Archer-Daniels-Midland Company (ADM) 2025 Annual Report Summary
Business Context and Reporting Period
This summary covers the Form 10-K for the fiscal year ended December 31, 2025. ADM is a global agricultural supply chain manager and processor operating through three reportable segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The company connects farmers to global markets, processing raw commodities into food, feed, fuel, and industrial products. As of December 31, 2025, ADM employed approximately 41,500 people globally.
Key Financial Metrics
| Metric (in millions, except per share) | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenues | $80,269 | $85,530 | ($5,261) |
| Gross Profit | $5,033 | $5,778 | ($745) |
| Net Earnings (GAAP) | $1,078 | $1,800 | ($722) |
| Diluted EPS (GAAP) | $2.23 | $3.65 | ($1.42) |
| Adjusted Net Earnings (Non-GAAP) | $1,660 | $2,339 | ($679) |
| Adjusted Diluted EPS (Non-GAAP) | $3.43 | $4.74 | ($1.31) |
| Operating Cash Flow | $5,452 | $2,790 | $2,662 |
| Total Segment Operating Profit | $3,242 | $4,209 | ($967) |
| Shareholders' Equity | $22,740 | $22,178 | $562 |
| Total Debt (Long-term + Current) | $7,612 | $8,254 | ($642) |
Material Changes vs. Prior Period
- Revenue Decline: Total revenues decreased 6% to $80.3 billion, driven by lower sales volumes ($2.9 billion) and lower sales prices ($2.3 billion). Ag Services and Oilseeds revenues fell 7% due to compressed margins and lower volumes in global trade and crushing.
- Profitability Pressure: Net earnings dropped 40% to $1.1 billion. Earnings before income taxes decreased 44% to $1.3 billion, primarily due to lower pricing and execution margins.
- Impairments and Charges: The company recorded significant non-recurring charges in 2025, including:
- $372 million in revaluation losses related to investments in the alternative protein market and startup companies.
- $283 million in asset impairment, exit, and restructuring costs.
- $179 million impairment charge related to previously capitalized software.
- Wilmar Investment Impact: Equity earnings from Wilmar International Limited included a one-time remeasurement gain of $254 million and a penalty charge of $163 million. In the prior year, a $461 million impairment was recorded for the Wilmar investment.
- Cash Flow Improvement: Despite lower earnings, operating cash flow nearly doubled to $5.5 billion, driven by a $1.5 billion cash inflow from inventory reductions and changes in payables to brokerage customers.
Guidance, Outlook, and Risks
- Strategic Priorities: Management is focused on execution and cost management, strategic simplification (portfolio optimization), targeted growth investment (modernization, biosolutions), and disciplined capital deployment. The company announced targeted actions expected to deliver over $500 million in cumulative cost savings over the next 3 to 5 years.
- 2026 Outlook: ADM expects capital expenditures of approximately $1.4 billion and dividend payments of $1.0 billion in 2026.
- Key Risks:
- Geopolitical: Ongoing Russia-Ukraine conflict impacts Black Sea trade flows and commodity volatility. Trade policy uncertainty (e.g., U.S.-China soybean trade) continues to affect margins.
- Regulatory: Changes in biofuel policies (deferral of U.S. biofuel policy) and the implementation of the EU Deforestation Regulation impact demand and margins. The "One Big Beautiful Bill Act" (OBBBA) enacted in July 2025 introduces changes to tax rules and energy credits.
- Operational: Risks include cybersecurity threats, supply chain disruptions, and the execution of technology upgrades (ERP systems).
- Unusual Items: The company engaged CCIC Singapore for inspection services prior to its designation as a Specially Designated Global Terrorist by OFAC in May 2025. No payments were made post-designation, and no new engagements were entered into.
Investor Verification Checklist
- Margin Compression: Verify the sustainability of margin recovery in the Ag Services and Oilseeds segment given the deferral of U.S. biofuel policies and global trade uncertainties.
- Investment Portfolio: Assess the valuation and future prospects of the alternative protein and startup investments that resulted in $372 million in revaluation losses.
- Wilmar Exposure: Monitor the carrying value ($4.0 billion) vs. market value ($3.4 billion) of the Wilmar investment and the potential for future impairment if market conditions do not improve.
- Cost Savings Execution: Track the realization of the announced $500 million in cost savings from restructuring and portfolio simplification initiatives.
- Regulatory Compliance: Review ongoing legal proceedings, including commodities class actions regarding ethanol pricing and shareholder litigation related to intersegment sales.