ADM

MKT CAP $40.8BP/E 23.2DIV YIELD 2.43%FCF YIELD 4.11%REV TTM $82.1B −0.8%NET INCOME $1.8B +61.1%NET DEBT $6.6B52W 56.00 – 87.32SEC XBRL · TTM TO Invalid Date

How ADM rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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New in FY2025

The Company's Nutrition segment primarily utilizes agricultural commodities (or products derived from agricultural commodities) as raw materials.
However, in these operations, agricultural commodity market price changes do not necessarily strongly correlate to changes in cost of products sold.
As a result, changes in revenues may correspond to changes in margins.
The Company has consolidated subsidiaries in 75 countries.
Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the average exchange rates for the applicable periods.
The Company measures its performance using key financial metrics including net earnings, adjusted diluted earnings per share (EPS), margins, segment operating profit, total segment operating profit, earnings before interest and taxes (EBIT), earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted EBITDA.
Due to the unpredictable nature of these and other factors, the Company undertakes no responsibility for updating any forward-looking information contained within this “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Market Factors Influencing Operations and Results in the Twelve Months Ended December 31, 2025 The Company is subject to a variety of market factors which affect the Company’s operations and results, including those discussed below related to 2025.
In the Ag Services and Oilseeds segment, increased global supplies of grains and oilseeds, higher projected ending stocks-to-use ratios, the deferral of U.S. biofuel policy, the evolving global trade landscape, and logistical and weather challenges resulted in compressed margins.
The Ag Services subsegment in North America was impacted by global trade policy uncertainty, though it benefited from the partial return of soybean exports in the fourth quarter of the current year from North America to China.
Further, low water levels slowed execution pace; South America Origination was negatively impacted by slower corn farmer selling, and the Black Sea business was negatively impacted by farmer retention and logistical issues due to the Russia-Ukraine conflict escalations.
In the Crushing and the Refined Products and Other (RPO) subsegments, the postponement of the implementation of European Union Deforestation Regulation and the deferral of U.S. biofuel and trade policy evolution negatively impacted sales volumes and margins.
ARCHER-DANIELS-MIDLAND COMPANY MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS In the Carbohydrate Solutions segment, solid domestic and export demand for ethanol, along with lower industry production, helped improve imbalances between production and domestic demand.
For the Starches and Sweeteners subsegment, North America saw demand softness in the sweeteners, paper, and corrugated markets.
Europe, the Middle East, and Africa (EMEA) was impacted by higher corn costs and increased competition.
In the Nutrition segment, the Human Nutrition subsegment continued to see growth trends in the Flavors market, as high value categories such as energy drinks and ready to drink beverages continued to perform strongly.
Similarly, the Dietary Supplements market continued to grow in line with historical rates and shows expansion opportunities as customer acceptance of postbiotics (heat-stable version of probiotics) allows sales in a larger variety of segments (food and beverage).
While tariffs and inflation continue to pose challenges to the Human Nutrition subsegment, clean label and healthier categories are outpacing the broader industry.
In the Animal Nutrition subsegment, declining commodity prices continued to support feed ration commodities as well as additive markets, while localized volume softness impacted demand.
Processed volumes by product for the years ended December 31, 2025 and 2024 were as follows (in metric tons): (In thousands) 2025 2024 Change Oilseeds 36,324 35,719 605 Corn 18,525 18,541 (16) The Company generally operates its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to the current margin environment and seasonal local supply and demand conditions.
The increase in processed oilseeds volumes in 2025 was primarily related to higher volumes in South America due to improved plant reliability, in addition to improved North America crush volumes driven by improved utilization after the restoration of operations at the Company’s Decatur, Illinois facility.
The processed corn volumes were consistent year over year.
Federal Clean Fuel Production Credits and Federal Blenders’ and Producers’ Credits Biodiesel tax incentives have been provided through various U.S. statutes.
The Inflation Reduction Act of 2022 introduced the Clean Fuel Production Credit (IRC Section 45Z or "45Z").
The 45Z credit is effective for fuel produced and sold between January 1, 2025 and December 31, 2029 and replaces prior incentives such as the Blenders’ Tax Credit ("BTC") for qualifying fuels.
For the year ended December 31, 2025, the Company did not generate significant 45Z credits.
The Company estimates that the total benefits available under 45Z will be higher in future periods primarily due to changes enacted in the OBBBA.
The BTC was previously the primary regulation, applicable to qualifying biodiesel.
The Inflation Reduction Act of 2022 extended the BTC through December 31, 2024 and established the 45Z effective January 1, 2025, as discussed above.
For the year ended December 31, 2024, the Company recorded benefits of $316 million related to the BTC.
Results of Operations Earnings before income taxes decreased 44% or $1.0 billion, to $1.3 billion.
Results in the current year were primarily driven by lower pricing and execution margins.
In 2025, the Company recorded $372 million of impairments driven by revaluation losses related to investments in the alternative protein market and the Company's updated investment strategy around startup and development stage companies, $283 million of asset impairment, exit, contingency, restructuring charges, and impairment charges of $179 million related to previously capitalized software, and Wilmar International Limited (“Wilmar”) equity earnings related impacts reflecting a one time remeasurement gain of $254 million and a $163 million penalty charge.
In the prior year period, the Company recorded a $461 million impairment of its investment in Wilmar.
ARCHER-DANIELS-MIDLAND COMPANY MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Total segment operating profit (a non-GAAP measure) in 2025 decreased 23% or $1.0 billion, to $3.2 billion, primarily driven by lower results in the Ag Services and Oilseeds segment and the Carbohydrate Solutions segment.
Total segment operating profit (a non-GAAP measure) in the year ended December 31, 2025 excluded specified items of $236 million that were primarily comprised of asset impairment, exit, and restructuring costs, as well as net impacts related to Wilmar.
Total segment operating profit (a non-GAAP measure) in the year ended December 31, 2024 excluded asset impairment, restructuring, and net settlement contingencies of $490 million.
Revenues for the years ended December 31, 2025 and 2024, were as follows (in millions): 2025 2024 Change Ag Services and Oilseeds Ag Services $ 40,363 $ 44,083 $ (3,720) Crushing 10,353 11,836 (1,483) Refined Products and Other 10,855 10,597 258 Total Ag Services and Oilseeds 61,571 66,516 (4,945) Carbohydrate Solutions Starches and Sweeteners 7,982 8,587 (605) Vantage Corn Processors 2,755 2,647 108 Total Carbohydrate Solutions 10,737 11,234 (497) Nutrition Human Nutrition 4,187 3,944 243 Animal Nutrition 3,325 3,405 (80) Total Nutrition 7,512 7,349 163 Total Segment Revenues 79,820 85,099 (5,279) Other Business 449 431 18 Total Revenues $ 80,269 $ 85,530 $ (5,261) Revenues and cost of products sold in agricultural merchandising and processing businesses are significantly correlated to the underlying commodity prices and volumes.
Revenues decreased $5.3 billion to $80.3 billion driven by lower sales volumes ($2.9 billion) and lower sales prices ($2.3 billion).
Lower sales volumes of soybeans, corn, and sorghum were partially offset by higher sales volumes of meal and oils.
Lower sales prices of meal, soybeans, and wheat were partially offset by higher sales prices of corn and oils.

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Therefore, margins per volume or metric ton generally are meaningful as a performance indicator in these businesses.
The Company's Nutrition segment also utilizes agricultural commodities (or products derived from agricultural commodities) as raw materials.
However, in these operations, agricultural commodity market price changes do not necessarily correlate to changes in cost of products sold.
As a result, changes in revenues of these businesses may correspond to changes in margins.
Therefore margin rates generally are meaningful as a performance indicator in these businesses.
ARCHER-DANIELS-MIDLAND COMPANY MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Company has consolidated subsidiaries in approximately 80 countries.
Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the weighted average exchange rates for the applicable periods.
The Company measures its performance using key financial metrics including net earnings, adjusted diluted earnings per share (EPS), margins, segment operating profit, total segment operating profit, earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, return on invested capital, adjusted economic value added, and operating cash flows before working capital.
Due to the unpredictable nature of these and other factors, the Company undertakes no responsibility for updating any forward-looking information contained within this “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Market Factors Influencing Operations or Results in the Twelve Months Ended December 31, 2024 The Company is subject to a variety of market factors which affect the Company’s operating results, including those discussed below related to 2024.
In the Ag Services and Oilseeds segment, following two years of very favorable market conditions, several headwinds in the agriculture cycle, including fewer market dislocations and high cost inflation, led to more normalized results throughout the entire value chain.
Ag Services benefited from improved river conditions and an excellent crop in North America, which improved export volumes, while South America Origination margins were negatively impacted by take or pay contracts with railroads.
Global Trade market conditions were driven by solid trading and continued structured trade finance opportunities.
Crushing saw depressed vegetable oil demand and lower prices primarily driven by increased market supply, imports of used cooking oil, uncertainty with the Producer Tax Credit policy change, and the delay of the European Union's Deforestation Regulation requirements.
In Refined Products and Other, North America margins were pressured by an increase in the supply of low carbon intensity feedstock and limited forward sales opportunities caused by the uncertainty around Producers Tax Credit policy transition.
In the Carbohydrate Solutions segment, demand for starches and sweeteners remained solid with margins remaining steady across the entire portfolio.
Strong export demand for ethanol helped offset higher industry production to minimize the imbalance between supply and demand.
In the Nutrition segment, demand was mixed in a few food and beverage product categories driven by shifts in consumer discretionary spend and preferences.
Human Nutrition was impacted by inflation, which drove lower demand and decreased volumes for alternative proteins in some regions.
Demand started to recover in the food, beverage, and dietary supplement categories.
In Animal Nutrition, a soft amino acids market driven by price weakness in North America was partially offset by an improved market in EMEA.
The global feed market saw some modest improvement with continued price weakness of main feed ration commodities, while key livestock prices remained steady.
The feed additives market was impacted by volatility on vitamins due to supply disruptions, however overall it modestly improved, following the improvement in the feed sector.
ARCHER-DANIELS-MIDLAND COMPANY MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Processed volumes by product for the years ended December 31, 2024 and 2023 are as follows (in metric tons): (In thousands) 2024 2023 Change Oilseeds 35,719 34,899 820 Corn 18,541 18,067 474 Total 54,260 52,966 1,294 The Company generally operates its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to the current margin environment and seasonal local supply and demand conditions.
The overall increase in oilseeds processed volumes was primarily related to improved crush capacity in North America, driven by the Company's new facility in Spiritwood, North Dakota, and in EMEA in 2024 compared to lower crush rates in the previous year due to inclement weather, unplanned downtime, and reduced capacity due to the Russian-Ukraine war.
The overall increase in corn processed volumes was related to increased plant reliability in 2024 compared to lower volumes in the previous year driven by unplanned downtime at the Decatur, Illinois plant.
Federal Blenders’ and Producers’ Credits Biodiesel tax incentives have been provided through various U.S. statutes.
The Blenders' Tax Credit (BTC) is the primary regulation, applicable to qualifying biodiesel.
The BTC has lapsed and been reinstated numerous times over the last decade.
The Inflation Reduction Act of 2022 extended the BTC through December 31, 2024 and established a new Clean Fuel Production Credit (CFPC) effective January 1, 2025.
For the year ended December 31, 2024, the Company recorded a benefit of $316 million related to the BTC.
The Company estimates a significant decrease in the CFPC available in the year ending December 31, 2025 compared with the BTC claimed during the year ended December 31, 2024.
Analysis of Results of Operations Earnings before income taxes decreased 47% or $2.0 billion, to $2.3 billion, primarily driven by lower pricing and execution margins, as well as a $461 million impairment charge related to the Company’s investment in Wilmar, partially offset by increased sales volumes.
Total segment operating profit (a non-GAAP measure) in 2024 decreased 28% or $1.7 billion, to $4.2 billion, driven by lower results in the Ag Services and Oilseeds segment and the Nutrition segment.
Total segment operating profit (a non-GAAP measure) in 2024 excluded asset impairment, restructuring and net settlement contingencies of $490 million, and a gain on the sale of certain assets of $10 million.
Total segment operating profit (a non-GAAP measure) in 2023 excluded asset impairment, restructuring, and net settlement contingencies of $361 million, and a gain on the sale of certain assets of $17 million.
ARCHER-DANIELS-MIDLAND COMPANY MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Revenues for the years ended December 31, 2024 and 2023, were as follows (in millions): 2024 2023 Change Ag Services and Oilseeds Ag Services $ 44,083 $ 47,420 $ (3,337) Crushing 11,836 14,020 (2,184) Refined Products and Other 10,597 11,986 (1,389) Total Ag Services and Oilseeds 66,516 73,426 (6,910) Carbohydrate Solutions Starches and Sweeteners 8,587 9,885 (1,298) Vantage Corn Processors 2,647 2,989 (342) Total Carbohydrate Solutions 11,234 12,874 (1,640) Nutrition Human Nutrition 3,944 3,634 310 Animal Nutrition 3,405 3,577 (172) Total Nutrition 7,349 7,211 138 Total Segment Revenues 85,099 93,511 (8,412) Other Business 431 424 7 Total Revenues $ 85,530 $ 93,935 $ (8,405) Revenues and cost of products sold in agricultural merchandising and processing businesses are significantly correlated to the underlying commodity prices and volumes.
Revenues decreased $8.4 billion to $85.5 billion driven by lower sales prices ($16.0 billion), partially offset by higher sales volumes ($7.6 billion).
Lower sales prices of soybeans, corn, meal, oils, wheat and alcohol, were partially offset by higher sales volumes of soybeans, corn, oils, wheat, alcohol, and flavors.
Ag Services and Oilseeds revenues decreased 9% to $66.5 billion driven by lower sales prices ($13.5 billion), partially offset by higher sales volumes ($6.6 billion).
Carbohydrate Solutions revenues decreased 13% to $11.2 billion driven by lower sales prices ($2.3 billion), partially offset by higher sales volumes ($612 million).

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