Why did GAAP EPS rise while adjusted EPS fell?

GAAP EPS of $0.22 compares with $0.04 a year earlier, but the comparison is distorted by timing and charges. Adjusted EPS of $0.92 excludes $340 million of after-tax adjustments in Q3, including portfolio optimization impairments, ADM's $163 million share of a Wilmar penalty, and gains on asset sales. The underlying operating decline is better reflected by the 16% drop in adjusted EPS and the 19% fall in segment operating profit.

What drove the cut to full-year 2025 guidance?

Management attributed the revision primarily to lower crush margins. Demand for oilseed crushing weakened because U.S. biofuel policy was deferred, and international trade flows were disrupted. The new adjusted EPS range of $3.25-$3.50 compares with the prior approximately $4.00 expectation.

Is ADM's cash flow healthy despite lower earnings?

Yes, in the near term. Year-to-date operating cash flow was $5.8 billion, though about $3.7 billion of that came from working capital changes, with cash flow before working capital at $2.1 billion. Net debt also declined, and cash on hand rose to $1.2 billion from $784 million a year earlier. Investors should monitor whether working capital releases can continue, since they are not repeatable indefinitely.

What should investors expect for 2026?

ADM expects clarity on U.S. biofuel policy and global trade evolution to provide demand signals, which underpin what management describes as a constructive 2026 outlook. The company has not quantified 2026 expectations in this filing, so the recovery depends on policy outcomes that remain uncertain.

Why doesn't ADM provide a GAAP reconciliation for forward guidance?

ADM relies on the SEC's unreasonable efforts exemption under Regulation S-K Item 10(e). It cannot predict with reasonable certainty the timing and size of impairments, restructuring charges, acquisition expenses, legal and tax outcomes, and other reconciling items. These could be material, so investors should treat adjusted guidance as potentially diverging from eventual GAAP results.

ADM 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 4, 2025. Cited figures are marked; the original filing is the authoritative source.

ADM reported third-quarter 2025 GAAP earnings before income taxes of $147 million^a and GAAP diluted EPS of $0.22, versus $0.04 a year earlier, but the headline is weaker on an underlying basis.

Adjusted EPS was $0.92^b, down 16% from $1.09, and total segment operating profit fell 19% to $845 million. The GAAP improvement was driven by $220 million of specified items, mainly portfolio optimization and impairment charges plus ADM's $163 million share of a penalty imposed on Wilmar, which the company excludes from adjusted results. Year-to-date, adjusted EPS of $2.56 is down 29% and segment operating profit of $2,422 million is down 23%, with Ag Services and Oilseeds (down 35%) the main drag, particularly Crushing (down 85% YTD).

The most consequential news is guidance. ADM cut full-year 2025 adjusted EPS guidance to $3.25^c-$3.50 from approximately $4.00, citing lower crush margins tied to delayed U.S. biofuel policy and disrupted international trade flows. Management is pinning its 2026 outlook on expected clarity on biofuel policy and global trade.

Cash generation was a relative bright spot: year-to-date operating cash flow reached $5.8 billion^d, helped by a $3.7 billion working capital release, and net debt fell substantially, with short-term debt down to $246 million and long-term debt at $7.6 billion. Shareholder equity was $22.5 billion. Investors should note that ADM did not provide a GAAP reconciliation for its forward guidance, citing the unreasonable efforts exemption because impairments, restructuring charges, and legal and tax outcomes are hard to predict.

Nutrition was the clear positive, with segment operating profit up 24% in the quarter, and Carbohydrate Solutions remained steady sequentially. The overall message is a company in a cyclical trough that is cutting costs, optimizing its portfolio, and generating cash, but still dependent on policy outcomes for a meaningful earnings recovery.

02—Key points

Key Highlights

Adjusted EPS of $0.92 fell 16% year over year, while GAAP EPS rose to $0.22 from $0.04 due mainly to $220 million of excluded specified items.
Full-year 2025 adjusted EPS guidance was cut to $3.25-$3.50 from approximately $4.00, primarily reflecting lower crush margins.
Crushing operating profit fell 93% in Q3 to $13 million on muted biofuel demand and trade disruptions; YTD Crushing profit is down 85%.
Total segment operating profit declined 19% to $845 million in Q3 and 23% to $2,422 million year to date.
Nutrition was the standout segment, with Q3 operating profit up 24% to $130 million and record Flavors North America revenue.
Year-to-date operating cash flow of $5.8 billion was boosted by a $3.7 billion working capital release; net debt declined as short-term borrowings fell to $246 million.
ADM's $163 million share of a Wilmar penalty and $174 million software impairment were excluded from adjusted results, a point investors should weigh against recurring charge patterns.

03—Questions

Frequently Asked Questions

Why did GAAP EPS rise while adjusted EPS fell?
GAAP EPS of $0.22 compares with $0.04 a year earlier, but the comparison is distorted by timing and charges. Adjusted EPS of $0.92 excludes $340 million of after-tax adjustments in Q3, including portfolio optimization impairments, ADM's $163 million share of a Wilmar penalty, and gains on asset sales. The underlying operating decline is better reflected by the 16% drop in adjusted EPS and the 19% fall in segment operating profit.
What drove the cut to full-year 2025 guidance?
Management attributed the revision primarily to lower crush margins. Demand for oilseed crushing weakened because U.S. biofuel policy was deferred, and international trade flows were disrupted. The new adjusted EPS range of $3.25-$3.50 compares with the prior approximately $4.00 expectation.
Is ADM's cash flow healthy despite lower earnings?
Yes, in the near term. Year-to-date operating cash flow was $5.8 billion, though about $3.7 billion of that came from working capital changes, with cash flow before working capital at $2.1 billion. Net debt also declined, and cash on hand rose to $1.2 billion from $784 million a year earlier. Investors should monitor whether working capital releases can continue, since they are not repeatable indefinitely.
What should investors expect for 2026?
ADM expects clarity on U.S. biofuel policy and global trade evolution to provide demand signals, which underpin what management describes as a constructive 2026 outlook. The company has not quantified 2026 expectations in this filing, so the recovery depends on policy outcomes that remain uncertain.
Why doesn't ADM provide a GAAP reconciliation for forward guidance?
ADM relies on the SEC's unreasonable efforts exemption under Regulation S-K Item 10(e). It cannot predict with reasonable certainty the timing and size of impairments, restructuring charges, acquisition expenses, legal and tax outcomes, and other reconciling items. These could be material, so investors should treat adjusted guidance as potentially diverging from eventual GAAP results.

04—Continue

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