Group 1: Impact of Tariffs on Industries - The impact of President Trump's tariff policy is becoming evident, particularly affecting the industrial, manufacturing, and automotive sectors, with companies like Caterpillar, McDonald's, and Marriott reporting increased raw material costs and decreased demand [1][2] - Global companies are expected to face a profit impact of approximately $15 billion by 2025 due to trade policy, primarily affecting industrial, manufacturing, and automotive industries, while financial and technology sectors are less impacted [2] - Caterpillar reported a 0.7% decline in Q2 revenue, with a 6.5% increase in commodity costs, indicating that tariffs may pose a greater challenge to profitability in the second half of 2025 [2] Group 2: Company-Specific Financial Impacts - Ford Motor Company experienced a 5% increase in Q2 revenue to $50.2 billion, but adjusted EBIT fell to $2.1 billion from $2.8 billion year-over-year, with an estimated net tariff impact of about $2 billion for the fiscal year [2] - Molson Coors anticipates a cost increase of $20 million to $35 million in the second half of the year due to rising aluminum prices from tariffs, which doubled from 25% to 50% [3] - Marriott International lowered its 2025 forecast due to weak travel demand, while Archer Daniels Midland reported its lowest profit in five years [3] Group 3: Market Resilience and Future Outlook - Despite ongoing trade tensions and tariff increases, the market has shown resilience, with the S&P 500 and Nasdaq indices rising over 30% since April [4] - Approximately 80.3% of the 370 companies in the S&P 500 that have reported earnings exceeded analyst expectations, with an earnings growth rate of 11.9% [4] - Analysts suggest that while some industries may be affected by tariffs, a clearer picture will emerge in the coming quarters, with potential for a market pullback of 7% to 15% anticipated in September to October [4][6]

```markdown PART I. FINANCIAL INFORMATION [ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](index=4&type=section&id=ITEM%201.%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents the unaudited consolidated financial statements of Archer-Daniels-Midland Company for the three and six months ended June 30, 2025 and 2024, including statements of earnings, comprehensive income (loss), balance sheets, cash flows, and shareholders' equity, along with detailed notes to the financial statements [Consolidated Statements of Earnings](index=4&type=section&id=a)%20Statements%20of%20Earnings) Consolidated Statements of Earnings (Three Months Ended June 30): | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Revenues | $21,166 | $22,248 | $(1,082) | -4.86% | | Gross Profit | $1,370 | $1,396 | $(26) | -1.86% | | Earnings Before Income Taxes | $279 | $596 | $(317) | -53.19% | | Net Earnings Attributable to ADM | $219 | $486 | $(267) | -54.94% | | Basic EPS | $0.45 | $0.99 | $(0.54) | -54.55% | | Diluted EPS | $0.45 | $0.98 | $(0.53) | -54.08% | | Dividends per common share | $0.51 | $0.50 | $0.01 | 2.00% | Consolidated Statements of Earnings (Six Months Ended June 30): | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Revenues | $41,341 | $44,095 | $(2,754) | -6.25% | | Gross Profit | $2,550 | $3,055 | $(505) | -16.53% | | Earnings Before Income Taxes | $632 | $1,481 | $(849) | -57.33% | | Net Earnings Attributable to ADM | $514 | $1,215 | $(701) | -57.70% | | Basic EPS | $1.06 | $2.42 | $(1.36) | -56.20% | | Diluted EPS | $1.06 | $2.41 | $(1.35) | -56.02% | | Dividends per common share | $1.02 | $1.00 | $0.02 | 2.00% | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=b)%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended June 30): | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Net Earnings Including Non-controlling Interests | $217 | $481 | $(264) | -54.89% | | Total other comprehensive income (loss), net of tax | $316 | $(311) | $627 | -201.61% | | Total comprehensive income | $533 | $170 | $363 | 213.53% | | Comprehensive income attributable to ADM | $535 | $176 | $359 | 203.98% | Consolidated Statements of Comprehensive Income (Loss) (Six Months Ended June 30): | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Net Earnings Including Non-controlling Interests | $509 | $1,200 | $(691) | -57.58% | | Total other comprehensive income (loss), net of tax | $196 | $(397) | $593 | -149.37% | | Total comprehensive income | $705 | $803 | $(98) | -12.20% | | Comprehensive income attributable to ADM | $710 | $822 | $(112) | -13.63% | [Consolidated Balance Sheets](index=6&type=section&id=c)%20Balance%20Sheets) Consolidated Balance Sheets (as of June 30, 2025 vs. December 31, 2024): | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | Change (%) | | :--------------------------------------- | :----------------------- | :--------------------------- | :---------------- | :--------- | | Total Current Assets | $26,292 | $27,718 | $(1,426) | -5.14% | | Total Non-Current Assets | $25,704 | $25,553 | $151 | 0.59% | | Total Assets | $51,996 | $53,271 | $(1,275) | -2.39% | | Total Current Liabilities | $18,471 | $19,938 | $(1,467) | -7.36% | | Total Long-Term Liabilities | $10,838 | $10,902 | $(64) | -0.59% | | Total Shareholders' Equity | $22,438 | $22,178 | $260 | 1.17% | [Consolidated Statements of Cash Flows](index=7&type=section&id=d)%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Six Months Ended June 30): | Metric | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :--------------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Net cash provided by operating activities | $3,956 | $1,168 | $2,788 | 238.70% | | Net cash used in investing activities | $(391) | $(1,612) | $1,221 | -75.74% | | Net cash used in financing activities | $(1,579) | $(661) | $(918) | 138.88% | | Increase (Decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | $2,020 | $(1,119) | $3,139 | -280.52% | | Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period | $5,944 | $4,271 | $1,673 | 39.17% | [Consolidated Statements of Shareholders' Equity](index=8&type=section&id=e)%20Statements%20of%20Shareholders'%20Equity) Shareholders' Equity Attributable to Archer-Daniels-Midland Company (June 30, 2025 vs. December 31, 2024): | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | Change (%) | | :--------------------------------------- | :----------------------- | :--------------------------- | :---------------- | :--------- | | Common Stock | $3,270 | $3,223 | $47 | 1.46% | | Reinvested Earnings | $21,952 | $21,933 | $19 | 0.09% | | Accumulated Other Comprehensive (Loss) | $(2,792) | $(2,988) | $196 | -6.56% | | Total Shareholders' Equity | $22,438 | $22,178 | $260 | 1.17% | [Notes to Consolidated Financial Statements](index=9&type=section&id=f)%20Notes%20to%20Financial%20Statements) [Note 1. Basis of Presentation](index=9&type=section&id=Note%201.%20Basis%20of%20Presentation) This note outlines the accounting principles used, including U.S. GAAP for interim financial information, consolidation principles for subsidiaries and VIEs, and the treatment of segregated cash and investments. It also details the Company's policies for receivables, inventories, cost method investments, and investments in affiliates, including the evaluation of impairment for its investment in Wilmar - The Company's Consolidated Financial Statements are prepared in accordance with U.S. GAAP for interim financial information and Form 10-Q instructions[22](index=22&type=chunk) - The Company consolidates all entities where it has a controlling financial interest, including Variable Interest Entities (VIEs) where it is the primary beneficiary[25](index=25&type=chunk) - Segregated cash and investments, totaling **$4,887 million** as of June 30, 2025, are held for regulatory, commodity exchange, and insurance requirements[26](index=26&type=chunk)[29](index=29&type=chunk) - The allowance for estimated uncollectible accounts decreased from **$167 million** at January 1, 2025, to **$153 million** at June 30, 2025[33](index=33&type=chunk) Inventories (in millions): | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Raw materials and supplies | $1,694 | $1,922 | | Finished goods | $2,670 | $2,689 | | Market inventories | $5,359 | $6,961 | | **Total inventories** | **$9,723** | **$11,572** | - The Company recognized **impairment losses** of **$187 million** on cost method investments during the six months ended June 30, 2025[39](index=39&type=chunk) - The Company's **22.5%** investment in Wilmar International Limited had a carrying value of **$3.7 billion** and a market value of **$3.2 billion** as of June 30, 2025, but was not considered other-than-temporarily impaired[42](index=42&type=chunk)[43](index=43&type=chunk) [Note 2. New Accounting Pronouncements](index=13&type=section&id=Note%202.%20New%20Accounting%20Pronouncements) This note details upcoming accounting standard updates, including ASU 2023-09 for income tax disclosures (effective December 31, 2025), ASU 2024-03 for income statement expense disaggregation (effective December 31, 2027), and ASU 2025-03 for determining the accounting acquirer in VIE business combinations (effective January 1, 2027). The Company expects these to result in expanded disclosures but not significant impacts on its consolidated financial statements, except for ASU 2025-03 which is still being evaluated - ASU 2023-09 (Income Taxes) will be adopted by December 31, 2025, enhancing income tax disclosures but not significantly impacting financial statements[50](index=50&type=chunk) - ASU 2024-03 (Expense Disaggregation) will be adopted by December 31, 2027, requiring tabular disclosure of operating expenses but not significantly impacting financial statements[51](index=51&type=chunk) - ASU 2025-03 (Business Combinations) will be adopted by January 1, 2027, amending the framework for identifying accounting acquirers in VIEs; the impact is currently being evaluated[52](index=52&type=chunk) [Note 3. Revenues](index=14&type=section&id=Note%203.%20Revenues) This note disaggregates revenue by timing of recognition (point in time vs. over time) and major product lines for the three and six months ended June 30, 2025 and 2024. It also provides a description of revenue recognition for each segment: Ag Services and Oilseeds, Carbohydrate Solutions, Nutrition, and Other Business Total Revenues by Segment (Three Months Ended June 30): | Segment | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Ag Services and Oilseeds | $16,269 | $17,333 | $(1,064) | -6.14% | | Carbohydrate Solutions | $2,792 | $2,894 | $(102) | -3.52% | | Nutrition | $1,993 | $1,908 | $85 | 4.45% | | Other Business | $112 | $113 | $(1) | -0.88% | | **Total Revenues** | **$21,166** | **$22,248** | **$(1,082)** | **-4.86%** | Total Revenues by Segment (Six Months Ended June 30): | Segment | 2025 (Millions) | 2024 (Millions) | Change (Millions) | Change (%) | | :-------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Ag Services and Oilseeds | $31,944 | $34,552 | $(2,608) | -7.55% | | Carbohydrate Solutions | $5,362 | $5,577 | $(215) | -3.86% | | Nutrition | $3,810 | $3,744 | $66 | 1.76% | | Other Business | $225 | $222 | $3 | 1.35% | | **Total Revenues** | **$41,341** | **$44,095** | **$(2,754)** | **-6.25%** | - Ag Services and Oilseeds revenue is generated from commodity sales, transportation service fees, manufactured products, and structured trade finance activities[60](index=60&type=chunk) - Carbohydrate Solutions revenue comes from products manufactured at corn and wheat milling facilities, with recognition upon transfer of control to the customer[62](index=62&type=chunk) - Nutrition segment revenue is from the sale of ingredients and solutions, including plant-based proteins, flavors, and animal nutrition products, recognized when control is transferred[64](index=64&type=chunk) [Note 4. Acquisitions](index=17&type=section&id=Note%204.%20Acquisitions) On January 31, 2025, the Company acquired Vandamme Hugaria Kft, a non-genetically modified crush and extraction facility in Hungary, for $123 million cash. This acquisition enhances the Ag Services and Oilseeds and Carbohydrate Solutions segments, with $95 million aggregate cash consideration (net of cash acquired) allocated to working capital, property, plant, and equipment, goodwill, and other intangible assets - On January 31, 2025, ADM acquired Vandamme Hugaria Kft for **$123 million** cash, adding capabilities to its Ag Services and Oilseeds and Carbohydrate Solutions segments[67](index=67&type=chunk) Vandamme Acquisition Cash Consideration Allocation (in millions): | Category | Amount | | :-------------------------------- | :----- | | Working capital, net of cash acquired | $24 | | Property, plant, and equipment | $27 | | Goodwill | $25 | | Other intangible assets | $22 | | Deferred tax liabilities | $(3) | | **Aggregate cash consideration, net of cash acquired** | **$95** | - Goodwill from the acquisition is primarily due to expected synergies and is not expected to be tax deductible[70](index=70&type=chunk) [Note 5. Fair Value Measurements](index=18&type=section&id=Note%205.%20Fair%20Value%20Measurements) This note details the Company's fair value measurements for certain assets and liabilities, categorized into Level 1, Level 2, and Level 3 inputs. It provides tables of fair value measurements for June 30, 2025, and December 31, 2024, and roll forwards of Level 3 assets and liabilities, explaining the inputs and methodologies used for inventories, derivative gains/losses, cash equivalents, marketable securities, and segregated investments - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) Fair Value Measurements at June 30, 2025 (in millions): | Category | Level 1 | Level 2 | Level 3 | Total | | :-------------------------------- | :------ | :------ | :------ | :------ | | **Assets:** | | | | | | Inventories carried at market | — | $2,652 | $2,707 | $5,359 | | Unrealized derivative gains | — | $614 | $596 | $1,210 | | Cash equivalents | $447 | — | — | $447 | | Marketable securities | $9 | — | — | $9 | | Segregated investments and restricted cash equivalents | $1,902 | — | — | $1,902 | | **Total Assets** | **$2,358** | **$3,266** | **$3,303** | **$8,927** | | **Liabilities:** | | | | | | Unrealized derivative losses | — | $735 | $385 | $1,120 | | Inventory-related payables | — | $933 | $41 | $974 | | **Total Liabilities** | **—** | **$1,668** | **$426** | **$2,094** | - Inventories and inventory-related payables are valued based on exchange-quoted prices adjusted for local market differences (basis), with Level 3 classification when unobservable inputs significantly impact fair value[79](index=79&type=chunk)[81](index=81&type=chunk) - Commodity derivative contracts are valued based on exchange-quoted prices adjusted for local market differences (basis), with Level 3 classification when unobservable inputs significantly impact fair value[83](index=83&type=chunk)[86](index=86&type=chunk) [Note 6. Derivative Instruments and Hedging Activities](index=23&type=section&id=Note%206.%20Derivative%20Instruments%20and%20Hedging%20Activities) This note details the Company's use of derivative instruments, both those not designated as hedging instruments (primarily for managing price risk and enhancing margins in commodity and foreign currency markets) and those designated as hedging instruments (cash flow, fair value, and net investment hedges). It provides fair value data and pre-tax gains/losses recognized in earnings for both categories - The Company uses exchange-traded and OTC commodity instruments to manage price risk and enhance margins, with changes in fair value recognized in Cost of products sold[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) Fair Value of Derivatives Not Designated as Hedging Instruments (in millions): | Category | June 30, 2025 (Assets) | June 30, 2025 (Liabilities) | December 31, 2024 (Assets) | December 31, 2024 (Liabilities) | | :----------------------- | :--------------------- | :-------------------------- | :------------------------- | :-------------------------- | | Foreign Currency Contracts | $181 | $158 | $272 | $102 | | Commodity Contracts | $1,010 | $708 | $828 | $760 | | **Total** | **$1,191** | **$866** | **$1,100** | **$862** | Pre-tax Gains (Losses) on Derivatives Not Designated as Hedging Instruments (Three Months Ended June 30, in millions): | Category | Revenues | Cost of products sold | Other (income) - net | Total | | :----------------------- | :------- | :-------------------- | :------------------- | :---- | | Foreign Currency Contracts | $(22) | $81 | $(90) | $(31) | | Commodity Contracts | — | $327 | — | $327 | | **Total** | **$(22)** | **$408** | **$(90)** | **$296** | Pre-tax Gains (Losses) on Derivatives Not Designated as Hedging Instruments (Six Months Ended June 30, in millions): | Category | Revenues | Cost of products sold | Other (income) - net | Total | | :----------------------- | :------- | :-------------------- | :------------------- | :---- | | Foreign Currency Contracts | $(46) | $231 | $(158) | $27 | | Commodity Contracts | — | $440 | — | $440 | | **Total** | **$(46)** | **$671** | **$(158)** | **$467** | - The Company uses cash flow hedges for anticipated corn and soybean purchases/sales and natural gas consumption, with after-tax losses of **$29 million** in AOCI as of June 30, 2025[119](index=119&type=chunk)[120](index=120&type=chunk)[123](index=123&type=chunk) - Fair value hedges are used for interest rate swaps to protect fixed-rate debt, resulting in pre-tax gains of **$19 million** in Other current assets as of June 30, 2025[124](index=124&type=chunk)[125](index=125&type=chunk) - Net investment hedges (cross-currency swaps and foreign exchange forwards) are used to protect foreign subsidiaries, resulting in after-tax losses of **$180 million** in AOCI as of June 30, 2025[126](index=126&type=chunk)[127](index=127&type=chunk) [Note 7. Other Current Assets](index=27&type=section&id=Note%207.%20Other%20Current%20Assets) This note provides a breakdown of the Company's other current assets, which totaled $4,310 million as of June 30, 2025, a decrease from $4,369 million at December 31, 2024. Key components include unrealized gains on derivative contracts, customer omnibus receivable, and margin deposits Other Current Assets (in millions): | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Unrealized gains on derivative contracts | $1,210 | $1,108 | | Customer omnibus receivable | $1,151 | $872 | | Margin deposits and grain accounts | $493 | $516 | | Financing receivables - net | $167 | $258 | | Insurance premiums receivable | $67 | $76 | | Prepaid expenses | $331 | $279 | | Biodiesel tax credit | $4 | $104 | | Tax receivables | $484 | $539 | | Non-trade receivables | $263 | $393 | | Other current assets | $140 | $224 | | **Total** | **$4,310** | **$4,369** | [Note 8. Accrued Expenses and Other Payables](index=28&type=section&id=Note%208.%20Accrued%20Expenses%20and%20Other%20Payables) This note details the components of accrued expenses and other payables, which decreased from $3,730 million at December 31, 2024, to $3,466 million at June 30, 2025. The decrease was primarily driven by a significant reduction in contract liabilities Accrued Expenses and Other Payables (in millions): | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Unrealized losses on derivative contracts | $1,120 | $972 | | Accrued compensation | $341 | $346 | | Income tax payable | $108 | $167 | | Other taxes payable | $167 | $138 | | Insurance liabilities | $109 | $172 | | Accrued interest payable | $159 | $153 | | Other deferred income | $130 | $156 | | Contract liabilities | $193 | $534 | | Other accruals and payables | $1,139 | $1,092 | | **Total** | **$3,466** | **$3,730** | - Revenues recognized from contract liabilities were **$201 million** for the three months and **$480 million** for the six months ended June 30, 2025[138](index=138&type=chunk) [Note 9. Debt and Financing Arrangements](index=28&type=section&id=Note%209.%20Debt%20and%20Financing%20Arrangements) This note provides information on the Company's debt and financing arrangements. As of June 30, 2025, the fair value of long-term debt was $7.2 billion (carrying value $7.6 billion), and total lines of credit were $12.5 billion, with $9.5 billion unused. Commercial paper outstanding was $721 million with a weighted average interest rate of 4.5% - **Fair value of long-term debt** (excluding current portion) was **$7.2 billion** at June 30, 2025, compared to a carrying value of **$7.6 billion**[139](index=139&type=chunk) - **Total lines of credit** were **$12.5 billion** at June 30, 2025, with **$9.5 billion** unused[140](index=140&type=chunk) - **Commercial paper outstanding** was **$721 million** at June 30, 2025, with a weighted average interest rate of **4.5%**[141](index=141&type=chunk) [Note 10. Income Taxes](index=28&type=section&id=Note%2010.%20Income%20Taxes) This note discusses the Company's effective tax rates, which increased to 22.2% for Q2 2025 (from 19.3% in Q2 2024) and 19.5% for H1 2025 (from 19.0% in H1 2024), primarily due to impairment losses. The Company is also evaluating the impact of the recently enacted One Big Beautiful Bill Act (OBBBA) in the U.S., which is not expected to significantly impact current year financial statements Effective Tax Rate: | Period | 2025 | 2024 | | :-------------------- | :----- | :----- | | Three Months Ended June 30 | 22.2% | 19.3% | | Six Months Ended June 30 | 19.5% | 19.0% | - The increase in the **effective tax rate** was primarily due to **impairment losses**, partially offset by discrete tax items[142](index=142&type=chunk) - The Company is evaluating the impact of the One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, but does not expect a significant impact on current year financial statements[143](index=143&type=chunk) [Note 11. Shareholders' Equity](index=29&type=section&id=Note%2011.%20Shareholders'%20Equity) This note details changes in shareholders' equity, including treasury stock holdings and the share repurchase program. As of June 30, 2025, the Company held 235.7 million treasury shares. The Board approved an extension of the share repurchase program through December 31, 2029, authorizing an additional 100 million shares, with 115 million shares remaining under the program - As of June 30, 2025, the Company held approximately **235.7 million** common shares in treasury[146](index=146&type=chunk) - The Board of Directors approved an extension of the stock repurchase program through December 31, 2029, authorizing an additional **100 million** shares[147](index=147&type=chunk) - As of June 30, 2025, **115 million** shares remained under the share repurchase program[147](index=147&type=chunk) Accumulated Other Comprehensive Income (Loss) (AOCI) (June 30, 2025, in millions): | Component | Balance at April 1, 2025 | Net of Tax Amount (Q2 2025) | Balance at June 30, 2025 | | :--------------------------------------- | :----------------------- | :-------------------------- | :----------------------- | | Foreign Currency Translation Adjustment | $(3,094) | $357 | $(2,737) | | Deferred Gain (Loss) on Cash Flow Hedging Activities | $120 | $(46) | $74 | | Pension and Other Postretirement Benefit Liabilities | $(116) | $6 | $(110) | | Unrealized Gain (Loss) on Investments | $(18) | $(1) | $(19) | | **Total AOCI** | **$(3,108)** | **$316** | **$(2,792)** | [Note 12. Other Income – Net](index=31&type=section&id=Note%2012.%20Other%20Income%20%E2%80%93%20Net) This note details the components of Other income – net, which increased significantly for both the three and six months ended June 30, 2025, compared to the prior year. For the three months, it increased by $43 million to $52 million, and for the six months, it increased by $36 million to $71 million, primarily driven by gains on asset sales and benefits from a supply agreement termination Other Income – Net (in millions): | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gains on sale of assets | $(19) | $(5) | $(27) | $(7) | | Other – net | $(33) | $(4) | $(44) | $(28) | | **Other Income – Net** | **$(52)** | **$(9)** | **$(71)** | **$(35)** | [Note 13. Segment Information](index=31&type=section&id=Note%2013.%20Segment%20Information) This note provides detailed financial data for the Company's three reportable segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition, along with Other Business and Corporate. It outlines the nature of each segment's operations and how segment operating profit is used by the Chief Operating Decision Maker (CODM) to assess performance and allocate resources - The Company's operations are organized into three reportable segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition[156](index=156&type=chunk) - **Segment operating profit** is the primary measure used by the CODM to evaluate performance and allocate resources, excluding specified items and certain corporate items[157](index=157&type=chunk) Segment Operating Profit (Three Months Ended June 30, in millions): | Segment | 2025 | 2024 | Change (Millions) | Change (%) | | :-------------------------- | :--- | :--- | :---------------- | :--------- | | Ag Services and Oilseeds | $379 | $459 | $(80) | -17.43% | | Carbohydrate Solutions | $337 | $357 | $(20) | -5.60% | | Nutrition | $114 | $109 | $5 | 4.59% | | **Total Segment Operating Profit** | **$830** | **$925** | **$(95)** | **-10.27%** | Segment Operating Profit (Six Months Ended June 30, in millions): | Segment | 2025 | 2024 | Change (Millions) | Change (%) | | :-------------------------- | :--- | :--- | :---------------- | :--------- | | Ag Services and Oilseeds | $791 | $1,323 | $(532) | -40.21% | | Carbohydrate Solutions | $576 | $605 | $(29) | -4.79% | | Nutrition | $210 | $193 | $17 | 8.81% | | **Total Segment Operating Profit** | **$1,577** | **$2,121** | **$(544)** | **-25.65%** | Total Depreciation and Amortization Expense (in millions): | Expense Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Depreciation expense | $228 | $218 | $452 | $432 | | Amortization expense | $63 | $68 | $126 | $134 | [Note 14. Asset Impairment, Exit, and Restructuring Costs](index=38&type=section&id=Note%2014.%20Asset%20Impairment,%20Exit,%20and%20Restructuring%20Costs) This note details the significant increase in asset impairment, exit, and restructuring costs for the three and six months ended June 30, 2025. Total costs rose to $137 million (Q2 2025) from $7 million (Q2 2024) and to $175 million (H1 2025) from $25 million (H1 2024), primarily due to cost optimization and portfolio simplification initiatives, including charges within the Nutrition and Ag Services and Oilseeds segments Asset Impairment, Exit, and Restructuring Costs (in millions): | Charge Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Restructuring and exit costs | $126 | — | $164 | $15 | | Impairment charge - other long-lived assets | $11 | $7 | $11 | $10 | | **Total** | **$137** | **$7** | **$175** | **$25** | - Restructuring charges for the six months ended June 30, 2025, included **$123 million** in Nutrition and **$27 million** in Ag Services and Oilseeds, primarily for impairment of long-lived assets, intangible assets, and employee termination benefits[190](index=190&type=chunk) - The Company announced targeted actions on February 4, 2025, to deliver over **$500 million** in **cost savings** by fiscal 2029 through **cost optimization** and **portfolio simplification**[190](index=190&type=chunk) [Note 15. Sale of Accounts Receivable](index=38&type=section&id=Note%2015.%20Sale%20of%20Accounts%20Receivable) This note describes the Company's accounts receivable securitization programs (First and Second Programs), which provide up to $3.0 billion in funding by selling trade receivables to purchasers. As of June 30, 2025, $2.2 billion in receivables were transferred and derecognized, with $780 million unused capacity. Total receivables sold for the six months ended June 30, 2025, were $22.7 billion, incurring $36 million in expenses classified as SG&A - The Company has two accounts receivable securitization programs providing up to **$3.0 billion** in funding[187](index=187&type=chunk)[188](index=188&type=chunk)[333](index=333&type=chunk) - As of June 30, 2025, **$2.2 billion** of trade receivables were transferred and derecognized, with **$780 million** unused capacity under the programs[192](index=192&type=chunk)[333](index=333&type=chunk) - **Total receivables sold** were **$22.7 billion** for the six months ended June 30, 2025, resulting in **$36 million** in expenses classified as Selling, general, and administrative expenses[192](index=192&type=chunk)[193](index=193&type=chunk) [Note 16. Supplier Finance Programs](index=39&type=section&id=Note%2016.%20Supplier%20Finance%20Programs) This note describes the Company's Supplier Payable Programs (SPP) with financial institutions, which act as paying agents for certain suppliers. The Company's obligations to suppliers are not impacted by their participation in the SPP, and associated amounts remain classified in trade payables. The outstanding payment obligations under SPP increased to $285 million at June 30, 2025, from $222 million at January 1, 2025 - The Company uses Supplier Payable Programs (SPP) where financial institutions act as paying agents for suppliers, without impacting the Company's obligations[195](index=195&type=chunk) - Amounts associated with the SPP are classified in trade payables and operating activities in cash flows[195](index=195&type=chunk) Changes to Outstanding Payment Obligations (Six Months Ended June, in millions): | Item | 2025 | 2024 | | :-------------------- | :--- | :--- | | Opening balance, January 1 | $222 | $274 | | Obligations confirmed | $434 | $520 | | Obligations paid | $(371) | $(505) | | **Closing balance, June 30** | **$285** | **$289** | [Note 17. Legal Proceedings](index=40&type=section&id=Note%2017.%20Legal%20Proceedings) This note outlines the Company's involvement in various legal actions and government investigations, including commodities class actions related to alleged ethanol price manipulation, and ongoing SEC and DOJ investigations into intersegment sales. Shareholder derivative lawsuits have also been filed. The Company denies liability and is vigorously defending itself, but is unable to predict the final outcome or reasonably estimate potential losses for these matters - The Company is involved in commodities class actions alleging manipulation of ethanol benchmark prices, with **potential damages estimated between $500 million and over $2.0 billion**[202](index=202&type=chunk) - **Ongoing government investigations** by the SEC and DOJ relate to intersegment sales between the Nutrition segment and the Ag Services and Oilseeds and Carbohydrate Solutions segments[205](index=205&type=chunk) - **Shareholder litigation**, including a securities fraud class action and derivative lawsuits, has been filed following the investigation announcement, with the Company unable to predict outcomes or estimate losses[206](index=206&type=chunk)[207](index=207&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=42&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial condition and results of operations, covering its business overview, strategic priorities for 2025, sustainability efforts, and significant portfolio actions. It also analyzes the financial performance for the three and six months ended June 30, 2025, compared to the prior year, discusses market factors, and reconciles non-GAAP financial measures [Company Overview and Strategy](index=42&type=section&id=Company%20Overview%20and%20Strategy) - ADM is a global agricultural supply chain manager and processor, a human and animal nutrition provider, and an innovator in bio-based solutions[210](index=210&type=chunk) - The Company's 2025 strategy focuses on execution and cost management, strategic simplification, targeted growth investment, and disciplined capital deployment[213](index=213&type=chunk) - Key strategic initiatives include boosting plant efficiencies, optimizing operating leverage in Nutrition, reducing third-party spend, and executing portfolio optimization[213](index=213&type=chunk) - ADM announced targeted actions on February 4, 2025, to achieve over **$500 million** in **cost savings** by fiscal 2029 through **cost optimization** and **portfolio simplification**[216](index=216&type=chunk) - Significant portfolio actions include the acquisition of Vandamme Hugaria Kft, the closure of the Tres Corações facility in Brazil, and a joint venture with PYCO Industries, Inc. for cottonseed processing[221](index=221&type=chunk) [Market Factors Influencing Operations](index=44&type=section&id=Market%20Factors%20Influencing%20Operations) - Ag Services and Oilseeds segment faced **compressed margins** due to **increased global supplies** of grains and oilseeds, higher projected ending stocks-to-use ratios, and trade policy uncertainty[227](index=227&type=chunk) - Carbohydrate Solutions segment benefited from **strong ethanol export demand** offsetting higher industry production, but Starches and Sweeteners saw demand softness in North America and higher corn costs in EMEA[228](index=228&type=chunk) - Nutrition segment experienced mixed Human Nutrition demand due to affordability concerns, while Animal Nutrition benefited from declining commodity markets supporting feed ration and additive markets[229](index=229&type=chunk) [Results of Operations - Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=45&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202024) - **Earnings before income taxes** decreased by **$317 million** to **$279 million**, primarily due to asset impairment, exit, and restructuring costs and **revaluation losses** on investments[231](index=231&type=chunk) - **Total segment operating profit** decreased by **$95 million** to **$830 million**, driven by **lower results** in Ag Services and Oilseeds and Carbohydrate Solutions[232](index=232&type=chunk) Processed Volumes (Three Months Ended June 30, in thousands of metric tons): | Product | 2025 | 2024 | Change | | :-------- | :--- | :--- | :----- | | Oilseeds | 9,051 | 8,872 | 179 | | Corn | 4,614 | 4,482 | 132 | - **Revenues** decreased by **$1.1 billion** to **$21.2 billion**, mainly due to **lower sales prices**, partially offset by higher sales volumes of soybeans and meal[239](index=239&type=chunk) - Gross profit decreased by **$26 million** (**2%**) to **$1.4 billion**, primarily due to a **$92 million** margin decrease in Ag Services and Oilseeds, partially offset by a **$48 million** margin increase in Nutrition[241](index=241&type=chunk) - **Asset impairment, exit, and restructuring costs** increased by **$130 million** to **$137 million**, largely from Nutrition segment restructuring charges and asset impairment[244](index=244&type=chunk) - Interest and investment (income) expense decreased by **$210 million** to **$70 million**, driven by **revaluation losses** and lower interest income[246](index=246&type=chunk) - Ag Services and Oilseeds segment operating profit decreased **17%**, impacted by lower Global Trade and South American Origination results, and lower Crushing margins due to increased industry capacity[252](index=252&type=chunk) - Carbohydrate Solutions segment operating profit decreased **6%**, with lower Starches and Sweeteners results due to higher corn costs in EMEA and lower starch margins in North America[254](index=254&type=chunk) - Nutrition segment operating profit increased **5%**, driven by **improved Animal Nutrition results** and **significant growth in Flavors**, despite lower Human Nutrition results[255](index=255&type=chunk) [Non-GAAP Financial Measures - Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=49&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202024) - **Adjusted net earnings** and **adjusted diluted EPS** are non-GAAP measures used to evaluate underlying business performance and comparability[264](index=264&type=chunk) Adjusted Net Earnings and Adjusted Diluted EPS (Three Months Ended June 30): | Metric | 2025 (Millions) | 2025 (Per Share) | 2024 (Millions) | 2024 (Per Share) | | :--------------------------------------- | :-------------- | :--------------- | :-------------- | :--------------- | | Net earnings and reported EPS (diluted) | $219 | $0.45 | $486 | $0.98 | | Total adjustments | $233 | $0.48 | $22 | $0.05 | | **Adjusted net earnings and adjusted diluted EPS** | **$452** | **$0.93** | **$508** | **$1.03** | EBITDA and Adjusted EBITDA (Three Months Ended June 30, in millions): | Metric | 2025 | 2024 | | :--------------------------------------- | :--- | :--- | | EBITDA | $681 | $1,017 | | Adjustments (specified items) | $236 | $11 | | **Adjusted EBITDA** | **$931** | **$1,032** | Reconciliation of Earnings Before Income Taxes to Total Segment Operating Profit (Three Months Ended June 30, in millions): | Metric | 2025 | 2024 | | :--------------------------------------- | :--- | :--- | | Earnings Before Income Taxes | $279 | $596 | | Other Business (earnings) | $(94) | $(96) | | Corporate | $498 | $418 | | Specified Items | $147 | $(7) | | **Total Segment Operating Profit** | **$830** | **$925** | [Results of Operations - Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=53&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202024) - **Earnings before income taxes** decreased by **$849 million** to **$632 million**, primarily due to **lower pricing**, execution margins, asset impairment, and **investment revaluation losses**[273](index=273&type=chunk) - **Total segment operating profit** decreased by **$544 million** to **$1.6 billion**, mainly driven by **lower results** in the Ag Services and Oilseeds segment[274](index=274&type=chunk) Processed Volumes (Six Months Ended June 30, in thousands of metric tons): | Product | 2025 | 2024 | Change | | :-------- | :--- | :--- | :----- | | Oilseeds | 18,142 | 18,259 | (117) | | Corn | 9,195 | 8,890 | 305 | - **Revenues** decreased by **$2.8 billion** to **$41.3 billion**, primarily due to **lower sales prices**, partially offset by higher sales volumes[280](index=280&type=chunk) - Gross profit decreased by **$505 million** (**17%**) to **$2.6 billion**, driven by a **$543 million** margin decrease in Ag Services and Oilseeds[282](index=282&type=chunk) - **Asset impairment, exit, and restructuring costs** increased by **$150 million** to **$175 million**, with significant charges in Nutrition and Ag Services and Oilseeds[285](index=285&type=chunk) - Interest and investment income decreased by **$195 million** to **$68 million**, mainly due to **revaluation losses** and lower interest income[287](index=287&type=chunk) - Ag Services and Oilseeds segment operating profit decreased **40%**, impacted by lower Global Trade results, **increased global supplies**, and competitive crushing margins[292](index=292&type=chunk) - Carbohydrate Solutions segment operating profit decreased **5%**, with lower Starches and Sweeteners results due to competitive pricing, but improved Vantage Corn Processors results[294](index=294&type=chunk) - Nutrition segment operating profit decreased **9%**, with lower Human Nutrition results due to higher costs and reduced tolling margins, partially offset by increased Flavors and Animal Nutrition operating profit[295](index=295&type=chunk) [Non-GAAP Financial Measures - Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=57&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202024) - **Adjusted net earnings**, **adjusted diluted EPS**, **EBITDA**, **adjusted EBITDA**, and **total segment operating profit** are non-GAAP measures used for performance evaluation and comparability[299](index=299&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk) Adjusted Net Earnings and Adjusted Diluted EPS (Six Months Ended June 30): | Metric | 2025 (Millions) | 2025 (Per Share) | 2024 (Millions) | 2024 (Per Share) | | :--------------------------------------- | :-------------- | :--------------- | :-------------- | :--------------- | | Net earnings and reported EPS (diluted) | $514 | $1.06 | $1,215 | $2.41 | | Total adjustments | $276 | $0.57 | $43 | $0.08 | | **Adjusted net earnings and adjusted diluted EPS** | **$790** | **$1.63** | **$1,258** | **$2.49** | EBITDA and Adjusted EBITDA (Six Months Ended June 30, in millions): | Metric | 2025 | 2024 | | :--------------------------------------- | :--- | :--- | | EBITDA | $1,434 | $2,297 | | Adjustments (specified items) | $304 | $29 | | **Adjusted EBITDA** | **$1,738** | **$2,330** | Reconciliation of Earnings Before Income Taxes to Total Segment Operating Profit (Six Months Ended June 30, in millions): | Metric | 2025 | 2024 | | :--------------------------------------- | :--- | :--- | | Earnings Before Income Taxes | $632 | $1,481 | | Other Business (earnings) | $(190) | $(217) | | Corporate | $939 | $844 | | Specified Items | $196 | $13 | | **Total Segment Operating Profit** | **$1,577** | **$2,121** | [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) - The Company aims for sufficient liquidity, balance sheet strength, and financial flexibility, relying on cash from operations and lines of credit[314](index=314&type=chunk)[315](index=315&type=chunk) - As of June 30, 2025, **total available liquidity** was **$10.5 billion**, comprising **$1.1 billion** in cash and cash equivalents and **$9.5 billion** in unused lines of credit[316](index=316&type=chunk)[317](index=317&type=chunk)[318](index=318&type=chunk) - **Cash provided by operating activities** increased significantly to **$4.0 billion** for the six months ended June 30, 2025, from **$1.2 billion** in the prior year, driven by changes in net working capital[319](index=319&type=chunk) - **Net cash used in investing activities** decreased to **$391 million** for the six months ended June 30, 2025, from **$1.6 billion** in the prior year, due to lower business acquisitions[324](index=324&type=chunk)[325](index=325&type=chunk) - **Net cash used in financing activities** increased to **$1.6 billion** for the six months ended June 30, 2025, from **$661 million** in the prior year, primarily due to net repayments under credit agreements and no share repurchases in 2025[326](index=326&type=chunk)[327](index=327&type=chunk) - The Company's share repurchase program was extended through December 31, 2029, with **115 million** shares remaining for repurchase as of June 30, 2025[331](index=331&type=chunk)[332](index=332&type=chunk) [Contractual Obligations and Critical Accounting Estimates](index=62&type=section&id=Contractual%20Obligations%20and%20Critical%20Accounting%20Estimates) - Purchase obligations increased to **$13.2 billion** as of June 30, 2025, with **$9.8 billion** expected to be paid within the next twelve months[335](index=335&type=chunk) - There were no material changes in the Company's critical accounting estimates during the three months ended June 30, 2025[336](index=336&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=62&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section states that the market risk inherent in the Company's instruments and positions is the potential loss from adverse changes in commodity market prices, foreign currency exchange rates, equity prices, and interest rates. For detailed information, readers are referred to the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - Market risk includes potential losses from adverse changes in commodity market prices, foreign currency exchange rates, equity prices, and interest rates[337](index=337&type=chunk) - Detailed information on market risk sensitive instruments and positions is available in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[338](index=338&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=63&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) This section reports on the effectiveness of the Company's disclosure controls and procedures, which were deemed effective as of June 30, 2025. It also details the remediation of a previously disclosed material weakness in internal control over financial reporting related to segment disclosures and intersegment sales, which has now been fully remediated through enhanced procedures and training [Evaluation of Disclosure Controls and Procedures](index=63&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - The Company's disclosure controls and procedures were evaluated and concluded to be effective as of June 30, 2025[341](index=341&type=chunk) [Internal Control Over Financial Reporting](index=63&type=section&id=Internal%20Control%20Over%20Financial%20Reporting) - A **material weakness** in internal control over financial reporting related to accounting practices for segment disclosures and intersegment sales was identified in Q4 2023[342](index=342&type=chunk) - The weakness stemmed from **inadequate controls** around the measurement and reporting of intersegment sales and the application of segment disclosure requirements[342](index=342&type=chunk) [Remediation of Previously Disclosed Material Weakness in Internal Control over Financial Reporting](index=63&type=section&id=Remediation%20of%20Previously%20Disclosed%20Material%20Weakness) - The **material weakness** has been **fully remediated** through **enhanced procedures** and accounting policies for intersegment sales measurement, improved documentation of pricing guidelines, and enhanced design and execution of controls[343](index=343&type=chunk)[344](index=344&type=chunk) - Training for relevant personnel on intersegment sales measurement and accounting guidance has been provided and is ongoing[343](index=343&type=chunk) [Changes in Internal Control Over Financial Reporting](index=63&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - No material changes to IT platforms occurred during the three months ended June 30, 2025[345](index=345&type=chunk) - The Company is reviewing and integrating internal control structures of the recently acquired Vandamme Hugaria Kft[347](index=347&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=64&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 17. Legal Proceedings in Part I, Item 1, for information regarding legal actions involving the Company, including commodities class actions, government investigations, and shareholder litigation - Information on legal proceedings is incorporated by reference from Note 17. Legal Proceedings in the Consolidated Financial Statements[349](index=349&type=chunk) [ITEM 1A. RISK FACTORS](index=64&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section directs readers to Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, for a comprehensive discussion of potential risks - Readers should refer to Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, for detailed risk factor information[350](index=350&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=64&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section provides information on purchases of equity securities by the Company during the three months ended June 30, 2025. The Company purchased 4,460 shares at an average price of $45.75, primarily representing shares received as payments for withholding taxes on vested restricted stock awards. No shares were purchased as part of a publicly announced program during this period, with 114,764,049 shares remaining under the extended repurchase program Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025): | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :-------------------------- | :----------------------------- | :--------------------------- | | April 1, 2025 to April 30, 2025 | 3,047 | $44.53 | | May 1, 2025 to May 31, 2025 | 935 | $48.51 | | June 1, 2025 to June 30, 2025 | 478 | $48.10 | | **Total** | **4,460** | **$45.75** | - **Total shares purchased** represent shares received as payments for withholding taxes on vested restricted stock awards[352](index=352&type=chunk) - As of June 30, 2025, **114,764,049 shares** remained to be purchased under the Company's stock repurchase program, which was extended through December 31, 2029[352](index=352&type=chunk) [ITEM 5. OTHER INFORMATION](index=65&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section confirms that no directors or officers adopted, modified, or terminated insider trading arrangements under Rule 10b5-1(c) during the three months ended June 30, 2025. It also discloses that ADM International Sarl had outstanding invoices totaling $38,971 with CCIC Singapore PTE. Ltd. for services provided between March and May 2025, before CCIC Singapore was designated as a Specially Designated Global Terrorist organization by OFAC on May 13, 2025. No payments have been made since the designation, and the Company does not intend to continue engagement - No insider trading arrangements (Rule 10b5-1(c)) were adopted, modified, or terminated by directors or officers during the three months ended June 30, 2025[354](index=354&type=chunk) - ADM International Sarl had **$38,971** in invoices payable to CCIC Singapore PTE. Ltd. for services rendered before CCIC Singapore was designated a Specially Designated Global Terrorist organization by OFAC on May 13, 2025[355](index=355&type=chunk)[356](index=356&type=chunk) - No payments have been made to CCIC Singapore since the OFAC designation, and the Company does not intend to continue its engagement[356](index=356&type=chunk) [ITEM 6. EXHIBITS](index=65&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including the Composite Certificate of Incorporation, Bylaws, certifications of principal executive and financial officers, and Inline XBRL files for financial statements and cover page - Exhibits include the Composite Certificate of Incorporation, Bylaws, certifications of principal executive and financial officers (Rule 13a–14(a) and 18 U.S.C. 1350), and Inline XBRL files[357](index=357&type=chunk) ```

Key Takeaways Archer Daniels Midland Company (ADM) posted second-quarter 2025 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. However, both metrics declined on a year-over-year basis. Insight Into ADM's Q2 Performance Adjusted earnings of 93 cents per share surpassed the Zacks Consensus Estimate of 88 cents. However, the figure decreased from earnings of $1.03 per share in the year-ago quarter. On a reported basis, Archer Daniels' earnings were 45 cents per share, down from 98 c ...

Core Insights - Archer Daniels Midland (ADM) reported a revenue of $21.17 billion for the quarter ended June 2025, reflecting a decrease of 4.9% year-over-year, while EPS was $0.93 compared to $1.03 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $21.11 billion by 0.28%, and the EPS surpassed the consensus estimate of $0.88 by 5.68% [1] Financial Performance Metrics - Processed volumes for Oilseeds were reported at 9,051 Kmt, exceeding the average estimate of 8,872 Kmt [4] - Revenues from Carbohydrate Solutions were $2.79 billion, below the estimated $2.87 billion, marking a year-over-year decline of 3.5% [4] - Revenues from Ag Services and Oilseeds totaled $16.27 billion, slightly above the estimate of $16.17 billion, but down 6.1% year-over-year [4] - Revenues from Other Business were $112 million, slightly below the estimate of $114.04 million, representing a year-over-year decline of 0.9% [4] - Nutrition segment revenues were $1.99 billion, exceeding the average estimate of $1.92 billion, with a year-over-year increase of 4.5% [4] Segment Operating Profit - Total segment operating profit for Carbohydrate Solutions was $337 million, surpassing the average estimate of $301.2 million [4] - Total segment operating profit for Nutrition was $114 million, below the average estimate of $126.02 million [4] - Total segment operating profit for Ag Services and Oilseeds was $379 million, below the average estimate of $486.41 million [4] - Ag Services segment operating profit was $113 million, significantly below the average estimate of $191.1 million [4] - Crushing segment operating profit was $33 million, also below the average estimate of $126.82 million [4] - Other Business segment operating profit was $94 million, exceeding the average estimate of $84 million [4] Stock Performance - ADM shares have returned -0.3% over the past month, while the Zacks S&P 500 composite has increased by 1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.93 and total segment operating profit of $830 million for the quarter [4] - The trailing fourth quarter adjusted return on invested capital (ROIC) was 6.9% and cash flow from operations before working capital changes was $1.2 billion for the first half of the year [4][22] - The company expects adjusted earnings per share to be approximately $4 for the full year 2025, tightening its previous guidance [12][10] Business Line Data and Key Metrics Changes - The Ag Services and Oilseeds (AS and O) segment operating profit was $379 million, down 17% year-over-year, primarily due to legislative and biofuel policy uncertainties impacting margins [13] - The Carbohydrate Solutions segment operating profit was $337 million, down 6% compared to the prior year quarter, with starches and sweeteners sub-segment operating profit down 6% [18] - The Nutrition segment revenues were $2 billion, up approximately 5% year-over-year, with operating profit at $114 million, up 5% [19][20] Market Data and Key Metrics Changes - North American origination results improved due to higher margins and volumes, while South American origination results declined due to lower volumes and margins [14] - Global executed crush margins for soybeans were approximately $7 per ton lower compared to the prior year quarter, and canola margins were approximately $29 per ton lower [16] - The company anticipates improved AS and O margins will primarily benefit fourth quarter results, projecting global soybean crush margins to be in the range of $60 to $70 per metric ton [25] Company Strategy and Development Direction - The company is focused on cost management, execution excellence, and strategic growth, aiming for $500 million to $750 million in aggregate cost savings over the next three to five years [9][10] - The company is optimizing its asset base and ceasing operations at facilities that do not align with long-term goals, including several origination sites globally [8] - The company is positioned to benefit from favorable biofuel policies and is ready to lead in advancing innovative solutions for renewable fuels [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic environment and achieve operational momentum by the end of 2025 [12] - The company is closely monitoring customer demand and expects lower volumes in certain areas, but anticipates strong crops in North America and a solid export season [25][31] - Management highlighted the importance of clarity in biofuel policy and legislative support for agriculture, which are expected to create favorable market conditions [32] Other Important Information - The company achieved its best performance in limiting unscheduled downtime in over five years and was recognized as one of America's greatest workplaces in manufacturing [6] - The company has remediated a material weakness in internal controls related to segment disclosures, enhancing transparency and compliance processes [27][60] Q&A Session Summary Question: Earnings split between Q3 and Q4 - Management indicated a potential split of approximately 55% for Q3 and 65% for Q4, with expectations for improved earnings in Q4 due to better margins and production [36][40] Question: Outlook for the Nutrition segment - Management noted that the Decatur East plant's shutdown cost approximately $20 million to $25 million per quarter, which should improve as the plant ramps up [50][92] Question: Clarification on material weakness remediation - Management confirmed that the material weakness has been remediated through enhanced internal controls and ongoing engagement with auditors [60][61] Question: Details on network optimization plan - Management discussed ongoing efforts to optimize the network, including shutting down underperforming facilities and improving operational performance [75][78] Question: Impact of RVO on biodiesel and crush business - Management expressed optimism about the RVO's impact on soybean oil demand and the overall crush business, but noted the need for final confirmations on policy details [66][70]

Financial Performance - Q2 2025 - Adjusted Earnings Per Share decreased by 10% compared to the prior year quarter, reaching $0.93[6] - Total Segment Operating Profit decreased by 10% compared to the prior year quarter, amounting to $830 million[6] - Adjusted Return on Invested Capital (ROIC) was 6.9%[6, 46] Financial Performance - 1H 2025 - Adjusted Earnings Per Share decreased by 35% compared to the prior year period, reaching $1.63[6] - Total Segment Operating Profit decreased by 26% compared to the prior year period, amounting to $1.2 billion[6] - Cash Flows From Operations Before Working Capital decreased by $459 million due to lower total segment operating profit, reaching $1.7 billion[7, 27] Segment Performance - Ag Services & Oilseeds segment operating profit declined 17% in Q2 2025 compared to Q2 2024[14] - Carbohydrate Solutions segment operating profit decreased 6% in Q2 2025 compared to Q2 2024[17] - Nutrition segment achieved approximately 5% increase in both revenue and operating profits in Q2 2025 compared to Q2 2024[24] Cash Flow and Capital Allocation - Invested $596 million in capital expenditures in 1H 2025[28] - Returned $495 million of excess cash to shareholders through dividends during 1H 2025[28] Full Year 2025 Outlook - The company expects Adjusted Earnings Per Share of approximately $4.00[31]

来源：格隆汇APP 格隆汇8月5日｜谷物贸易商Archer-Daniels-Midland(ADM)公布，第二季度营收同比下降约5%至211.7亿 美元，低于分析师预测的220.3亿美元；净利润同比下降55%至2.19亿美元，调整后每股收益为93美分， 分析师预期为82美分。ADM预计全年调整后每股收益将接近此前指引范围的低端，约为4美元，分析师 预期为3.99美元。 ...

Core Insights - Archer Daniels Midland (ADM) reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, but down from $1.03 per share a year ago, indicating an earnings surprise of +5.68% [1] - The company posted revenues of $21.17 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.28%, but down from $22.25 billion year-over-year [2] - ADM's stock has gained approximately 7.6% since the beginning of the year, matching the S&P 500's performance [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.19 on revenues of $20.4 billion, and for the current fiscal year, it is $4.03 on revenues of $84.15 billion [7] - The trend of estimate revisions for ADM was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Agriculture - Operations industry, to which ADM belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of ADM's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Company Performance - Archer-Daniels-Midland Co cut its outlook for the year [1] - Profits were impacted by uncertainty in biofuels policy earlier in the year [1] Industry Dynamics - The crop trader is navigating tariffs uncertainty [1]

[Executive Summary & Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Outlook) This section provides key financial highlights, the CEO's strategic outlook, and important notes on non-GAAP financial measures [Highlights](index=1&type=section&id=Highlights) ADM reported second-quarter net earnings of $219 million and adjusted net earnings of $452 million, with adjusted EPS of $0.93, both down year-over-year. Year-to-date cash flows from operations were strong at $4.0 billion. The company also remediated a material weakness in internal controls related to segment disclosures and tightened its full-year 2025 adjusted EPS guidance to approximately $4.00/share, anticipating improved margins to benefit the fourth quarter and beyond | Metric | 2Q 2025 | Change vs. 2Q 2024 | | :-------------------------------- | :------ | :------------------- | | Net Earnings | $219 million | - | | Adjusted Net Earnings | $452 million | Down | | EPS (as reported) | $0.45 | Down | | Adjusted EPS | $0.93 | Down | | YTD Cash Flows from Operating Activities | $4.0 billion | - | - Remediated previously identified material weakness in internal controls regarding segment disclosures related to reporting, pricing, and measurement[8](index=8&type=chunk) - Tightened full-year 2025 adjusted EPS guidance to approximately **$4.00/share**, with improved margins expected to benefit Q4 2025 and beyond[8](index=8&type=chunk) [CEO Outlook](index=1&type=section&id=CEO%20Outlook) CEO Juan Luciano highlighted progress on operational improvements and portfolio simplification, driving cost savings. Despite a challenging environment in Ag Services & Oilseeds (AS&O) and pockets of demand softness in Carb Solutions, Nutrition showed sequential improvement. The company expects the challenging environment to ease in Q4 due to clarity on Renewable Volume Obligations and is well-positioned to exit 2025 with strong momentum, confident in executing future opportunities - ADM continued operational improvements, driving cost savings through targeted realignments and advancing portfolio simplification opportunities[4](index=4&type=chunk) - AS&O focused on operational resilience and network consolidations, expecting the challenging environment to ease in Q4 with biofuel policy clarity[5](index=5&type=chunk)[6](index=6&type=chunk) - Nutrition delivered sequential improvement in operating profit, with restored Decatur East Plant operations expected to support improved performance in the second half of the year[5](index=5&type=chunk) [Non-GAAP Financial Measures Note](index=1&type=section&id=Non-GAAP%20Financial%20Measures%20Note) The report includes non-GAAP financial measures, such as adjusted EPS and cash flows from operations before working capital, which are explained and reconciled on later pages (7-8 and 14-17). The company is not providing a forecasted GAAP EPS reconciliation due to the unreasonable effort required to predict certain variable items - Non-GAAP financial measures are used and reconciled on pages 7-8 and 14-17[6](index=6&type=chunk) - Forecasted GAAP EPS reconciliation is not provided due to the unreasonable effort exemption, as the impact of certain items (impairment, restructuring, legal, tax matters) is uncertain and material[7](index=7&type=chunk) [Consolidated Financial Results Overview](index=2&type=section&id=Consolidated%20Financial%20Results%20Overview) This section provides a summary of ADM's overall financial performance for the second quarter and year-to-date, highlighting key earnings and profit metrics [Summary of Second Quarter & Year-to-Date Performance](index=2&type=section&id=Summary%20of%20Second%20Quarter%20%26%20Year-to-Date%20Performance) For Q2 2025, ADM's earnings before income taxes decreased by 53% to $279 million, with GAAP EPS down 54% to $0.45. Adjusted EPS also declined by 10% to $0.93. Total segment operating profit fell 10% to $830 million, impacted by $147 million in specified items. Year-to-date, earnings before income taxes were $632 million (down 57%), total segment operating profit was $1,577 million (down 26%), GAAP EPS was $1.06 (down 56%), and adjusted EPS was $1.63 (down 35%) 2Q 2025 Consolidated Financial Performance | Metric | 2Q 2025 | % Change vs. 2Q 2024 | | :-------------------------- | :------ | :------------------- | | Earnings Before Income Taxes | $279 million | (53)% | | EPS (as reported) | $0.45 | (54)% | | Total Segment Operating Profit | $830 million | (10)% | | Adjusted EPS | $0.93 | (10)% | YTD 2025 Consolidated Financial Performance | Metric | YTD 2025 | % Change vs. YTD 2024 | | :-------------------------- | :------- | :-------------------- | | Earnings Before Income Taxes | $632 million | (57)% | | EPS (as reported) | $1.06 | (56)% | | Total Segment Operating Profit | $1,577 million | (26)% | | Adjusted EPS | $1.63 | (35)% | - Total segment operating profit for Q2 2025 excluded **$147 million** in specified items, primarily portfolio optimization and impairment charges[11](index=11&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) This section details the financial performance of ADM's key business segments: Ag Services & Oilseeds, Carbohydrate Solutions, and Nutrition, along with Corporate and Other Business [Ag Services & Oilseeds (AS&O)](index=3&type=section&id=Ag%20Services%20%26%20Oilseeds%20(AS%26O)) The Ag Services & Oilseeds segment reported a 17% decrease in operating profit for Q2 2025, totaling $379 million, and a 40% decrease year-to-date to $791 million. This decline was primarily driven by lower volumes and margins in Ag Services due to trade policy uncertainty and commodity prices, and significantly lower crushing margins impacted by reduced vegetable oil demand and biofuel policy uncertainty. Refined Products and Other saw a 14% increase in Q2 operating profit, while equity earnings from Wilmar also increased by 13% in Q2 AS&O Segment Operating Profit (Q2 2025 vs. Q2 2024) | Subsegment | 2Q 2025 (millions) | 2Q 2024 (millions) | % Change | | :------------------------ | :----------------- | :----------------- | :------- | | Total AS&O | $379 | $459 | (17)% | | Ag Services | $113 | $122 | (7)% | | Crushing | $33 | $132 | (75)% | | Refined Products and Other | $156 | $137 | 14% | | Wilmar | $77 | $68 | 13% | - Ag Services operating profit decreased due to lower volumes and margins from trade policy uncertainty, lower commodity prices, and slower farmer selling, with negative mark-to-market timing impacts[15](index=15&type=chunk) - Crushing operating profit significantly declined by **75%** due to lower margins, primarily from reduced vegetable oil demand impacted by biofuel and trade policy uncertainty[16](index=16&type=chunk) AS&O Segment Operating Profit (YTD 2025 vs. YTD 2024) | Subsegment | YTD 2025 (millions) | YTD 2024 (millions) | % Change | | :------------------------ | :------------------ | :------------------ | :------- | | Total AS&O | $791 | $1,323 | (40)% | | Ag Services | $272 | $354 | (23)% | | Crushing | $79 | $445 | (82)% | | Refined Products and Other | $291 | $307 | (5)% | | Wilmar | $149 | $217 | (31)% | [Carbohydrate Solutions](index=4&type=section&id=Carbohydrate%20Solutions) The Carbohydrate Solutions segment's operating profit decreased by 6% to $337 million in Q2 2025 and by 5% to $576 million year-to-date. The Starches & Sweeteners subsegment saw a 6% decline in Q2, mainly due to lower international volumes and margins, partially offset by improved global wheat milling and North America corn wet milling performance. Vantage Corn Processors' operating profit remained relatively flat in Q2 Carbohydrate Solutions Segment Operating Profit (Q2 2025 vs. Q2 2024) | Subsegment | 2Q 2025 (millions) | 2Q 2024 (millions) | % Change | | :------------------------ | :----------------- | :----------------- | :------- | | Total Carb Solutions | $337 | $357 | (6)% | | Starches and Sweeteners | $304 | $323 | (6)% | | Vantage Corn Processors | $33 | $34 | (3)% | - Starches & Sweeteners operating profit decreased due to lower international volumes and margins, impacted by higher corn costs in EMEA, despite improved global wheat milling and North America corn wet milling[23](index=23&type=chunk) Carbohydrate Solutions Segment Operating Profit (YTD 2025 vs. YTD 2024) | Subsegment | YTD 2025 (millions) | YTD 2024 (millions) | % Change | | :------------------------ | :------------------ | :------------------ | :------- | | Total Carb Solutions | $576 | $605 | (5)% | | Starches and Sweeteners | $511 | $584 | (13)% | | Vantage Corn Processors | $65 | $21 | NM (Not Meaningful) | [Nutrition](index=5&type=section&id=Nutrition) The Nutrition segment's operating profit increased by 5% to $114 million in Q2 2025 and by 9% to $210 million year-to-date. Human Nutrition operating profit declined by 11% in Q2, with Flavors showing growth from higher margins and volumes, but Specialty Ingredients and Health & Wellness experiencing declines. Animal Nutrition operating profit was up significantly due to improved margins and cost optimization efforts Nutrition Segment Operating Profit (Q2 2025 vs. Q2 2024) | Subsegment | 2Q 2025 (millions) | 2Q 2024 (millions) | % Change | | :---------------- | :----------------- | :----------------- | :------- | | Total Nutrition | $114 | $109 | 5% | | Human Nutrition | $92 | $103 | (11)% | | Animal Nutrition | $22 | $6 | NM (Not Meaningful) | - Human Nutrition operating profit declined, with Flavors increasing due to higher margins and volumes, but Specialty Ingredients and Health & Wellness declining[28](index=28&type=chunk) - Animal Nutrition operating profit increased significantly, driven by improved margins and ongoing cost optimization efforts[29](index=29&type=chunk) Nutrition Segment Operating Profit (YTD 2025 vs. YTD 2024) | Subsegment | YTD 2025 (millions) | YTD 2024 (millions) | % Change | | :---------------- | :------------------ | :------------------ | :------- | | Total Nutrition | $210 | $193 | 9% | | Human Nutrition | $168 | $179 | (6)% | | Animal Nutrition | $42 | $14 | NM (Not Meaningful) | [Corporate and Other Business Summary](index=5&type=section&id=Corporate%20and%20Other%20Business%20Summary) For the second quarter of 2025, Corporate and Other Business experienced lower costs compared to the prior year quarter, primarily due to a decrease in net interest expense, excluding revaluation losses - Corporate and Other Business achieved lower costs in Q2 2025 versus prior year, driven by lower net interest expense, excluding revaluation losses[31](index=31&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) This section provides details on the conference call, an overview of ADM's business, and a cautionary note on forward-looking statements [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) ADM hosted a webcast on August 5, 2025, at 9 a.m. Central Time to discuss financial results and outlook, with a replay available on their website - Webcast held on August 5, 2025, at 9 a.m. Central Time to discuss financial results and outlook, with replay available at www.adm.com/webcast[32](index=32&type=chunk) [About ADM](index=6&type=section&id=About%20ADM) ADM is a global leader in agricultural supply chain management and processing, providing food security, human and animal nutrition solutions, and pioneering bio-based consumer and industrial solutions. The company is committed to business-driven sustainability efforts across the agricultural sector and bioeconomy - ADM is an essential global agricultural supply chain manager and processor, providing food security[33](index=33&type=chunk) - ADM is a premier human and animal nutrition provider, offering a broad portfolio of ingredients and solutions[33](index=33&type=chunk) - ADM is an innovator in new bio-based consumer and industrial solutions and leads in business-driven sustainability efforts[33](index=33&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=6&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements subject to substantial risks and uncertainties that could cause actual results to differ materially. These risks include operational issues, commodity price volatility, changes in government policies (trade, biofuels), international conflicts, legal proceedings, and transaction-related uncertainties. Readers are cautioned not to place undue reliance on these statements, and ADM disclaims any duty to update them - Forward-looking statements are subject to significant risks and uncertainties, including operational risks, commodity price volatility, and changes in government policies[34](index=34&type=chunk) - Other risks include international conflicts, legal proceedings (including ongoing government investigations), and uncertainties related to acquisitions and divestitures[34](index=34&type=chunk) - ADM claims the protection of the safe harbor for forward-looking statements and disclaims any duty to update them after the announcement date[34](index=34&type=chunk)[35](index=35&type=chunk) [Non-GAAP Financial Measures Definitions](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines and explains various non-GAAP financial measures used in the report, such as adjusted net earnings, total segment operating profit, and adjusted ROIC [Adjusted Net Earnings and Adjusted EPS](index=7&type=section&id=Adjusted%20Net%20Earnings%20and%20Adjusted%20EPS) Adjusted net earnings and adjusted EPS are non-GAAP measures that remove the effect of specified items from reported net earnings and diluted EPS, respectively. Management uses these to provide investors with additional information on underlying business performance and period-to-period comparability, but they are not intended to replace GAAP measures - Adjusted net earnings and Adjusted EPS exclude the effect of specified items from reported net earnings and diluted EPS[37](index=37&type=chunk) - These measures provide additional information for evaluating underlying business performance and period-to-period comparability[37](index=37&type=chunk) [Total Segment Operating Profit](index=7&type=section&id=Total%20Segment%20Operating%20Profit) Total segment operating profit is a non-GAAP measure representing consolidated earnings before income taxes, adjusted for Other Business, Corporate costs, and specified items. It helps investors understand reportable segment performance by excluding overhead and specific non-recurring items, but it is not a GAAP measure of consolidated operating results - Total segment operating profit adjusts consolidated earnings before income taxes for Other Business, Corporate, and specified items[38](index=38&type=chunk) - It provides information on reportable segment performance by excluding overhead costs and specified items[38](index=38&type=chunk) [Adjusted Return on Invested Capital (ROIC)](index=7&type=section&id=Adjusted%20Return%20on%20Invested%20Capital%20(ROIC)) Adjusted ROIC is a non-GAAP measure calculated by dividing Adjusted ROIC earnings (net earnings adjusted for after-tax interest expense and specified items) by adjusted invested capital (equity plus interest-bearing liabilities, adjusted for specified items). Management uses it to assess returns, excluding specified items, and to compare against its weighted average cost of capital (WACC) - Adjusted ROIC is calculated using Adjusted ROIC earnings (net earnings adjusted for after-tax interest and specified items) and adjusted invested capital[39](index=39&type=chunk) - It provides information about ADM's returns, excluding specified items, and enhances period-to-period comparability[39](index=39&type=chunk) [EBITDA and Adjusted EBITDA](index=7&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA further adjusts EBITDA by removing the impact of specified items. These non-GAAP measures offer investors additional insight into the company's operations, allowing for better evaluation of underlying business performance and period-to-period comparability, but are not alternatives to GAAP net earnings - EBITDA is earnings before interest, taxes, depreciation, and amortization[40](index=40&type=chunk) - Adjusted EBITDA removes the impact of specified items from EBITDA[40](index=40&type=chunk) - These measures provide additional information for evaluating underlying business performance and period-to-period comparability[41](index=41&type=chunk) [Cash Flows from Operations Before Working Capital](index=8&type=section&id=Cash%20Flows%20from%20Operations%20Before%20Working%20Capital) Cash flows from operations before working capital is a non-GAAP measure that adjusts cash flows from operating activities for changes in operating assets and liabilities. Management considers it a useful indicator of the company's cash generation, though it is not an alternative to GAAP cash from operating activities - Cash flows from operations before working capital adjusts cash flows from operating activities for changes in operating assets and liabilities[42](index=42&type=chunk) - This non-GAAP measure is considered useful for understanding the company's cash generation[42](index=42&type=chunk) [Financial Tables](index=9&type=section&id=Financial%20Tables) This section presents detailed financial tables including segment operating profit, consolidated statements of earnings, balance sheet, cash flows, and non-GAAP reconciliations [Segment Operating Profit and Corporate Results](index=9&type=section&id=Segment%20Operating%20Profit%20and%20Corporate%20Results) This table provides a detailed breakdown of segment operating profit for Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition, along with Corporate Results, for both the second quarter and six months ended June 30, 2025, compared to the prior year. It highlights changes in profit contributions from each segment and corporate expenses Segment Operating Profit and Corporate Results (Q2 & YTD 2025 vs. 2024) | (In millions) | Q2 2025 | Q2 2024 | Q2 Change | YTD 2025 | YTD 2024 | YTD Change | | :-------------------------- | :------ | :------ | :-------- | :------- | :------- | :--------- | | Ag Services and Oilseeds | $379 | $459 | $(80) | $791 | $1,323 | $(532) | | Carbohydrate Solutions | $337 | $357 | $(20) | $576 | $605 | $(29) | | Nutrition | $114 | $109 | $5 | $210 | $193 | $17 | | Corporate Results | $(498) | $(418) | $(80) | $(939) | $(844) | $(95) | | Interest expense - net | $(112) | $(128) | $16 | $(212) | $(238) | $26 | | Unallocated corporate function costs | $(294) | $(292) | $(2) | $(647) | $(596) | $(51) | | Revaluation losses, impairment, restructuring | $(99) | — | $(99) | $(104) | $(12) | $(92) | [Consolidated Statements of Earnings](index=10&type=section&id=Consolidated%20Statements%20of%20Earnings) This table presents the consolidated statements of earnings for the second quarter and six months ended June 30, 2025, and 2024. It details revenues, cost of products sold, gross profit, various expenses, and ultimately net earnings attributable to ADM, along with diluted earnings per common share Consolidated Statements of Earnings (Q2 & YTD 2025 vs. 2024) | (in millions, except per share amounts) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------------- | :------ | :------ | :------- | :------- | | Revenues | $21,166 | $22,248 | $41,341 | $44,095 | | Gross Profit | $1,370 | $1,396 | $2,550 | $3,055 | | Earnings Before Income Taxes | $279 | $596 | $632 | $1,481 | | Net Earnings Attributable to ADM | $219 | $486 | $514 | $1,215 | | Diluted earnings per common share | $0.45 | $0.98 | $1.06 | $2.41 | [Summary of Financial Condition (Balance Sheet)](index=11&type=section&id=Summary%20of%20Financial%20Condition%20(Balance%20Sheet)) This table provides a summary of ADM's financial condition (balance sheet) as of June 30, 2025, and June 30, 2024. It outlines key assets such as cash, operating working capital, property, plant, and equipment, and liabilities including short-term and long-term debt, as well as shareholders' equity Summary of Financial Condition (June 30, 2025 vs. 2024) | (in millions) | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Cash and cash equivalents | $1,057 | $764 | | Operating working capital | $8,377 | $9,827 | | Property, plant, and equipment | $11,142 | $10,628 | | Investments in affiliates | $5,175 | $5,557 | | Short-term debt | $856 | $2,312 | | Long-term debt, including current maturities | $8,372 | $8,248 | | Shareholders' equity | $22,438 | $22,159 | | Total Net Investment / Financed By | $35,147 | $36,327 | [Summary of Cash Flows](index=12&type=section&id=Summary%20of%20Cash%20Flows) This table presents the summary of cash flows for the six months ended June 30, 2025, and 2024. It details cash flows from operating, investing, and financing activities, showing a significant increase in net cash provided by operating activities in 2025 and a net increase in cash and cash equivalents Summary of Cash Flows (YTD 2025 vs. 2024) | (in millions) | YTD 2025 | YTD 2024 | | :-------------------------------------- | :------- | :------- | | Net cash provided by operating activities | $3,956 | $1,168 | | Net cash used in investing activities | $(391) | $(1,612) | | Net cash used in financing activities | $(1,579) | $(661) | | Net increase (decrease) in cash, cash equivalents | $2,020 | $(1,119) | | Cash, cash equivalents - end of period | $5,944 | $4,271 | [Segment Operating Analysis (Volumes & Revenues)](index=13&type=section&id=Segment%20Operating%20Analysis%20(Volumes%20%26%20Revenues)) This table provides an analysis of certain processed volumes by commodity (Oilseeds and Corn) and total segment revenues for Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition for the second quarter and six months ended June 30, 2025, compared to the prior year Certain Processed Volumes (Q2 & YTD 2025 vs. 2024) | (in '000s metric tons) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------- | :------ | :------ | :------- | :------- | | Oilseeds | 9,051 | 8,872 | 18,142 | 18,259 | | Corn | 4,614 | 4,482 | 9,195 | 8,890 | Segment Revenues (Q2 & YTD 2025 vs. 2024) | (in millions) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------- | :------ | :------ | :------- | :------- | | Ag Services and Oilseeds | $16,269 | $17,333 | $31,944 | $34,552 | | Carbohydrate Solutions | $2,792 | $2,894 | $5,362 | $5,577 | | Nutrition | $1,993 | $1,908 | $3,810 | $3,744 | | Total Segment Revenues | $21,054 | $22,135 | $41,116 | $43,873 | | Total Revenues | $21,166 | $22,248 | $41,341 | $44,095 | [Total Segment Operating Profit Reconciliation (Non-GAAP)](index=14&type=section&id=Total%20Segment%20Operating%20Profit%20Reconciliation%20(Non-GAAP)) This table provides a reconciliation of earnings before income taxes (GAAP) to total segment operating profit (Non-GAAP) for the second quarter and six months ended June 30, 2025, and 2024. It details adjustments for Other Business, Corporate, and specified items like impairment and restructuring charges Total Segment Operating Profit Reconciliation (Q2 & YTD 2025 vs. 2024) | (In millions) | Q2 2025 | Q2 2024 | Q2 Change | YTD 2025 | YTD 2024 | YTD Change | | :-------------------------------- | :------ | :------ | :-------- | :------- | :------- | :--------- | | Earnings before income taxes | $279 | $596 | $(317) | $632 | $1,481 | $(849) | | Other Business (earnings) | $(94) | $(96) | $2 | $(190) | $(217) | $27 | | Corporate | $498 | $418 | $80 | $939 | $844 | $95 | | Specified items (net) | $147 | $7 | $140 | $196 | $13 | $183 | | Total Segment Operating Profit | $830 | $925 | $(95) | $1,577 | $2,121 | $(544) | [Adjusted Net Earnings and Adjusted EPS Reconciliation (Non-GAAP)](index=15&type=section&id=Adjusted%20Net%20Earnings%20and%20Adjusted%20EPS%20Reconciliation%20(Non-GAAP)) This table reconciles GAAP net earnings and EPS to adjusted net earnings and adjusted EPS for the second quarter and six months ended June 30, 2025, and 2024. It itemizes specific adjustments, including gains on asset sales, impairment and restructuring charges, acquisition expenses, and contract termination gains, along with their per-share impact Adjusted Net Earnings and Adjusted EPS Reconciliation (Q2 & YTD 2025 vs. 2024) | (in millions, except per share amounts) | Q2 2025 (millions) | Q2 2025 (per share) | Q2 2024 (millions) | Q2 2024 (per share) | YTD 2025 (millions) | YTD 2025 (per share) | YTD 2024 (millions) | YTD 2024 (per share) | | :-------------------------------------- | :----------------- | :------------------ | :----------------- | :------------------ | :------------------ | :------------------- | :------------------ | :------------------- | | Net earnings and reported EPS (diluted) | $219 | $0.45 | $486 | $0.98 | $514 | $1.06 | $1,215 | $2.41 | | Total adjustments | $233 | $0.48 | $22 | $0.05 | $276 | $0.57 | $43 | $0.08 | | Adjusted net earnings and adjusted diluted EPS | $452 | $0.93 | $508 | $1.03 | $790 | $1.63 | $1,258 | $2.49 | - Adjustments for Q2 2025 included **$291 million** (**$0.60/share**) for impairment, exit, restructuring charges, and settlement contingencies, and a **$52 million** (**$0.11/share**) gain on contract termination[51](index=51&type=chunk) [Return on Invested Capital (ROIC) and Adjusted ROIC Reconciliation (Non-GAAP)](index=17&type=section&id=Return%20on%20Invested%20Capital%20(ROIC)%20and%20Adjusted%20ROIC%20Reconciliation%20(Non-GAAP)) This table provides a reconciliation of ROIC and Adjusted ROIC, non-GAAP financial measures, for the four quarters ended June 30, 2025. It details the calculation of Adjusted ROIC Earnings and Adjusted Invested Capital, showing the company's Return on Invested Capital at 4.5% and Adjusted Return on Invested Capital at 6.9% Adjusted ROIC Earnings (Four Quarters Ended June 30, 2025) | (in millions) | Sep. 30, 2024 | Dec. 31, 2024 | Mar. 31, 2025 | June 30, 2025 | Four Quarters Ended June 30, 2025 | | :-------------------------- | :------------ | :------------ | :------------ | :------------ | :-------------------------------- | | Net earnings attributable to ADM | $18 | $567 | $295 | $219 | $1,099 | | Total ROIC Earnings | $112 | $663 | $383 | $307 | $1,465 | | Total Adjusted ROIC Earnings | $624 | $641 | $426 | $540 | $2,231 | Adjusted Invested Capital (Trailing Four Quarter Average) | (in millions) | Sep. 30, 2024 | Dec. 31, 2024 | Mar. 31, 2025 | June 30, 2025 | Trailing Four Quarter Average | | :-------------------------- | :------------ | :------------ | :------------ | :------------ | :---------------------------- | | Equity | $21,974 | $22,168 | $22,119 | $22,430 | $22,173 | | Interest-bearing liabilities | $10,051 | $10,180 | $11,088 | $9,252 | $10,143 | | Total Invested Capital | $32,025 | $32,348 | $33,207 | $31,682 | $32,316 | | Total Adjusted Invested Capital | $32,537 | $32,326 | $33,250 | $31,915 | $32,507 | - Return on Invested Capital was **4.5%**, and Adjusted Return on Invested Capital was **6.9%** for the four quarters ended June 30, 2025[55](index=55&type=chunk) [EBITDA and Adjusted EBITDA Reconciliation (Non-GAAP)](index=19&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation%20(Non-GAAP)) This table reconciles net earnings to EBITDA and Adjusted EBITDA for the four quarters ended June 30, 2025, and June 30, 2024. It details the adjustments made for income tax expense, interest expense, depreciation and amortization, and various specified items to arrive at the non-GAAP EBITDA figures EBITDA and Adjusted EBITDA Reconciliation (Four Quarters Ended June 30, 2025 vs. 2024) | (in millions) | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Four Quarters Ended June 30, 2025 | Four Quarters Ended June 30, 2024 | | :-------------------------------------- | :------ | :------ | :------ | :------ | :-------------------------------- | :-------------------------------- | | Net earnings | $18 | $567 | $295 | $219 | $1,099 | $2,601 | | Income tax expense | $90 | $106 | $61 | $62 | $319 | $680 | | Interest expense | $124 | $132 | $116 | $116 | $488 | $456 | | Depreciation and amortization | $288 | $287 | $284 | $286 | $1,145 | $1,104 | | EBITDA | $520 | $1,086 | $753 | $681 | $3,040 | $4,806 | | Total adjustments | $531 | $51 | $54 | $250 | $894 | $340 | | Adjusted EBITDA | $1,051 | $1,095 | $807 | $931 | $3,884 | $5,146 |