Archer-Daniels-Midland Company's Stock Analysis

ADM Forms Joint Venture with Alltech for Animal Nutrition

Archer-Daniels-Midland Company (ADM) has signed a definitive agreement to establish a North American animal feed joint venture with Alltech. This venture aims to transition ADM's animal nutrition business toward higher-margin specialty ingredients, allowing ADM to deconsolidate its complete feed business while retaining a share in the supply of specialty ingredients. Alltech will contribute its Hubbard Feeds and Masterfeeds businesses, while ADM will contribute its U.S. complete feed mills. The joint venture is expected to launch in the first quarter of 2026 and is not anticipated to significantly impact ADM's 2025 financial results.

The joint venture is part of ADM's strategy to optimize its Nutrition segment and focus on higher-value growth. Both companies will have equal representation on the governing board, and the joint venture will leverage their combined expertise and manufacturing capabilities. ADM will continue to invest in research and development to enhance its offerings. The partnership is positioned to deliver innovative solutions to customers in the animal nutrition market, aligning their strengths in feed production and nutrition science.

Sep 23, 2025 16:28:27

Archer Daniels Midland Reports Q2 2025 Financial Results

Archer-Daniels-Midland Company (ADM) reported net earnings of $219 million for the second quarter of 2025, with adjusted net earnings of $452 million. Earnings per share (EPS) on a GAAP basis was $0.45, reflecting a 54% decrease compared to the same period last year, while adjusted EPS was $0.93, down 10%. Year-to-date cash flows from operating activities reached $4.0 billion, with operating cash flows before working capital totaling $1.2 billion. The company has remediated a material weakness in internal controls related to segment disclosures.

The Ag Services and Oilseeds segment saw a 17% decline in operating profit, impacted by trade policy uncertainty and lower commodity prices. The Carbohydrate Solutions segment reported a 6% decrease in operating profit, primarily due to lower international volumes. However, the Nutrition segment experienced a 5% increase in operating profit, driven by improved margins in certain subsegments. ADM has tightened its full-year adjusted EPS guidance to approximately $4.00 per share, with expectations of improved margins benefiting the fourth quarter of 2025 and beyond.

Aug 05, 2025 07:08:22

ADM Reports Q1 2025 Results with Declining Earnings and EPS

ADM announced its financial results for the first quarter of 2025, reporting net earnings of $295 million and earnings per share (EPS) of $0.61, both showing a significant decline compared to the same quarter last year. Adjusted EPS was reported at $0.70, down 52% year-over-year. The company also noted a trailing four-quarter average return on invested capital of 5.4%. Cash flows used in operating activities were $(342) million, with cash flows from operations before working capital at $439 million.

In terms of segment performance, the Ag Services and Oilseeds segment saw a 52% decrease in operating profit, attributed to lower volumes and margins amid trade policy uncertainties. The Carbohydrate Solutions segment's operating profit decreased slightly by 3%, while the Nutrition segment experienced a 13% increase in operating profit, driven by improved conditions in Animal Nutrition. ADM reaffirmed its full-year adjusted EPS guidance for 2025 but indicated expectations to be at the lower end of the range due to current market conditions.

May 06, 2025 07:04:16

ADM Reports $3.65 EPS, Announces $500-$750 Million Cost Savings

ADM reported a full-year net earnings of $1.8 billion for 2024, with earnings per share (EPS) of $3.65 and adjusted EPS of $4.74, both showing a decline compared to the previous year. The company experienced a significant drop in total segment operating profit, which fell 28% to $4.2 billion, primarily due to challenges in its Ag Services & Oilseeds segment, which saw a 40% decrease in operating profit. Cash flows from operating activities also decreased to $2.8 billion, down from $4.5 billion in 2023.

On a positive note, ADM announced targeted actions aimed at achieving $500 to $750 million in cost savings over the next several years, reflecting a commitment to improve operational performance amidst market challenges. Additionally, the company declared a 2% increase in its quarterly dividend, marking its 93rd consecutive year of uninterrupted dividends. The Nutrition segment showed improvement, with a return to profitability in the fourth quarter, and equity earnings from the company’s investment in Wilmar increased by 11% compared to the prior year.

Feb 04, 2025 07:35:07

ADM Appoints New Chief Accounting Officer with 20 Years Experience

ADM has appointed Carrie Nichol as Vice President and Chief Accounting Officer, effective March 1. Nichol brings over 20 years of finance and accounting experience, having previously served at Cargill and Zimmer Biomet. Her role will involve overseeing the company's accounting processes and internal controls, as well as risk management. Executive Vice President Monish Patolawala expressed confidence in her ability to lead this essential area of the business.

Nichol will succeed Molly Strader Fruit, who is transitioning to a new position within the company. The change in leadership comes amidst ADM's ongoing efforts to execute its strategic priorities. While the appointment of a seasoned professional like Nichol is a positive development, the transition may present challenges as the company adjusts to new leadership dynamics.

Jan 29, 2025 09:12:29

ADM Reports Q3 2024 Adjusted EPS of $3.61, Down 36%

ADM's third quarter earnings report highlights a decline in adjusted earnings per share (EPS) to $3.61, marking a 36% decrease compared to the previous year. The total segment operating profit also fell by 32%, attributed to lower margins and operational challenges across various segments, particularly in Ag Services and Oilseeds. Despite these challenges, ADM maintained a solid cash position, returning $3.1 billion to shareholders through dividends and share repurchases, showcasing a commitment to shareholder value even amidst declining profits.

On the negative side, the company faced reduced profitability across its segments, with significant drops in operating profit in Nutrition, Ag Services, and Carbohydrate Solutions. The average return on invested capital (ROIC) decreased to 8.8%, down 28% year-over-year, reflecting lower segment performance. Additionally, cash flow from operations before working capital fell by 39%, indicating challenges in cash generation due to lower operating profits. Overall, while ADM remains focused on maintaining capital discipline and operational improvements, the current financial metrics reflect significant headwinds.

Dec 02, 2024 16:51:39

ADM Reports $530 Million Adjusted Net Earnings for Q3 2024

ADM reported net earnings of $18 million for the third quarter of 2024, with adjusted net earnings of $530 million, despite a significant non-cash charge of $461 million related to its Wilmar equity investment. Year-to-date cash flows from operating activities reached $2,468 million, marking an increase compared to the previous year's $1,891 million, although cash flows from operations before working capital saw a decrease. The company has completed its financial restatement for 2023 and the first two quarters of 2024, confirming that these adjustments did not affect consolidated financial results for the reported periods.

On the downside, earnings per share decreased to $0.04 on a GAAP basis and $1.09 on an adjusted basis, both reflecting a decline compared to the prior year. Total segment operating profit for the third quarter was $1,037 million, down 28% year-over-year, with significant reductions in the Ag Services & Oilseeds and Nutrition segments. Year-to-date results also showed a 55% drop in earnings before income taxes compared to the previous year, indicating ongoing challenges in market conditions and operational performance.

Nov 18, 2024 16:34:57

ADM Elects AT&T's David McAtee to Board of Directors

ADM has appointed David R. McAtee II, AT&T's General Counsel, to its Board of Directors. McAtee brings extensive experience in government regulation, strategic planning, and data security, which ADM's leadership believes will support the company's future direction. His background in managing complex legal matters and engaging with institutional investors is seen as beneficial for ADM's growth and operational strategy.

However, the press release does not mention any specific challenges or concerns that ADM may currently face. While it highlights McAtee's qualifications and the positive aspects of his appointment, there is no discussion of potential issues within the company or the broader market environment that could impact ADM's operations or strategy moving forward.

Nov 06, 2024 16:42:55

ADM Reports $18 Million Net Earnings for Q3 2024

ADM reported preliminary financial results for the third quarter of 2024, indicating net earnings of $18 million and adjusted net earnings of $530 million. The company experienced a trailing four-quarter average return on invested capital of 6.6%. However, earnings per share decreased to $0.04, with adjusted earnings per share at $1.09, both lower than the previous year. Cash flows from operating activities reached $2.468 billion year-to-date, reflecting a significant increase from $1.891 billion in the same period last year.

On the negative side, ADM announced it will restate its previously filed fiscal year 2023 Form 10-K and subsequent Forms 10-Q due to errors in segment information disclosures. The Ag Services and Oilseeds segment saw a 43% drop in operating profit, primarily due to lower results in South America and increased logistics costs. The Nutrition segment's operating profit also fell by 19%, impacted by higher costs and lapping non-recurring benefits from the previous year. Additionally, the company postponed its third-quarter conference call as it works to finalize its financial statements.

Nov 04, 2024 20:19:30

ADM Reports Mixed Q2 2024 Results Amid Challenges

ADM's second quarter earnings showed a decline, with net earnings down 47% to $486 million and adjusted earnings per share at $1.03, a 37% decrease year-over-year. Challenges included lower pricing and margins in Ag Services & Oilseeds. However, strong performance in Carbohydrate Solutions and effective cash flow management led to shareholder returns through buybacks. The company remains optimistic about the second half of the year, citing potential margin improvements and operational excellence.

Jul 30, 2024 10:52:06