Archer-Daniels-Midland Co

Archer-Daniels-Midland Company operates as an essential global agricultural supply chain manager and processor, a premier human and animal nutrition provider, and a leader in health and well-being products. The Company partners with thousands of farmers globally to purchase crops and uses its integrated global origination, logistics, and manufacturing network to transform raw commodities into products serving the food, feed, fuel, and industrial and consumer products sectors. ADM is also a key producer of biofuels, converting agricultural feedstocks into renewable fuels used in transportation and industrial applications. The Company has consolidated subsidiaries in 75 countries.

The Company faces significant competition in the markets in which it operates based principally on price, foreign exchange rates, quality, global supply, and alternative products. The Nutrition business operates in a highly competitive environment with a variety of companies including ingredient suppliers, contract manufacturers, global fast moving consumer goods companies, private label brands, and smaller niche specialists. The Company focuses on managing unit costs and improving efficiency through technology improvements, productivity enhancements, and regular evaluation of the Company's asset portfolio. ADM has a 22.5% equity interest in Wilmar International Limited, a leading global agribusiness group headquartered in Asia.

The Company generates revenue through three reportable segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, as well as the crushing and processing of oilseeds. The Carbohydrate Solutions segment engages in corn and wheat wet and dry milling and related processing activities, converting corn and wheat into products and ingredients used in food and beverage applications. The Nutrition segment serves various end markets including food, beverages, and nutritional supplements for humans, and complete feed, feed premix and additives, pet food and pet treats for livestock, aquaculture, and pets. The Company also has Other Business operations including ADM Investor Services, a registered futures commission merchant, and Agrinational Insurance Company, a captive insurance provider.

The Ag Services and Oilseeds segment produces and markets vegetable oils and oilseed protein meals used by food, feed, energy, and industrial customers. Crude and partially refined vegetable oils are sold to third parties, including renewable diesel manufacturers, or further processed into salad oils, margarine, shortening, biodiesel, glycols, and other food and industrial products. The segment is also a major supplier of peanuts and peanut-derived ingredients and manufactures cotton cellulose pulp in North America. The Carbohydrate Solutions segment converts corn and wheat into sweeteners, starches, syrups, glucose, wheat flour, and dextrose, and produces ethanol for use as an octane enhancer and oxygenate in gasoline. The segment also produces distillers' grains, corn gluten feed, and corn gluten meal for use as animal feed ingredients. The Nutrition segment engages in the creation, manufacturing, sale, and distribution of a wide array of ingredients and solutions including plant-based proteins, flavors and colors derived from nature, flavor systems, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, botanical extracts, and other specialty food and feed ingredients and systems. The Nutrition segment also includes activities related to the procurement, processing, and distribution of edible beans, the processing and distribution of formula feeds and animal health and nutrition products and the manufacture of contract and private label pet treats and foods.

During the year ended December 31, 2025, the Company recognized an impairment charge of $179 million ¹ related to previously capitalized internal-use software. On February 4, 2025, the Company announced targeted actions expected to deliver in excess of a $500 million ² of cumulative cost savings in the next 3 to 5 years. The Company acquired Vandamme Hugaria Kft, a 700 metric ton/day ³ non-genetically modified crush and extraction facility based in Hungary, in January 2025 for an aggregate cash consideration of $125 million ⁴. The Company closed the Tres Corações facility based in Brazil in July 2025. In September 2025, the Company launched a joint venture, Plainsman Company, with PYCO Industries, Inc. The Company entered into a definitive agreement in September 2025 with Alltech Inc. to launch a North American animal feed joint venture. The Company entered into a definitive agreement in December 2025 with Planters Cotton Oil Mill, Inc. to launch a new cottonseed joint venture. No share repurchases were made in the twelve months ended December 31, 2025. As of December 31, 2025, the Company had 115 million ⁵ shares remaining that may be repurchased under its stock repurchase program until December 31, 2029.

Revenues for the year ended December 31, 2025 were $80.269 billion ⁶, compared to $85.530 billion ⁷ in 2024. Net earnings attributable to controlling interests were $1.078 billion ⁸ in 2025, compared to $1.800 billion ⁹ in 2024. Diluted earnings per common share were $2.23 ¹⁰ in 2025, compared to $3.65 ¹¹ in 2024. Earnings before income taxes decreased 44% or $1.0 billion, to $1.3 billion ¹². Total segment operating profit (a non-GAAP measure) in 2025 decreased 23% or $1.0 billion, to $3.2 billion ¹³. Gross profit decreased $745 million or 13%, to $5.0 billion ¹⁴. Net cash provided by operating activities was $5.5 billion ¹⁵ in 2025, compared to $2.8 billion ¹⁶ in 2024.

The Company expects capital expenditures of approximately $1.4 billion ¹⁷ in 2026 and dividend payments of $1.0 billion ¹⁸, subject to other strategic uses of capital and the evolution of operating cash flows and the working capital position throughout the year. The Company's other material cash requirements within the next 12 months include current maturities of long-term debt of $1.0 billion ¹⁹, interest payments of $527 million ²⁰, operating lease payments of $357 million ²¹, and pension, other postretirement, and defined contribution plan contributions of $119 million ²².

The Company is investing in several key areas such as enhanced nutrition, biotics, biosolutions, precision fermentation, and decarbonization. The Company estimates that the total benefits available under the Clean Fuel Production Credit (IRC Section 45Z) will be higher in future periods primarily due to changes enacted in the OBBBA. The Company is focused on 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 help build a more resilient supply chain.

The Company is focused on organic and inorganic growth and its success in achieving growth could be adversely affected by a broad range of risks. ADM's growth also depends in part on innovation in products, processes and services. The Company's ability to realize the anticipated benefits of its R&D efforts and other investments depends on a variety of factors, and may not result in new products and services at a rate or of a quality sufficient to gain market acceptance. Growth in new geographies outside the U.S. can expose the Company to volatile economic, political, and regulatory risks that may negatively impact its operations and ability to achieve its growth strategy.

The Company has established the following priorities: focus on execution and cost management, strategic simplification, targeted growth investment, and deploy capital with discipline. The Company seeks to prioritize operational excellence and drive targeted cost reductions through: (1) boosting plant efficiencies; (2) optimizing operating leverage within the Nutrition segment; and (3) reducing third party spend and selling, general, and administrative expenses. The Company 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.

The Company is currently upgrading its technology platforms, including certain ERP systems, with these upgrades expected to occur in phases over the next several years. ADM has recently 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 in cybersecurity and network and application resilience. As a result of this strategy refinement, during the year ended December 31, 2025, the Company recognized an impairment charge of $179 million ²³ related to previously capitalized internal-use software.

R&D expense, net of reimbursements of government grants, for the year ended December 31, 2025 was $246 million ²⁴. The Company expects capital expenditures of approximately $1.4 billion ²⁵ in 2026. As of December 31, 2025, the Company had 115 million ²⁶ shares remaining that may be repurchased under its stock repurchase program until December 31, 2029. Cash dividends paid for the year ended December 31, 2025 were $987 million ²⁷, or $2.04 per share ²⁸.

The Company's results of operations were impacted by changes in and uncertainty relating to global trade and tariffs in 2025, and the resulting trade flow disruptions, such as U.S. soybean trade with China, as well as the deferral of U.S. biofuel policy with respect to renewable volume obligations (RVO), and the resulting uncertainty which impacted demand for soybean oil and other feedstocks. 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 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.

The Company faces risks related to international conflicts, acts of terrorism, war, other geopolitical events, such as the ongoing Russia-Ukraine conflict, maritime piracy, and other economic disruptions. The Black Sea region is a major exporter of wheat and corn to the world, and the disruption of supply may continue to cause volatility in volumes, prices, and margins of these commodities and related products. The Company's assets and operations located in the region affected by the conflict between Russia and Ukraine are at an increased risk of property damage, inventory loss, business disruption, and expropriation. As of December 31, 2025, the three major credit rating agencies maintained the Company's credit ratings at investment grade levels with a negative outlook.

The Company is exposed to risks related to the availability and prices of agricultural commodities, which are subject to wide fluctuations due to factors such as changes in weather conditions, crop disease, plantings, government programs and policies, climate change, competition, and changes in global demand. The Company's results of operations were impacted by changes in and uncertainty relating to global trade and tariffs in 2025, and the resulting trade flow disruptions, such as U.S. soybean trade with China, as well as the deferral of U.S. biofuel policy with respect to renewable volume obligations (RVO). The Company's ability to generate significant 45Z tax credits relating to its CCS operations and other initiatives is subject to risks and uncertainties. As of December 31, 2025, the three major credit rating agencies maintained the Company's credit ratings at investment grade levels with a negative outlook. The Company's investment in Wilmar had a carrying value of $4.0 billion ²⁹ as of December 31, 2025, and a market value of $3.4 billion ³⁰ based on the quoted Singapore Exchange market price, and the Company evaluated whether an other-than-temporary impairment had occurred. The Company is involved in a number of legal proceedings that may result in adverse outcomes. The Company's operations rely on certain key technology systems, and the instability of aging legacy systems could diminish performance and elevate the risk of system failures.

Management's message emphasizes a focus on execution and cost management, strategic simplification, targeted growth investment, and deploying capital with discipline. The Company announced targeted actions expected to deliver in excess of a $500 million ³¹ of cumulative cost savings in the next 3 to 5 years. The Company's goal is to continue to build and sustain long-term value for its shareholders and customers. The successful execution of the above priorities is expected to afford ADM the ability to continue investing in future growth that creates value over the long-term. ADM is investing in several key areas such as enhanced nutrition, biotics, biosolutions, precision fermentation, and decarbonization. Each of these development pathways has a different growth profile and timeline for value creation, and each complements our core business and presents the potential for compelling, enduring returns.