ADM(US:ADM)2025-11-04 21:01Financial Performance - Revenues for Q3 2025 were $20,372 million, a 2.2% increase from $19,937 million in Q3 2024[14] - Net earnings attributable to Archer-Daniels-Midland Company for Q3 2025 were $108 million, compared to $18 million in Q3 2024, representing a significant increase[14] - Gross profit for the nine months ended September 30, 2025, was $3,820 million, down 13.6% from $4,420 million in the same period of 2024[14] - The company reported a total comprehensive income of $292 million for Q3 2025, compared to $59 million in Q3 2024[15] - Basic earnings per common share for the nine months ended September 30, 2025, were $1.29, down from $2.49 in the same period of 2024[14] - The company reported net earnings of $622 million for the nine months ended September 30, 2025, compared to $1,233 million for the same period in 2024, a decrease of 49.5%[34] - The total earnings before income taxes for the three months ended September 30, 2025, was $147 million, a decrease from $108 million in the same period of 2024[169] Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 30, 2025, were $5,765 million, compared to $2,468 million in 2024, indicating strong operational performance[19] - Total assets decreased to $51,918 million as of September 30, 2025, from $53,271 million at the end of 2024[17] - As of September 30, 2025, total cash, cash equivalents, restricted cash, and restricted cash equivalents amounted to $5,875 million, up from $4,397 million as of September 30, 2024, representing a 33.6% increase[30] - The fair value of total assets as of September 30, 2025, was $8.097 billion, with Level 2 assets amounting to $2.962 billion[79] - The company had $5.1 billion of total lines of credit supporting U.S. and European commercial paper borrowing programs, with $190 million of commercial paper outstanding[144] Debt and Liabilities - Long-term debt decreased to $6,609 million as of September 30, 2025, from $7,580 million at the end of 2024, indicating a reduction in leverage[17] - The fair value of the company's long-term debt was estimated at $6.3 billion as of September 30, 2025, down from $7.1 billion as of December 31, 2024[142] - The closing balance of liabilities as of September 30, 2025, was $280 million, down from $426 million on July 1, 2025, representing a decrease of about 34.3%[98] Inventory Management - Inventories decreased to $8,700 million as of September 30, 2025, from $11,572 million at the end of 2024, reflecting improved inventory management[17] - The company's total inventories decreased to $8,700 million as of September 30, 2025, from $11,572 million as of December 31, 2024, reflecting a decline of 24.5%[37] Segment Performance - The Ag Services and Oilseeds segment generated revenues of $15.613 billion for the three months ended September 30, 2025, up from $15.089 billion in the same period of 2024[58][60] - The Carbohydrate Solutions segment reported revenues of $2.734 billion for the three months ended September 30, 2025, compared to $2.908 billion in the same period of 2024, indicating a decline of approximately 6%[58][60] - The Nutrition segment's revenues remained stable at $1.916 billion for the three months ended September 30, 2025, compared to $1.831 billion in the same period of 2024[58][60] - Segment operating profit for the Ag Services and Oilseeds segment was $379 million for the three months ended September 30, 2025, compared to $480 million in the same period of 2024, showing a decrease of about 21%[169] - The total segment operating profit for the three segments combined was $845 million for the three months ended September 30, 2025, down from $1,037 million in the same period of 2024, indicating a decline of approximately 18.5%[169] Legal and Regulatory Matters - The Company is involved in multiple legal actions, with potential damages claimed between approximately $500 million to over $2.0 billion due to alleged manipulation of ethanol derivatives pricing[206] - The Company is under investigation by the SEC and DOJ regarding intersegment sales, with no current ability to predict the outcome[209] - A purported stockholder filed a securities fraud class action against the Company and certain officers, with the court denying motions to dismiss on March 12, 2025[210] - The Company is facing several derivative lawsuits from purported stockholders seeking unspecified damages, which have been consolidated in the U.S. District Court for the District of Delaware[211] - The Company denies liability in ongoing legal actions and believes the outcomes will not materially affect its financial condition[208] Dividends and Shareholder Returns - The company declared dividends per common share of $0.51 for Q3 2025, slightly up from $0.50 in Q3 2024[14] - Cash dividends paid per share were $1.53 for the nine months ended September 30, 2025, totaling $743 million, compared to $1.50 per share totaling $744 million for the same period in 2024[34] - The company's stock repurchase program allows for the repurchase of up to an additional 100 million shares, with 115 million shares remaining under the program as of September 30, 2025[150] Impairments and Charges - The company recognized impairment losses of $187 million during the nine months ended September 30, 2025, reflecting challenges in its investment portfolio[40] - The Nutrition segment reported a $173 million impairment charge related to previously capitalized internal-use software for the nine months ended September 30, 2025[175] - The company incurred a penalty charge of $163 million related to its share of a penalty imposed on Wilmar during the nine months ended September 30, 2025[175] Future Outlook and Initiatives - The Company plans to adopt several new accounting standards, including ASU 2023-09 effective December 31, 2025, which will enhance income tax disclosures[50] - The company has targeted actions expected to deliver over $500 million in cost savings by fiscal 2029 through cost optimization initiatives[193]