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For the full year, earnings before income taxes were $2.3 billion, down (47)% versus the prior year. Earnings per share on a GAAP basis were $3.65 and adjusted earnings per share were $4.74, both lower versus the prior year. Total segment operating profit was $4.2 billion, down (28)% versus the prior year, and excluded specified items of $480 million primarily related to the Wilmar investment impairment, Nutrition trade name impairments, and gain on asset sales.

Ag Services and Oilseeds Summary

AS&O segment operating profit was $644 million during the fourth quarter of 2024, down (32)% compared to the prior year quarter.

The Ag Services subsegment operating profit was 19% higher versus the prior year quarter, due to higher origination volumes and margins in North America, supported by improved river conditions. The subsegment also had benefits from positive timing impacts, as well as higher destination marketing volumes and margins in Global Trade.

The Crushing subsegment operating profit was (46)% lower versus the prior year quarter, as increased industry run rates, higher manufacturing costs, and biofuel and trade policy uncertainty drove lower executed crush margins in North America, partially offset by higher margins and volumes in EMEA. There were immaterial net mark-to-market timing effects during the quarter compared to approximately $35 million of net positive impacts in the prior year quarter. The current quarter also included $52 million of insurance proceeds for the partial settlement of the Decatur East and West claim.

The Refined Products and Other (RPO) subsegment operating profit was (57)% lower versus the prior year quarter, as biofuel and trade policy uncertainty, increased pre-treatment capacity, and higher imports of used cooking oil negatively impacted margins in Europe and North America. Softer demand from food customers in North America negatively impacted refining margins compared to the prior year. During the quarter, there were approximately $50 million of net negative mark-to-market timing effects compared to approximately $5 million of net positive impacts in the prior year quarter.

Equity earnings from the Company’s investment in Wilmar were approximately (20)% lower versus the prior year period.

For the full year, the AS&O segment operating profit was $2.4 billion, (40)% lower compared to 2023.

In the Ag Services subsegment, operating profit was (39)% lower versus the prior year, as slower farmer selling and higher logistics costs related industry take-or-pay commitments negatively impacted the South American origination environment.

In the Crushing subsegment, operating profit was $844 million, (35)% lower versus the prior year, as ample supplies out of South America drove more balanced supply and demand conditions, leading to lower crush margins. For 2024, there were approximately $20 million of net positive mark-to-market timing effects, compared to approximately $185 million of net positive impacts in the prior year. The full year also included $76 million of insurance proceeds for the partial settlement of the Decatur East and West claims related to incidents in 2023.

The RPO subsegment operating profit was $552 million, (58)% lower versus the prior year, as increased pre-treatment capacity at renewable diesel facilities and higher imports of used cooking oil drove significantly lower biodiesel and refining margins. For 2024, there were approximately $195 million of net negative mark-to-market timing effects, compared to approximately $235 million of net positive impacts in the prior year.

Equity earnings from the Company’s investment in Wilmar were $336 million in 2024, approximately 11% higher than the prior year.

Carbohydrate Solutions Summary

Carbohydrate Solutions segment operating profit was $319 million during the fourth quarter of 2024, up 3% compared to the prior year quarter.

The Starches & Sweeteners (S&S) subsegment decreased (3)%, versus the prior year quarter, as higher volumes and margins in North America were offset by lower co-product values and margins in EMEA. The current quarter also included $37 million of insurance proceeds related to both the partial settlement of the Decatur East and West insurance claim.

In the Vantage Corn Processor (VCP) subsegment, operating profit increased due to higher ethanol export volumes and improved ethanol margins relative to the prior year quarter.

For the full year, Carbohydrate Solutions segment operating profit was $1.4 billion, flat compared to the prior year. In S&S, strong margins and volumes in North America were offset by weaker domestic ethanol margins, co-product values, and margins in EMEA. In 2024, there were $84 million of insurance proceeds related to the partial settlement of the Decatur East and West claims. In VCP, operating profit declined relative to the prior year, as strong exports volumes were more than offset by lower margins due to higher industry production and inventory levels.

Nutrition Summary

Nutrition segment operating profit was $88 million during the fourth quarter of 2024, an increase from the segment operating loss of $(10) million in the prior year quarter.

Human Nutrition subsegment operating profit was $62 million compared to a loss of $(25) million in the prior year quarter. Results were higher due to the lapping of previously disclosed non-recurring negative impacts from the prior year, higher volumes and improved mix, and strong performance by recent M&A, partially offset by higher costs. During the quarter, there were also negative impacts due to higher costs of goods sold associated with the termination of an unfavorable supply agreement. The current quarter also included $46 million of insurance proceeds related to the partial settlement of the Decatur East claim.

In the Animal Nutrition subsegment, operating profit was $26 million, up relative to the prior year quarter, as cost optimization actions and lower input costs supported higher margins.

For the full year, Nutrition segment operating profit was $386 million, (10)% lower versus the prior year.

Human Nutrition subsegment operating profit of $327 million was (22)% lower than the prior year, driven primarily by negative impacts related to unplanned downtime at Decatur East and lower texturants pricing. The full year also included $71 million of insurance proceeds related to the partial settlement of the Decatur East claim.

Animal Nutrition subsegment operating profit of $59 million was higher compared to the prior year as cost optimization efforts and lower input costs supported higher margins.

Corporate and Other Business Summary

For the fourth quarter, Other business contributed operating profit of $47 million, down 68% compared to the prior year quarter due to lower Captive insurance results from higher claim losses. ADM Investor Services results decreased on lower interest income.

For the full year, Other business contributed operating profit of $247 million, down 34% compared to the prior year due to lower Captive insurance results from higher claim settlements. Included in claim settlements were partial settlements of $231 million for the Decatur East and West insurance claims of which $133 million was from reinsurers during the fourth quarter.

In Corporate for the fourth quarter, unallocated corporate costs decreased versus the prior year due to $52 million in lower incentive compensation, partially offset by $28 million of increased legal fees.

In Corporate for the full year, unallocated corporate costs increased versus the prior year on higher global technology investments to support digital transformation efforts, $103 million in increased legal fees and $38 million in increased financing costs, partially offset by lower incentive compensation. Other Corporate was favorable compared to last year’s investment valuation losses.

Outlook³

The Company provided guidance for the full year 2025. ADM expects adjusted earnings per share in the range of $4.00 to $4.75 per share^1,2, reflecting weaker market fundamentals and on-going biofuel and trade policy uncertainty.

Targeted Actions to Deliver Cost Savings

The Company announced today targeted actions to deliver between $500 - $750 million in cost savings over the next 3 - 5 years. These proactive actions will further reduce the Company's costs in response to ongoing market challenges, including global legislative and regulatory policy uncertainty. Specifically, ADM expects to achieve the majority of the cost savings on an annual run-rate basis through improvement in manufacturing costs, reduction in purchased materials and services, and targeted workforce reduction. The Company currently expects a targeted workforce reduction of approximately 600 - 700 roles globally in 2025.

Dividend

ADM’s Board of Directors has declared a cash dividend of $51.0 cents per share, up from $50.0 cents per share, on the company’s common stock. The dividend is payable on March 11, 2025 to shareholders of record on February 18, 2025. This is ADM’s 93rd consecutive year of uninterrupted dividends.

Conference Call Information

ADM will host a webcast today, February 4, 2025, at 9 a.m. Central Time to discuss financial results and outlook. To listen to the webcast, go to www.adm.com/webcast. A replay of the webcast will also be available for an extended period of time at www.adm.com/webcast.

About ADM

ADM unlocks the power of nature to enrich the quality of life. We’re an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. We’re a premier human and animal nutrition provider, offering one of the industry’s broadest portfolios of ingredients and solutions from nature. We’re a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. We’re a cutting-edge innovator, guiding the way to a future of new consumer and industrial solutions. And we're a leader in sustainability, scaling across entire value chains to help decarbonize the multiple industries we serve. Around the globe, our innovation and expertise are meeting critical needs while nourishing quality of life and supporting a healthier planet. Learn more at www.adm.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. You can identify forward-looking statements by the fact they do not relate strictly to historical or current facts. These statements may include words such as "anticipate," "estimate," "expect," "project," "plan," "intend," "believe," "may," "outlook," "will," "should," "can have," "likely," "forecasted", and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to significant risks, uncertainties and changes in circumstances that could cause actual results and outcomes to differ materially from the forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, without limitation, those described in the Company’s most recent Annual Report on Form 10-K/A and in other documents that the Company files or furnishes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by law, ADM does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this announcement, whether as a result of new information, future events, changes in assumptions or otherwise.

Non-GAAP Financial Measures

The Company uses certain "Non-GAAP" financial measures as defined by the Securities and Exchange Commission. These are measures of performance not defined by accounting principles generally accepted in the United States, and should be considered in addition to, not in lieu of, GAAP reported measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.

Adjusted net earnings and Adjusted earnings per share (EPS). Adjusted net earnings reflects ADM’s reported net earnings after removal of the effect on net earnings of specified items as more fully described in the reconciliation tables below. Adjusted EPS reflects ADM’s fully diluted EPS after removal of the effect on EPS as reported of specified items as more fully described in the reconciliation tables below. Management believes that Adjusted net earnings and Adjusted EPS are useful measures of ADM’s performance because they provide investors additional information about ADM’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. These non-GAAP financial measures are not intended to replace or be alternatives to net earnings and EPS as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company’s diluted shares outstanding for each respective period in order to arrive at an adjusted EPS amount for each specified item.

Total segment operating profit. Total segment operating profit is ADM’s consolidated earnings before income taxes adjusted for Other business, Corporate, and specified items as more fully described in the reconciliation tables below. Management believes that total segment operating profit is a useful measure of ADM’s performance because it provides investors information about ADM’s reportable segment performance excluding other business, corporate overhead costs as well as specified items. Total segment operating profit is not a measure of consolidated operating results under U.S. GAAP and should not be considered an alternative to earnings before income taxes, the most directly comparable GAAP financial measure, or any other measure of consolidated operating results under U.S. GAAP.

Adjusted Return on Invested Capital (ROIC). Adjusted ROIC is Adjusted ROIC earnings divided by adjusted invested capital. Adjusted ROIC earnings is ADM’s net earnings adjusted for the after-tax effects of interest expense on borrowings and specified items. Adjusted invested capital is the sum of ADM’s equity (excluding redeemable and non-redeemable noncontrolling interests) and interest-bearing liabilities (which totals invested capital), adjusted for specified items. Management believes Adjusted ROIC is a useful financial measure because it provides investors information about ADM’s returns excluding the impacts of specified items and increases period-to-period comparability of underlying business performance. Management uses Adjusted ROIC to measure ADM’s performance by comparing Adjusted ROIC to its weighted average cost of capital (WACC). Adjusted ROIC, Adjusted ROIC earnings and Adjusted invested capital are non-GAAP financial measures and are not intended to replace or be alternatives to GAAP financial measures.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted for specified items. The Company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of income tax expense, interest expense on borrowings, and depreciation and amortization to net earnings. Management believes that EBITDA and adjusted EBITDA are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. EBITDA and adjusted EBITDA are non-GAAP financial measures and are not intended to replace or be an alternative to net earnings, the most directly comparable GAAP financial measure.

Cash flows from operations before working capital is defined as cash flows from operating activities excluding the changes in operating assets and liabilities as presented in the Company’s consolidated statement of cash flows. Management believes that cash flows from operations before working capital is a useful measure of the Company’s cash generation. Cash flows from operations before working capital is a non-GAAP financial measure and is not intended to replace or be an alternative to cash from operating activities, the most directly comparable GAAP financial measure.

Financial Tables Follow

Source: Corporate Release
Source: ADM

 

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Contacts

Media Contact
Brett Lutz
media@adm.com
312-634-8484

Investor Relations
Megan Britt
Megan.Britt@adm.com
872-257-8378