $5.77 billion in cash from operating activities and paid out dividends of $743 million during the first nine months of 2025 [13]. Guidance Revision - For 2025, ADM revised its full-year adjusted EPS guidance to a range of $3.25 to $3.50 per share, down from the previous estimate of approximately $4.00 [14].