Archer-Daniels-Midland Co
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
ADM$69.97-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0000007084-25-000052
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial MeasuresCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 81 previous paragraphs and 108 current paragraphs.
32 unchanged; 20 reworded; 55 added; 29 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (55)
Current report
2026 Priorities
Current report
•Continuing to improve manufacturing costs - Driving manufacturing efficiencies and lower costs through process streamlining, further automation, and improved utilization rates.
Current report
•Reducing transaction costs through digitalization and Artificial Intelligence - Targeting reductions in the cost of executing transactions across our global footprint, including further digitizing workflows to reduce manual touchpoints, errors and cycle times, optimizing freight and logistics networks, and enhancing supply chain management.
Current report
•Investing in high-growth opportunities - Generating returns in the short-to-medium term and the long-term based on our value creation pathways of advanced nutrition, functional health, biosolutions, precision fermentation and decarbonization.
Current report
•Developing talent and capabilities - Ensuring our workforce has the skills and capabilities our business needs for today and for the future, including creating dedicated centers of capability in critical functional areas.
Current report
•The launch of Two Rivers Premium Oils, LLC, a cottonseed joint venture, in January 2026 with Planters Cotton Oil Mill Inc. (“Planters”), a premier cottonseed processor. Planters contributed its crush plant in Pine Bluff, Arkansas, as well as additional origination and storage facilities located in the region, to the joint venture. ADM contributed its Memphis, Tennessee, cottonseed facility.
Current report
Renewable Fuel Standard and Clean Fuel Production Credit
Current report
In the three months ended March 31, 2026, the U.S. biofuel market continued to be affected by regulatory developments including issuance by:
Current report
•U.S. Environmental Protection Agency of final Renewable Volume Obligations (“RVO”) for 2026 and 2027 under the U.S. Renewable Fuel Standard that increased certain renewable fuel blending requirements.
Current report
•U.S. Treasury and IRS of proposed regulations relating to policy incentives under Section 45Z of the Internal Revenue Code (“Section 45Z credits”), the Clean Fuel Production Credit, enacted under the Inflation Reduction Act of 2022, amended by the One Big Beautiful Bill Act of 2025. Section 45Z policy incentives provides for credits for clean transportation fuels produced and sold between January 1, 2025 and December 31, 2029.
Current report
These developments have provided additional visibility into renewable fuel demand and incentive frameworks and are expected to affect renewable fuel blending economics, clean fuel credit values, and demand for certain agricultural feedstocks, which may benefit the Company’s ethanol and biofuel operations, as well as crush and grind margins. However, renewable fuel markets remain subject to ongoing regulatory, legislative, and implementation risks, including the timing and substance of final Section 45Z regulations, future policy actions, changes in credit values and shifts in blending economics which could continue to drive volatility in the Company’s results of operations.
Current report
Tariff Uncertainty
Current report
On February 20, 2026, the U.S. Supreme Court held that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the imposition of tariffs by the executive branch. While the decision invalidated the presidential administration’s tariffs imposed under IEEPA, it did not establish a refund mechanism, which was subsequently set up by the U.S. Customs and Border Protection (“CBP”) in April 2026. The Company is monitoring the refund process and related risks, and expects tariff related risks will not have significant impact on the Company’s financial position, results of operations, or cash flows.
Current report
In the Ag Services and Oilseeds segment, geopolitical uncertainty, logistical and weather challenges combined with confirmation of U.S biofuel policy contributed to crush margin expansion in both soy and canola. North America benefited from higher urea prices, strong domestic demand from crush producers and continued sales to China. Transportation benefited from higher freight rates, which more than offset volume constraints. Global Trade was impacted by freight supply concerns, logistical dislocations and increased bunker costs. In the Crushing and Refined Products and Other (“RPO”) subsegments, confirmation of the U.S. biofuel policy and higher heating oil values expanded cash margins.
Current report
In the Carbohydrate Solutions segment, North America ethanol stocks tightened relative to last year as plants and supply chains slowed initially due to adverse weather conditions, combined with strong export demand and positive Renewable Volume Obligations (“RVO”) clarity. Geopolitical issues contributed to ethanol being priced competitive to higher competing oxygenates. North America liquid sweetener demand remained soft while starch demand showed early signs of recovery after a slow start to 2026. EMEA Starches and Sweeteners were pressured by demand softness across the food and industrial segments.
Current report
Earnings before income taxes was $384 million compared to $353 million in the prior year quarter. Results in the current year quarter were primarily driven by improved operating performance in the Carbohydrate Solutions segment and the Nutrition segment, partially offset by net negative mark-to-market and timing impacts, within the Ag Services and Oilseeds segment.
Current report
Cost of products sold increased $273 million to $19.3 billion, primarily driven by commodity prices and higher manufacturing expenses.
Current report
Asset impairment, exit, and restructuring costs decreased $26 million to $12 million. Charges in the current and prior year quarter primarily consisted of restructuring charges. See Note 13. Asset Impairment, Exit, and Restructuring Costs within “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information.
Current report
Interest and investment income decreased $13 million to $125 million, primarily driven by lower tax-related income and credits in Corporate.
Current report
Interest expense decreased $9 million to $149 million, driven by lower interest rates and balances on the Company’s commercial paper programs.
Current report
Other income — net increased $51 million to $70 million, primarily driven by gains on sale and contribution of assets. See Note 11. Other Income - Net within “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information.
Current report
In the Ag Services and Oilseeds segment, segment operating profit decreased 34%. Current period results included net negative mark-to-market and timing impacts of approximately $275 million, of which approximately 10%, 70%, and 20% were attributable to our Ag Services, Crushing, and Refined Products and Other subsegment operating profit results, respectively. The Ag Services subsegment operating profit increased 26% compared to the prior year quarter supported by higher export activity from North America, which included increased soybean and sorghum trade with China and strong corn exports. Results also reflected a favorable comparison to the prior year quarter, which was impacted by certain non-recurring export duties. The Crushing subsegment operating profit was lower by $126 million compared to the prior year quarter, driven by negative mark-to-market timing impacts, partially offset by improvement in plant processed volumes in the first quarter of 2026. Additionally, soybean meal sales remained strong throughout the quarter. The RPO subsegment operating profit decreased 36% when compared to the prior year quarter, driven by negative mark-to-market and timing which stemmed from the strengthening margin environment. Wilmar earnings decreased by $6 million to $66 million in the current year quarter.
Current report
In the Carbohydrate Solutions segment, segment operating profit increased 48% compared to the prior year quarter. The Starches and Sweeteners subsegment operating profit was higher compared to the prior year quarter, primarily due to higher ethanol margins related to ADM’s corn wet-milling ethanol operations, which were partially offset by lower global liquid sweeteners and starches volumes and margins. The Vantage Corn Processors subsegment operating profit increased $94 million compared to the prior year quarter driven by strengthening ethanol margins, supported by effective risk management and policy incentives.
Current report
In the Nutrition segment, segment operating profit increased 42% due to improved performance in both Human and Animal Nutrition subsegments. Human Nutrition subsegment operating profit was higher compared to prior year quarter, as a result of higher Flavors sales, including foreign exchange gains, and the continued recovery of the Decatur East plant. Animal Nutrition subsegment operating profit was higher compared to the prior year quarter driven by portfolio actions and increased focus on higher-margin product lines, on-going cost optimization efforts, and foreign exchange gains.
Current report
Other Business contribution of operating profit decreased from $96 million to $53 million. Captive insurance results were lower driven by higher claim settlements. ADM Investor Services results were higher due to increased volumes and higher customer balances.
Current report
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.
Current report
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.
Current report
At March 31, 2026, the Company’s capital resources included shareholders’ equity of $22.8 billion and lines of credit, including the accounts receivable securitization programs described below, totaling $12.4 billion, of which $8.4 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 March 31, 2026, there was $1.6 billion of commercial paper outstanding.
Current report
As of March 31, 2026, the Company had $591 million of cash and cash equivalents, $315 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 $4.1 billion, the Company has asserted that these funds are indefinitely reinvested outside the U.S.
Current report
As of March 31, 2026, the Company had total available liquidity of $9.0 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.
Current report
Net cash provided by operating activities was $150 million for the three months ended March 31, 2026. Net cash used in operating activities was $342 million for the three months ended March 31, 2025.
Current report
The increase in cash provided by operating activities in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily driven by changes in net working capital. Changes in net working capital were primarily driven by payables to brokerage customers, accrued expenses and other payables and trade payables, partially offset by changes in inventory and other current assets.
Current report
Changes in Payables to brokerage customers resulted in a cash inflow of $1.3 billion in the current year quarter compared to an outflow of $79 million in the prior year quarter. The inflow in the current year quarter is driven by increased customer trading and margin requirements in the Company’s futures commission and brokerage business.
Current report
Changes in Accrued expenses and other payables resulted in a cash inflow of $940 million in the current year quarter compared to an outflow of $244 million in the prior year quarter. The inflow in the current year quarter is driven by changing market conditions impacting the valuation of derivative contracts.
Current report
Changes in Trade payables resulted in a cash inflow of $245 million in the current year quarter compared to an outflow of $423 million in the prior year quarter, primarily driven by higher commodity pricing in the current year quarter.
Current report
Changes in Inventories resulted in a cash outflow of $1.4 billion in the current year quarter compared to an inflow of $137 million in the prior-year quarter, primarily reflecting higher commodity pricing in the current year quarter.
Current report
Changes in Other current assets resulted in a cash outflow of $552 million in the current year quarter compared to an inflow of $263 million in the prior-year quarter, primarily reflecting increased cash and securities deposited with clearing houses and brokers, for increased customer margin requirements, within the Company’s futures commission and brokerage business and changing market conditions impacting valuation of derivative contracts.
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Removed paragraphs (29)
Previous report
2025 Strategy
Previous report
•Focus on execution and cost management – ADM seeks to prioritize operational excellence and driving targeted cost reductions through: (1) boosting plant efficiencies and restoring operations at the Decatur East plant; (2) optimizing operating leverage within the Nutrition segment; and (3) reducing third party spend and selling, general, and administrative expenses.
Previous report
•Strategic simplification – ADM seeks to enhance returns on invested capital by executing a pipeline of simplification opportunities to optimize our portfolio and organizational structure, including: (1) addressing performance, demand, and capacity challenges; (2) reducing capital expenditures that do not meet the Company’s return objectives; and (3) reducing capability overlaps through synergies, closures, and divestitures.
Previous report
•Targeted growth investment – ADM seeks to prioritize organic investment in key strategic initiatives, while also ensuring our businesses are ready for the future, including: (1) plant modernization investments; (2) cost optimization investments; and (3) enterprise system and process enhancements.
Previous report
•Deploy capital with discipline – ADM seeks to prudently invest in opportunities. The Company also expects to continue returning cash to shareholders through dividends and share repurchases as appropriate.
Previous report
ADM has refined its digital strategy and is pivoting away from large global implementations and directing resources to prioritize regional, more agile projects. The Company is accelerating its data journey while continuing to invest the appropriate amount in cybersecurity and network and application resilience. As a result of this strategy adaptation, during the three months ended September 30, 2025, the Company recognized an impairment charge of $173 million related to previously capitalized internal-use software. See Part I. Item 1. Note 14. Asset Impairment, Exit, and Restructuring Costs for further information.
Previous report
•The acquisition in January 2025 of Vandamme Hugaria Kft, a 700 metric ton/day non-genetically modified crush and extraction facility based in Hungary. See Note 4. Acquisitions of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information.
Previous report
•The closure of the Tres Corações facility based in Brazil, in July 2025. Preparation for the closure resulted in exit and restructuring costs, including impairment of certain assets.
Previous report
•The launch in September 2025 of a joint venture with PYCO Industries, Inc., a leader in the local agricultural communities it serves, combining its and ADM’s Lubbock, Texas, cottonseed processing capabilities.
Previous report
Government Investigation
Previous report
As previously disclosed, the Company is under investigation by the United States Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) relating to, among other things, intersegment sales between the Company’s Nutrition reporting segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions reporting segments. The Company is continuing to cooperate with the SEC and DOJ investigations and is unable to predict the outcome of these investigations.
Previous report
Material Weakness
Previous report
As previously disclosed, the Company had identified a material weakness in the Company’s internal control over financial reporting related to its accounting practices and procedures for segment disclosures which has been remediated. For more information, see “Controls and Procedures” in Part I. Item 4 herein.
Previous report
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 competitive meal exports from Argentina resulted in compressed margins. Ag Services volumes in North America were positively impacted by solid executions, including larger than expected corn exports on stronger European demand, despite headwinds of uncertainty and low water concerns. In Crushing and Refined Products and Other (RPO), increased industry seasonal downtime tightened stocks and supported meal values, and the deferral of U.S. biofuel and trade policy evolution negatively impacted biodiesel and refining margins.
Previous report
In the Carbohydrate Solutions segment, solid domestic and export demand for ethanol along with lower industry production, helped improve the imbalance between production and domestic demand. For Starches and Sweeteners, North America saw demand softness in the sweeteners, paper, and corrugated markets. Europe, the Middle East, and Africa (EMEA) saw higher corn costs and increased competition.
Previous report
Earnings before income taxes was $147 million compared to $108 million in the prior year quarter. Results in the current year quarter were primarily driven by a decrease in impairment charges compared to the prior year quarter, partially offset by lower execution margins. The current year quarter included an impairment charge of $173 million, related to previously capitalized internal-use software, and $163 million of Wilmar International Limited (“Wilmar”) related penalty charges, compared to a $461 million impairment of the Company’s investment in Wilmar in the prior year quarter.
Previous report
Cost of products sold increased $530 million to $19.1 billion primarily driven by higher average commodity costs. Manufacturing expenses increased $23 million to $1.9 billion, driven by higher employee compensation costs and an increase in energy costs due to higher EMEA natural gas pricing, partially offset by lower maintenance expenses.
Previous report
Asset impairment, exit, and restructuring costs decreased $261 million to $246 million. Charges in the current year quarter primarily consisted of an impairment charge of $173 million related to previously capitalized internal-use software within Corporate and $67 million of restructuring charges within the Nutrition segment. Charges in the prior year quarter included a $461 million impairment charge related to the Company’s investment in Wilmar, within the Ag Services and Oilseeds segment, and a $43 million impairment charge related to certain discontinued Animal Nutrition trademarks, within the Nutrition segment.
Previous report
Interest and investment income decreased $16 million to $121 million, primarily driven by lower interest income at ADM Investor Services due to lower interest rates.
Previous report
Interest expense decreased $21 million to $153 million, driven by lower financing costs and lower interest rates.
Previous report
Other income — net increased $11 million to $69 million, driven by gains on sales of certain assets, partially offset by lower foreign exchange gains.
Previous report
In the Ag Services and Oilseeds segment, segment operating profit decreased 21%. The Ag Services subsegment had higher operating profit compared to the prior year quarter, primarily driven by improved North America and South America Origination results. North American Origination results improved in the current year quarter due to strong corn exports. South American Origination results improved primarily due to lower costs related to logistics take-or-pay contracts, partially offset by the temporary disruption at a key port facility in Brazil. Global Trade results improved driven by higher ocean freight margins. The Ag Services subsegment had approximately $4 million of net positive mark-to-market timing impacts during the quarter, compared to approximately $50 million of net negative impacts in the prior year quarter. The Crushing subsegment had lower operating profit compared to prior year quarter, driven by lower soybean and canola crush margins in North America and EMEA and higher manufacturing costs. The prior year quarter benefitted from the receipt of $24 million of insurance proceeds for the partial settlement of the Decatur East and West insurance claims. The Crushing subsegment had approximately $41 million of net positive mark-to-market timing impacts during the quarter, compared to approximately zero of net impacts in the prior year quarter. The Refined Products and Other (RPO) subsegment operating profit decreased (3)% when compared to the prior year quarter, as U.S. biofuel and trade policy evolution negatively impacted biodiesel and refining margins in North America. RPO had approximately $8 million of net negative mark-to-market timing impacts during the quarter, compared to approximately $20 million of net negative impacts in the prior year quarter. Wilmar earnings decreased by $6 million to $56 million in the current year quarter.
Previous report
In the Carbohydrate Solutions segment, segment operating profit decreased 26% compared to the prior year quarter. The Starches and Sweeteners subsegment operating profit was lower compared to the prior year quarter. In North America, results were driven by lower liquid sweetener and starch volumes and margins and lower wet mill ethanol margins. North American prior year quarter results benefitted from the receipt of $47 million of insurance proceeds for the partial settlement of the Decatur West insurance claims. In EMEA, lower Starches and Sweeteners volumes and margins were driven by persistent high corn costs due to crop quality issues. Global Wheat Milling margins and volumes were fairly stable relative to the prior year quarter. The Vantage Corn Processors subsegment operating profit was higher than the prior year quarter as improved ethanol volumes and margins were partially offset by certain mark-to-market positions.
Previous report
In the Nutrition segment, segment operating profit increased 24%. Human Nutrition subsegment operating profit was 12% higher compared to prior year quarter, mainly due to Flavors, which continued to see strong sales growth among multiple product categories. Health and Wellness results were also higher due to revenue and margin growth, led by the Biotics business, partially offset by reduced tolling margins due to a contract cancellation. Specialty Ingredients results were lower, with higher raw material and insurance costs due to the restoration of operations at the Company’s Decatur, Illinois facility. The prior year quarter also benefited from approximately $25 million of insurance proceed gains as compared to $9 million in the current year quarter. Animal Nutrition subsegment operating profit was 79% higher compared to the prior year quarter due to higher margin product mix, cost optimization, and progress with on-going portfolio streamlining initiatives.
Previous report
Other Business contribution of operating profit increased from a loss of $17 million to a profit of $55 million, driven by improved Captive Insurance results driven by lower claim settlements.
Previous report
(1)Interest expense - net decreased, primarily driven by lower balances of outstanding commercial paper and lower interest rates.
Previous report
(2)Unallocated corporate function costs decreased, primarily driven by lower financing costs and select corporate function costs, partially offset by higher incentive compensation.
Previous report
(3)Revaluation losses, including impairment, and restructuring charges includes an impairment charge related to previously capitalized internal-use software.
Previous report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Reworded paragraphs (20)
Previous wording
Archer-Daniels-Midland Company and its subsidiaries (the "Company" or "ADM") unlock the power of nature to enrich the quality of life. The Company is an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. ADM is a premier human and animal nutrition provider, offering one of the industry’s broadest portfolios of ingredients and solutions from nature. The Company is a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. ADM is a cutting-edge innovator, guiding the way to a future of new bio-based consumer and industrial solutions. ADM is a leader in business-driven sustainability efforts that support a strong agricultural sector, resilient supply chains, and a vast and growing bioeconomy. Around the globe, the Company’s expertise and innovation are meeting critical needs from harvest to home.
Current wording
Archer-Daniels-Midland Company and its subsidiaries (the "Company" or "ADM") unlocks the power of nature to enrich the quality of life. The Company is an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. ADM is also a premier human and animal nutrition provider, as well as a leader in health and well-being products.
Previous wording
The Company’s goal is to continue to build and sustain long-term value for its shareholders and customers. The Company established the following priorities to help achieve its goal:
Current wording
The Company established the following priorities for 2026 to help achieve its goal to continue to build and sustain long-term value creation for its shareholders and customers:
Previous wording
ADM is reimagining agriculture by scaling regenerative practices in partnership with farmers, supporting them with tools, insights, and financial incentives to help their operations thrive. ADM is innovating to meet growing demand for sustainably sourced, bio-based products, creating new market opportunities for farmers whose crops deliver health, transparency, and environmental benefits. The Company is modernizing its own operations to improve efficiency, enhance competitiveness, reduce emissions, and build a more resilient supply chain that starts on the farm.
Current wording
ADM is focused on scaling regenerative practices in partnership with farmers by supporting them with tools, insights, and financial incentives to help their operations thrive. ADM is innovating to meet growing demand for sustainably sourced, bio-based products, creating new market opportunities for farmers whose crops deliver health, transparency, and environmental benefits. The Company is modernizing its own operations to improve efficiency, enhance competitiveness, reduce emissions, and help build a more resilient supply chain.
Previous wording
On February 4, 2025, the Company announced targeted actions expected to deliver in excess of $500 million of cost savings by fiscal 2029. These include cost optimization and portfolio simplification initiatives designed to help the Company achieve cost efficiencies. See Note 14. Asset Impairment, Exit, and Restructuring Costs of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for additional information regarding restructuring related charges.
Current wording
On February 4, 2025, the Company announced targeted actions expected to deliver in excess of $500 million of aggregate cost savings in 3 to 5 years. These include cost optimization and portfolio simplification initiatives designed to help the Company achieve cost efficiencies. See Note 13. Asset Impairment, Exit, and Restructuring Costs of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for additional information regarding restructuring related charges.
Previous wording
•The execution of a definitive agreement in September 2025 with Alltech Inc., a global leader in agriculture, to launch a North American animal feed joint venture to offer an industry-leading range of products and solutions for livestock, equine, backyard and leisure animals.
Current wording
•The launch of Akralos Holding Company LLC, an animal feed joint venture, in March 2026 with Alltech Inc., a global leader in agriculture, of a North American animal feed joint venture to offer an industry-leading range of products and solutions for livestock, equine, backyard and leisure animals. Alltech and ADM contributed feed mills across the U.S. and Canada, along with respective portions of premix supplies.
Previous wording
The Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments are principally agricultural commodity-based businesses where changes in selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials. As a result, changes in agricultural commodity prices have relatively equal impacts on both Revenues and Cost of products sold. Therefore, margins per volume or metric ton generally are meaningful as performance indicators in these businesses.
Current wording
The Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments are principally agricultural commodity-based businesses where changes in selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials. As a result, changes in agricultural commodity prices have relatively equal impacts on both Revenues and Cost of products sold. Mark-to-market and timing impacts represent changes in agricultural commodity pricing and foreign currency market factors and are not necessarily reflective of the operating performance of our business. Mark-to-market and timing impacts represent the estimated net unrealized gain and loss impacts of market factor changes on the valuation of certain of our merchandisable commodity inventories (including certain commodity inventories valued at the lower of cost or market), forward cash purchase and sales contracts, and futures and foreign currency contracts. The final mark-to-market and timing impacts will be realized when the underlying inventory, forward cash purchase and sales contracts, and futures and foreign currency contracts are settled.
Previous wording
The 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. Therefore, changes in revenues of these businesses may correspond to changes in margins and margins rates generally are meaningful as a performance indicator in these businesses.
Current wording
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.
Previous wording
The Company has consolidated subsidiaries in approximately 78 countries. For the majority of the Company’s subsidiaries located outside the United States, the local currency is the functional currency except for certain significant subsidiaries in Switzerland where Euro is the functional currency, and Brazil and Argentina where U.S. dollar is the functional currency. Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the weighted average exchange rates for the applicable periods. For the majority of the Company’s business activities in Brazil and Argentina, the functional currency is the U.S. dollar; however, certain transactions, including taxes, occur in local currency and require remeasurement to the functional currency. Changes in revenues are expected to be correlated to changes in expenses reported by the Company caused by fluctuations in the exchange rates of foreign currencies, primarily the Euro, British pound, Canadian dollar, and Brazilian real, as compared to the U.S. dollar.
Current wording
The Company has consolidated subsidiaries in approximately 75 countries. For the majority of the Company’s subsidiaries located outside the United States, the local currency is the functional currency except for certain significant subsidiaries in Switzerland where the Euro is the functional currency, and Brazil and Argentina where the U.S. dollar is the functional currency. Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the weighted average exchange rates for the applicable periods. For the majority of the Company’s business activities in Brazil and Argentina, the functional currency is the U.S. dollar; however, certain transactions, including taxes, occur in local currency and require remeasurement to the functional currency. Changes in revenues are expected to be correlated to changes in expenses reported by the Company caused by fluctuations in the exchange rates of foreign currencies, primarily the Euro, British pound, Canadian dollar, and Brazilian real, as compared to the U.S. dollar.
Previous wording
Market Factors Influencing Operations, Results, and Comparability in the Three and Nine Months Ended September 30, 2025
Current wording
Market Factors Influencing Operations and Results in the Three Months Ended March 31, 2026
Previous wording
The Company is subject to a variety of market factors which affect the Company's operating results.
Current wording
The Company is subject to a variety of market factors which affect the Company's operating results, including those discussed below related to the three months ended March 31, 2026.
Previous wording
In the Nutrition segment, Human Nutrition continued to see growth trends in Flavors market as high value categories such as energy drinks and ready to drink beverages continue to perform strongly. Similarly, the Dietary Supplements market continues 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 market, clean label and healthier categories are outpacing the broader industry. In Animal Nutrition, declining commodity prices continue to support feed ration commodities as well as additive markets.
Current wording
In the Nutrition segment, the Flavors market continued to grow with energy and ready to drink beverages continuing to perform strongly. The Dietary Supplements market also continued to grow and presents potential expansion opportunities as customer acceptance of postbiotics allows sales in a larger variety of segments (food and beverage). While shifts in customer sentiment and inflation continue to pose challenges, clean label and healthier categories are outpacing the broader industry. For Animal Nutrition, stabilizing commodity prices continued to support feed ration commodities, as well as additive markets.
Previous wording
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 the current year quarter was primarily related to improved North America crush volumes due to improved utilization after the restoration of operations at the Company’s Decatur, Illinois facility, in addition to higher volumes in South America due to increased plant reliability. The decrease in processed corn volumes was primarily related to lower utilization in the current year quarter due to increased unplanned plant downtime when compared to the prior year quarter.
Current wording
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 the current year quarter was primarily related to improved North America and South America crush volumes due to improved utilization.
Previous wording
Total segment operating profit (a non-GAAP measure) decreased $192 million from $1.0 billion to $845 million 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 three months ended September 30, 2025 excluded specified items of $220 million that were primarily comprised of portfolio optimization and impairment charges, as well as the non-recurring penalty charge related to Wilmar. Total segment operating profit (a non-GAAP measure) in the three months ended September 30, 2024 excluded asset impairment charges of $504 million.
Current wording
Total segment operating profit (a non-GAAP measure) increased $17 million from $747 million to $764 million driven by higher results in the Carbohydrate Solutions segment and the Nutrition segment, partially offset by lower results in the Ag Services and Oilseeds segment. Total segment operating profit (a non-GAAP measure) in the three months ended March 31, 2026 excluded net gains on the sale and contribution of assets of $62 million, the Company's share of Wilmar International Limited (“Wilmar”) non-recurring charges of $55 million, and $17 million of portfolio optimization and impairment charges. Total segment operating profit (a non-GAAP measure) in the three months ended March 31, 2025 excluded restructuring and net settlement contingencies of $49 million.
Previous wording
Revenues increased $435 million to $20.4 billion, driven by higher sales prices ($285 million) and higher sales volumes ($150 million). Higher sales prices of corn and oils were partially offset by lower sales prices of meal and soybeans. Higher sales volumes of soybeans were partially offset by lower sales volumes of corn, farming materials, sorghum and milo. Ag Services and Oilseeds revenues increased 3% to $15.6 billion, driven by higher sales prices ($320 million) and higher sales volumes ($203 million). Carbohydrate Solutions revenues decreased 6% to $2.7 billion, driven by lower sales prices ($111 million) and lower sales volumes ($62 million). Nutrition revenues increased 5% to $1.9 billion, driven by higher sales prices ($42 million) and foreign exchange gains ($34 million). Foreign exchange gains accounted for approximately $23 million of the increase in Human Nutrition revenue, and approximately $11 million of the increase in Animal Nutrition revenue.
Current wording
Revenues increased $315 million to $20.5 billion, driven by higher sales prices ($743 million), partially offset by lower sales volumes ($428 million). Higher sales prices of soybeans, oils and biodiesel were partially offset by lower sales prices of corn. Lower sales volumes of corn, oils, and biodiesel were partially offset by higher sales volumes of sorghum and meal. Ag Services and Oilseeds revenues increased 2% to $16.0 billion, driven by higher sales prices ($625 million), partially offset by lower sales volumes ($299 million). Carbohydrate Solutions revenues of $2.6 billion were consistent year over year. Nutrition revenues decreased 1% to $1.8 billion.
Previous wording
Gross profit decreased $95 million, or 7%, to $1.3 billion primarily driven by a decrease in margins of $85 million for Ag Services and Oilseeds and $51 million for Carbohydrate Solutions, partially offset by an increase in margins of $46 million in Nutrition.
Current wording
Gross profit increased $42 million to $1.2 billion, primarily driven by an increase in margins of $112 million in Carbohydrate Solutions and $62 million in Nutrition, partially offset by a decrease in margins of $119 million in Ag Services and Oilseeds.
Previous wording
Selling, general, and administrative (SG&A) expenses decreased $32 million to $873 million, primarily driven by lower third party service costs, partially offset by higher employee compensation costs.
Current wording
Selling, general, and administrative (SG&A) expenses increased $29 million to $961 million, primarily driven by higher employee compensation costs, partially offset by lower third party service costs.
Previous wording
Equity in loss (earnings) of unconsolidated affiliates decreased $175 million to a loss of $41 million driven by lower earnings from the Company’s investments in Wilmar, due to the $163 million penalty charge, and in Almidones Mexicanos S.A. de C.V., Terminal de Grãos Ponta da Montanha S.A., and Stratas Foods, partially offset by higher earnings from the Company’s investment in Olenex.
Current wording
Equity in earnings of unconsolidated affiliates decreased $55 million to $89 million driven by lower earnings from the Company’s investments in Wilmar and Olenex Holdings B.V., partially offset by higher earnings from the Company’s investment in LSCP, LLLP and SoyVen Holding B.V.
Previous wording
Income tax expense decreased $53 million to $37 million. The Company’s effective tax rate for the quarter ended September 30, 2025 was 25.2% compared to 83.3% for the quarter ended September 30, 2024. The decrease in the effective tax rate for the three months ended September 30, 2025 compared to the prior year quarter is related to the recognition of the impairment of the Company’s investment in Wilmar in the prior year quarter and other discrete tax items specific to each period.
Current wording
Income tax expense increased $20 million to $81 million. The Company’s effective tax rate for the quarter ended March 31, 2026 was 21.1% compared to 17.3% for the quarter ended March 31, 2025. The increase in the effective tax rate for the three months ended March 31, 2026 compared to the prior year quarter is driven by the impact of discrete tax items.
Previous wording
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.
Current wording
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, earnings before income taxes and cash flows from operating activities, the most directly comparable amounts reported under GAAP.
Previous wording
(2) Excludes $3 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended September 30, 2025.
Current wording
(2) Excludes $4 million and $3 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended March 31, 2026 and March 31, 2025, respectively.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS