Archer Daniels Midland (NYSE:ADM) reported fourth-quarter 2025 adjusted earnings per share of $0.87 and full-year adjusted EPS of $3.43, as management emphasized tighter execution, working capital improvements, and expectations for a “more constructive” operating environment in 2026. Total segment operating profit was $821 million in the quarter and $3.2 billion for the year.
On the call, Chair and CEO Juan Luciano said ADM generated cash flow from operations before working capital changes of $2.7 billion in 2025 and delivered a $1.5 billion cash flow benefit from inventory reductions. Trailing fourth-quarter adjusted return on invested capital was 6.3%. ADM also paid its 376th consecutive quarterly dividend during the fourth quarter.
2025 actions: portfolio work, cost savings, and investigations closed
- Completion of more than 20 portfolio optimization and simplification projects, contributing approximately $200 million of cost savings.
- The joint venture with Alltech, which management said has recently commenced operations.
- Efforts to address plant efficiency issues, reduce unplanned downtime, and restore operations at the Decatur East plant.
- A safety milestone, with the lowest injury rate in the company’s history.
- Expansion of carbon capture and storage infrastructure by connecting the Columbus, Nebraska corn milling plant to the Tallgrass Trailblazer Pipeline.
- Nutrition improvements, including better execution and higher revenue, according to management.
- Closure of government investigations related to ADM’s prior reporting on intersegment sales, which Luciano said allows the company to “put these matters behind” it.
Segment performance: AS&O pressured, ethanol strength offsets sweetener weakness
CFO Monish Patolawala said 2025 was shaped by changes in global trade and biofuel policy, weighing on results in Ag Services and Oilseeds (AS&O). AS&O segment operating profit was $444 million in the fourth quarter, down 31% year over year, and $1.6 billion for the full year, down 34% versus 2024.
Within AS&O, Ag Services operating profit fell 31% year over year to $174 million in the quarter, driven primarily by lower North American export activity and net negative timing impacts of about $50 million. Crushing operating profit declined 69% to $66 million, as weaker crush margins in North and South America outweighed higher global crush volumes. Patolawala also cited net negative timing impacts of about $20 million and roughly $20 million of reduced insurance proceeds tied to Decatur East claims versus the prior-year quarter.
In Refined Products and Other, operating profit was $119 million, down 2% year over year, with positive timing impacts helping offset weaker food demand and lower biodiesel and refining margins. Equity earnings from Wilmar were $85 million for the quarter; ADM recorded a $254 million gain tied to a Wilmar transaction as a specified item, management said.
In Carbohydrate Solutions, segment operating profit was $299 million in the fourth quarter, down 6% year over year, as continued weakness in Starches and Sweeteners was “largely offset” by stronger ethanol margins. Full-year segment operating profit was $1.2 billion, down 12% from 2024.
Starches and Sweeteners operating profit declined 16% year over year to $256 million in the quarter, with Patolawala attributing the pressure to consumer buying trends that reduced packaged goods consumption, impacting volumes and margins. He also pointed to persistent high corn costs in EMEA related to industry-wide crop quality issues previously disclosed. The quarter also included approximately $33 million of reduced insurance proceeds related to Decatur East and West compared with the prior year.
Vantage Corn Processors operating profit rose to $43 million, up 187% from the prior-year quarter. Patolawala said ethanol margins were stable through October and November before seasonal softening in December, and that exports and pricing strength were supported primarily by mandated markets. Ethanol EBITDA margins per gallon were approximately 33% higher than the prior-year quarter, he added.
Nutrition: “true” operating performance and Decatur East recovery
Nutrition segment revenue was $1.8 billion in the fourth quarter, roughly flat year over year, with human nutrition up 5% and animal nutrition down 4% due to previously disclosed portfolio exits. Segment operating profit was $78 million, down 11% year over year, which management said reflected the absence of insurance proceeds received in fourth-quarter 2024.
During Q&A, Luciano urged investors to compare Nutrition performance excluding insurance proceeds, arguing that on an “apples to apples” basis the quarter showed stronger operating execution. He said Flavors delivered a “very strong quarter,” with operating profit up “close to 60%,” and said Biotics also grew strongly. Luciano noted some demand softness in Europe during the quarter but said the company saw recovery as 2026 began.
Luciano also said specialty ingredients are continuing their recovery with the Decatur East plant back online, while noting the facility was down for 18 months and requires stabilization and productivity work. He added that customers had shifted sourcing during the outage and that ADM is working to regain share “prudently,” acknowledging it will take time.
2026 outlook: wide EPS range tied to policy timing, demand, and crush margins
ADM guided to 2026 adjusted EPS of $3.60 to $4.25. Luciano and Patolawala said the range reflects uncertainty around the timing and content of U.S. biofuel policy clarity, including Renewable Volume Obligations (RVO) and how the market adopts the policy.
Patolawala said the company expects Carbohydrate Solutions segment operating profit to be relatively flat, with lower Starches and Sweeteners volumes and pricing offset by higher ethanol margins. Nutrition is expected to continue stronger organic growth and execution. The CFO said the outlook assumes robust ethanol export opportunities continue, driven by mandated markets, and that domestic ethanol demand could strengthen with policy clarity and incentives.
Management repeatedly stressed timing effects: Luciano noted ADM often sells 60% to 70% into the following quarter, implying that if policy clarity arrived late in the first quarter, benefits might show up “mostly July onwards.” Patolawala added that mark-to-market impacts could swing results within quarters and are not predicted in company estimates.
On cost savings, Patolawala said ADM remains on track to achieve aggregate targeted cost savings of $500 million to $750 million over three to five years, with the program beginning in 2025 and manufacturing cost productivity a major focus. For capital allocation, ADM expects 2026 capital expenditures of approximately $1.3 billion to $1.5 billion, compared with $1.2 billion in 2025.
Patolawala also provided an adjusted effective tax rate expectation for 2026 of 18% to 20% and said corporate expenses are expected to rise year over year due to continued investment in R&D and digital platforms, changes in incentive compensation comparisons, and lower ADMIS interest income in a lower-rate environment.
Addressing the persistent softness in Starches and Sweeteners, Luciano cited several factors, including GLP-1 adoption affecting consumption patterns, consumer interest in reducing ultra-processed foods, and price sensitivity as food price levels remain elevated even as inflation has moderated. He said liquid sweetener volumes were down “maybe in the range of 5%-7%,” and that ADM is working to shift volumes toward other applications.
In response to a question on tax credits, management said it had estimated potential 45Z benefit could be approximately $100 million, while cautioning that the outcome depends on variables including plant carbon intensity, prevailing wage requirements, sequestration volumes, production volumes, and industry pricing responses, and that final guidance had not been issued.
For the first quarter of 2026, Patolawala reiterated prior commentary that crush margins are expected to be similar to the fourth quarter of 2025, as a large portion of the quarter’s business has already been booked.
About Archer Daniels Midland (NYSE:ADM)
Archer Daniels Midland Company (ADM) is a global agricultural processor and food-ingredient provider that sources, transports and processes oilseeds, corn, wheat and other agricultural commodities. The company operates large-scale crushing, refining and processing facilities that produce vegetable oils, protein meals, corn sweeteners, starches, ethanol, animal feeds and a wide range of food and industrial ingredients. ADM also develops specialty ingredients and solutions for human and animal nutrition, food and beverage formulation, and industrial applications such as bio-based materials and renewable fuels.
ADM’s business combines commodity origination and merchandising with downstream manufacturing and ingredient formulation.
