Core Insights - Archer Daniels Midland Company (ADM) reported second-quarter 2025 results with both revenue and earnings exceeding Zacks Consensus Estimates, although both metrics showed a year-over-year decline [1][2]. Financial Performance - Adjusted earnings per share (EPS) were 93 cents, surpassing the Zacks Consensus Estimate of 88 cents, but down from $1.03 in the same quarter last year [2][10]. - Reported earnings were 45 cents per share, a decrease from 98 cents year-over-year [2]. - Revenues fell 4.9% year-over-year to $21.2 billion, beating the consensus estimate of $21.1 billion [2][10]. Segment Performance - Ag Services & Oilseeds revenues decreased 6.1% year-over-year to $16.3 billion [3]. - Carbohydrate Solutions revenues declined 3.5% year-over-year to $2.79 billion [3]. - Nutrition segment revenues increased 4.5% year-over-year to $1.99 billion [3]. - Other Business revenues fell 0.9% to $112 million from $113 million in the prior-year period [3]. Profitability Metrics - Gross profit decreased 1.9% year-over-year to $1.37 billion, with a gross margin of 6.5% [4]. - Selling, general and administrative expenses rose slightly to $911 million from $907 million in the year-ago quarter [4]. - Adjusted segmental operating profit was $830 million, down 10.3% from the previous year [4]. Operating Profit by Segment - Ag Services & Oilseeds adjusted operating profit dropped 17% year-over-year to $379 million, affected by lower volumes and margins due to trade policy uncertainty and weak commodity prices [5]. - Crushing subsegment's operating profit plummeted 75% year-over-year due to lower vegetable oil demand [6]. - Refined Products and Other subsegment saw a 14% increase in operating profit, although biodiesel margins remained under pressure [7]. Cash Flow and Financial Position - As of June 30, 2025, ADM had cash and cash equivalents of $1.06 billion and long-term debt of $8.37 billion [15]. - The company generated $3.96 billion in cash from operating activities and paid out dividends of $495 million in the reported quarter [15]. Guidance and Market Performance - For 2025, management tightened its adjusted EPS guidance to $4.00, with expectations leaning towards the lower end due to anticipated margin benefits [16]. - ADM shares have gained 12.5% over the past three months, slightly outperforming the industry growth of 12.2% [16].

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]

Group 1 - The core viewpoint of the article is that Archer-Daniels-Midland (ADM) reported a decline in revenue and net profit for the second quarter, which fell short of analyst expectations [1] Group 2 - ADM's second-quarter revenue decreased approximately 5% year-over-year to $21.17 billion, below analyst forecasts of $22.03 billion [1] - The company's net profit dropped 55% year-over-year to $219 million, with adjusted earnings per share at $0.93, exceeding analyst expectations of $0.82 [1] - ADM anticipates that its full-year adjusted earnings per share will be close to the lower end of its previous guidance range, approximately $4, while analysts expected $3.99 [1]

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 |

Core Viewpoint - Archer Daniels Midland Company (ADM) is expected to report declines in both earnings and revenues for the second quarter of 2025, with earnings estimated at 88 cents per share, reflecting a 14.6% decrease year-over-year, and revenues projected at $21.1 billion, indicating a 5.1% dip from the previous year [1][2][11] Financial Performance - The Zacks Consensus Estimate for ADM's earnings is 88 cents per share, down 14.6% from the same quarter last year, with a 7.4% decrease in the consensus mark over the past 30 days [2] - Revenue expectations are set at $21.1 billion, which represents a 5.1% decline compared to the year-ago quarter [2] - In the last reported quarter, ADM had an earnings surprise of 1.5% but missed the Zacks Consensus Estimate by an average of 5.4% over the last four quarters [3] Segment Performance - The Ag Services and Oilseeds segment is facing challenges due to sluggish market conditions, including increased cost inflation and depressed vegetable oil demand, leading to expected lower results year-over-year [4][6] - The Ag Services and Oilseeds segment's revenues are estimated at $16.2 billion, suggesting a 6.7% year-over-year decline [8] - The Carbohydrate Solutions segment is projected to generate revenues of $2.9 billion, indicating a slight decline of 0.9% year-over-year [8] - Conversely, the Nutrition segment is expected to see revenues of $1.9 billion, reflecting a 0.8% year-over-year growth, driven by improvements in operational structure and capacity [9][11] Market Conditions and Management Outlook - Management has expressed caution regarding the second-half outlook for crush margin improvement, noting that current domestic crush replacement margins are below expectations [7] - There are signs of weakening customer demand in certain markets, leading to reduced volume expectations [7] - The company is actively managing productivity and innovation, focusing on food security and health trends, which is expected to support margins in the upcoming quarter [10] Valuation and Market Performance - ADM is trading at a forward 12-month price-to-earnings ratio of 12.29X, which is below both its five-year high of 18.93X and the industry average of 14.77X, indicating an attractive valuation opportunity [13] - Over the past three months, ADM's shares have increased by 13.4%, outperforming the industry growth of 11.6% [14]

Core Insights - Over 60% of the new 2025 collection of The Fortune 500 Industry Leaders (F500IL) is considered too expensive or offers low dividends, indicating a challenging investment environment for many companies in this list [1] - Among the top ten lowest-priced F500IL, three companies are identified as attractive buying opportunities, suggesting potential for value investment [1] Company Analysis - Energy Transfer is highlighted as one of the companies ready to buy, indicating its favorable position within the F500IL despite the overall high pricing of the collection [1]