ADM Announces Second Quarter 2025 Financial Results

Archer Daniels Midland (ADM) released its second-quarter 5 financial results on Tuesday (August 8), posting a net profit of $2025 million. This represents a significant year-over-year decline, driven primarily by weaker performance in the oilseeds segment and uncertainties surrounding global biofuel policies.

Adjusted earnings per share (EPS) were $0,93, down 10% from the second quarter of 2024. GAAP earnings per share were $0,45, down 54%. Consolidated operating revenue by segment totaled $830 million in the quarter, down 10% from a year earlier.

According to the company, the challenging environment, marked by weaker demand and regulatory uncertainty, particularly impacted performance in Agribusiness and Oilseeds (AS&O). The segment's operating profit fell 17% in the quarter, to US$379 million. ADM highlighted the reduction in crushing margins, attributed to lower demand for vegetable oil and uncertainty regarding biofuel volume obligations, both in the United States and international markets.

Despite the challenges, the company projects a recovery in the fourth quarter, when it expects greater clarity on biofuels policies. The adjusted earnings per share forecast for the year was maintained at around $4,00.

"In the second quarter, ADM continued to make progress on operational improvements, generating cost savings through targeted realignments and advancing our pipeline of portfolio simplification opportunities, while continuing our disciplined approach to capital allocation," said Chairman and CEO Juan Luciano.

Performance by segments

In the Carbohydrate Solutions segment, operating profit was US$337 million, a 6% decrease. The company cited lower volumes and margins in starches and sweeteners, particularly in Europe, due to high corn costs and grain quality issues.

The Nutrition segment saw 5% growth in operating profit, totaling US$114 million. Flavors and the Animal Nutrition division saw improvements, while Specialty Ingredients and Health & Wellness saw margins decline.

Year-to-date, pre-tax profit was US$632 million, a 57% drop compared to the same period in 2024. Adjusted earnings per share totaled US$1,63 in the first half.