Key Takeaways:
- ADM reported Q2 2025 net earnings of $219 million, with adjusted net earnings of $452 million
- Adjusted earnings per share (EPS) stood at $0.93, down 10% from Q2 2024
- Year-to-date operating cash flow reached $4.0 billion
- The company updated its full-year 2025 adjusted EPS outlook to approximately $4.00/share
- Operational improvements, margin recovery, and portfolio simplification efforts are ongoing
ADM Financial Overview for Q2 2025
Continued Margin Pressure Impacts Quarterly Results
ADM reported second-quarter net earnings of $219 million for the period ended June 30, 2025. This represents a significant decline from the prior year, with earnings before income taxes falling 53% to $279 million. Adjusted EPS for the quarter was $0.93, a 10% decrease compared to Q2 2024, while reported EPS declined 54% to $0.45.
Total segment operating profit for the quarter stood at $830 million, also reflecting a 10% year-over-year drop. Despite the decline, ADM emphasized its progress in cost reduction and operational realignment strategies.
Segment Performance Summary
Ag Services & Oilseeds Shows Mixed Results
The Ag Services & Oilseeds (AS&O) segment reported a 17% decline in quarterly operating profit, totaling $379 million. Within AS&O:
- Ag Services saw a 7% decline due to trade policy uncertainty and lower volumes.
- Crushing experienced a steep 75% drop in profit amid weaker vegetable oil demand and policy uncertainty around biofuels.
- Refined Products and Other improved by 14%, benefiting from positive mark-to-market impacts.
- Wilmar equity earnings increased 13% compared to the prior year quarter.
ADM reiterated its focus on network consolidation within AS&O as it anticipates an improved market environment later in the year.
Carbohydrate Solutions Slightly Down
Operating profit for the Carbohydrate Solutions segment was $337 million, down 6% from Q2 2024. The Starches & Sweeteners subsegment also declined 6% amid lower international volumes and increased corn costs in EMEA. Vantage Corn Processors remained relatively stable.
Year-to-date, the segment’s operating profit stands at $576 million, a 5% drop versus the same period in 2024.
Nutrition Sees Modest Growth
The Nutrition segment posted a 5% increase in operating profit to $114 million. While Human Nutrition declined 11% due to Decatur East plant impacts and lower margins, Animal Nutrition more than tripled its profit compared to the previous year, driven by improved margins and cost controls.
ADM expects the resumption of full operations at the Decatur East plant to positively impact the second half of the year.
Outlook and Strategic Direction
Adjusted EPS Guidance Narrowed
ADM revised its full-year 2025 adjusted EPS guidance to approximately $4.00/share. The company anticipates stronger performance in the fourth quarter, driven by improved margins and clearer biofuel policy.
Chair and CEO Juan Luciano stated, “We continued to make progress on operational improvements… while advancing our pipeline of portfolio simplification opportunities.” He also noted that improved policy clarity and disciplined execution are key to navigating near-term market volatility.
The company also confirmed it has addressed a previously identified material weakness in internal controls related to segment disclosures.
ADM’s Forward-Looking Position
ADM emphasized that despite macroeconomic and regulatory uncertainty, it remains positioned for long-term performance recovery. The organization’s strategic priorities continue to include margin improvement, capital discipline, and portfolio optimization.
As 2025 progresses, ADM will look to benefit from anticipated tailwinds in its core segments, especially as market conditions begin to stabilize in the fourth quarter.
Webcast Access: A replay of ADM’s Q2 2025 earnings webcast is available here.
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