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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the accompanying unaudited Consolidated Financial Statements, which can be found in Part I. Item 1. Consolidated Financial Statements.
Company Overview
Archer-Daniels-Midland Company and its subsidiaries (the "Company" or "ADM") unlock the power of nature to enrich the quality of life. The Company is an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. ADM is a premier human and animal nutrition provider, offering one of the industry’s broadest portfolios of ingredients and solutions from nature. The Company is a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. ADM is a cutting-edge innovator, guiding the way to a future of new bio-based consumer and industrial solutions. ADM is a leader in business-driven sustainability efforts that support a strong agricultural sector, resilient supply chains, and a vast and growing bioeconomy. Around the globe, the Company’s expertise and innovation are meeting critical needs from harvest to home.
Reportable Segments
The Company’s operations are organized, managed, and classified into three reportable segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. 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.
See Part I. Item 1. Note 13. Segment Information of “Notes to Consolidated Financial Statements” for further details on the nature of our business and our reportable operating segments.
2025 Strategy
The Company’s goal is to continue to build and sustain long-term value for its shareholders and customers. The Company believes the following priorities will help create value for its shareholders:
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Focus on execution and cost management – ADM seeks to prioritize operational excellence and driving targeted cost reductions through: (1) boosting plant efficiencies and restoring operations at the Decatur East plant; (2) optimizing operating leverage within the Nutrition segment; and (3) reducing third party spend and selling, general, and administrative expenses.
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Strategic simplification – ADM seeks to enhance returns on invested capital by executing a pipeline of simplification opportunities to optimize our portfolio and organizational structure, including: (1) addressing performance, demand, and capacity challenges; (2) reducing capital expenditures that do not meet the Company’s return objectives; and (3) reducing capability overlaps through synergies, closures, and divestitures.
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Targeted growth investment – ADM seeks to prioritize organic investment in key strategic initiatives, while also ensuring our businesses are ready for the future, including: (1) plant modernization investments; (2) cost optimization investments; and (3) enterprise system and process enhancements.
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Deploy capital with discipline – ADM seeks to prudently invest in opportunities. The Company also expects to continue returning cash to shareholders through dividends and share repurchases as appropriate.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Sustainability
Sustainability is a pillar of ADM’s growth strategy. For 120 years, its business has been deeply connected to the land, farmers, and responsible stewardship. The crops ADM turns into an unparalleled array of products depend on healthy soil, water and air, and as ADM looks to the future, it is advancing efforts that enable and support agriculture and farmers, drive innovation and long-term value, and protect and strengthen vital supply chains.
Significant Portfolio Actions And Targeted Actions to Deliver Cost Savings
On February 4, 2025, the Company announced targeted actions expected to deliver in excess of $500 million of cost savings by fiscal 2029. These include cost optimization and portfolio simplification initiatives designed to help the Company achieve cost efficiencies. See Note 14. Asset Impairment, Exit, and Restructuring Costs of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for additional information regarding restructuring related charges.
ADM’s recent significant portfolio actions and announcements included:
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The acquisition in January 2025 of Vandamme Hugaria Kft, a 700 metric ton/day non-genetically modified crush and extraction facility based in Hungary. See Note 4. Acquisitions of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information.
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The closure of the Tres Corações facility based in Brazil, in July 2025. Preparation for the closure resulted in exit and restructuring costs, including impairment of certain assets. See Note 14. Asset Impairment, Exit, and Restructuring Costs of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements.
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A definitive agreement with PYCO Industries, Inc., a leader in the local agricultural communities it serves, to launch a joint venture combining their Lubbock, Texas, cottonseed processing capabilities.
Government Investigation
As previously disclosed, the Company is under investigation by the United States Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) relating to, among other things, intersegment sales between the Company’s Nutrition reporting segment and the Company’s Ag Services and Oilseeds and Carbohydrate Solutions reporting segments. The Company is continuing to cooperate with the SEC and DOJ investigations and is unable to predict the outcome of these investigations.
Material Weakness
As previously disclosed, the Company had identified a material weakness in the Company’s internal control over financial reporting related to its accounting practices and procedures for segment disclosures which has now been remediated. For more information, see “Controls and Procedures” in Part I. Item 4 herein.
Operating Performance Indicators
The Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments are principally agricultural commodity-based businesses where changes in selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials. As a result, changes in agricultural commodity prices have relatively equal impacts on both Revenues and Cost of products sold. Therefore, margins per volume or metric ton generally are meaningful as performance indicators in these businesses.
The Nutrition segment also utilizes agricultural commodities (or products derived from agricultural commodities) as raw materials. However, in these operations, agricultural commodity market price changes do not necessarily correlate to changes in Cost of products sold. Therefore, changes in revenues of these businesses may correspond to changes in margins and margins rates generally are meaningful as a performance indicator in these businesses.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company has consolidated subsidiaries in approximately 78 countries. For the majority of the Company’s subsidiaries located outside the United States, the local currency is the functional currency except for certain significant subsidiaries in Switzerland where Euro is the functional currency, and Brazil and Argentina where U.S. dollar is the functional currency. Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the weighted average exchange rates for the applicable periods. For the majority of the Company’s business activities in Brazil and Argentina, the functional currency is the U.S. dollar; however, certain transactions, including taxes, occur in local currency and require remeasurement to the functional currency. Changes in revenues are expected to be correlated to changes in expenses reported by the Company caused by fluctuations in the exchange rates of foreign currencies, primarily the Euro, British pound, Canadian dollar, and Brazilian real, as compared to the U.S. dollar.
The Company measures its performance using key financial metrics including net earnings, adjusted diluted earnings per share (EPS), margins, segment operating profit, total segment operating profit, earnings before interest and taxes (EBIT), earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, return on invested capital, adjusted economic value added, and operating cash flows before working capital. Some of these metrics are not defined by generally accepted accounting principles in the United States (GAAP) and should be considered in addition to, and not in lieu of, GAAP financial measures. For further information, see the “Non-GAAP Financial Measures” section below.
The Company’s financial results can vary significantly due to changes in factors such as fluctuations in energy prices, weather conditions, crop plantings, government programs and policies, trade policies, changes in global demand, general global economic conditions, changes in standards of living, global production of similar and competitive crops, and geopolitical developments. Due to the unpredictable nature of these and other factors, the Company undertakes no responsibility for updating any forward-looking information contained within this Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Market Factors Influencing Operations, Results, and Comparability in the Three and Six Months Ended June 30, 2025
The Company is subject to a variety of market factors which affect the Company's operating results.
In the Ag Services and Oilseeds segment, increased global supplies of grains and oilseeds, higher projected ending stocks-to-use ratios, and trade policy uncertainty resulted in compressed margins and limited forward commitments by customers. Ag Services volumes in North America were impacted by a decrease in exports due to a large South American harvest, market trade uncertainties, including the absence of a milo export program with China, and a reduction in exportable surplus from Europe, Middle East, and Africa (EMEA), and India. In Crushing and Refined Products and Other (RPO), increased industry capacity pressured margins for North American soy and canola, while EMEA biodiesel margins were also low due to biofuel and trade policy uncertainty.
In the Carbohydrate Solutions segment, strong export demand for ethanol helped offset higher industry production, which helped minimize the imbalance between production and domestic demand. For Starches and Sweeteners, North America saw demand softness in the paper and corrugated markets. EMEA saw higher corn costs and increased competition.
In the Nutrition segment, Human Nutrition demand was mixed across food and beverage categories as affordability remains a primary concern for consumers. In Animal Nutrition, declining commodity markets continue to support feed ration commodities as well as additive markets.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024
Results of Operations
Earnings before income taxes decreased $317 million from $596 million to $279 million, primarily driven by asset impairment, exit, and restructuring costs pursuant to the Company’s portfolio optimization initiatives and the Company’s updated investment strategy for startup or development stage companies. While lower prices negatively impacted revenues and cost of products sold, gross profits were consistent when compared to the prior year quarter.
Total segment operating profit (a non-GAAP measure) decreased $95 million from $925 million to $830 million driven by lower results in the Ag Services and Oilseeds segment and the Carbohydrate Solutions segment. Total segment operating profit (a non-GAAP measure) in the three months ended June 30, 2025 excluded asset impairment, exit and restructuring costs, and net settlement contingencies of $224 million, a gain on contract termination of $69 million, and gains of sales of assets of $8 million. Total segment operating profit (a non-GAAP measure) in the three months ended June 30, 2024 excluded asset impairment charges of $7 million.
Total segment operating profit (a non-GAAP measure) is reconciled to earnings before income taxes, the most directly comparable GAAP measure, in the "Non-GAAP Financial Measures" section below.
Processed volumes by certain products for the three months ended June 30, 2025 and 2024 were as follows (in metric tons).
| Three Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | Change | ||||||||||||||
| Oilseeds | 9,051 | 8,872 | 179 | ||||||||||||||
| Corn | 4,614 | 4,482 | 132 | ||||||||||||||
The Company generally operates its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to the current margin environment and seasonal local supply and demand conditions. The increase in processed oilseeds volumes in the current year quarter was primarily related to improved EMEA crush volumes due to improved utilization, in addition to higher volumes in South America due to increased plant reliability. The increase in processed corn volumes was primarily related to an increase in plant reliability and utilization in the current year quarter due to decreased unplanned plant downtime when compared to the prior year quarter.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Revenues for the three months ended June 30, 2025 and 2024, were as follows (in millions):
| Three Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | Change | |||||||||||||||
| Ag Services and Oilseeds | |||||||||||||||||
| Ag Services | $ | 10,896 | $ | 11,746 | $ | (850) | |||||||||||
| Crushing | 2,629 | 2,850 | (221) | ||||||||||||||
| Refined Products and Other | 2,744 | 2,737 | 7 | ||||||||||||||
| Total Ag Services and Oilseeds | 16,269 | 17,333 | (1,064) | ||||||||||||||
| Carbohydrate Solutions | |||||||||||||||||
| Starches and Sweeteners | 2,100 | 2,211 | (111) | ||||||||||||||
| Vantage Corn Processors | 692 | 683 | 9 | ||||||||||||||
| Total Carbohydrate Solutions | 2,792 | 2,894 | (102) | ||||||||||||||
| Nutrition | |||||||||||||||||
| Human Nutrition | 1,161 | 1,061 | 100 | ||||||||||||||
| Animal Nutrition | 832 | 847 | (15) | ||||||||||||||
| Total Nutrition | 1,993 | 1,908 | 85 | ||||||||||||||
| Total Segment Revenues | 21,054 | 22,135 | (1,081) | ||||||||||||||
| Other Business | 112 | 113 | (1) | ||||||||||||||
| Total Revenues | $ | 21,166 | $ | 22,248 | $ | (1,082) |
Revenues and cost of products sold in agricultural merchandising and processing businesses are significantly correlated to the underlying commodity prices and volumes. In periods of significant changes in market prices, the underlying performance of the Company is better evaluated by looking at margins since both revenues and cost of products sold, particularly in the Ag Services and Oilseeds segment, generally have a relatively equal impact from market price changes which generally result in an insignificant impact to gross profit.
Revenues decreased $1.1 billion to $21.2 billion driven by lower sales prices ($1.1 billion). Lower sales prices of soybeans, meal, and biodiesel were partially offset by higher sales volumes of soybeans and meal and higher sales prices of oils. Ag Services and Oilseeds revenues decreased 6% to $16.3 billion driven by lower sales prices ($1.1 billion), partially offset by higher sales volumes ($45 million). Carbohydrate Solutions revenues decreased 4% to $2.8 billion driven by lower sales prices ($97 million). Nutrition revenues increased 4% to $2.0 billion driven by higher sales prices ($29 million) and the benefit of a contract cancellation in Health and Wellness ($55 million).
Cost of products sold decreased $1.1 billion to $19.8 billion primarily driven by lower average commodity costs. Manufacturing expenses increased $58 million to $1.9 billion, driven by higher employee compensation costs, higher insurance costs and an increase in energy costs due to higher EMEA natural gas pricing, partially offset by lower maintenance expenses.
Gross profit decreased $26 million, or 2%, to $1.4 billion primarily driven by a decrease in margins of $92 million for Ag Services and Oilseeds, partially offset by a margin increase of $48 million in Nutrition.
Selling, general, and administrative (SG&A) expenses increased $4 million to $911 million, primarily driven by higher employee compensation costs and an increase in bad debt expense, partially offset by lower financing fees related to the Company’s accounts receivable securitization program and lower outside contract labor costs.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Asset impairment, exit, and restructuring costs increased $130 million to $137 million. Charges in the current year quarter were primarily driven by the Nutrition segment, which included $119 million of restructuring charges and $11 million of impairment expense related to a certain long-lived asset. Charges in the prior year quarter consisted of $7 million of impairments related to certain long-lived assets within the Carbohydrate Solutions and Nutrition segments.
Equity in earnings of unconsolidated affiliates decreased $18 million to $134 million driven by lower earnings from the Company’s investments in Hungrana Ltd, SoyVen, Stratas Foods, and Terminal de Grãos Ponta da Montanha S.A., partially offset by higher earnings from the Company’s investment in Wilmar International Limited (“Wilmar”).
Interest and investment (income) expense decreased $210 million to $70 million, primarily driven by revaluation losses, including impairment losses of $99 million and $88 million within Corporate and the Nutrition segment, respectively, in addition to lower interest income at ADM Investor Services due to lower interest rates.
Interest expense decreased $28 million to $159 million driven by lower interest rates at ADM Investor Services and decreased expense within Corporate driven by lower interest expense following favorable settlements of international tax audits.
Other income — net increased $43 million to $52 million driven by timing benefits associated with the receipt of a United States Department of Agriculture grant, gains on sales of certain assets, and benefits from termination of a supply agreement, partially offset by losses on sales of marketable securities.
Income tax expense decreased $53 million to $62 million. The Company’s effective tax rate for the quarter ended June 30, 2025 was 22.2% compared to 19.3% for the quarter ended June 30, 2024. The increase in the effective tax rate was primarily due to impairment losses, partially offset by the impact of discrete tax items.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Segment operating profit for the three months ended June 30, 2025 and 2024 was as follows (in millions):
| Three Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | Change | |||||||||||||||
| Segment Operating Profit | |||||||||||||||||
| Ag Services and Oilseeds | |||||||||||||||||
| Ag Services | $ | 113 | $ | 122 | $ | (9) | |||||||||||
| Crushing | 33 | 132 | (99) | ||||||||||||||
| Refined Products and Other | 156 | 137 | 19 | ||||||||||||||
| Wilmar | 77 | 68 | 9 | ||||||||||||||
| Total Ag Services and Oilseeds | $ | 379 | $ | 459 | $ | (80) | |||||||||||
| Carbohydrate Solutions | |||||||||||||||||
| Starches and Sweeteners | $ | 304 | $ | 323 | $ | (19) | |||||||||||
| Vantage Corn Processors | 33 | 34 | (1) | ||||||||||||||
| Total Carbohydrate Solutions | $ | 337 | $ | 357 | $ | (20) | |||||||||||
| Nutrition | |||||||||||||||||
| Human Nutrition | $ | 92 | $ | 103 | $ | (11) | |||||||||||
| Animal Nutrition | 22 | 6 | 16 | ||||||||||||||
| Total Nutrition | $ | 114 | $ | 109 | $ | 5 | |||||||||||
In the Ag Services and Oilseeds segment, segment operating profit decreased 17%, driven by increased global supplies of grains and oilseeds, higher projected ending stocks-to-use ratios, and biofuel and trade policy uncertainty. The Ag Services subsegment had lower operating profit compared to the prior year quarter, driven primarily by lower Global Trade and South American Origination results, partially offset by improved North American Origination results. Global Trade had lower operating profits, largely due to lower trading volumes, partially related to trade policy uncertainty, as well as lower margins, due to lower commodity prices, negative freight timing, and currency impacts. South American Origination results were lower primarily due to lower volumes and margins from the temporary disruption at a key port facility in Brazil and currency impacts. North American origination results improved in the current year quarter due to higher margins and volumes, as well from a timing benefit associated with receiving $19 million in proceeds from a United States Department of Agriculture grant earlier this year. The Ag Services subsegment had approximately $10 million of net negative mark-to-market timing impacts during the quarter, compared to approximately $17 million of net positive impacts in the prior year quarter. The Crushing subsegment had lower operating profit versus the prior year quarter, driven by lower margins due to increased industry capacity. North America Crushing results were lower, as soy and canola margins were negatively impacted by lower oil demand stemming from biofuel and trade policy uncertainty, competitive meal exports from Argentina and higher manufacturing costs. The Crushing subsegment had approximately $21 million of net positive mark-to-market timing impacts during the quarter, compared to approximately $16 million of net positive impacts in the prior year quarter. The Refined Products and Other (RPO) subsegment operating profit was higher than the prior year quarter, as timing benefits offset lower vegetable oil demand and biofuel and trade policy uncertainty negatively impacted biodiesel margins in Europe and North America. Softer oil demand in North America and increased crush capacity also negatively impacted refining margins compared to the prior year quarter. RPO had approximately $28 million of net positive mark-to-market timing impacts during the quarter, compared to approximately $91 million of net negative impacts in the prior year quarter. Wilmar earnings increased by $9 million to $77 million in the current year quarter.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In the Carbohydrate Solutions segment, segment operating profit decreased 6% compared to the prior year quarter. The Starches and Sweeteners subsegment operating profit was lower compared to the prior year quarter. In EMEA, lower Starches and Sweeteners volumes and margins were driven by higher corn costs due to crop quality issues. In North America, results were driven by higher liquid sweetener and corn co-products margins, offset by lower starch margins and volumes and lower wet mill ethanol margins. Global Wheat Milling margins and volumes improved relative to the prior year quarter, largely due to volume growth with key customers. The Vantage Corn Processors subsegment operating profit was in line with the prior year quarter, as improved risk management and higher ethanol volumes largely offset lower ethanol margins.
In the Nutrition segment, segment operating profit increased 5%. Human Nutrition results were down compared to the prior year quarter. Specialty Ingredients results were lower compared to the prior year quarter driven by higher raw material and insurance costs due to the recommissioning of operations at Decatur East. In Health and Wellness, results were lower, as reduced tolling margins due to a contract cancellation were partially offset by higher margins from Biotics and improved product mix. Flavors saw a significant increase in operating profit compared to prior year quarter due to an increase in sales among existing key customers across multiple product categories. Animal Nutrition operating profit was higher compared to the prior year quarter, driven by improved market conditions, leading to higher margins, and cost optimization efforts.
Other Business and Corporate Results
Other Business contribution of operating profit decreased 2%, from $96 million to $94 million, driven by lower net interest income in ADM Investor Services, partially offset by improved Captive insurance results driven by increased premiums and lower claim settlements.
Corporate results for the three months ended June 30, 2025 and 2024 were as follows (in millions):
| Three Months Ended | |||||||||||||||||||||||
| June 30, | |||||||||||||||||||||||
| 2025 | 2024 | Change | |||||||||||||||||||||
| Interest expense - net (1) | (112) | (128) | 16 | ||||||||||||||||||||
| Unallocated corporate function costs | (294) | (292) | (2) | ||||||||||||||||||||
| Revaluation losses, including impairment, and restructuring charges (2) | (99) | — | (99) | ||||||||||||||||||||
| Other income - net | 7 | 2 | 5 | ||||||||||||||||||||
| Total Corporate | $ | (498) | $ | (418) | $ | (80) |
(1)Interest expense-net decreased, primarily driven by favorable settlements of international tax audits.
(2)Revaluation losses, including impairment, and restructuring charges increased, driven by revaluation and impairment losses on certain investments.
Non-GAAP Financial Measures
The Company uses certain “non-GAAP” financial measures as defined by the SEC. These are measures of performance not defined by accounting principles generally accepted in the United States, and should be considered in addition to, not in lieu of, GAAP reported measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this section.
The Company uses adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit, non-GAAP financial measures as defined by the SEC, to evaluate the Company’s financial performance.
Adjusted net earnings is defined as net earnings adjusted for the effects on net earnings of specified items as more fully described in the reconciliation tables. Adjusted diluted EPS is defined as diluted EPS adjusted for the effects on reported diluted EPS of specified items as more fully described in the reconciliation tables.
EBITDA is defined as earnings before interest on borrowings, taxes, and depreciation and amortization. Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted to exclude the impact of specified items as more fully described in the reconciliation tables.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Total segment operating profit is defined as ADM’s consolidated earnings before income taxes, adjusted for Other Business, Corporate, and specified items as more fully described in the reconciliation tables.
Management believes that adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability.
Adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit are not intended to replace or be an alternative to net earnings, diluted EPS, and earnings before income taxes, the most directly comparable amounts reported under GAAP.
The table below provides a reconciliation of net earnings (the most directly comparable GAAP measure) to adjusted net earnings (a non-GAAP measure) and diluted EPS (the most directly comparable GAAP measure) to adjusted diluted EPS (a non-GAAP measure) for the three months ended June 30, 2025 and 2024.
| Three Months Ended June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| In millions | Per share | In millions | Per share | ||||||||||||||||||||
| Average number of shares outstanding - diluted | 484 | 493 | |||||||||||||||||||||
| Net earnings and reported EPS (diluted) | $ | 219 | $ | 0.45 | $ | 486 | $ | 0.98 | |||||||||||||||
| Adjustments: (1) | |||||||||||||||||||||||
| (Gain) on sale of assets and businesses (net of tax of $2 million in 2025) | (6) | (0.01) | — | — | |||||||||||||||||||
| Impairment, exit, restructuring charges, and settlement contingencies (net of tax of $32 million in 2025 and $2 million in 2024) | 291 | 0.60 | 5 | 0.01 | |||||||||||||||||||
| Expenses related to acquisitions (net of tax of $1 million in 2024) | — | — | 3 | 0.01 | |||||||||||||||||||
| (Gain) on contract termination (net of tax of $17 million in 2025) | (52) | (0.11) | — | — | |||||||||||||||||||
| Certain discrete tax adjustments | — | — | 14 | 0.03 | |||||||||||||||||||
| Total adjustments | 233 | 0.48 | 22 | 0.05 | |||||||||||||||||||
| Adjusted net earnings and adjusted diluted EPS | $ | 452 | $ | 0.93 | $ | 508 | $ | 1.03 |
(1) Tax effected using the U.S. and other applicable tax rates.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The table below provides a reconciliation of net earnings (the most directly comparable GAAP measure) to EBITDA (a non-GAAP measure) and adjusted EBITDA (a non-GAAP measure) for the three months ended June 30, 2025 and 2024 (in millions).
| Three Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Net Earnings Attributable to Archer-Daniels-Midland Company | $ | 219 | $ | 486 | |||||||||||||
| Net (losses) attributable to non-controlling interests | (2) | (5) | |||||||||||||||
| Income tax expense | 62 | 115 | |||||||||||||||
| Earnings Before Income Taxes | 279 | 596 | |||||||||||||||
| Interest expense (1) | 116 | 135 | |||||||||||||||
| Depreciation and amortization (2) | 286 | 286 | |||||||||||||||
| EBITDA | 681 | 1,017 | |||||||||||||||
| (Gain) on sales of assets and businesses | (8) | — | |||||||||||||||
| Impairment, exit, restructuring charges and settlement contingencies | 323 | 7 | |||||||||||||||
| (Gain) on contract termination | (69) | — | |||||||||||||||
| Expenses related to acquisitions | — | 4 | |||||||||||||||
| Railroad maintenance expenses | 4 | 4 | |||||||||||||||
| Adjusted EBITDA | $ | 931 | $ | 1,032 | |||||||||||||
(1) Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense.
(2) Excludes $5 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended June 30, 2025.
The table below provides a reconciliation of earnings before income taxes (the most directly comparable GAAP measure) to total segment operating profit (a non-GAAP measure) for the three months ended June 30, 2025 and 2024 (in millions).
| Three Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Earnings Before Income Taxes | $ | 279 | $ | 596 | |||||||||||||
| Other Business (earnings) | (94) | (96) | |||||||||||||||
| Corporate | 498 | 418 | |||||||||||||||
| Specified Items: | |||||||||||||||||
| (Gain) on sale of assets and businesses | (8) | — | |||||||||||||||
| Impairment, exit, restructuring charges and settlement contingencies | 224 | 7 | |||||||||||||||
| (Gain) on contract termination | (69) | — | |||||||||||||||
| Total Segment Operating Profit | $ | 830 | $ | 925 |
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Results of Operations
Earnings before income taxes decreased $849 million from $1.5 billion to $632 million, primarily driven by lower pricing and execution margins, asset impairment, exit, and restructuring costs pursuant to the Company’s portfolio optimization initiatives and the Company’s updated investment strategy for startup or development stage companies.
Total segment operating profit (a non-GAAP measure) decreased $544 million from $2.1 billion to $1.6 billion, primarily driven by lower results in the Ag Services and Oilseeds segment. Total segment operating profit (a non-GAAP measure) in the six months ended June 30, 2025 excluded impairment, exit, restructuring, and net settlement contingencies of $273 million, a gain on contract termination of $69 million, and gains of sales of assets of $8 million. Total segment operating profit (a non-GAAP measure) in the six months ended June 30, 2024 excluded asset impairment charges of $13 million.
Total segment operating profit (a non-GAAP measure) is reconciled to earnings before income taxes, the most directly comparable GAAP measure, in the "Non-GAAP Financial Measures" section below.
Processed volumes by product for the six months ended June 30, 2025 and 2024 were as follows (in metric tons).
| Six Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| (In thousands) | 2025 | 2024 | Change | ||||||||||||||
| Oilseeds | 18,142 | 18,259 | (117) | ||||||||||||||
| Corn | 9,195 | 8,890 | 305 |
The Company generally operates its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to the current margin environment and seasonal local supply and demand conditions. The decrease in processed oilseeds volumes was primarily related to lower North America crush volumes in the current year period due to planned plant downtime. The increase in processed corn volumes was primarily related to an increase in plant reliability and utilization in the current year period due to decreased unplanned plant downtime when compared to the prior year period.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Revenues for the six months ended June 30, 2025 and 2024 were as follows (in millions):
| Six Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | Change | |||||||||||||||
| Ag Services and Oilseeds | |||||||||||||||||
| Ag Services | $ | 21,432 | $ | 22,943 | $ | (1,511) | |||||||||||
| Crushing | 5,267 | 6,177 | (910) | ||||||||||||||
| Refined Products and Other | 5,245 | 5,432 | (187) | ||||||||||||||
| Total Ag Services and Oilseeds | 31,944 | 34,552 | (2,608) | ||||||||||||||
| Carbohydrate Solutions | |||||||||||||||||
| Starches and Sweeteners | 4,037 | 4,367 | (330) | ||||||||||||||
| Vantage Corn Processors | 1,325 | 1,210 | 115 | ||||||||||||||
| Total Carbohydrate Solutions | 5,362 | 5,577 | (215) | ||||||||||||||
| Nutrition | |||||||||||||||||
| Human Nutrition | 2,159 | 2,025 | 134 | ||||||||||||||
| Animal Nutrition | 1,651 | 1,719 | (68) | ||||||||||||||
| Total Nutrition | 3,810 | 3,744 | 66 | ||||||||||||||
| Total Segment Revenues | 41,116 | 43,873 | (2,757) | ||||||||||||||
| Other Business | 225 | 222 | 3 | ||||||||||||||
| Total Revenues | $ | 41,341 | $ | 44,095 | $ | (2,754) | |||||||||||
Revenues and cost of products sold in agricultural merchandising and processing businesses are significantly correlated to the underlying commodity prices and volumes. In periods of significant changes in market prices, the underlying performance of the Company is better evaluated by looking at margins since both revenues and cost of products sold, particularly in the Ag Services and Oilseeds segment, generally have a relatively equal impact from market price changes which generally result in an insignificant impact to gross profit.
Revenues decreased $2.8 billion to $41.3 billion driven by lower sales prices ($3.1 billion), partially offset by higher sales volumes ($319 million). Lower sales prices of meal, soybeans, and biodiesel and lower sales volumes of sorghum and wheat, were partially offset by higher sales volumes of corn, soybeans, and oils. Ag Services and Oilseeds revenues decreased 8% to $31.9 billion driven by lower sales prices ($2.8 billion), partially offset by higher sales volumes ($169 million). Carbohydrate Solutions revenues decreased 4% to $5.4 billion driven by lower sales prices ($258 million), partially offset by higher sales volumes ($44 million). Nutrition revenues increased 2% to $3.8 billion driven by higher sales volumes ($106 million) and the benefit of a contract cancellation in Health and Wellness ($55 million), partially offset by lower sales prices ($96 million).
Cost of products sold decreased $2.2 billion to $38.8 billion due principally to lower average commodity costs. Manufacturing expenses increased $171 million to $3.9 billion driven by higher employee compensation costs, an increase in energy costs due to higher EMEA natural gas pricing and higher grind at Carbohydrates Solutions facilities, higher insurance costs, and higher depreciation expenses.
Gross profit decreased $505 million, or 17%, to $2.6 billion driven by a decrease in margins of $543 million for Ag Services and Oilseeds, partially offset by a margin increase of $37 million in Nutrition.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Selling, general, and administrative expenses decreased $15 million to $1.8 billion primarily driven by lower financing fees related to the Company’s accounts receivable securitization program, lower advertising costs, and lower outside contract labor costs, partially offset by higher employee compensation costs and bad debt expense.
Asset impairment, exit, and restructuring costs increased $150 million to $175 million. Charges in the current year period included $164 million of restructuring charges, primarily driven by $123 million and $27 million of charges within the Nutrition and Ag Services and Oilseeds segments, respectively, and $11 million of impairment expense related to certain long-lived assets within the Nutrition segment. Charges in the prior year period consisted of restructuring charges of $15 million, primarily driven by $12 million of charges within Corporate, and $10 million of impairments related to certain long-lived assets within the Carbohydrate Solutions and Nutrition segments.
Equity in earnings of unconsolidated affiliates decreased $86 million to $278 million driven by lower earnings from the Company’s investments in Wilmar and Hungrana Ltd, partially offset by higher earnings from the Company’s investment in Olenex Sarl.
Interest and investment income decreased $195 million to $68 million, primarily driven by revaluation losses, including impairment losses of $99 million and $88 million within Corporate and the Nutrition segment, respectively, in addition to lower interest income at ADM Investor Services due to lower interest rates. Charges in the prior year period consisted of revaluation losses, including impairment losses, of $16 million within Corporate.
Interest expense decreased $36 million to $317 million driven by lower interest rates at ADM Investor Services and decreased expense within Corporate driven by lower interest expense following favorable settlements of international tax audits.
Other income — net increased $36 million to $71 million driven by gains on sale of assets, benefits from termination of a supply agreement, timing benefits associated with the receipt of a United States Department of Agriculture grant, and foreign exchange gains, partially offset by provisions for contingent losses.
Income tax expense decreased $158 million to $123 million. The Company’s effective tax rate for the six months ended June 30, 2025 was 19.5% compared to 19.0% for the six months ended June 30, 2024. The increase in the effective tax rate was primarily due to impairment losses, partially offset by the impact of discrete tax items.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Segment operating profit for the six months ended June 30, 2025 and 2024 was as follows (in millions):
| Six Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | Change | |||||||||||||||
| Segment Operating Profit (1) | |||||||||||||||||
| Ag Services and Oilseeds | |||||||||||||||||
| Ag Services | $ | 272 | $ | 354 | $ | (82) | |||||||||||
| Crushing | 79 | 445 | (366) | ||||||||||||||
| Refined Products and Other | 291 | 307 | (16) | ||||||||||||||
| Wilmar | 149 | 217 | (68) | ||||||||||||||
| Total Ag Services and Oilseeds | $ | 791 | $ | 1,323 | $ | (532) | |||||||||||
| Carbohydrate Solutions | |||||||||||||||||
| Starches and Sweeteners | $ | 511 | $ | 584 | $ | (73) | |||||||||||
| Vantage Corn Processors | 65 | 21 | 44 | ||||||||||||||
| Total Carbohydrate Solutions | $ | 576 | $ | 605 | $ | (29) | |||||||||||
| Nutrition | |||||||||||||||||
| Human Nutrition | $ | 168 | $ | 179 | $ | (11) | |||||||||||
| Animal Nutrition | 42 | 14 | 28 | ||||||||||||||
| Total Nutrition | $ | 210 | $ | 193 | $ | 17 | |||||||||||
(1) For the six months ended June 30, 2025, segment operating profit for the Ag Services and Oilseeds, Carbohydrate Solutions and Nutrition segments included a positive impact of timing-related adjustments for incentive compensation payouts of $45 million, $12 million, and $20 million, respectively. The offsetting adjustment of $77 million was recorded in Corporate with no net impact to the Consolidated Financial Statements.
In the Ag Services and Oilseeds segment, segment operating profit decreased 40%. The Ag Services subsegment had lower operating profit compared to the prior year period, primarily driven by lower Global Trade results due to lower margins due to negative freight timing and currency impacts. Ag Services results were further impacted by a decrease in margins and to a lesser extent volumes, primarily due to increased global supplies of grains and oilseeds, higher projected ending stocks-to-use ratios, and biofuel and trade policy uncertainty, the impact of certain export duties, and the temporary disruption at a key port facility in Brazil. These impacts were partially offset by productivity actions leading to decreased SG&A expenses, alongside improved transportation results. The Ag Services subsegment had approximately $40 million of net negative mark-to-market timing impacts during the current year period, compared to approximately $35 million of net positive impacts in the prior year period. The Crushing subsegment had lower operating profit versus the prior year period, driven by lower margins due to increased industry capacity, more competitive meal exports from Argentina, higher manufacturing costs, and lower vegetable oil demand due to biofuel and trade policy uncertainty. South America Crushing results were improved, driven by increased margins and volumes. The Crushing subsegment had approximately $25 million of net positive mark-to-market timing impacts during the current year period, compared to approximately $56 million of net positive impacts in the prior year period. The RPO subsegment operating profit was slightly lower than the prior year period, as lower vegetable oil demand and biofuel and trade policy uncertainty negatively impacted biodiesel and refining margins in Europe and North America. The RPO subsegment had approximately $32 million of net positive mark-to-market timing impacts during the current year period, compared to approximately $121 million of net negative impacts in the prior year period. Wilmar earnings were lower versus the prior year period.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In the Carbohydrate Solutions segment, segment operating profit decreased 5% compared to the prior year period. The Starches and Sweeteners subsegment operating profit was lower compared to the prior year period. In North America, results were driven by lower starch margins and higher manufacturing costs, partially offset by improved liquid sweetener margins. In EMEA, results were driven by lower volumes and margins due to the competitive pricing environment. Global Wheat Milling margins improved due to higher wheat basis gains. The Vantage Corn Processors subsegment operating profit increased compared to the prior year period, driven by improved margins resulting from improved risk management and higher ethanol volumes.
In the Nutrition segment, segment operating profit decreased 9%. Human Nutrition results were lower compared to the prior year period. Specialty Ingredients results were lower compared to the prior year period driven by higher raw material and insurance costs due to the recommissioning of operations at Decatur East. In Health and Wellness, results were lower, as decreased margins, driven by certain negative valuation adjustments and reduced tolling margins due to a contract cancellation, were partially offset by higher Biotics margins. Flavors saw a significant increase in operating profit compared to prior year period, driven by higher volumes and margins due to an increase in sales among existing key customers across multiple product categories. Animal Nutrition operating profit was higher compared to the prior year period, driven by cost optimization efforts.
Other Business and Corporate Results
Other Business contribution of operating profit decreased 12%, from $217 million to $190 million driven by lower net interest income in ADM Investor Services.
Corporate results for the six months ended June 30, 2025 and 2024 were as follows (in millions):
| Six Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | Change | |||||||||||||||
| Interest expense — net (1) | $ | (212) | $ | (238) | 26 | ||||||||||||
| Unallocated corporate function costs (2) | (647) | (596) | (51) | ||||||||||||||
| Revaluation losses, including impairment, and restructuring charges (3) | (104) | (12) | (92) | ||||||||||||||
| Other income — net (4) | 24 | 2 | 22 | ||||||||||||||
| Total Corporate | $ | (939) | $ | (844) | $ | (95) |
(1)Interest expense - net decreased, primarily driven by favorable settlements of international tax audits, and higher interest income on certain tax receivables, partially offset by higher interest costs on outstanding debt.
(2)Unallocated corporate function costs increased, primarily driven by timing-related incentive compensation adjustments, partially offset by lower technological spend.
(3)Revaluation losses, including impairment, and restructuring charges increased, primarily driven by revaluation and impairment losses on certain investments.
(4)Other income - net increased, primarily driven by foreign exchange gains and an increase in earnings in affiliates.
Non-GAAP Financial Measures
The Company uses certain “non-GAAP” financial measures as defined by the SEC. These are measures of performance not defined by accounting principles generally accepted in the United States, and should be considered in addition to, not in lieu of, GAAP reported measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this section.
The Company uses adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit, non-GAAP financial measures as defined by the SEC, to evaluate the Company’s financial performance.
Adjusted net earnings is defined as net earnings adjusted for the effects on net earnings of specified items as more fully described in the reconciliation tables. Adjusted diluted EPS is defined as diluted EPS adjusted for the effects on reported diluted EPS of specified items as more fully described in the reconciliation tables.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
EBITDA is defined as earnings before interest on borrowings, taxes, and depreciation and amortization. Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted to exclude the impact of specified items as more fully described in the reconciliation tables.
Total segment operating profit is defined as ADM’s consolidated earnings before income taxes, adjusted for Other Business, Corporate, and specified items as more fully described in the reconciliation tables.
Management believes that adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability.
Adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit are not intended to replace or be an alternative to net earnings, diluted EPS, and earnings before income taxes, the most directly comparable amounts reported under GAAP.
The table below provides a reconciliation of net earnings (the most directly comparable GAAP measure) to adjusted net earnings (a non-GAAP measure) and diluted EPS (the most directly comparable GAAP measure) to adjusted diluted EPS (a non-GAAP measure) for the six months ended June 30, 2025 and 2024.
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| In millions | Per share | In millions | Per share | |||||||||||||||||||||||
| Average number of shares outstanding - diluted | 484 | 503 | ||||||||||||||||||||||||
| Net earnings and reported EPS (diluted) | $ | 514 | $ | 1.06 | $ | 1,215 | $ | 2.41 | ||||||||||||||||||
| Adjustments: (1) | ||||||||||||||||||||||||||
| (Gain) on sale of assets and businesses (net of tax of $2 million in 2025) | (6) | (0.01) | — | — | ||||||||||||||||||||||
| Impairment, exit, restructuring charges, and settlement contingencies (net of tax of $43 million in 2025 and $2 million in 2024) | 334 | 0.69 | 23 | 0.04 | ||||||||||||||||||||||
| Expenses related to acquisitions (net of tax of $1 million in 2024) | — | — | 3 | 0.01 | ||||||||||||||||||||||
| (Gain) on contract termination (net of tax of $17 million in 2025) | (52) | (0.11) | — | — | ||||||||||||||||||||||
| Certain discrete tax adjustments | — | — | 17 | 0.03 | ||||||||||||||||||||||
| Total adjustments | 276 | 0.57 | 43 | 0.08 | ||||||||||||||||||||||
| Adjusted net earnings and adjusted diluted EPS | $ | 790 | $ | 1.63 | $ | 1,258 | $ | 2.49 | ||||||||||||||||||
(1) Tax effected using the U.S. and other applicable tax rates.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The table below provides a reconciliation of net earnings (the most directly comparable GAAP measure) to EBITDA (a non-GAAP measure) and adjusted EBITDA (a non-GAAP measure) for the six months ended June 30, 2025 and 2024 (in millions).
| Six Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Net Earnings Attributable to Archer-Daniels-Midland Company | $ | 514 | $ | 1,215 | |||||||||||||
| Net (losses) attributable to non-controlling interests | (5) | (15) | |||||||||||||||
| Income tax expense | 123 | 281 | |||||||||||||||
| Earnings Before Income Taxes | 632 | 1,481 | |||||||||||||||
| Interest expense (1) | 232 | 250 | |||||||||||||||
| Depreciation and amortization (2) | 570 | 566 | |||||||||||||||
| EBITDA | 1,434 | 2,297 | |||||||||||||||
| (Gain) on sales of assets and businesses | (8) | — | |||||||||||||||
| Impairment, exit, restructuring charges and settlement contingencies | 377 | 25 | |||||||||||||||
| (Gain) on contract termination | (69) | — | |||||||||||||||
| Expenses related to acquisitions | — | 4 | |||||||||||||||
| Railroad maintenance expenses | 4 | 4 | |||||||||||||||
| Adjusted EBITDA | $ | 1,738 | $ | 2,330 | |||||||||||||
(1) Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense.
(2) Excludes $8 million of accelerated depreciation recorded within restructuring charges as a specified item for the six months ended June 30, 2025.
The table below provides a reconciliation of earnings before income taxes (the most directly comparable GAAP measure) to total segment operating profit (a non-GAAP measure) for the six months ended June 30, 2025 and 2024 (in millions).
| Six Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Earnings Before Income Taxes | $ | 632 | $ | 1,481 | |||||||||||||
| Other Business (earnings) | (190) | (217) | |||||||||||||||
| Corporate | 939 | 844 | |||||||||||||||
| Specified Items: | |||||||||||||||||
| (Gain) on sale of assets and businesses | (8) | — | |||||||||||||||
| Impairment, exit, restructuring charges and settlement contingencies | 273 | 13 | |||||||||||||||
| (Gain) on contract termination | (69) | — | |||||||||||||||
| Total Segment Operating Profit | $ | 1,577 | $ | 2,121 |
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Company’s objective is to have sufficient liquidity, balance sheet strength, and financial flexibility to fund the operating and capital requirements of a capital-intensive agricultural commodity-based business. The Company depends on access to credit markets, which can be impacted by its credit rating and factors outside of the Company’s control, to fund its working capital needs and capital expenditures.
The primary source of funds to finance the Company’s operations, capital expenditures, and advancement of its growth strategy is cash generated by operations and lines of credit, including a commercial paper borrowing facility and accounts receivable securitization programs. In addition, the Company believes it has access to funds from public and private equity and debt capital markets in both U.S. and international markets.
At June 30, 2025, the Company’s capital resources included shareholders’ equity of $22.4 billion and lines of credit, including the accounts receivable securitization programs described below, totaling $12.5 billion, of which $9.5 billion was unused. Of the Company’s total lines of credit, $5.1 billion supported the combined U.S. and European commercial paper borrowing programs. At June 30, 2025, there was $721 million of commercial paper outstanding.
As of June 30, 2025, the Company had $1.1 billion of cash and cash equivalents, $421 million of which was cash held by foreign subsidiaries whose undistributed earnings are considered indefinitely reinvested. Based on the Company’s historical ability to generate sufficient cash flows from its U.S. operations and unused and available U.S. credit capacity of $5.0 billion, the Company has asserted that these funds are indefinitely reinvested outside the U.S.
As of June 30, 2025, the Company had total available liquidity of $10.5 billion comprised of cash and cash equivalents and unused lines of credit. The Company believes that cash flows from operations, cash and cash equivalents on hand, and unused lines of credit will be sufficient to meet its ongoing liquidity requirements for at least the next twelve months.
Operating Cash Flows
Cash provided by operating activities was $4.0 billion and $1.2 billion for the six months ended June 30, 2025 and 2024, respectively.
The increase in cash provided by operating activities was primarily driven by changes in net working capital, partially offset by lower earnings for the six months ended June 30, 2025. Changes in net working capital were driven by changes in segregated investments, payables to brokerage customers, inventory, trade receivables, and other current assets.
Segregated investments decreased $1,261 million compared to an increase of $261 million in the prior year period driven by business conditions and change in mix of investment portfolio.
Brokerage payables increased $708 million compared to a decrease of $390 million in the prior year period, driven by changes in customer balances in the brokerage business.
Inventories decreased $2.2 billion in the current year period compared to a decrease of $1.4 billion in the prior year period, reflecting improved management of volumes and current period commodity prices.
Trade receivables decreased by $197 million in the current period compared to an increase of $180 million in the prior year period, primarily driven by activity related to the Company’s securitization program and improved collections.
Other current assets increased by $41 million in the current period compared to a decrease of $628 million in the prior year period, primarily driven by the valuation of derivative contracts.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Investing Cash Flows
Net cash used in investing activities was $391 million and $1.6 billion for the six months ended June 30, 2025 and 2024, respectively.
Net cash used in investing activities for the six months ended June 30, 2025 included additions to property, plant, and equipment of $596 million and a business acquisition, net of cash acquired, of $95 million, partially offset by proceeds from sales of marketable securities of $267 million.
Net cash used in investing activities for the six months ended June 30, 2024 included business acquisitions, net of cash acquired, of $936 million and additions to property, plant, and equipment of $690 million.
Financing Cash Flows
Net cash used in in financing activities was $1.6 billion and $661 million for the six months ended June 30, 2025 and 2024, respectively.
Net cash used in financing activities for the six months ended June 30, 2025 and June 30, 2024 included net (repayments) borrowings under short-term credit agreements of $(1.1) billion and $2.2 billion, respectively.
No share repurchases were made in the six months ended June 30, 2025. Share repurchases for the six months ended June 30, 2024 were $2.3 billion.
Dividends paid for the six months ended June 30, 2025 and 2024 were $495 million and $503 million, respectively.
Stock Repurchase Program
On March 12, 2024, the Company entered into an accelerated share repurchase (“ASR”) transaction agreement with Merrill Lynch International, an affiliate of BofA Securities, Inc., to repurchase $1.0 billion of ADM common stock as part of ADM’s existing share repurchase program.
On March 28, 2024, the Company received an interim delivery of 8,880,986 shares at an average share price of $60.596, or $538 million in aggregate. On April 15, 2024, the Company received a final delivery of 7,325,733 shares at an average share price of $63.045, or $462 million in aggregate, as final settlement of the ASR transaction.
On December 11, 2024, the Company's Board of Directors approved a second extension of the stock repurchase program through December 31, 2029 and the repurchase of up to an additional 100 million shares under the extended program.
As of June 30, 2025, the Company had 115 million remaining shares under its share repurchase program until December 31, 2029.
Accounts Receivable Securitization Program
The Company has accounts receivable securitization programs (the “Programs”) with certain commercial paper conduit purchasers and committed purchasers. The Programs provide the Company with up to $3.0 billion in funding against accounts receivable transferred into the Programs and expands the Company’s access to liquidity through efficient use of its balance sheet assets (see Note 15. Sale of Accounts Receivable within “Notes to Consolidated Financial Statements” included in Item 1 herein, “Consolidated Financial Statements” for further information). As of June 30, 2025, the Company had $780 million unused capacity of its facility under the Programs.
ARCHER-DANIELS-MIDLAND COMPANY
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Contractual Obligations and Commercial Commitments
The Company’s purchase obligations as of June 30, 2025 and December 31, 2024 were $13.2 billion and $12.4 billion, respectively. As of June 30, 2025, the Company expects to make payments related to purchase obligations of $9.8 billion within the next twelve months. There were no other material changes in the Company’s contractual obligations during the three months ended June 30, 2025.
Critical Accounting Estimates
There were no material changes in the Company’s critical accounting estimates during the three months ended June 30, 2025. For a description of the Company’s critical accounting estimates and assumptions used in the preparation of the Company’s financial statements, see Part II. Item 7 and Note 1 of “Notes to Consolidated Financial Statements” included in Part II. Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
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