Archer-Daniels-Midland Co

Earnings before income taxes decreased $849 million from $1.5 billion to $632 million, primarily driven by lower pricing and execution margins, asset impairment, exit, and restructuring costs pursuant to the Company’s portfolio optimization initiatives and the Company’s updated investment strategy for startup or development stage companies.

Total segment operating profit (a non-GAAP measure) decreased $544 million from $2.1 billion to $1.6 billion, primarily driven by lower results in the Ag Services and Oilseeds segment. Total segment operating profit (a non-GAAP measure) in the six months ended June 30, 2025 excluded impairment, exit, restructuring, and net settlement contingencies of $273 million, a gain on contract termination of $69 million, and gains of sales of assets of $8 million. Total segment operating profit (a non-GAAP measure) in the six months ended June 30, 2024 excluded asset impairment charges of $13 million.

Total segment operating profit (a non-GAAP measure) is reconciled to earnings before income taxes, the most directly comparable GAAP measure, in the "Non-GAAP Financial Measures" section below.

Processed volumes by product for the six months ended June 30, 2025 and 2024 were as follows (in metric tons).

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 decrease in processed oilseeds volumes was primarily related to lower North America crush volumes in the current year period due to planned plant downtime. The increase in processed corn volumes was primarily related to an increase in plant reliability and utilization in the current year period due to decreased unplanned plant downtime when compared to the prior year period.

Revenues for the six months ended June 30, 2025 and 2024 were as follows (in millions):

Revenues and cost of products sold in agricultural merchandising and processing businesses are significantly correlated to the underlying commodity prices and volumes. In periods of significant changes in market prices, the underlying performance of the Company is better evaluated by looking at margins since both revenues and cost of products sold, particularly in the Ag Services and Oilseeds segment, generally have a relatively equal impact from market price changes which generally result in an insignificant impact to gross profit.

Revenues decreased $2.8 billion to $41.3 billion driven by lower sales prices ($3.1 billion), partially offset by higher sales volumes ($319 million). Lower sales prices of meal, soybeans, and biodiesel and lower sales volumes of sorghum and wheat, were partially offset by higher sales volumes of corn, soybeans, and oils. Ag Services and Oilseeds revenues decreased 8% to $31.9 billion driven by lower sales prices ($2.8 billion), partially offset by higher sales volumes ($169 million). Carbohydrate Solutions revenues decreased 4% to $5.4 billion driven by lower sales prices ($258 million), partially offset by higher sales volumes ($44 million). Nutrition revenues increased 2% to $3.8 billion driven by higher sales volumes ($106 million) and the benefit of a contract cancellation in Health and Wellness ($55 million), partially offset by lower sales prices ($96 million).

Cost of products sold decreased $2.2 billion to $38.8 billion due principally to lower average commodity costs. Manufacturing expenses increased $171 million to $3.9 billion driven by higher employee compensation costs, an increase in energy costs due to higher EMEA natural gas pricing and higher grind at Carbohydrates Solutions facilities, higher insurance costs, and higher depreciation expenses.

Gross profit decreased $505 million, or 17%, to $2.6 billion driven by a decrease in margins of $543 million for Ag Services and Oilseeds, partially offset by a margin increase of $37 million in Nutrition.

Selling, general, and administrative expenses decreased $15 million to $1.8 billion primarily driven by lower financing fees related to the Company’s accounts receivable securitization program, lower advertising costs, and lower outside contract labor costs, partially offset by higher employee compensation costs and bad debt expense.

Asset impairment, exit, and restructuring costs increased $150 million to $175 million. Charges in the current year period included $164 million of restructuring charges, primarily driven by $123 million and $27 million of charges within the Nutrition and Ag Services and Oilseeds segments, respectively, and $11 million of impairment expense related to certain long-lived assets within the Nutrition segment. Charges in the prior year period consisted of restructuring charges of $15 million, primarily driven by $12 million of charges within Corporate, and $10 million of impairments related to certain long-lived assets within the Carbohydrate Solutions and Nutrition segments.

Equity in earnings of unconsolidated affiliates decreased $86 million to $278 million driven by lower earnings from the Company’s investments in Wilmar and Hungrana Ltd, partially offset by higher earnings from the Company’s investment in Olenex Sarl.

Interest and investment income decreased $195 million to $68 million, primarily driven by revaluation losses, including impairment losses of $99 million and $88 million within Corporate and the Nutrition segment, respectively, in addition to lower interest income at ADM Investor Services due to lower interest rates. Charges in the prior year period consisted of revaluation losses, including impairment losses, of $16 million within Corporate.

Interest expense decreased $36 million to $317 million driven by lower interest rates at ADM Investor Services and decreased expense within Corporate driven by lower interest expense following favorable settlements of international tax audits.

Other income — net increased $36 million to $71 million driven by gains on sale of assets, benefits from termination of a supply agreement, timing benefits associated with the receipt of a United States Department of Agriculture grant, and foreign exchange gains, partially offset by provisions for contingent losses.

Income tax expense decreased $158 million to $123 million. The Company’s effective tax rate for the six months ended June 30, 2025 was 19.5% compared to 19.0% for the six months ended June 30, 2024. The increase in the effective tax rate was primarily due to impairment losses, partially offset by the impact of discrete tax items.

Segment operating profit for the six months ended June 30, 2025 and 2024 was as follows (in millions):

(1) For the six months ended June 30, 2025, segment operating profit for the Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments included a positive impact of timing-related adjustments for incentive compensation payouts of $45 million, $12 million, and $20 million, respectively. The offsetting adjustment of $77 million was recorded in Corporate with no net impact to the Consolidated Financial Statements.

In the Ag Services and Oilseeds segment, segment operating profit decreased 40%. The Ag Services subsegment had lower operating profit compared to the prior year period, primarily driven by lower Global Trade results due to lower margins due to negative freight timing and currency impacts. Ag Services results were further impacted by a decrease in margins and to a lesser extent volumes, primarily due to increased global supplies of grains and oilseeds, higher projected ending stocks-to-use ratios, and biofuel and trade policy uncertainty, the impact of certain export duties, and the temporary disruption at a key port facility in Brazil. These impacts were partially offset by productivity actions leading to decreased SG&A expenses, alongside improved transportation results. The Ag Services subsegment had approximately $40 million of net negative mark-to-market timing impacts during the current year period, compared to approximately $35 million of net positive impacts in the prior year period. The Crushing subsegment had lower operating profit versus the prior year period, driven by lower margins due to increased industry capacity, more competitive meal exports from Argentina, higher manufacturing costs, and lower vegetable oil demand due to biofuel and trade policy uncertainty. South America Crushing results were improved, driven by increased margins and volumes. The Crushing subsegment had approximately $25 million of net positive mark-to-market timing impacts during the current year period, compared to approximately $56 million of net positive impacts in the prior year period. The RPO subsegment operating profit was slightly lower than the prior year period, as lower vegetable oil demand and biofuel and trade policy uncertainty negatively impacted biodiesel and refining margins in Europe and North America. The RPO subsegment had approximately $32 million of net positive mark-to-market timing impacts during the current year period, compared to approximately $121 million of net negative impacts in the prior year period. Wilmar earnings were lower versus the prior year period.

In the Carbohydrate Solutions segment, segment operating profit decreased 5% compared to the prior year period. The Starches and Sweeteners subsegment operating profit was lower compared to the prior year period. In North America, results were driven by lower starch margins and higher manufacturing costs, partially offset by improved liquid sweetener margins. In EMEA, results were driven by lower volumes and margins due to the competitive pricing environment. Global Wheat Milling margins improved due to higher wheat basis gains. The Vantage Corn Processors subsegment operating profit increased compared to the prior year period, driven by improved margins resulting from improved risk management and higher ethanol volumes.

In the Nutrition segment, segment operating profit decreased 9%. Human Nutrition results were lower compared to the prior year period. Specialty Ingredients results were lower compared to the prior year period driven by higher raw material and insurance costs due to the recommissioning of operations at Decatur East. In Health and Wellness, results were lower, as decreased margins, driven by certain negative valuation adjustments and reduced tolling margins due to a contract cancellation, were partially offset by higher Biotics margins. Flavors saw a significant increase in operating profit compared to prior year period, driven by higher volumes and margins due to an increase in sales among existing key customers across multiple product categories. Animal Nutrition operating profit was higher compared to the prior year period, driven by cost optimization efforts.

Other Business and Corporate Results

Other Business contribution of operating profit decreased 12%, from $217 million to $190 million driven by lower net interest income in ADM Investor Services.

Corporate results for the six months ended June 30, 2025 and 2024 were as follows (in millions):

(1)Interest expense - net decreased, primarily driven by favorable settlements of international tax audits, and higher interest income on certain tax receivables, partially offset by higher interest costs on outstanding debt.

(2)Unallocated corporate function costs increased, primarily driven by timing-related incentive compensation adjustments, partially offset by lower technological spend.

(3)Revaluation losses, including impairment, and restructuring charges increased, primarily driven by revaluation and impairment losses on certain investments.

(4)Other income - net increased, primarily driven by foreign exchange gains and an increase in earnings in affiliates.

Non-GAAP Financial Measures

The Company uses certain “non-GAAP” financial measures as defined by the SEC. These are measures of performance not defined by accounting principles generally accepted in the United States, and should be considered in addition to, not in lieu of, GAAP reported measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this section.

The Company uses adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit, non-GAAP financial measures as defined by the SEC, to evaluate the Company’s financial performance.

Adjusted net earnings is defined as net earnings adjusted for the effects on net earnings of specified items as more fully described in the reconciliation tables. Adjusted diluted EPS is defined as diluted EPS adjusted for the effects on reported diluted EPS of specified items as more fully described in the reconciliation tables.

EBITDA is defined as earnings before interest on borrowings, taxes, and depreciation and amortization. Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted to exclude the impact of specified items as more fully described in the reconciliation tables.

Total segment operating profit is defined as ADM’s consolidated earnings before income taxes, adjusted for Other Business, Corporate, and specified items as more fully described in the reconciliation tables.

Management believes that adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability.

Adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit are not intended to replace or be an alternative to net earnings, diluted EPS, and earnings before income taxes, the most directly comparable amounts reported under GAAP.

The table below provides a reconciliation of net earnings (the most directly comparable GAAP measure) to adjusted net earnings (a non-GAAP measure) and diluted EPS (the most directly comparable GAAP measure) to adjusted diluted EPS (a non-GAAP measure) for the six months ended June 30, 2025 and 2024.

(1) Tax effected using the U.S. and other applicable tax rates.

The table below provides a reconciliation of net earnings (the most directly comparable GAAP measure) to EBITDA (a non-GAAP measure) and adjusted EBITDA (a non-GAAP measure) for the six months ended June 30, 2025 and 2024 (in millions).

(1) Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense.

(2) Excludes $8 million of accelerated depreciation recorded within restructuring charges as a specified item for the six months ended June 30, 2025.

The table below provides a reconciliation of earnings before income taxes (the most directly comparable GAAP measure) to total segment operating profit (a non-GAAP measure) for the six months ended June 30, 2025 and 2024 (in millions).

Liquidity and Capital Resources

The Company’s objective is to have sufficient liquidity, balance sheet strength, and financial flexibility to fund the operating and capital requirements of a capital-intensive agricultural commodity-based business. The Company depends on access to credit markets, which can be impacted by its credit rating and factors outside of the Company’s control, to fund its working capital needs and capital expenditures.

The primary source of funds to finance the Company’s operations, capital expenditures, and advancement of its growth strategy is cash generated by operations and lines of credit, including a commercial paper borrowing facility and accounts receivable securitization programs. In addition, the Company believes it has access to funds from public and private equity and debt capital markets in both U.S. and international markets.

At June 30, 2025, the Company’s capital resources included shareholders’ equity of $22.4 billion and lines of credit, including the accounts receivable securitization programs described below, totaling $12.5 billion, of which $9.5 billion was unused. Of the Company’s total lines of credit, $5.1 billion supported the combined U.S. and European commercial paper borrowing programs. At June 30, 2025, there was $721 million of commercial paper outstanding.

As of June 30, 2025, the Company had $1.1 billion of cash and cash equivalents, $421 million of which was cash held by foreign subsidiaries whose undistributed earnings are considered indefinitely reinvested. Based on the Company’s historical ability to generate sufficient cash flows from its U.S. operations and unused and available U.S. credit capacity of $5.0 billion, the Company has asserted that these funds are indefinitely reinvested outside the U.S.

As of June 30, 2025, the Company had total available liquidity of $10.5 billion comprised of cash and cash equivalents and unused lines of credit. The Company believes that cash flows from operations, cash and cash equivalents on hand, and unused lines of credit will be sufficient to meet its ongoing liquidity requirements for at least the next twelve months.

Operating Cash Flows

Cash provided by operating activities was $4.0 billion and $1.2 billion for the six months ended June 30, 2025 and 2024, respectively.

The increase in cash provided by operating activities was primarily driven by changes in net working capital, partially offset by lower earnings for the six months ended June 30, 2025. Changes in net working capital were driven by changes in segregated investments, payables to brokerage customers, inventory, trade receivables, and other current assets.

Segregated investments decreased $1,261 million compared to an increase of $261 million in the prior year period driven by business conditions and change in mix of investment portfolio.

Brokerage payables increased $708 million compared to a decrease of $390 million in the prior year period, driven by changes in customer balances in the brokerage business.

Inventories decreased $2.2 billion in the current year period compared to a decrease of $1.4 billion in the prior year period, reflecting improved management of volumes and current period commodity prices.

Trade receivables decreased by $197 million in the current period compared to an increase of $180 million in the prior year period, primarily driven by activity related to the Company’s securitization program and improved collections.

Other current assets increased by $41 million in the current period compared to a decrease of $628 million in the prior year period, primarily driven by the valuation of derivative contracts.

Investing Cash Flows

Net cash used in investing activities was $391 million and $1.6 billion for the six months ended June 30, 2025 and 2024, respectively.

Net cash used in investing activities for the six months ended June 30, 2025 included additions to property, plant, and equipment of $596 million and a business acquisition, net of cash acquired, of $95 million, partially offset by proceeds from sales of marketable securities of $267 million.

Net cash used in investing activities for the six months ended June 30, 2024 included business acquisitions, net of cash acquired, of $936 million and additions to property, plant, and equipment of $690 million.

Financing Cash Flows

Net cash used in in financing activities was $1.6 billion and $661 million for the six months ended June 30, 2025 and 2024, respectively.

Net cash used in financing activities for the six months ended June 30, 2025 and June 30, 2024 included net (repayments) borrowings under short-term credit agreements of $(1.1) billion and $2.2 billion, respectively.

No share repurchases were made in the six months ended June 30, 2025. Share repurchases for the six months ended June 30, 2024 were $2.3 billion.

Dividends paid for the six months ended June 30, 2025 and 2024 were $495 million and $503 million, respectively.

Stock Repurchase Program

On March 12, 2024, the Company entered into an accelerated share repurchase (“ASR”) transaction agreement with Merrill Lynch International, an affiliate of BofA Securities, Inc., to repurchase $1.0 billion of ADM common stock as part of ADM’s existing share repurchase program.

On March 28, 2024, the Company received an interim delivery of 8,880,986 shares at an average share price of $60.596, or $538 million in aggregate. On April 15, 2024, the Company received a final delivery of 7,325,733 shares at an average share price of $63.045, or $462 million in aggregate, as final settlement of the ASR transaction.

On December 11, 2024, the Company's Board of Directors approved a second extension of the stock repurchase program through December 31, 2029 and the repurchase of up to an additional 100 million shares under the extended program.

As of June 30, 2025, the Company had 115 million remaining shares under its share repurchase program until December 31, 2029.

Accounts Receivable Securitization Program

The Company has accounts receivable securitization programs (the “Programs”) with certain commercial paper conduit purchasers and committed purchasers. The Programs provide the Company with up to $3.0 billion in funding against accounts receivable transferred into the Programs and expands the Company’s access to liquidity through efficient use of its balance sheet assets (see Note 15. Sale of Accounts Receivable within “Notes to Consolidated Financial Statements” included in Item 1 herein, “Consolidated Financial Statements” for further information). As of June 30, 2025, the Company had $780 million unused capacity of its facility under the Programs.

Contractual Obligations and Commercial Commitments

The Company’s purchase obligations as of June 30, 2025 and December 31, 2024 were $13.2 billion and $12.4 billion, respectively. As of June 30, 2025, the Company expects to make payments related to purchase obligations of $9.8 billion within the next twelve months. There were no other material changes in the Company’s contractual obligations during the three months ended June 30, 2025.

Critical Accounting Estimates

There were no material changes in the Company’s critical accounting estimates during the three months ended June 30, 2025. For a description of the Company’s critical accounting estimates and assumptions used in the preparation of the Company’s financial statements, see Part II. Item 7 and Note 1 of “Notes to Consolidated Financial Statements” included in Part II. Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.