ADM Q3 Earnings Beat Estimates, Revenues Increase 2.2% Y/Y

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