10-QPeriod: Q3 FY2025

Archer-Daniels-Midland Co Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 4, 2025For Securities:ADM

Summary

Archer-Daniels-Midland Co. (ADM) reported mixed financial results for the third quarter of fiscal year 2025. While revenues saw a modest increase driven by higher sales prices and volumes, particularly in the Ag Services and Oilseeds segment, gross profit experienced a decline due to compressed margins across key segments. The company incurred significant impairment and restructuring charges, including a substantial charge related to internal-use software and a penalty from an equity investment, which impacted net earnings. Despite these challenges, ADM generated strong operating cash flow and maintained substantial liquidity. The company's strategic focus remains on operational execution, cost management, portfolio simplification, and disciplined capital deployment. Recent portfolio actions include an acquisition in Hungary and the formation of a joint venture in animal feed. ADM is also actively cooperating with ongoing SEC and DOJ investigations, which have previously led to a material weakness in internal controls over financial reporting that has since been remediated.

Financial Highlights

53 data points
Beta

Revenue

$20.37B

6.2% Gross Margin

Net Income

$108.00M

0.5% Net Margin

EPS (Diluted)

$0.22

Total Assets

$51.92B

Cash & Equivalents

$1.24B

Free Cash Flow

$1.51B

Financial Statements
Beta
Revenue$20.37B
Cost of Revenue$19.10B
Gross Profit$1.27B
SG&A Expenses$873.00M
Interest Expense$153.00M
Net Income$108.00M
EPS (Basic)$0.22
EPS (Diluted)$0.22
Shares Outstanding (Basic)484.00M
Shares Outstanding (Diluted)484.00M

Key Highlights

  • 1Total revenues increased by 2.2% to $20.37 billion for the third quarter of 2025, compared to $19.94 billion in the prior year period, primarily driven by higher sales prices and volumes.
  • 2Gross profit decreased by 7.0% to $1.27 billion from $1.37 billion year-over-year, impacted by lower margins in Ag Services and Oilseeds and Carbohydrate Solutions segments.
  • 3Net earnings attributable to Archer-Daniels-Midland Company significantly decreased to $108 million ($0.22 per diluted share) from $1.23 billion ($2.48 per diluted share) for the nine months ended September 30, 2025 and 2024, respectively, largely due to higher impairment and restructuring costs, including a $173 million charge for internal-use software and a $163 million penalty charge related to an equity investment.
  • 4Asset impairment, exit, and restructuring costs totaled $246 million in the current quarter, down from $507 million in the prior year quarter, though specific charges like software impairment are notable.
  • 5The Ag Services and Oilseeds segment remains the largest revenue generator, with revenues increasing 3.5% to $15.61 billion, but segment operating profit decreased 21% due to lower crushing margins.
  • 6Operating cash flow for the nine months ended September 30, 2025, was strong at $5.77 billion, a significant increase from $2.47 billion in the prior year period, driven by favorable changes in operating assets and liabilities.
  • 7The company maintains robust liquidity with $11.0 billion in total available liquidity as of September 30, 2025, comprising cash, cash equivalents, and unused lines of credit.

Frequently Asked Questions

The significant decrease in net earnings for the nine months ended September 30, 2025, compared to the prior year, was primarily driven by lower pricing and execution margins. Additionally, the company incurred substantial charges including a $173 million impairment for internal-use software, a $163 million penalty charge related to an equity investment (Wilmar), and other restructuring and impairment costs, which were higher than the prior year's comparable charges, notably the $461 million impairment of the Wilmar investment in the prior year.

In the third quarter of 2025, the Ag Services and Oilseeds segment, the largest by revenue, saw revenues increase 3.5% to $15.61 billion, but its operating profit decreased 21% due to lower crushing margins. The Carbohydrate Solutions segment's revenues decreased 6% to $2.73 billion, and its operating profit fell 26%. The Nutrition segment showed growth, with revenues up 5% to $1.92 billion and operating profit increasing 24%, driven by strong performance in Human Nutrition, particularly Flavors.

ADM is continuing to cooperate with ongoing investigations by the United States Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). These investigations relate to, among other things, intersegment sales between the company's Nutrition segment and its Ag Services and Oilseeds and Carbohydrate Solutions segments. The company is unable to predict the outcome of these investigations.

Yes, ADM has implemented changes to its internal control over financial reporting related to its accounting practices and procedures for intersegment sales. These enhancements include improved procedures for measurement, pricing guidelines, and documentation. The company concluded that the previously disclosed material weakness was fully remediated as of June 30, 2025.