Archer-Daniels-Midland Co.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 4 November 2025: press release. Guidance figures: 1 lowered. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted EPS down 16 percent: Adjusted EPS was $0.92, down 16% from $1.09. GAAP diluted EPS was $0.22 against $0.04 a year earlier. Total segment operating profit was $845 million, down 19%. Source
• Specified items excluded from adjusted results: Specified items of $220 million were excluded from adjusted results, mainly portfolio optimization and impairment charges plus ADM's share of a Wilmar penalty. Adjusted net earnings were $448 million. Source
• AS&O profit fell 21 percent: AS&O segment operating profit was $379 million, down 21% from $480 million. Ag Services rose 78% to $190 million on higher North American export activity. Source
• Crushing profit fell on muted demand: Crushing profit fell 93% to $13 million from $187 million, on lower margins. Management tied the margin decline to deferred U.S. biofuel policy and challenges in international trade flows. Source
• Biofuel policy deferral weighed on demand: Management expects clarity on biofuel and trade policy to affect industry demand. Deferred U.S. biofuel policy had restrained North American demand during the quarter. Source
• Lower crush margins drove revision: Management said the full-year revision primarily reflects lower crush margins, based on the environment since the last earnings call. Source
• Operating cash flow reached $5.8 billion: Cash from operating activities was $5.8 billion year-to-date, and $2.1 billion before a $3.7 billion working capital change. Management pointed to portfolio optimization and working capital improvement. Source

“During the third quarter, we made solid progress in areas within our control, as we navigated a highly dynamic global environment.”

Chair of the Board and CEO Juan Luciano

Guidance

What changed from last quarter

• Guidance lowered: Full-year 2025 adjusted EPS guidance lowered to $3.25 to $3.50 per share from about $4.00. Source
• New: ADM recorded a $163 million charge for its share of a penalty imposed on Wilmar, treated as a specified item. Source

Third-quarter results and EPS

• Adjusted EPS down 16 percent: Adjusted EPS was $0.92, down 16% from $1.09. GAAP diluted EPS was $0.22 against $0.04 a year earlier. Total segment operating profit was $845 million, down 19%. Source
• Specified items excluded from adjusted results: Specified items of $220 million were excluded from adjusted results, mainly portfolio optimization and impairment charges plus ADM's share of a Wilmar penalty. Adjusted net earnings were $448 million. Source
• Year-to-date profit and EPS declined: Year-to-date GAAP EPS was $1.29, down 48%, and adjusted EPS was $2.56, down 29%. Year-to-date total segment operating profit was $2,422 million, down 23%. Source

Ag Services and Oilseeds segment

• AS&O profit fell 21 percent: AS&O segment operating profit was $379 million, down 21% from $480 million. Ag Services rose 78% to $190 million on higher North American export activity. Source
• Crushing profit fell on muted demand: Crushing profit fell 93% to $13 million from $187 million, on lower margins. Management tied the margin decline to deferred U.S. biofuel policy and challenges in international trade flows. Source
• Crush volumes rose on optimization: Management said it focused on optimizing operations, lifting global crush volumes 2.6% sequentially and 2.2% from a year earlier. Source
• Refined products profit slightly lower: Refined Products and Other profit was $120 million, down 3% from $124 million. Biodiesel and refining margins were lower as deferred biofuel policy restrained North American demand. Source
• Wilmar equity earnings fell about 10%: Equity earnings from Wilmar were about 10% lower than a year earlier. The figure excludes a $163 million penalty charge, which is treated as a specified item. Source

“However, based on the environment since our last earnings call, we are revising our 2025 full-year expectations primarily to reflect lower crush margins.”

Chair of the Board and CEO Juan Luciano

Carbohydrate Solutions segment

• Carbohydrate profit fell 26 percent: Carbohydrate Solutions operating profit was $336 million, down 26% from $452 million. Vantage Corn Processors rose to $43 million from a loss of $3 million. Source
• Starches demand lower globally: Starches and Sweeteners fell 36% to $293 million on lower global demand that hit volumes and margins. Management also cited higher corn costs in EMEA from corn quality issues. Source
• Corn processing profit rose on exports: Vantage Corn Processors profit rose $46 million. Management cited export flows and industry inventory falling during annual plant maintenance, which supported higher pricing. Source

Nutrition segment results

• Nutrition profit rose 24 percent: Nutrition operating profit was $130 million, up 24% from $105 million. Human Nutrition rose 12% to $96 million, while Animal Nutrition rose 79% to $34 million. Source
• Animal Nutrition profit up 79%: Management credited Animal Nutrition's gain to higher-margin product lines, portfolio streamlining and cost optimization. Source
• Biotics demand lifted Health and Wellness: Health & Wellness operating profit was higher on increased demand in biotics, according to the release. Source
• Flavors record revenue in North America: Management said Nutrition operating profit grew sequentially, with record revenue in Flavors North America. Flavors profit rose on higher margins, mainly in North America. Source

“We are a company built to endure cycles, and our asset network, combined with our skilled workforce, will remain a source of reliable strength for our farmers, customers, partners and investors.”

Chair of the Board and CEO Juan Luciano

Demand, biofuel policy and trade

• Biofuel policy deferral weighed on demand: Management expects clarity on biofuel and trade policy to affect industry demand. Deferred U.S. biofuel policy had restrained North American demand during the quarter. Source
• Lower crush margins drove revision: Management said the full-year revision primarily reflects lower crush margins, based on the environment since the last earnings call. Source
• Prior quarter expected Q4 margin benefit: Last quarter, management expected recently improved margins to mostly benefit the fourth quarter of 2025 and beyond, based on first-half performance.

Costs and specified charges

• Charges tied to portfolio optimization: Current-quarter charges of $261 million were primarily impairment of long-lived assets and restructuring tied to portfolio optimization, plus investment impairments and contingent settlements. Source
• Asset sale gains excluded from adjusted: Gains of $31 million on asset sales in the quarter, from a facility sale and a joint venture start, were excluded from adjusted results. Source
• Corporate costs lower on interest, functions: Excluding the $174 million software impairment, corporate costs fell on lower net interest expense of $98 million, down from $113 million, and lower select corporate function costs. Source

Cash flow, debt and capital

• Operating cash flow reached $5.8 billion: Cash from operating activities was $5.8 billion year-to-date, and $2.1 billion before a $3.7 billion working capital change. Management pointed to portfolio optimization and working capital improvement. Source
• Working capital reduced through inventory: Operating working capital was $7,176 million at September 30, 2025, down from $9,297 million a year earlier. Management cited sharper inventory management in AS&O. Source
• No share repurchases in nine months: Share repurchases were nil in the first nine months of 2025, against $2,327 million a year earlier. Cash dividends were $743 million, compared with $744 million. Source
• Capital spending and acquisitions lower: Capital expenditures were $892 million year-to-date, down from $1,071 million. Net assets of businesses acquired were $108 million, down from $936 million. Source
• Debt repayments and credit line cuts: Net repayments under lines of credit were $1,666 million year-to-date, and long-term debt payments were $763 million. Short-term debt was $246 million at quarter end. Source
• Adjusted ROIC at 6.7 percent: Adjusted ROIC was 6.7% for the four quarters to September 30, 2025, against ROIC of 4.8%. The prior quarter reported adjusted ROIC of 6.9%. Source

Portfolio optimization and strategy

• Portfolio initiatives advanced and savings: Management said it advanced portfolio optimization initiatives, achieved cost savings through targeted streamlining, efficiently ran plants, and generated robust cash flow. Source
• Built to endure cycles: Management described ADM as built to endure cycles, with its asset network and skilled workforce a source of reliable strength. Source
• Constructive 2026 view tied to policy: Management's headline cites a constructive view for 2026, tied to expected clarity on biofuel policy and global trade evolution. Source

Coming up, as management said on 4 November 2025

• Biofuel and trade policy clarity expected: Management expects clarity on biofuel policy and trade policy evolution to provide demand indicators for the industry. Source

Figures management reported

Risks management discussed

• Demand: Lower global starches and sweeteners demand reduced both volumes and margins in the quarter. Source
• Operational: Higher corn costs in EMEA linked to corn quality issues continued to weigh on Starches and Sweeteners margins. Source
• Regulatory: Deferred U.S. biofuel policy restrained North American demand for biodiesel and refining margins. Source
• External: Management cited challenges with international trade flows as a factor in lower crushing margins. Source
• Financial: An impairment charge for previously capitalized software costs was excluded from adjusted results. Source
• Regulatory: A penalty imposed on Wilmar, in which ADM holds an equity investment, produced a $163 million charge for ADM. Source

Earlier plans management reported on

• Not stated: The prior quarter said cost savings would come from targeted realignments and a pipeline of portfolio simplification opportunities.
• Not stated: The prior quarter expected recently improved margins to mostly benefit the fourth quarter of 2025 and beyond.
• Met: Management said cost savings through targeted streamlining were accomplished in the quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.