ADM's Q3 Earnings Plunge 49.6% Amid Wilmar Penalty, Revenue Dip

TL;DR

**ADM's earnings are getting crushed by legal woes and revenue dips, making it a risky bet right now.**

AI Summary

Archer-Daniels-Midland Co (ADM) reported a significant decline in net earnings for the nine months ended September 30, 2025, falling to $622 million from $1,233 million in the prior year, a decrease of 49.6%. Diluted earnings per common share also dropped to $1.29 from $2.48. Revenues for the nine-month period decreased to $61,713 million from $64,032 million, a 3.6% reduction. However, for the three months ended September 30, 2025, revenues increased slightly to $20,372 million from $19,937 million in the same period of 2024. A key business change was a $163 million charge related to Wilmar International Limited, where ADM holds a 22.5% share, due to a penalty imposed by the Indonesian Supreme Court. Risks include ongoing government investigations by the SEC and DOJ, as well as operational risks and commodity price volatility. Despite the earnings decline, net cash provided by operating activities significantly increased to $5,765 million for the nine months ended September 30, 2025, up from $2,468 million in the prior year, driven by a substantial reduction in inventories by $3,165 million.

Why It Matters

ADM's substantial earnings decline and the $163 million charge related to Wilmar International Limited signal potential headwinds for investors, impacting profitability and future dividend growth. The ongoing SEC and DOJ investigations introduce regulatory uncertainty, which could affect ADM's market valuation and competitive standing against rivals like Bunge and Cargill. For employees, these financial pressures could lead to cost-cutting measures or strategic shifts. Customers might see impacts on pricing or product availability if ADM adjusts its operational footprint. The broader market will watch how ADM navigates these challenges, especially given its critical role in global food supply chains.

Risk Assessment

Risk Level: high — The risk level is high due to a 49.6% drop in net earnings attributable to ADM, from $1,233 million to $622 million, for the nine months ended September 30, 2025. Additionally, the company recorded a significant $163 million loss in equity in unconsolidated affiliates due to a penalty on Wilmar International Limited. The filing also explicitly mentions ongoing government investigations by the United States Securities and Exchange Commission and the Department of Justice, adding substantial regulatory uncertainty.

Analyst Insight

Investors should exercise caution and consider reducing exposure to ADM given the significant earnings decline and ongoing legal investigations. Monitor future filings closely for updates on the SEC and DOJ investigations and any further financial impacts from the Wilmar penalty. Await clearer signs of operational improvement and resolution of legal issues before considering new positions.

Financial Highlights

revenue

$61,713M

net Income

$622M

eps

$1.29

cash Position

$1,235M

revenue Growth

-3.6%

Revenue Breakdown

Key Numbers

• $61,713M — Revenues (Decreased from $64,032M for the nine months ended September 30, 2024)
• $622M — Net Earnings Attributable to ADM (Decreased from $1,233M for the nine months ended September 30, 2024)
• $1.29 — Diluted EPS (Decreased from $2.48 for the nine months ended September 30, 2024)
• $163M — Equity in loss of unconsolidated affiliates (Charge related to Wilmar penalty for the three months ended September 30, 2025)
• $5,765M — Net cash provided by operating activities (Increased from $2,468M for the nine months ended September 30, 2024)
• $3,165M — Decrease in Inventories (Contributed to increased operating cash flow for the nine months ended September 30, 2025)
• 480,569,735 — Shares Outstanding (As of October 27, 2025)

Key Players & Entities

• Archer-Daniels-Midland Co (company) — registrant
• Wilmar International Limited (company) — 22.5% share ownership, subject to penalty
• United States Securities and Exchange Commission (regulator) — conducting ongoing government investigation
• Department of Justice (regulator) — conducting ongoing government investigation
• Indonesian Supreme Court (regulator) — imposed penalty on Wilmar
• $622 million (dollar_amount) — Net Earnings Attributable to Archer-Daniels-Midland Company for nine months ended September 30, 2025
• $1,233 million (dollar_amount) — Net Earnings Attributable to Archer-Daniels-Midland Company for nine months ended September 30, 2024
• $163 million (dollar_amount) — loss recorded in Equity in loss (earnings) of unconsolidated affiliates related to Wilmar penalty
• $5,765 million (dollar_amount) — Net cash provided by operating activities for nine months ended September 30, 2025
• $2,468 million (dollar_amount) — Net cash provided by operating activities for nine months ended September 30, 2024

FAQ

Risk Factors

• Wilmar International Penalty [medium — legal]: ADM recorded a $163 million charge in Q3 2025 related to a penalty imposed on its 22.5% affiliate, Wilmar International Limited, by the Indonesian Supreme Court. This event highlights potential legal and financial risks associated with significant equity investments.
• Government Investigations [high — regulatory]: The company is subject to ongoing government investigations by the SEC and DOJ. These investigations pose significant legal, financial, and reputational risks.
• Commodity Price Volatility [high — market]: ADM's operations are inherently exposed to commodity price volatility. Fluctuations in prices of agricultural commodities can significantly impact revenues, costs, and profitability.
• Operational Risks [medium — operational]: The company faces various operational risks inherent in its global supply chain and processing activities. Disruptions due to weather, logistics, or other factors can impact performance.

Industry Context

ADM operates in the highly competitive global agribusiness and food processing industry. Key trends include increasing demand for sustainable sourcing, evolving consumer preferences for plant-based proteins, and the ongoing impact of geopolitical events on global supply chains. Competitors include other large multinational agribusiness companies and specialized food ingredient producers.

Regulatory Implications

ADM faces significant regulatory scrutiny, including ongoing investigations by the SEC and DOJ. Compliance with evolving environmental, food safety, and trade regulations is critical. The company's global operations expose it to a complex web of international regulations, such as the recent penalty imposed on Wilmar in Indonesia.

What Investors Should Do

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Key Dates

• 2025-09-30: Nine Months Ended — Reported a 49.6% decrease in net earnings to $622M and a 3.6% decrease in revenues to $61,713M compared to the prior year. Operating cash flow significantly increased by $3,300M due to inventory reduction.
• 2025-09-25: Wilmar International Penalty Decision — Indonesian Supreme Court imposed a penalty on Wilmar International, leading ADM to record a $163M charge in equity in loss of unconsolidated affiliates.

Glossary

Equity in loss (earnings) of unconsolidated affiliates

This line item reflects ADM's share of the profits or losses from companies in which it holds a significant stake but does not control. It includes adjustments for events like the Wilmar penalty. (Crucial for understanding the impact of ADM's investments in associated companies, as demonstrated by the $163M charge related to Wilmar.)

Deferred pricing contracts

Contracts where the price of a commodity is not fixed at the time of sale or purchase but is determined at a later date based on market conditions. (Affects how ADM values its commodity inventories and can introduce price risk.)

FIFO (First-In, First-Out)

An inventory valuation method assuming that the first goods purchased are the first ones sold. (Impacts the reported cost of goods sold and the value of remaining inventory, affecting gross profit.)

VIEs (Variable Interest Entities)

Entities for which voting rights are not the determining factor in control. ADM consolidates VIEs where it is the primary beneficiary. (Indicates ADM's complex ownership structures and accounting for entities where it may not have majority voting shares but still controls the economic benefits.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, ADM reported a significant 49.6% decrease in net earnings to $622 million, compared to $1,233 million in the prior year, with diluted EPS falling to $1.29 from $2.48. Revenues also saw a 3.6% decline to $61,713 million. However, operating cash flow dramatically improved, increasing by $3,300 million to $5,765 million, largely due to a $3,165 million reduction in inventories. A notable new risk factor is the $163 million charge related to a penalty on its affiliate, Wilmar International.

Filing Documents

• adm-20250930.htm (10-Q) — 2439KB
• adm-ex311_20250930xq3.htm (EX-31.1) — 10KB
• adm-ex312_20250930xq3.htm (EX-31.2) — 10KB
• adm-ex321_20250930xq3.htm (EX-32.1) — 5KB
• adm-ex322_20250930xq3.htm (EX-32.2) — 4KB
• adm-20250930_g1.jpg (GRAPHIC) — 109KB
• 0000007084-25-000052.txt ( ) — 12876KB
• adm-20250930.xsd (EX-101.SCH) — 54KB
• adm-20250930_cal.xml (EX-101.CAL) — 110KB
• adm-20250930_def.xml (EX-101.DEF) — 252KB
• adm-20250930_lab.xml (EX-101.LAB) — 720KB
• adm-20250930_pre.xml (EX-101.PRE) — 494KB
• adm-20250930_htm.xml (XML) — 3022KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated Financial Statements (Unaudited)

Item 1. Consolidated Financial Statements (Unaudited) 1 a) Statements of Earnings 1 b) Statements of Comprehensive Income (Loss) 2 c) Balance Sheets 3 d) Statements of Cash Flows 4 e) Statements of Shareholders' Equity 5 f) Notes to Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 3 9

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 5 8

Controls and Procedures

Item 4. Controls and Procedures 5 9

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 60

Risk Factors

Item 1A. Risk Factors 60

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 6 0

Other Information

Item 5. Other Information 6 0

Exhibits

Item 6. Exhibits 6 1

Signatures

Signatures 6 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) ARCHER-DANIELS-MIDLAND COMPANY CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In millions, except per share amounts) Revenues $ 20,372 $ 19,937 $ 61,713 $ 64,032 Cost of products sold 19,102 18,572 57,893 59,612 Gross Profit 1,270 1,365 3,820 4,420 Selling, general, and administrative expenses 873 905 2,716 2,763 Asset impairment, exit, and restructuring costs 246 507 421 532 Equity in loss (earnings) of unconsolidated affiliates 41 ( 134 ) ( 237 ) ( 498 ) Interest and investment (income) expense ( 121 ) ( 137 ) ( 189 ) ( 400 ) Interest expense 153 174 470 527 Other (income) – net ( 69 ) ( 58 ) ( 140 ) ( 92 ) Earnings Before Income Taxes 147 108 779 1,588 Income tax expense 37 90 160 370 Net Earnings Including Non-controlling Interests 110 18 619 1,218 Net earnings (loss) attributable to non-controlling interests 2 — ( 3 ) ( 15 ) Net Earnings Attributable to Archer-Daniels-Midland Company $ 108 $ 18 $ 622 $ 1,233 Average number of shares outstanding – basic 484 482 484 496 Average number of shares outstanding – diluted 484 483 484 497 Basic earnings per common share $ 0.22 $ 0.04 $ 1.29 $ 2.49 Diluted earnings per common share $ 0.22 $ 0.04 $ 1.29 $ 2.48 Dividends per common share $ 0.51 $ 0.50 $ 1.53 $ 1.50 The accompanying notes are an integral part of these Consolidated Financial Statements. 1 Table of Contents ARCHER-DANIELS-MIDLAND COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (In millions) Net Earnings Including Non-controlling Interests $ 110 $ 18 $ 619 $ 1,218 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment 135 2 284 ( 255 ) Tax effect ( 4 ) 34 109 8 Net of tax amount 131 36 393 ( 247 ) Deferred gain (loss)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1. Basis of Presentation The Consolidated Financial Statements of Archer-Daniels-Midland Company and its subsidiaries ("ADM" or the "Company") included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results reported in these Consolidated Financial Statements are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. For further information, refer to the Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2024. Certain prior period data has been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation. Principles of Consolidation The Consolidated Financial Statements include the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. The Company consolidates all entities, including variable interest entities (VIEs), in which it has a controlling financial interest. For VIEs, the Company assesses whether it is the primary beneficiary as defined under the applicable accounting standard. Investments in affiliates, including VIEs through which the Company exercises significant influence but does not control the investee and is not the primary beneficiary of the investee's activities, are carried at cost plus equity in undistributed earnings since acquisition and are adjusted, where appropriate, for basis differences between the investmen

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Receivables The Company records accounts receivable at net realizable value, including an allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and any accrued interest receivables thereon. The Company estimates uncollectible accounts by pooling receivables according to type, region, credit risk rating, and age. Each pool is assigned an expected loss co-efficient to arrive at a general reserve based on historical write-offs adjusted, as needed, for regional, economic, and other forward-looking factors. Long-term receivables recorded in Other assets were not material to the Company's overall receivables portfolio. Changes to the allowance for estimated uncollectible accounts were as follows (in millions). Three Months Ended September 30, 2025 2024 Opening balance, July 1 $ 153 $ 194 Provisions (reversals), net 3 ( 21 ) Write-offs against allowance ( 6 ) ( 4 ) Recoveries and other — 2 Closing balance, September 30 $ 150 $ 171 Nine Months Ended September 30, 2025 2024 Opening balance, January 1 $ 167 $ 215 Provisions (reversals), net 11 ( 28 ) Write-offs against allowance ( 33 ) ( 20 ) Recoveries and other 5 4 Closing balance, September 30 $ 150 $ 171 Inventories Certain merchandisable agricultural commodity inventories, which include inventories acquired under deferred pricing contracts, are stated at market value. In addition, the Company values certain inventories using the first-in, first-out (FIFO) method at the lower of cost or net realizable value. The following table sets forth the Company's inventories as of September 30, 2025 and December 31, 2024 (in millions). September 30, 2025 December 31, 2024 Raw materials and supplies (1) $ 1,614 $ 1,922 Finished goods 2,281 2,689 Market inventories 4,805 6,961 Total inventories $ 8,700 $ 11,572 (1) Includes work in process inventories which were not material as

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Cost method investments of $ 326 million and $ 439 million as of September 30, 2025 and December 31, 2024, respectively, were included in Other non-current assets in the Company's Consolidated Balance Sheets. Revaluation gains and losses, including impairment losses, are recorded in Interest and investment (income) expense in the Company's Consolidated Statements of Earnings. During the nine months ended September 30, 2025, the Company recognized impairment losses of $ 187 million. Impairment losses are recognized when the Company identifies events or changes in circumstances that suggest the carrying amount of an investment might exceed its fair value. As of September 30, 2025, the lifetime cumulative amounts of upward and downward adjustments on cost method investments were $ 114 million and $ 263 million, respectively. Investments in Affiliates The Company applies the equity method of accounting for investments in investees over which the Company has the ability to exercise significant influence. The Company had a 22.5 % share ownership in Wilmar International Limited ("Wilmar") as of September 30, 2025 and December 31, 2024. The Company records its share of Wilmar's financial results on a three-month lag basis, with the exception of transactions or events that occur during the intervening period that materially affect Wilmar's financial position or results of operations. During the three months ended September 30, 2025, the Company recorded a charge related to its share of a penalty imposed on Wilmar by the September 25, 2025 decision of the Indonesian Supreme Court, on appeal by the Indonesian Attorney General's Office. The Company recorded $ 163 million of losses in Equity in loss (earnings) of unconsolidated affiliates within the Consolidated Statement of Earnings, for the Ag Services and Oilseeds segment, presented as a specified item. The Company's investment in Wilmar had a carrying value

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Property, Plant, and Equipment The Company's property, plant, and equipment consisted of the following as of September 30, 2025 and December 31, 2024 (in millions). September 30, 2025 December 31, 2024 Land $ 606 $ 566 Buildings 6,385 6,143 Machinery and equipment 21,590 20,636 Construction in progress 1,347 1,553 29,928 28,898 Accumulated depreciation ( 18,836 ) ( 18,061 ) Property, Plant, and Equipment, Net $ 11,092 $ 10,837 Redeemable Non-controlling Interests The Company presents any redeemable non-controlling interests in temporary equity within the Consolidated Balance Sheets at redemption value with period changes recorded in reinvested earnings. The Company reports the portion of its earnings or loss for redeemable non-controlling interests as Net earnings (losses) attributable to non-controlling interests in the Consolidated Statements of Earnings. Changes to the Company's redeemable non-controlling interests for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions): Three Months Ended September 30, 2025 2024 Opening balance, July 1 $ 249 $ 302 Net earnings attributable to redeemable non-controlling interests 1 — Currency translation adjustments and other — ( 18 ) Closing balance, September 30 $ 250 $ 284 Nine Months Ended September 30, 2025 2024 Opening balance, January 1 $ 253 $ 320 Net (loss) attributable to redeemable non-controlling interests ( 2 ) ( 15 ) Currency translation adjustments and other ( 1 ) ( 21 ) Closing balance, September 30 $ 250 $ 284 9 Table of Contents ARCHER-DANIELS-MIDLAND COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 2. New Accounting Pronouncements Effective December 31, 2025, the Company will be required to adopt Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which enhances the transparency and decision usefulness of income tax disclosures. The amendments address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this ASU are required to be applied on a prospective basis, and retrospective adoption is permitted. The adoption of the amended guidance will result in expanded disclosures in the Company's income taxes footnote but is not expected to have a significant impact on the Company's Consolidated Financial Statements. Effective January 1, 2026, the Company will be required to adopt ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which simplifies the application of the current expected credit loss model for current accounts receivable and current contract assets under Accounting