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ADM Reports Q4 & FY 2024 Financial Performance Amid Market Challenges

ADM has appointed Carrie Nichol as Vice President and Chief Accounting Officer, effective March 1.
Image provided by ADM.

Key Takeaways

  • Full-Year Financial Performance: ADM reported net earnings of $1.8 billion and adjusted net earnings of $2.3 billion for 2024.
  • Earnings Per Share (EPS): GAAP EPS of $3.65, adjusted EPS of $4.74, reflecting a decrease compared to the prior year.
  • Cost-Saving Initiatives: ADM is implementing $500-$750 million in targeted cost savings over the next several years.
  • Segment Performance: ADM’s Ag Services & Oilseeds declined 40% year-over-year, while Carbohydrate Solutions remained stable and Nutrition fell 10%.
  • Dividend Increase: ADM announced a 2% increase in its quarterly dividend, marking 93 consecutive years of uninterrupted dividends.

ADM’s 2024 Financial Performance

ADM (NYSE: ADM) reported its fourth-quarter and full-year 2024 financial results, highlighting net earnings of $1.8 billion and adjusted net earnings of $2.3 billion. The company faced challenging market conditions, resulting in a 47% decline in earnings before income taxes compared to the previous year.

ADM’s full-year consolidated revenues were impacted by lower operating profits across its Ag Services & Oilseeds and Nutrition segments, while Carbohydrate Solutions remained stable.

According to Juan Luciano, Board Chair and CEO, “With softer market conditions and policy uncertainty going into 2025, we are focused on improving our operational performance, accelerating cost savings, and simplifying our portfolio.”

ADM announced a new cost reduction initiative, targeting $500-$750 million in savings over the next few years through efficiency improvements, workforce reductions, and streamlining operations.


ADM’s Fourth Quarter and Full-Year Financial Summary

ADM’s Fourth Quarter 2024

Financial Metric Q4 2024 Q4 2023 Change
Earnings Before Income Taxes $667M $734M (9%)
GAAP EPS $1.17 $1.06 +10%
Adjusted EPS $1.14 $1.36 (16%)
Total Segment Operating Profit $1.05B $1.25B (16%)

ADM’s Full-Year 2024

Financial Metric 2024 2023 Change
Earnings Before Income Taxes $2.3B $4.2B (47%)
GAAP EPS $3.65 $6.40 (43%)
Adjusted EPS $4.74 $6.96 (32%)
Total Segment Operating Profit $4.2B $5.9B (28%)

ADM’s Segment Performance Overview

ADM’s Ag Services & Oilseeds

  • Fourth-quarter profit: $644M (down 32% YoY)
  • Full-year profit: $2.4B (down 40% YoY)
  • Declines attributed to lower crush margins, biofuel policy uncertainty, and higher industry costs.
  • The Crushing subsegment saw a 46% YoY decline in Q4 2024.
  • The Refined Products subsegment decreased 57% YoY due to higher imports of used cooking oil and lower biofuel demand.

ADM’s Carbohydrate Solutions

  • Fourth-quarter profit: $319M (up 3% YoY)
  • Full-year profit: $1.4B (flat YoY)
  • The Starches & Sweeteners subsegment reported mixed results, with higher North American margins offset by lower European performance.
  • Vantage Corn Processors improved in Q4 due to higher ethanol export volumes.

Nutrition Segment

  • Fourth-quarter profit: $88M (compared to a loss of $10M in Q4 2023)
  • Full-year profit: $386M (down 10% YoY)
  • Human Nutrition improved due to higher volumes and the impact of cost-cutting efforts.
  • Animal Nutrition subsegment saw a 73% YoY improvement in Q4 2024.

ADM’s 2025 Outlook and Cost-Saving Initiatives

2025 Guidance

ADM expects adjusted EPS of $4.00-$4.75 in 2025, reflecting continued market headwinds, biofuel policy uncertainty, and weaker global demand.

Cost Reduction Plan

  • ADM aims to achieve $500-$750 million in cost savings over the next 3-5 years.
  • Measures include reducing workforce by approximately 600-700 positions in 2025.
  • Efficiency improvements in manufacturing costs, procurement, and global operations.

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