ADM
ADM
Archer-Daniels-Midland Company
$81.69
-$1.20 (-1.45%)
Mkt Cap: $39.37B
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ADM Resolves Investigations, Issues 2026 EPS Guidance of $3.60-$4.25 (ADM Q4 2025 Earnings Call)

By Dr. Graph | Updated on Apr 29, 2026 | earnings

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Archer-Daniels-Midland Company reported its fourth-quarter 2025 results alongside the resolution of prior government investigations into its intersegment sales reporting. The company outlined a 2026 adjusted earnings per share outlook of $3.60 to $4.25, heavily contingent on pending U.S. biofuel policy clarity and global trade dynamics.

Fourth Quarter and Full-Year 2025 Performance

ADM reported fourth-quarter 2025 adjusted earnings per share of $0.87 and full-year adjusted EPS of $3.43. Total segment operating profit reached $821 million for the quarter and $3.2 billion for the year. The company generated a $1.5 billion cash flow benefit through strategic inventory reductions and reported a trailing fourth-quarter adjusted return on invested capital of 6.3 percent. ADM also executed over 20 portfolio optimization projects, yielding approximately $200 million in cost savings.

Investigations Resolved and 2026 Guidance Initiated

CEO Juan Luciano announced the closure of government investigations by the SEC and DOJ regarding the company's prior reporting of intersegment sales. Looking ahead to 2026, management provided an adjusted EPS guidance range of $3.60 to $4.25. The wide range reflects significant uncertainties surrounding the timing and magnitude of the U.S. Renewable Volume Obligations (RVO) mandate and its impact on crush margins. Capital expenditures for 2026 are projected between $1.3 billion and $1.5 billion.

Segment Results Face Margin Pressures

The Ag Services and Oilseeds (AS&O) segment reported fourth-quarter operating profit of $444 million, down 31 percent year-over-year, pressured by weaker crush margins in North and South America. Carbohydrate Solutions posted an operating profit of $299 million, a 6 percent decline, as weakness in starches and sweeteners offset stable ethanol margins. The Nutrition segment's operating profit fell 11 percent to $178 million, primarily due to the absence of insurance proceeds received in the prior year.

Biofuels and Nutrition Growth Strategies

Management anticipates robust ethanol export opportunities driven by mandated markets worldwide. Strength in ethanol is expected to offset continued softness in starches and sweeteners. In the Nutrition segment, ADM expects sequential improvement driven by growth in flavors, recovery in specialty ingredients, and margin expansion in animal nutrition following portfolio streamlining. The newly formed joint venture with Altek has also officially commenced operations.

Disclaimer: This report is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research or consult a qualified professional before investing. Past performance is not indicative of future results.

Frequently Asked Questions

What is ADM's earnings guidance for 2026?
ADM expects 2026 adjusted EPS to range between $3.60 and $4.25, with the outcome highly dependent on U.S. biofuel policy and crush margins.
How did the Ag Services and Oilseeds segment perform?
AS&O fourth-quarter operating profit declined 31 percent year-over-year to $444 million, largely due to weaker crush margins in the Americas and lower North American exports.
What was the outcome of the government investigations?
ADM announced the closure of SEC and DOJ investigations related to its prior reporting of intersegment sales.
How did ADM improve its cash flow?
The company realized a $1.5 billion cash flow benefit in 2025 by sharpening its inventory management practices and improving demand forecasts.

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