Did ADM meet expectations in Q1 2025?

According to management, results were aligned with ADM's outlook and market expectations for the quarter. Adjusted EPS of $0.70 was well below the prior year's $1.46, but the company framed the quarter as consistent with what it had previously signaled.

What drove the weakness in Ag Services & Oilseeds?

Crushing margins were hurt by increased industry capacity, competitive Argentine meal exports, higher manufacturing costs, and softer vegetable oil demand tied to biofuel and trade policy uncertainty. Ag Services volumes and margins declined on tariff and trade policy uncertainty and certain export duties. Mark-to-market timing was also a negative, with about $30 million of net negative impacts in Ag Services versus a $18 million positive in the prior year.

Is ADM's full-year 2025 guidance still intact?

ADM reaffirmed its 2025 adjusted EPS guidance range of $4.00 to $4.75 but said it now expects to deliver at the lower end of that range given current market conditions. The company did not provide GAAP EPS guidance and cited the unreasonable efforts exemption for reconciling forecasted adjusted EPS to GAAP.

Why was operating cash flow negative, and is it a concern?

Operating cash flow was $(342) million, primarily because of a $(781) million outflow from changes in operating assets and liabilities, which is a working capital build. Before working capital changes, cash generation was $439 million. Investors should watch whether working capital reverses in subsequent quarters, as short-term debt rose to $2.77 billion from $1.73 billion a year earlier.

What are the main non-GAAP adjustments investors should understand?

The main adjustment was $49 million of specified items, mostly restructuring and settlement contingencies, which reduced GAAP EPS by $0.09 per share. Corporate costs were also elevated by $77 million of timing-related incentive compensation adjustments, which were offset within Corporate with no net consolidated impact. Investors should consider these items when comparing adjusted results to GAAP earnings.

ADM 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.

ADM reported first-quarter 2025 results on May 6, 2025 that were weak year over year but in line with management's outlook and market expectations.

GAAP earnings before income taxes fell 60% to $353 million^a and diluted GAAP EPS fell 57% to $0.61. Adjusted EPS fell 52% to $0.70, and total segment operating profit fell 38% to $747 million. The decline was driven mainly by Ag Services & Oilseeds (AS&O), where segment operating profit dropped 52% to $412 million.

Crushing fell 85% on lower margins from industry capacity additions, competing Argentine meal exports, higher manufacturing costs, and biofuel and trade policy uncertainty. Ag Services fell 31% on lower volumes and margins tied to tariff and trade uncertainty. Carbohydrate Solutions was roughly flat at $240 million^b (down 3%), and Nutrition grew 13% to $95 million, with Animal Nutrition up 150%.

Cash flow was a notable negative. Operating cash flow was $(342) million, driven by a $(781) million working capital outflow. Cash flow from operations before working capital was $439 million^c.

Net debt rose, with short-term debt up to $2.77 billion^d from $1.73 billion a year earlier, and shareholders' equity declined to $22.1 billion. Diluted share count fell to 483 million from 514 million, reflecting prior share repurchases that partly cushion the per-share decline.

Management reaffirmed full-year 2025 adjusted EPS guidance of $4.00 to $4.75 but said ADM now expects to land at the lower end of the range given current market conditions. For investors, the key issues are whether the self-help agenda (operational improvements, cost savings, portfolio simplification) can offset weak crush margins and trade-policy uncertainty, and whether the working capital build reverses in coming quarters.

02—Key points

Key Highlights

GAAP EPS of $0.61 fell 57% year over year; adjusted EPS of $0.70 fell 52%, with the gap driven by $43 million (after tax) of restructuring and contingency charges.
Ag Services & Oilseeds segment operating profit fell 52% to $412 million, accounting for most of the company-wide earnings decline; Crushing fell 85% to $47 million.
Carbohydrate Solutions operating profit was $240 million (down 3%), with Starches & Sweeteners down 21% offset by a swing to $33 million in Vantage Corn Processors.
Nutrition segment operating profit rose 13% to $95 million, led by Animal Nutrition (up 150% to $20 million) and Flavors.
Operating cash flow was negative $(342) million due to a $(781) million working capital build; cash flow before working capital was $439 million.
Full-year 2025 adjusted EPS guidance of $4.00 to $4.75 was reaffirmed, but ADM now expects results at the low end of the range.
Diluted share count declined to 483 million from 514 million, and quarterly dividends totaled $247 million, supporting per-share metrics.

03—Questions

Frequently Asked Questions

Did ADM meet expectations in Q1 2025?
According to management, results were aligned with ADM's outlook and market expectations for the quarter. Adjusted EPS of $0.70 was well below the prior year's $1.46, but the company framed the quarter as consistent with what it had previously signaled.
What drove the weakness in Ag Services & Oilseeds?
Crushing margins were hurt by increased industry capacity, competitive Argentine meal exports, higher manufacturing costs, and softer vegetable oil demand tied to biofuel and trade policy uncertainty. Ag Services volumes and margins declined on tariff and trade policy uncertainty and certain export duties. Mark-to-market timing was also a negative, with about $30 million of net negative impacts in Ag Services versus a $18 million positive in the prior year.
Is ADM's full-year 2025 guidance still intact?
ADM reaffirmed its 2025 adjusted EPS guidance range of $4.00 to $4.75 but said it now expects to deliver at the lower end of that range given current market conditions. The company did not provide GAAP EPS guidance and cited the unreasonable efforts exemption for reconciling forecasted adjusted EPS to GAAP.
Why was operating cash flow negative, and is it a concern?
Operating cash flow was $(342) million, primarily because of a $(781) million outflow from changes in operating assets and liabilities, which is a working capital build. Before working capital changes, cash generation was $439 million. Investors should watch whether working capital reverses in subsequent quarters, as short-term debt rose to $2.77 billion from $1.73 billion a year earlier.
What are the main non-GAAP adjustments investors should understand?
The main adjustment was $49 million of specified items, mostly restructuring and settlement contingencies, which reduced GAAP EPS by $0.09 per share. Corporate costs were also elevated by $77 million of timing-related incentive compensation adjustments, which were offset within Corporate with no net consolidated impact. Investors should consider these items when comparing adjusted results to GAAP earnings.

04—Continue

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