Item 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

138K characters. Original on sec.gov · Markdown

Item 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED STATEMENTS OF EARNINGS

(UNAUDITED)

Three Months Ended March 31,
20252024
(In millions, except per share amounts)
Revenues$20,175$21,847
Cost of products sold18,99520,188
Gross Profit1,1801,659
Selling, general, and administrative expenses932951
Asset impairment, exit, and restructuring costs3818
Equity in (earnings) of unconsolidated affiliates(144)(212)
Interest and investment (income)(138)(123)
Interest expense158166
Other (income) – net(19)(26)
Earnings Before Income Taxes353885
Income tax expense61166
Net Earnings Including Non-controlling Interests292719
Net (losses) attributable to non-controlling interests(3)(10)
Net Earnings Attributable to Archer-Daniels-Midland Company$295$729
Average number of shares outstanding – basic483513
Average number of shares outstanding – diluted483514
Basic earnings per common share$0.61$1.42
Diluted earnings per common share$0.61$1.42
Dividends per common share$0.51$0.50

The accompanying notes are an integral part of these Consolidated Financial Statements.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

Three Months Ended March 31,
20252024
(In millions)
Net Earnings Including Non-controlling Interests$292$719
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment(133)4
Tax effect38(20)
Net of tax amount(95)(16)
Deferred (loss) on hedging activities(5)(69)
Tax effect(1)10
Net of tax amount(6)(59)
Pension and other postretirement benefit liabilities adjustment(22)(4)
Tax effect61
Net of tax amount(16)(3)
Unrealized (loss) on investments(3)(7)
Tax effect—(1)
Net of tax amount(3)(8)
Total other comprehensive (loss), net of tax(120)(86)
Total comprehensive income172633
Less: Comprehensive (loss) attributable to non-controlling interests(3)(13)
Comprehensive income attributable to Archer-Daniels-Midland Company$175$646

The accompanying notes are an integral part of these Consolidated Financial Statements.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

March 31, 2025December 31, 2024
(In millions)
Assets
Current Assets
Cash and cash equivalents$864$611
Short-term marketable securities33246
Segregated cash and investments6,8707,212
Trade receivables - net4,4193,708
Inventories11,55011,572
Other current assets4,1464,369
Total Current Assets27,88227,718
Non-Current Assets
Investments in affiliates5,0225,276
Goodwill4,6234,509
Intangible assets2,2522,260
Right of use assets1,3341,358
Other non-current assets1,2891,313
Property, plant, and equipment, net11,00010,837
Total Non-Current Assets25,52025,553
Total Assets$53,402$53,271
Liabilities, Temporary Equity, and Shareholders’ Equity
Current Liabilities
Short-term debt$2,765$1,903
Current maturities of long-term debt704674
Trade payables5,1515,535
Payables to brokerage customers7,7267,772
Accrued expenses and other payables3,5113,730
Current lease liabilities314324
Total Current Liabilities20,17119,938
Long-Term Liabilities
Long-term debt7,5967,580
Deferred income taxes1,1851,268
Non-current lease liabilities1,0441,057
Other1,024997
Total Long-Term Liabilities10,84910,902
Temporary Equity - Redeemable non-controlling interest255253
Shareholders’ Equity
Common stock3,2463,223
Reinvested earnings21,98121,933
Accumulated other comprehensive (loss)(3,108)(2,988)
Non-controlling interests810
Total Shareholders’ Equity22,12722,178
Total Liabilities, Temporary Equity, and Shareholders’ Equity$53,402$53,271

The accompanying notes are an integral part of these Consolidated Financial Statements.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Three Months Ended March 31,
20252024
(In millions)
Cash flows from operating activities
Net earnings including non-controlling interests$292$719
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization287280
Asset impairment charges—3
Deferred income taxes(42)(64)
Equity in earnings of affiliates, net of dividends(28)(136)
Stock compensation expense5066
(Gain) Loss on sales / investment revaluation(26)14
Other – net(94)—
Changes in operating assets and liabilities
Segregated investments220(159)
Trade receivables(655)61
Inventories137295
Other current assets263163
Trade payables(423)(713)
Payables to brokerage customers(79)319
Accrued expenses and other payables(244)(148)
Net cash (used in) provided by operating activities(342)700
Cash flows from investing activities
Capital expenditures(291)(328)
Net assets of businesses acquired(90)(915)
Proceeds from sales of assets106
Purchases of marketable securities(11)—
Proceeds from sales of marketable securities248—
Other – net57
Net cash used in investing activities(129)(1,230)
Cash flows from financing activities
Net borrowings under lines of credit agreements8631,619
Share repurchases, net of tax—(1,327)
Cash dividends(247)(257)
Other – net(29)(37)
Net cash provided by (used in) financing activities587(2)
Effect of exchange rate on cash, cash equivalents, restricted cash, and restricted cash equivalents16(13)
Increase (Decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents132(545)
Cash, cash equivalents, restricted cash, and restricted cash equivalents - beginning of period3,9245,390
Cash, cash equivalents, restricted cash, and restricted cash equivalents - end of period$4,056$4,845

The accompanying notes are an integral part of these Consolidated Financial Statements.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(UNAUDITED)

Equity Attributable to Archer-Daniels-Midland Company
Common StockReinvested EarningsAccumulated Other Comprehensive Income (Loss)Non-controlling InterestsTotal Shareholders’ Equity
(In millions, except per share amounts)SharesAmount
Balance, December 31, 2024478$3,223$21,933$(2,988)$10$22,178
Comprehensive income
Net earnings295(1)294
Other comprehensive loss(120)—(120)
Cash dividends paid - $0.51 per share(247)(247)
Share repurchases———
Stock compensation expense25050
Stock option exercises, net of taxes—(30)—(30)
Other—3——(1)2
Balance, March 31, 2025480$3,246$21,981$(3,108)$8$22,127
Balance, Balance December 31, 2023513$3,154$23,465$(2,487)$13$24,145
Comprehensive income
Net earnings729(10)719
Other comprehensive loss(83)(3)(86)
Cash dividends paid - $0.50 per share(257)(257)
Share repurchases(13)(868)(868)
Share repurchases prepayment(462)(462)
Stock compensation expense36666
Stock option exercises, net of taxes(1)(41)(41)
Other—3——1316
Balance March 31, 20245022,72023,069(2,570)1323,232

The accompanying notes are an integral part of these Consolidated Financial Statements.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 1. Basis of Presentation

The Consolidated Financial Statements of Archer-Daniels-Midland Company and its subsidiaries (“ADM” or the “Company”) included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by GAAP for audited financial statements.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. For further information, refer to the Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2024.

Certain prior period data has been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation.

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The Company consolidates all entities, including variable interest entities (VIEs), in which it has a controlling financial interest. For VIEs, the Company assesses whether it is the primary beneficiary as defined under the applicable accounting standard. Investments in affiliates, including VIEs through which the Company exercises significant influence but does not control the investee and is not the primary beneficiary of the investee’s activities, are carried at cost plus equity in undistributed earnings since acquisition and are adjusted, where appropriate, for basis differences between the investment balance and the underlying net assets of the investee. The Company’s portion of the results of certain affiliates and results of certain VIEs are included using the most recent available financial statements. In each case, the financial statements are within 93 days of the Company’s year-end and are consistent from period to period.

Segregated Cash and Investments

The Company segregates certain cash, cash equivalents, and investment balances in accordance with regulatory requirements, commodity exchange requirements, and insurance arrangements. These balances represent deposits received from customers of the Company’s registered futures commission merchant and commodity brokerage services, cash margins and securities pledged to commodity exchange clearinghouses, and cash pledged as security under certain insurance arrangements.

Segregated cash and investments also include restricted cash collateral for the various insurance programs of the Company’s captive insurance business. To the degree these segregated balances are comprised of cash and cash equivalents, they are considered restricted cash and cash equivalents on the Consolidated Statements of Cash Flows.

The following represents a reconciliation of cash and cash equivalents in the Consolidated Balance Sheets to total cash, cash equivalents, restricted cash, and restricted cash equivalents in the Consolidated Statements of Cash Flows as of March 31, 2025 and 2024 (in millions).

March 31, 2025March 31, 2024
Cash and cash equivalents$864$830
Restricted cash and restricted cash equivalents included in segregated cash and investments3,1924,015
Total cash, cash equivalents, restricted cash, and restricted cash equivalents$4,056$4,845

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Receivables

The Company records accounts receivable at net realizable value. This value includes an allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances including any accrued interest receivables thereon. The Company estimates uncollectible accounts by pooling receivables according to type, region, credit risk rating, and age. Each pool is assigned an expected loss co-efficient to arrive at a general reserve based on historical write-offs adjusted, as needed, for regional, economic, and other forward-looking factors. The Company minimizes credit risk due to the large and diversified nature of its worldwide customer base. ADM manages its exposure to counter-party credit risk through credit analysis and approvals, credit limits, and monitoring procedures. Long-term receivables recorded in other assets were not material to the Company’s overall receivables portfolio.

Changes to the allowance for estimated uncollectible accounts were as follows (in millions).

Three Months Ended March 31,
20252024
Opening balance, January 1$167$215
Provisions (reversals), net25
Write-offs against allowance(14)(13)
Recoveries and other39
Closing balance, March 31$158$216

Inventories

Certain merchandisable agricultural commodity inventories, which include inventories acquired under deferred pricing contracts, are stated at market value. In addition, the Company values certain inventories using the first-in, first-out (FIFO) method at the lower of cost or net realizable value.

The following table sets forth the Company’s inventories as of March 31, 2025 and December 31, 2024 (in millions).

March 31, 2025December 31, 2024
Raw materials and supplies (1)$1,776$1,922
Finished goods2,7532,689
Market inventories7,0216,961
Total inventories$11,550$11,572

(1) Includes work in process inventories which were not material as of March 31, 2025 and December 31, 2024.

Cost Method Investments

Cost method investments represent investments in private companies and private equity funds for strategic purposes or to diversify the overall investment portfolio. These investments are generally in the startup or development stages and the markets for products these companies are developing are typically in the early stages. The Company’s evaluation of privately held investments is based on the fundamentals of the businesses invested in. The Company periodically reviews the carrying value of such investments to determine if any valuation adjustments are appropriate under the applicable accounting pronouncements.

Cost method investments of $436 million and $439 million as of March 31, 2025 and December 31, 2024, respectively, were included in Other Assets in the Company’s Consolidated Balance Sheets.

Revaluation gains and losses are recorded in interest and investment income in the Company’s Consolidated Statements of Earnings. As of March 31, 2025, the lifetime cumulative amounts of upward and downward adjustments were $118 million and $75 million, respectively. Any year-to-date upward and downward adjustments were immaterial to the Consolidated Financial Statements.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Investments in Affiliates

The Company applies the equity method of accounting for investments in investees over which the Company has the ability to exercise significant influence.

The Company had a 22.5% share ownership in Wilmar International Limited (“Wilmar”) as of March 31, 2025 and December 31, 2024. The Company’s investment in Wilmar had a carrying value of $3.6 billion as of March 31, 2025, and a market value of $3.5 billion based on the quoted Singapore Exchange market price, converted to U.S. dollars at the applicable exchange rate, at March 31, 2025.

In accordance with its accounting policy, as of March 31, 2025, the Company evaluated several factors in its determination of whether an other-than-temporary impairment of its investment in Wilmar had occurred as of that date. This included consideration of the short duration of the carrying value being above Wilmar's stock price, the recent performance of Wilmar’s stock price as quoted on the Singapore Exchange, latest consensus analyst forecasts, Wilmar’s long history of earnings and dividends and the Company’s continued representation on Wilmar’s Board. The Company considers its investment in Wilmar a significant and strategic relationship and has the intent and ability to retain its investment in Wilmar for a period of time sufficient to allow for any anticipated recovery in market value. Based on the evaluation of the factors above, the Company does not consider the investment to be other-than temporarily impaired at March 31, 2025. The Company will continue to reassess its investment in Wilmar, which may result in the recognition of an other-than-temporary impairment in the future.

As of March 31, 2025, the Company also held equity method investments in Pacificor (32.2%), Stratas Foods LLC (50.0%), Edible Oils Limited (50.0%), Olenex (37.5%), SoyVen (50.0%), Hungrana Ltd (50.0%), Almidones Mexicanos S.A. de C.V. (50.0%), Terminal de Grãos Ponta da Montanha S.A. (50.0%), Gradable, LLC (50.0%), Aston Foods and Food Ingredients (50.0%), Red Star Yeast Company, LLC (40.0%), LSCP, LLLP (22.1%), Vimison S.A. de C.V. (45.3%), ADM Matsutani LLC (50%), Matsutani Singapore Pte. Ltd. (50%), Dusial S.A. (42.8%), and Vitafort ZRT (34.3%).

Property, Plant, and Equipment

The Company’s net property, plant, and equipment consisted of the following as of March 31, 2025 and December 31, 2024 (in millions).

March 31, 2025December 31, 2024
Land$585$566
Buildings6,2506,143
Machinery and equipment20,96320,636
Construction in progress1,5451,553
29,34328,898
Accumulated depreciation(18,343)(18,061)
Net Property, Plant, and Equipment$11,000$10,837

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Redeemable Non-controlling Interests

The Company presents any redeemable non-controlling interests in temporary equity within the Consolidated Balance Sheets at redemption value with period changes recorded in reinvested earnings. The Company reports the portion of its earnings or loss for redeemable non-controlling interests as net earnings (losses) attributable to non-controlling interests in the Consolidated Statements of Earnings.

Changes to the Company's redeemable non-controlling interests for the three months ended March 31, 2025 and 2024 were as follows (in millions):

Three Months Ended March 31,
20252024
Opening balance, January 1$253$320
Net (loss) attributable to redeemable non-controlling interests(2)(10)
Currency translation adjustments and other4(3)
Closing balance, March 31$255$307

Note 2. New Accounting Pronouncements

Effective December 31, 2025, the Company will be required to adopt Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The amendments address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this ASU are required to be applied on a prospective basis, and retrospective adoption is permitted. The adoption of the amended guidance will result in expanded disclosures in the Company’s income taxes footnote but is not expected to have an impact on the Company's Consolidated Financial Statements.

Effective December 31, 2027, the Company will be required to adopt ASU 2024-03, Income Statement—Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of income statement expenses, which will require tabular disclosure of certain operating expenses disaggregated into categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The amendments in this ASU can be applied on a prospective basis or retrospective basis upon adoption. The adoption of the amended guidance will result in expanded disclosures in the Company’s footnotes but is not expected to have an impact on the Company's Consolidated Financial Statements.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 3. Revenues

The following tables present revenue disaggregated by timing of recognition and major product lines for the three months ended March 31, 2025 and 2024 (in millions).

Three Months Ended March 31, 2025
Topic 606 RevenueTopic 815Total
Point in TimeOver TimeTotalRevenue (1)Revenues
Ag Services and Oilseeds
Ag Services$1,041$207$1,248$9,288$10,536
Crushing100—1002,5392,639
Refined Products and Other851—8511,6492,500
Total Ag Services and Oilseeds1,9922072,19913,47615,675
Carbohydrate Solutions
Starches and Sweeteners1,384—1,3845531,937
Vantage Corn Processors634—634—634
Total Carbohydrate Solutions2,018—2,0185532,571
Nutrition
Human Nutrition998—998—998
Animal Nutrition819—819—819
Total Nutrition1,817—1,817—1,817
Total Segment Revenues5,8272076,03414,02920,063
Other Business112—112—112
Total Revenues$5,939$207$6,146$14,029$20,175

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Three Months Ended March 31, 2024
Topic 606 RevenueTopic 815Total
Point in TimeOver TimeTotalRevenue (1)Revenues
Ag Services and Oilseeds
Ag Services$1,022$193$1,215$9,982$11,197
Crushing117—1173,2103,327
Refined Products and Other548—5482,1472,695
Total Ag Services and Oilseeds1,6871931,88015,33917,219
Carbohydrate Solutions
Starches and Sweeteners1,593—1,5935632,156
Vantage Corn Processors527—527—527
Total Carbohydrate Solutions2,120—2,1205632,683
Nutrition
Human Nutrition964—964—964
Animal Nutrition872—872—872
Total Nutrition1,836—1,836—1,836
Total Segment Revenues5,6431935,83615,90221,738
Other Business109—109—109
Total Revenues$5,752$193$5,945$15,902$21,847

(1) Topic 815 revenue relates to the physical delivery or the settlement of the Company’s sales contracts that are accounted for as derivatives and are outside the scope of Topic 606.

Ag Services and Oilseeds

The Ag Services and Oilseeds segment generates revenue from the sale of commodities, from service fees for the transportation of goods, from the sale of products manufactured in its global processing facilities, and from its structured trade finance activities.

The Company engages in various structured trade finance activities to leverage its global trade flows whereby the Company obtains letters of credit (LCs) to guarantee payments on both global purchases and sales of grain. LCs guaranteeing payment on grain sales are sold on a non-recourse basis with no continuing involvement. The Company earns returns from the difference in interest rates between the LCs that guarantee payment on the underlying purchases and sales of grain given the differing risk profiles of the underlying transactions. The net return related to structured trade finance activities is included in Ag Services revenue and was not significant for the three months ended March 31, 2025 and 2024.

Carbohydrate Solutions

The Carbohydrate Solutions segment generates revenue from the sale of products manufactured at the Company’s global corn and wheat milling facilities around the world. Revenue is recognized when control over products is transferred to the customer. Products are shipped to customers from the Company’s various facilities and from its network of storage terminals. The amount of revenue recognized is based on the consideration specified in the contract which could include freight and other costs depending on the specific shipping terms of each contract.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Nutrition

The Nutrition segment sells ingredients and solutions including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, botanical extracts, edible beans, formula feeds, animal health and nutrition products, pet food and treats, and other specialty food and feed ingredients. Revenue is recognized when control over products is transferred to the customer. The amount of revenue recognized follows the contracted price or the mutually agreed price of the product.

Other Business

Other Business includes the Company’s futures commission business whose primary sources of revenue are commissions and brokerage income generated from executing orders and clearing futures contracts and options on futures contracts on behalf of its customers. Commissions and brokerage revenue are recognized on the date the transaction is executed.

Other Business also includes the Company’s captive insurance business which generates third party revenue through its proportionate share of premiums from third-party reinsurance pools. Reinsurance premiums are recognized on a straight-line basis over the period underlying the policy.

Note 4. Acquisitions

On January 31, 2025, the Company acquired Vandamme Hugaria Kft (“Vandamme”), a 700 metric ton/day non-genetically modified crush and extraction facility based in Hungary for an aggregate cash consideration of $123 million. This acquisition adds capabilities to the Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments.

The aggregate cash consideration, net of $33 million cash acquired, was allocated as follows, subject to final measurement period adjustments (in millions).

Vandamme
Working capital, net of cash acquired$17
Property, plant, and equipment31
Goodwill31
Other intangible assets(1)14
Deferred tax liabilities(3)
Aggregate cash consideration, net of cash acquired$90

(1) Primarily represents customer lists with expected useful lives of 10 years to 18 years.

Goodwill recorded in connection with the acquisition is primarily attributable to the synergies expected to arise after the Company’s acquisition of the business. This goodwill is not expected to be deductible for tax purposes.

The Company’s Consolidated Statements of Earnings for the three months ended March 31, 2025 includes the post-acquisition results of the acquired business which were immaterial.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 5. Fair Value Measurements

The Company measures the fair value of certain assets and liabilities in accordance with ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Company uses the market approach valuation technique to measure the majority of its assets and liabilities carried at fair value.

Three levels are established within the fair value hierarchy that may be used to report fair value:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable inputs, including Level 1 prices that have been adjusted; quoted prices for similar assets or liabilities; quoted prices in markets that are less active than traded exchanges; and other inputs that are observable or can be substantially corroborated by observable market data.

Level 3: Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The following tables set forth, by level, the Company’s assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 (in millions).

Fair Value Measurements at March 31, 2025
Level 1Level 2Level 3Total
Assets:
Inventories carried at market$—$3,918$3,103$7,021
Unrealized derivative gains:
Commodity contracts—274508782
Foreign currency contracts—145—145
Interest rate contracts—15—15
Cash equivalents413——413
Marketable securities33——33
Segregated investments1,899——1,899
Total Assets$2,345$4,352$3,611$10,308
Liabilities:
Unrealized derivative losses:
Commodity contracts$—$381$352$733
Foreign currency contracts—114—114
Inventory-related payables—1,400521,452
Total Liabilities$—$1,895$404$2,299

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Fair Value Measurements at December 31, 2024
Level 1Level 2Level 3Total
Assets:
Inventories carried at market$—$3,930$3,031$6,961
Unrealized derivative gains:
Commodity contracts—404427831
Foreign currency contracts—272—272
Interest rate contracts—5—5
Cash equivalents70——70
Marketable securities246——246
Segregated investments1,681——1,681
Total Assets$1,997$4,611$3,458$10,066
Liabilities:
Unrealized derivative losses:
Commodity contracts$—$355$405$760
Foreign currency contracts—212—212
Inventory-related payables—65488742
Total Liabilities$—$1,221$493$1,714

Inventories Carried at Market and Inventory-Related Payables

Estimated fair values for inventories and inventory-related payables stated at market are based on exchange-quoted prices, adjusted for differences in local markets and quality, referred to as basis. Market valuations for the Company’s inventories are adjusted for location and quality (basis) because the exchange-quoted prices represent contracts with standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade.

The basis adjustments are generally determined using the inputs from competitor and broker quotations or market transactions and are considered observable. Basis adjustments are impacted by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these basis adjustments. In some cases, the basis adjustments are unobservable because they are supported by little to no market activity.

When unobservable inputs have a significant impact (more than 10%) on the measurement of fair value, the inventory is classified in Level 3. Changes in the fair value of inventories and inventory-related payables are recognized in the Consolidated Statements of Earnings as a component of cost of products sold.

Unrealized Derivative Gains and Losses

Derivative contracts include exchange-traded commodity futures and options contracts, forward commodity purchase and sale contracts, and over-the-counter (OTC) instruments related primarily to agricultural commodities, energy, interest rates, and foreign currencies. Substantially all of the Company’s exchange-traded commodity futures and options contracts are cash-settled on a daily basis and, therefore, are not included in these tables.

Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. Market valuations for the Company’s forward commodity purchase and sale contracts are adjusted for location (basis) because the exchange-quoted prices represent contracts that have standardized terms for commodity, quantity, future delivery period, delivery location, and commodity quality or grade.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The basis adjustments are generally determined using inputs from competitor and broker quotations or market transactions and are considered observable. Basis adjustments are impacted by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these basis adjustments. In some cases, the basis adjustments are unobservable because they are supported by little to no market activity.

When observable inputs are available for substantially the full term of the contract, it is classified in Level 2. When unobservable inputs have a significant impact (more than 10%) on the measurement of fair value, the contract is classified in Level 3. Except for certain derivatives designated as cash flow hedges, changes in the fair value of commodity-related derivatives are recognized in the Consolidated Statements of Earnings as a component of cost of products sold.

Except for certain derivatives designated as net investment hedges, changes in the fair value of foreign currency-related derivatives are recognized in the Consolidated Statements of Earnings as a component of revenues, cost of products sold, and other (income) - net, depending upon the purpose of the contract.

The changes in the fair value of derivatives designated as effective cash flow hedges are recognized in the Consolidated Balance Sheets as a component of accumulated other comprehensive income (AOCI) until the hedged items are recorded in earnings or it is probable the hedged transaction will no longer occur.

Cash Equivalents

The Company’s cash equivalents are comprised of money market funds valued using quoted market prices and are classified as Level 1.

Marketable Securities

The Company's marketable securities are comprised of foreign government securities and foreign term deposits with original maturities greater than 90 days. These securities are valued using quoted market prices and are classified as Level 1.

Segregated Investments

The Company’s segregated investments are comprised of U.S. Treasury securities. U.S. Treasury securities are valued using quoted market prices and are classified as Level 1.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Level 3 Assets and Liablities

The following table presents a roll forward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2025 (in millions).

Level 3 Fair Value Asset Measurements at
March 31, 2025
Inventories Carried at MarketCommodity Derivative Contracts GainsTotal
Opening balance, January 1, 2025$3,031$427$3,458
Total increase in net realized/unrealized gains included in cost of products sold*152213365
Purchases4,086—4,086
Sales(4,578)—(4,578)
Settlements—(228)(228)
Transfers into Level 3571113684
Transfers out of Level 3(159)(17)(176)
Closing Balance, March 31, 2025$3,103$508$3,611
  • Includes increase in unrealized gains of $311 million relating to Level 3 assets still held at March 31, 2025.

The following table presents a roll forward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2025 (in millions).

Level 3 Fair Value Liability Measurements at
March 31, 2025
Inventory- related PayablesCommodity Derivative Contracts LossesTotal
Opening balance, January 1, 2025$88$405$493
Total (decrease) increase in net realized/unrealized losses included in cost of products sold*(3)194191
Purchases3—3
Sales(36)—(36)
Settlements—(277)(277)
Transfers into Level 3—3535
Transfers out of Level 3—(5)(5)
Closing Balance, March 31, 2025$52$352$404
  • Includes increase in unrealized losses of $193 million relating to Level 3 liabilities still held at March 31, 2025.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following table presents a roll forward of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2024 (in millions).

Level 3 Fair Value Asset Measurements at
March 31, 2024
Inventories Carried at MarketCommodity Derivative Contracts GainsTotal
Opening balance, January 1, 2024$2,713$731$3,444
Total (decrease) increase in net realized/unrealized gains included in cost of products sold*(97)375278
Purchases3,789—3,789
Sales(3,883)—(3,883)
Settlements—(352)(352)
Transfers into Level 351628544
Transfers out of Level 3(90)(18)(108)
Closing balance, March 31, 2024$2,948$764$3,712
  • Includes increase in unrealized gains of $564 million relating to Level 3 assets still held at March 31, 2024.

The following table presents a roll forward of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2024 (in millions).

Level 3 Fair Value Liability Measurements at
March 31, 2024
Inventory- related PayablesCommodity Derivative Contracts LossesTotal
Opening balance, January 1, 2024$101$457$558
Total (decrease) increase in net realized/unrealized losses included in cost of products sold and interest expense*(3)329326
Purchases1—1
Sales(38)—(38)
Settlements—(290)(290)
Transfers into Level 311314
Transfers out of Level 3—(74)(74)
Closing balance, March 31, 2024$62$435$497
  • Includes increase in unrealized losses of $338 million relating to Level 3 liabilities still held at March 31, 2024.

Transfers into Level 3 of assets and liabilities previously classified in Level 2 were due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts rising above the 10% threshold. Transfers out of Level 3 were primarily due to the relative value of unobservable inputs to the total fair value measurement of certain products and derivative contracts falling below the 10% threshold and thus permitting reclassification to Level 2.

In some cases, the price components that result in differences between exchange-traded prices and local prices for inventories and commodity purchase and sale contracts are observable based upon available quotations for these pricing components, and in some cases, the differences are unobservable. These price components primarily include transportation costs and other adjustments required due to location, quality, or other contract terms. In the table below, these other adjustments are referred to as basis. The changes in unobservable price components are determined by specific local supply and demand characteristics at each facility and the overall market. Factors such as substitute products, weather, fuel costs, contract terms, and futures prices also impact the movement of these unobservable price components.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following table sets forth the weighted average percentage of the unobservable price components included in the Company’s Level 3 valuations as of March 31, 2025 and December 31, 2024. The Company’s Level 3 measurements may include basis only, transportation cost only, or both price components.

Weighted Average % of Total Price
March 31, 2025December 31, 2024
Component TypeAssetsLiabilitiesAssetsLiabilities
Inventories and Inventory-Related Payables
Basis25.7%27.0%24.9%31.3%
Transportation cost15.4%—%10.8%—%
Commodity Derivative Contracts
Basis26.7%21.5%21.8%23.4%
Transportation cost21.8%23.8%10.8%10.8%

In certain of the Company’s principal markets, the Company relies on price quotes from third parties to value its inventories and physical commodity purchase and sale contracts. These price quotes are generally not further adjusted by the Company in determining the applicable market price. In some cases, availability of third-party quotes is limited to only one or two independent sources. In these situations, absent other corroborating evidence, the Company considers these price quotes as 100% unobservable and, therefore, the fair value of these items is reported in Level 3.

Note 6. Derivative Instruments and Hedging Activities

Derivatives Not Designated As Hedging Instruments

The majority of the Company’s derivative instruments have not been designated as hedging instruments. The Company uses exchange-traded and OTC commodity instruments to manage its net position of merchandisable agricultural product inventories and forward cash purchase and sales contracts to reduce price risk caused by market fluctuations in agricultural commodities and foreign currencies.

The Company also uses exchange-traded and OTC commodity instruments as components of merchandising strategies designed to enhance margins. The results of these strategies can be significantly impacted by factors such as the correlation between the value of exchange-traded commodities futures and the value of the underlying commodities, counterparty contract defaults, and volatility of freight markets.

Derivatives, including exchange-traded contracts and forward commodity purchase or sale contracts, and inventories of certain merchandisable agricultural products, which include amounts acquired under deferred pricing contracts, are stated at fair value. Inventory is not a derivative and therefore fair values of and changes in fair values of inventories are not included in the tables below.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Fair Value of Derivatives Not Designated as Hedging Instruments

The following table sets forth the fair value of derivatives not designated as hedging instruments as of March 31, 2025 and December 31, 2024 (in millions).

March 31, 2025December 31, 2024
AssetsLiabilitiesAssetsLiabilities
Foreign Currency Contracts$117$61$272$102
Commodity Contracts782733828760
Total$899$794$1,100$862

The following table sets forth the pre-tax gains (losses) on derivatives not designated as hedging instruments that have been included in the Consolidated Statements of Earnings for the three months ended March 31, 2025 and 2024 (in millions).

Cost ofOther
products(income) -
RevenuessoldnetTotal
Three Months Ended March 31, 2025
Pre-tax gains (losses) on:
Foreign Currency Contracts$(25)$150$(68)
Commodity Contracts—112—
Total gain (loss) recognized in earnings$(25)$262$(68)$169
Three Months Ended March 31, 2024
Pre-tax gains (losses) on:
Foreign Currency Contracts$1$(63)$54
Commodity Contracts—197—
Total gain recognized in earnings$1$134$54$189

Changes in the fair value of foreign currency-related derivatives are recognized in the Consolidated Statements of Earnings as a component of revenues, cost of products sold, and other (income) - net, depending on the purpose of the contract.

Changes in the market value of inventories of certain merchandisable agricultural commodities, inventory-related payables, forward cash purchase and sales contracts, and exchange-traded and OTC instruments are recognized in earnings immediately as a component of cost of products sold.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Derivatives Designated As Hedging Instruments

The Company had certain derivatives designated as cash flow, fair value, and net investment hedges as of March 31, 2025 and December 31, 2024.

Cash Flow Hedges

For derivative instruments that are designated and qualify as highly-effective cash flow hedges (i.e., hedging the exposure to variability in expected future cash flow that is attributable to a particular risk), the gain or loss on the derivative instrument is reported as a component of AOCI and as an operating activity in the Consolidated Statements of Cash Flows, and is reclassified into earnings in the same line item affected by the hedged transaction in the same period or periods during which the hedged transaction affects earnings. Hedge components excluded from the assessment of effectiveness, if any, and gains and losses related to discontinued hedges are recognized in the Consolidated Statements of Earnings during the relevant period.

For each of the hedge programs described below, the derivatives are designated as cash flow hedges. The changes in the market value of such derivative contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in price movements of the hedged item. Once the hedged item is recognized in earnings, the gains and losses arising from the hedge are reclassified from AOCI to either revenues or cost of products sold, as applicable.

The Company uses exchange-traded futures and options contracts to hedge the purchase price of anticipated volumes of corn to be purchased and processed in a future month. The objective of this hedging program is to reduce the variability of cash flows associated with the Company’s forecasted purchases of corn. The Company’s corn processing plants normally grind approximately 59 million bushels of corn per month. During the past 12 months, the Company hedged between 13% and 31% of its monthly grind. At March 31, 2025, the Company had designated hedges representing between 1% and 30% of its anticipated monthly grind of corn for the next 12 months.

The Company uses exchange-traded futures and options contracts to hedge the purchase price of the anticipated volumes of soybeans to be purchased and processed in a future month for certain of its U.S. soybean crush facilities, subject to certain program limits. The Company also uses futures and options contracts to hedge the sales prices of anticipated soybean meal and soybean oil sales proportionate to the soybean crushing process at these facilities, subject to certain program limits. During the past 12 months, the Company hedged between 76% and 100% of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities. At March 31, 2025, the Company had designated hedges representing between 0% and 100% of the anticipated monthly soybean crush for soybean purchases and soybean meal and oil sales at the designated facilities over the next 12 months.

The Company uses exchange-traded futures and OTC swaps to hedge the purchase price of anticipated volumes of natural gas consumption in a future month for certain of its facilities in North America and Europe, subject to certain program limits. During the past 12 months, the Company hedged between 39% and 74% of the anticipated monthly natural gas consumption at the designated facilities. At March 31, 2025, the Company had designated hedges representing between 4% and 40% of the anticipated monthly natural gas consumption over the next 12 months.

As of March 31, 2025, the Company had after-tax gains of $10 million in AOCI related to gains from these programs. As of December 31, 2024, the Company had after-tax losses of $13 million in AOCI related to losses from these programs. The Company expects to recognize $10 million of the March 31, 2025 after-tax gains in its Consolidated Statements of Earnings during the next 12 months.

Fair Value Hedges

The Company uses interest rate swaps designated as fair value hedges to protect the fair value of fixed-rate debt due to changes in interest rates. The changes in the fair value of the interest rate swaps and the underlying fixed-rate debt is recognized in the Consolidated Statements of Earnings during the current period. The terms of the interest rate swaps match the terms of the underlying debt. As of March 31, 2025 and December 31, 2024, the Company had pre-tax gains of $15 million and $5 million, respectively, in other current assets related to interest rate swaps with an aggregate notional amount of $500 million. A corresponding offset to the underlying debt is recorded for the same amount, with no net impact to earnings.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Net Investment Hedges

The Company uses cross-currency swaps and foreign exchange forwards designated as net investment hedges to protect the Company’s investment in foreign subsidiaries against changes in foreign currency exchange rates. The Company executed USD-fixed to Euro-fixed cross-currency swaps with an aggregate notional amount of $411 million and $394 million as of March 31, 2025 and December 31, 2024, respectively, and foreign exchange forwards with an aggregate notional amount of $2.4 billion and $2.1 billion as of March 31, 2025 and December 31, 2024, respectively.

As of March 31, 2025 and December 31, 2024, the Company had after-tax gains of $10 million and $99 million in AOCI, respectively, related to foreign exchange gains and losses from net investment hedge transactions. The amount is deferred in AOCI until the underlying investment is divested.

The Company has designated its €650 million outstanding long-term debt and commercial paper borrowings at each of March 31, 2025 and December 31, 2024 as hedges of its net investment in a foreign subsidiary. As of March 31, 2025 and December 31, 2024, the Company had after-tax gains of $222 million and $251 million in AOCI, respectively, related to foreign exchange gains and losses from the net investment hedge transactions. The amount is deferred in AOCI until the underlying investment is divested.

Fair Value of Derivatives Designated as Hedging Instruments

The following table sets forth the fair value of derivatives designated as hedging instruments as of March 31, 2025 and December 31, 2024 (in millions).

March 31, 2025December 31, 2024
AssetsLiabilitiesAssetsLiabilities
Commodity Contracts$—$—$3$—
Foreign Currency Contracts2853—110
Interest Rate Contracts15—5—
Total$43$53$8$110

The following table sets forth the pre-tax gains (losses) on derivatives designated as hedging instruments that have been included in the Consolidated Statements of Earnings for the three months ended March 31, 2025 and 2024 (in millions).

Cost of products sold
Three Months Ended March 31, 2025
Pre-tax gains on:
Commodity Contracts$17
Three Months Ended March 31, 2024
Pre-tax gains on:
Commodity Contracts$19

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 7. Other Current Assets

The following table sets forth the items in other current assets (in millions).

March 31,December 31,
20252024
Unrealized gains on derivative contracts$942$1,108
Customer omnibus receivable1,129872
Margin deposits and grain accounts571516
Financing receivables - net (1)176258
Insurance premiums receivable3776
Prepaid expenses274279
Biodiesel tax credit12104
Tax receivables459539
Non-trade receivables346393
Other current assets200224
$4,146$4,369

(1) Interest earned on financing receivables was $5 million for each of the three months ended March 31, 2025 and 2024, and is included in interest and investment income in the Consolidated Statements of Earnings.

Note 8. Accrued Expenses and Other Payables

The following table sets forth the items in accrued expenses and other payables (in millions).

March 31,December 31,
20252024
Unrealized losses on derivative contracts$847$972
Accrued compensation288346
Income tax payable248167
Other taxes payable204138
Insurance liabilities89172
Accrued interest payable112153
Other deferred income137156
Contract liabilities (1)480534
Other accruals and payables1,1061,092
$3,511$3,730

(1) Contract liabilities relate to advance payments from customers for goods and services the Company has yet to provide. Revenues recognized in the three months ended March 31, 2025 and 2024 from contract liabilities as of December 31, 2024 and 2023 were $280 million and $235 million, respectively.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 9. Debt and Financing Arrangements

At March 31, 2025 and December 31, 2024, the fair value of the Company’s long-term debt, excluding current portion, was $7.2 billion and $7.1 billion, respectively, as estimated using market values that utilize observable inputs, where available (a Level 2 measurement under applicable accounting standards), compared to a carrying value of $7.6 billion as of each such date.

At March 31, 2025 and December 31, 2024, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $12.4 billion and $13.0 billion, respectively, of which $7.6 billion and $9.1 billion, respectively, was unused.

The Company has accounts receivable securitization programs (the “Programs”). The Programs provide the Company with up to $2.9 billion in funding resulting from the sale of accounts receivable. As of March 31, 2025 and December 31, 2024, the Company utilized $2.1 billion and $2.0 billion, respectively, of its facility under the Programs. See Note 15. Sale of Accounts Receivable for further information on the Programs.

The weighted average interest rates on short-term borrowings outstanding at March 31, 2025 and December 31, 2024, were 4.5% and 4.7%, respectively. Of the Company’s total lines of credit, $5.1 billion supported the combined U.S. and European commercial paper borrowing programs, against which there was $2.6 billion of commercial paper outstanding at March 31, 2025.

Note 10. Income Taxes

The Company’s effective tax rate was 17.3% for the three months ended March 31, 2025, compared to 18.8% for the three months ended March 31, 2024. The decrease in the effective tax rate was primarily due to the impact of discrete tax items in the prior year quarter.

Note 11. Shareholders’ Equity

The Company has authorized one billion shares of common stock and 500,000 shares of preferred stock, each with zero par value. No preferred stock has been issued.

Treasury stock

At March 31, 2025 and December 31, 2024, the Company had approximately 235.7 million shares and 237.6 million shares, respectively, of its common shares in treasury. Treasury stock of $4.8 billion and $4.8 billion at March 31, 2025 and December 31, 2024, respectively, is recorded at cost as a reduction of common stock, and treasury stock of $2.3 billion at each of March 31, 2025 and December 31, 2024 is recorded at cost as a reduction of reinvested earnings.

Repurchase Program

On March 12, 2024, the Company entered into an accelerated share repurchase (“ASR”) transaction agreement (“ASR Agreement”) with Merrill Lynch International, an affiliate of BofA Securities, Inc., to repurchase $1.0 billion (the “Prepayment Amount”) of ADM common stock. The ASR transaction was part of ADM’s existing share repurchase program to repurchase up to 200 million shares through December 31, 2024, which was later increased and extended, as described below.

Under the terms of the ASR Agreement, on March 13, 2024, the Company paid the Prepayment Amount and received no upfront shares of common stock. The total number of shares of common stock repurchased under the ASR Agreement were determined based on volume weighted-average prices of the common stock during the term of the ASR transaction less a discount and subject to certain adjustments pursuant to the terms of the ASR Agreement.

On March 28, 2024, the Company received an interim delivery of 8,880,986 shares at an average share price of $60.60 or $538 million in aggregate. The Prepayment Amount initially recorded in additional paid in capital was partially reclassified to reinvested earnings for the $538 million amount repurchased. On April 15, 2024, the Company received a final delivery of 7,325,733 shares at an average share price of $63.05, or $462 million in aggregate, as final settlement of the ASR transaction and the amount was reclassified to reinvested earnings.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

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 March 31, 2025, the Company had 115 million shares remaining under its share repurchase program until December 31, 2029.

Accumulated Other Comprehensive Income

The following tables set forth the changes in AOCI by component for the three months ended March 31, 2025 and 2024 (in millions).

Three Months Ended March 31, 2025
Foreign Currency Translation AdjustmentDeferred Gain (Loss) on Hedging ActivitiesPension and Other Postretirement Benefit LiabilitiesUnrealized Gain (Loss) on InvestmentsAccumulated Other Comprehensive Income (Loss)
Balance at January 1, 2025$(2,999)$126$(100)$(15)$(2,988)
Other comprehensive income (loss) before reclassifications2512(20)(3)14
Gain (loss) on net investment hedges(158)———(158)
Amounts reclassified from AOCI—(17)(2)—(19)
Tax effect38(1)6—43
Net of tax amount(95)(6)(16)(3)(120)
Balance at March 31, 2025$(3,094)$120$(116)$(18)$(3,108)
Three months ended March 31, 2024
Foreign Currency Translation AdjustmentDeferred Gain (Loss) on Hedging ActivitiesPension and Other Postretirement Benefit LiabilitiesUnrealized Gain (Loss) on InvestmentsAccumulated Other Comprehensive Income (Loss)
Balance at January 1, 2024$(2,539)$158$(108)$2$(2,487)
Other comprehensive (loss) before reclassifications(77)(50)(2)(7)(136)
Gain on net investment hedges84———84
Amounts reclassified from AOCI—(19)(2)—(21)
Tax effect(20)101(1)(10)
Net of tax amount(13)(59)(3)(8)(83)
Balance at March 31, 2024$(2,552)$99$(111)$(6)$(2,570)

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following table sets forth the reclassifications out of AOCI for the three months ended March 31, 2025 and 2024 (in millions).

Amount reclassified from AOCIAffected line item in the Consolidated Statements of Earnings
Three Months Ended March 31,
Details about AOCI components20252024
Deferred (Gain) Loss on Hedging Activities
$(17)$(19)Cost of products sold
(17)(19)Earnings before income tax
44Income tax expense
$(13)$(15)Net earnings

The Company’s accounting policy is to release the income tax effects from AOCI when the individual units of account are sold, terminated, or extinguished.

Note 12. Other Income – Net

The following table sets forth the items in other income - net for the three months ended March 31, 2025 and 2024 (in millions).

Three Months Ended
March 31,
20252024
Gains on sale of assets$(8)$(2)
Other – net(11)(24)
Other Income – Net$(19)$(26)

Note 13. Segment Information

The Company’s operations are organized, managed, and classified into three reportable segments: Ag Services and Oilseeds (AS&O), Carbohydrate Solutions, and Nutrition.

Each of these segments is organized based upon the nature of products and services offered. The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard*,* and are classified within either Corporate or Other Business.

The reportable segments have been identified based on financial data utilized by the Chief Operating Decision Maker (CODM), which is the Company’s Chief Executive Officer, who is also the Company’s Chair of the Board. The CODM uses segment operating profit as the measurement of segment profit or loss. Separate financial information for the Company’s three reportable segments is evaluated by the CODM on a monthly basis to allocate resources and assess performance. The CODM does not use total assets by segment to make decisions regarding resources; therefore, the total asset disclosure by segment has not been included. Operating profit for each segment is based on net sales less identifiable operating expenses. Also included in operating profit for each segment is equity in earnings of affiliates based on the equity method of accounting. Specified items and certain corporate items are not allocated to the Company’s individual business segments because operating performance of each business segment is evaluated by the CODM exclusive of these items.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds such as soybeans and soft seeds (cottonseed, sunflower seed, canola, rapeseed, and flaxseed) into vegetable oils and protein meals. Oilseeds products produced and marketed by the segment include ingredients for food, feed, energy, and industrial customers. Crude vegetable oils produced by the segment’s crushing activities are sold “as is” to manufacturers of renewable green diesel and other customers or are further processed by refining, deodorizing, bleaching, and blending, as applicable, into salad oils. Salad oils are sold “as is” or are further processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Partially refined oils are used to produce biodiesel and glycols or are sold to other manufacturers for use in chemicals, paints, and other industrial products. Oilseed protein meals are principally sold to third parties to be used as ingredients in commercial livestock and poultry feeds. The Ag Services and Oilseeds segment is also a major supplier of peanuts and peanut-derived ingredients to both the U.S. and export markets. In North America, cotton cellulose pulp is manufactured and sold to the chemical, paper, and other industrial markets. The Ag Services and Oilseeds segment’s grain sourcing, handling, and transportation network (including barge, ocean-going vessel, truck, rail, and container freight services) provides reliable and efficient services to the Company’s customers and agricultural processing operations. The Ag Services and Oilseeds segment also includes agricultural commodity and feed product import, export, and global distribution, and structured trade finance activities. The Company engages in various structured trade finance activities to leverage its global trade flows. This segment also includes the Company’s share of the results of its equity investments in Wilmar, Pacificor, LLC, Stratas Foods LLC, Edible Oils Limited, Olenex Holdings BV, SoyVen Holding BV, and Gradable, LLC.

The Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. The Carbohydrate Solutions segment converts corn and wheat into products and ingredients used in the food and beverage industry including sweeteners, corn and wheat starches, syrup, glucose, wheat flour, and dextrose. Dextrose and starch are used by the Carbohydrate Solutions segment as feedstocks in other downstream processes. By fermentation of dextrose, the Carbohydrate Solutions segment produces alcohol and other food and animal feed ingredients. Ethyl alcohol is produced by the Company for industrial use in products such as hand sanitizers and ethanol for use in gasoline due to its ability to increase octane as an extender and oxygenate. Corn gluten feed and meal, as well as distillers’ grains, are produced for use as animal feed ingredients. Corn germ, a by-product of the wet milling process, is further processed into vegetable oil and protein meal. Other Carbohydrate Solutions products include citric acids which are used in various food and industrial products. The Carbohydrate Solutions segment is a leader in carbon capture and sequestration. This segment also includes the Company’s share of the results of its equity investments in Hungrana Ltd., Almidones Mexicanos S.A. de C.V., Aston Foods and Food Ingredients, Red Star Yeast Company, LLC, and LSCP, LLP.

The Nutrition segment serves various end markets including food, beverages, and nutritional supplements for humans, and complete feed, feed premix and additives, petfood and pet treats for livestock, aquaculture, and pets. The segment engages in the creation, manufacturing, sale, and distribution of a wide array of ingredients and solutions including plant-based proteins, natural flavors, flavor systems, natural colors, 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. This segment also includes the Company’s share of the results of its equity investments in Vimison S.A. de C.V., ADM Matsutani LLC, Matsutani Singapore Pte. Ltd., Dusial S.A., and Vitafort ZRT.

Other Business results include the Company’s financial business units related to futures commission and insurance activities. Corporate results principally include unallocated corporate expenses, interest cost net of interest income, and revaluation gains and losses on cost method investments and the share of the results of equity investments in early-stage start-up companies.

Intersegment sales have been recorded using principles consistent with ASC 606, Revenue from Contracts with Customers.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Segment Information for the Three Months ended March 31, 2025 and 2024

The following tables present data by reportable segment (in millions).

Three Months Ended March 31, 2025
Ag Services and OilseedsCarbohydrate SolutionsNutritionTotal
Revenue from external customers$15,675$2,571$1,817$20,063
Other Business112
Total consolidated revenue$20,175
Less:
Cost of materials14,3391,6021,139
Manufacturing costs881677319
Selling, general, and administrative expenses19382278
Other segment items(1)(150)(30)(14)
Segment operating profit$412$240$95$747
Reconciliation of segment operating profit
Other Business96
Corporate(441)
Specified items:
Impairment, exit, restructuring charges, and settlement contingencies(2)(49)
Earnings before income taxes$353

(1) Other segment items for each reportable segment include:

Ag Services and Oilseeds: Equity in the earnings of affiliates; interest and investment income/expense, and other income/expense.

Carbohydrate Solutions: Equity in the earnings of affiliates and other income/expense.

Nutrition: Equity in the earnings of affiliates and other income/expense.

(2) These charges were related to restructuring and a contingent loss settlement provision.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Three Months Ended March 31, 2024
Ag Services and OilseedsCarbohydrate SolutionsNutritionTotal
Revenue from external customers$17,219$2,683$1,836$21,738
Other Business109
Total consolidated revenue$21,847
Less:
Cost of materials15,4821,7321,164
Manufacturing costs833641298
Selling, general, and administrative expenses24292296
Other segment items(1)(202)(30)(6)
Segment operating profit$864$248$84$1,196
Reconciliation of segment operating profit
Other Business121
Corporate(426)
Specified items:
Gains on sales of assets and businesses—
Impairment, exit, restructuring charges, and settlement contingencies(2)(6)
Earnings before income taxes$885

(1) Other segment items for each reportable segment include:

Ag Services and Oilseeds: Equity in the earnings of affiliates; interest and investment income/expense; and other income/expense.

Carbohydrate Solutions: Equity in the earnings of affiliates and other income/expense.

Nutrition: Equity in the earnings of affiliates and other income/expense.

(2) These charges were related to the impairment of certain long-lived assets and restructuring.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(In millions)Three Months Ended March 31,
20252024
Intersegment revenue
Ag Services and Oilseeds$421$426
Carbohydrate Solutions199208
Nutrition1913
Total intersegment revenue$639$647
Depreciation expense
Ag Services and Oilseeds$100$92
Carbohydrate Solutions7575
Nutrition3736
Total segment depreciation expense212203
Other Business22
Corporate109
Total depreciation expense$224$214
Amortization expense
Ag Services and Oilseeds$3$3
Carbohydrate Solutions12
Nutrition3939
Total segment amortization expense4344
Corporate2022
Total amortization expense$63$66
Interest and investment income
Ag Services and Oilseeds$21$9
Total segment interest and investment income219
Other Business97119
Corporate20(5)
Total interest and investment income$138$123
Equity in earnings of unconsolidated affiliates
Ag Services and Oilseeds$110$180
Carbohydrate Solutions2932
Nutrition75
Total segment equity in earnings of unconsolidated affiliates146217
Corporate(2)(5)
Total equity in earnings of unconsolidated affiliates$144$212

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Note 14. Asset Impairment, Exit, and Restructuring Costs

The following table sets forth the charges for the three months ended March 31, 2025 and 2024 (in millions).

Three Months Ended March 31,
20252024
Restructuring and exit costs (1)$38$15
Impairment charge - other long-lived assets (2)—3
Total asset impairment, exit, and restructuring costs$38$18

(1)On February 4, 2025, the Company announced a restructuring program that is expected to deliver in excess of $500 million of cost savings by fiscal 2029. The restructuring program has several initiatives including improvements in manufacturing costs, reductions in purchased materials and services, and targeted workforce reductions, and is designed to help the Company achieve cost efficiencies. The three months ended March 31, 2025 included restructuring charges (primarily employee termination benefits) of $23 million, $5 million, $4 million, and $4 million within the Ag Services and Oilseeds segment, Carbohydrate Solutions segment, Nutrition segment, and Corporate, respectively, presented as specified items. The three months ended March 31, 2024 included restructuring charges of $3 million and $12 million within the Nutrition segment and Corporate, respectively, both presented as specified items.

(2)The three months ended March 31, 2024 included impairments related to certain long-lived assets of $3 million within the Nutrition segment, presented as a specified item.

Note 15. Sale of Accounts Receivable

The Company has an accounts receivable securitization program (the “First Program”) with certain commercial paper conduit purchasers and committed purchasers (collectively, the “First Purchasers”). Under the First Program, certain U.S.-originated trade accounts receivable are sold to a wholly-owned bankruptcy-remote entity, ADM Receivables, LLC (“ADM Receivables”). ADM Receivables transfers certain of the purchased accounts receivable to each of the First Purchasers together with a security interest in all of its right, title, and interest in the remaining purchased accounts receivable. In exchange, ADM Receivables receives a cash payment of up to $1.7 billion for the accounts receivable transferred. The First Program terminates on May 16, 2025, unless extended.

The Company also has an accounts receivable securitization program (the “Second Program”) with certain commercial paper conduit purchasers and committed purchasers (collectively, the “Second Purchasers”). Under the Second Program, certain non-U.S.-originated trade accounts receivable are sold to a wholly-owned bankruptcy-remote entity, ADM Ireland Receivables Company (“ADM Ireland Receivables”). ADM Ireland Receivables transfers certain of the purchased accounts receivable to each of the Second Purchasers together with a security interest in all of its right, title, and interest in the remaining purchased accounts receivable. In exchange, ADM Ireland Receivables receives a cash payment of up to $1.2 billion (€1.1 billion) for the accounts receivables transferred. The Second Program terminates on May 19, 2025, unless extended.

Under the First and Second Programs (collectively, the “Programs”), ADM Receivables and ADM Ireland Receivables use the cash proceeds from the transfer of receivables to the First Purchasers and Second Purchasers (collectively, the “Purchasers”) and other consideration, as applicable, to finance the purchase of receivables from the Company and the ADM subsidiaries originating the receivables. The Company accounts for these transfers as sales of accounts receivable. The Company acts as a servicer for the transferred receivables. At March 31, 2025 and December 31, 2024, the Company did not record a servicing asset or liability related to its retained responsibility, based on its assessment of the servicing fee, market values for similar transactions, and its cost of servicing the receivables sold.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

As of March 31, 2025 and December 31, 2024, the fair value of trade receivables transferred to the Purchasers under the Programs and derecognized from the Company’s Consolidated Balance Sheets was $2.1 billion and $2.0 billion, respectively. Total receivables sold were $11.3 billion and $12.3 billion for the three months ended March 31, 2025 and 2024, respectively. Cash collections from customers on receivables sold were $11.3 billion and $11.8 billion for the three months ended March 31, 2025 and 2024, respectively. All cash flows under the Programs are classified as operating activities because the cash received from the Purchasers upon both the sale and the collection of the receivables is not subject to significant interest rate risk given the short-term nature of the Company’s trade receivables. As of March 31, 2025 and December 31, 2024, receivables pledged as collateral to the Purchasers was $625 million and $693 million, respectively.

Transfers of receivables under the Programs resulted in an expense for the loss on sale of $20 million and $27 million for the three months ended March 31, 2025 and 2024, respectively, which is classified as selling, general, and administrative expenses in the Consolidated Statements of Earnings.

Note 16. Supplier Finance Programs

The Company has Supplier Payable Programs (“SPP”) with financial institutions which act as its paying agents for payables due to certain of its suppliers. The Company has neither an economic interest in a supplier’s participation in the SPP nor a direct financial relationship with the financial institutions, and has concluded that its obligations to the suppliers, including amounts due and scheduled payment terms, are not impacted by their participation in the SPP. Accordingly, amounts associated with the SPP continue to be classified in trade payables in the Company’s Consolidated Balance Sheets and in operating activities in its Consolidated Statements of Cash Flows. The supplier invoices that have been confirmed as valid under the program require payment in full generally within 90 days of the invoice date.

Changes to the outstanding payment obligations were as follows (in millions).

Three Months Ended March 31,
20252024
Opening balance, January 1$222$274
Obligations confirmed275257
Obligations paid(221)(256)
Closing balance, March 31$276$275

Note 17. Legal Proceedings

The Company is routinely involved in a number of actual or threatened legal actions, including those involving alleged personal injuries, employment law, product liability, intellectual property, environmental issues, alleged tax liability, and class actions. The Company also routinely receives inquiries from regulators and other government authorities relating to various aspects of its business, and at any given time, the Company has matters at various stages of resolution. The outcomes of these matters are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, claimants seek damages, as well as other relief including injunctive relief, that could require significant expenditures or result in lost revenues.

In accordance with applicable accounting standards, the Company records a liability in its Consolidated Financial Statements for material loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a material loss contingency is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the Consolidated Financial Statements. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. Estimates of probable losses resulting from litigation and governmental proceedings involving the Company are inherently difficult to predict, particularly when the matters are in early procedural stages, with incomplete facts or legal discovery; involve unsubstantiated or indeterminate claims for damages; potentially involve penalties, fines, disgorgement, or punitive damages; or could result in a change in business practice.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The Company’s estimated loss or range of loss with respect to loss contingencies may change from time to time, and it is reasonably possible the Company will incur actual losses in excess of the amounts currently accrued and such additional amounts may be material. While the Company continues to work with parties with respect to potential resolution, no assurance can be given that it will be successful in doing so and the Company cannot predict the outcome of these matters.

Commodities Class Actions

On September 4, 2019, AOT Holding AG (“AOT”) filed a putative class action under the U.S. Commodities Exchange Act in federal district court in Urbana, Illinois, alleging that the Company sought to manipulate the benchmark price used to price and settle ethanol derivatives traded on futures exchanges. On March 16, 2021, AOT filed an amended complaint adding a second named plaintiff Maize Capital Group, LLC (“Maize”). AOT and Maize allege that members of the putative class collectively suffered damages calculated to be between approximately $500 million to over $2.0 billion as a result of the Company’s alleged actions. On July 14, 2020, Green Plains Inc. and its related entities (“GP”) filed a putative class action lawsuit, alleging substantially the same operative facts, in federal court in Nebraska, seeking to represent sellers of ethanol. On July 23, 2020, Midwest Renewable Energy, LLC (“MRE”) filed a putative class action in federal court in Illinois alleging substantially the same operative facts and asserting claims under the Sherman Act. On November 11, 2020, United Wisconsin Grain Producers LLC (“UWGP”) and five other ethanol producers filed a lawsuit in federal court in Illinois alleging substantially the same facts and asserting claims under the Sherman Act and Illinois, Iowa, and Wisconsin law. The court granted ADM’s motion to dismiss the MRE and UWGP complaints without prejudice on August 9, 2021 and September 28, 2021, respectively. On August 16, 2021, the court granted ADM’s motion to dismiss the GP complaint, dismissing one claim with prejudice and declining jurisdiction over the remaining state law claim. MRE filed an amended complaint on August 30, 2021, which ADM moved to dismiss on September 27, 2021. The court denied ADM’s motion to dismiss on September 26, 2023. On May 17, 2024, the court stayed MRE’s case pending a decision in UWGP’s appeal, described below. UWGP filed an amended complaint on October 19, 2021, which the court dismissed on July 12, 2022. UWGP has appealed the dismissal to the United States Court of Appeals for the Seventh Circuit. On October 26, 2021, GP filed a new complaint in Nebraska federal district court, alleging substantially the same facts and asserting a claim for tortious interference with contractual relations. The case was transferred back to the Central District of Illinois, and on December 30, 2022, the court dismissed GP’s complaint with prejudice. GP appealed the dismissal, and on January 12, 2024, the appellate court vacated the dismissal and remanded the case to the district court for further proceedings. On March 8, 2024, GP filed an amended complaint, which ADM moved to dismiss. On December 3, 2024, the court issued a decision on ADM’s motion to dismiss GP’s amended complaint, denying one ground for dismissal and certifying a question of law to the Nebraska Supreme Court before deciding the other ground.

The Company denies liability, and is vigorously defending itself in these actions. As these actions are in pretrial proceedings, the Company is unable at this time to predict the final outcome with any reasonable degree of certainty, but believes the outcome will not have a material adverse effect on its financial condition, results of operations, or cash flows.

Government Investigations

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 segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments. The Company is continuing to cooperate with the SEC and DOJ investigations and is unable to predict the outcome of these investigations.

Shareholder Litigation

As previously disclosed, on January 24, 2024, following the Company’s announcement of an investigation relating to intersegment sales, a purported stockholder of the Company filed a putative securities fraud class action in the U.S. District Court for the Northern District of Illinois against the Company and certain of its current and former officers (collectively, the “Defendants”). On March 12, 2025, the court denied Defendants’ motions to dismiss. The Company intends to continue to vigorously defend against these claims. However, given the uncertainty of litigation, the Company is unable to predict the final outcome of this proceeding with any reasonable degree of certainty, nor does it currently have sufficient information to estimate a reasonably possible loss or range of loss with respect to this matter.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Also, as previously disclosed, beginning on March 29, 2024, purported stockholders of the Company filed a number of related derivative lawsuits against certain current and former officers and directors of the Company, seeking unspecified damages. The initial actions were consolidated in the U.S. District Court for the District of Delaware. Separately, on March 28, 2025, a purported stockholder filed a derivative lawsuit in the Chancery Court of Delaware against certain current and former officers and directors of the Company, seeking unspecified damages. On April 14, 2025, a purported stockholder filed a derivative lawsuit in the U.S. District Court for the Northern District of Illinois against certain current and former officers and directors of the Company, seeking unspecified damages; that action has been transferred to the U.S. District Court for the District of Delaware. The Company is unable to predict the final outcome of these proceedings with any reasonable degree of certainty.

Table of Contents

ARCHER-DANIELS-MIDLAND COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Previous: Cover and table of contents · Next: Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS