ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) Posts Mixed Q3 2025 Results, Cuts Full-Year Guidance Amid Market Pressure

Archer-Daniels-Midland Co (NYSE:ADM) reported financial results for the third quarter of 2025, delivering a mixed performance that fell short of revenue expectations while exceeding adjusted earnings forecasts. The agricultural processing giant navigated a challenging global environment, leading to a downward revision of its full-year guidance, which appears to be driving a significant negative market reaction.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter results presented a divergence between top-line performance and bottom-line profitability. While ADM surpassed earnings expectations, its revenue decline contributed to investor concerns.

• Adjusted EPS: $0.92 per share, beating analyst estimates of $0.8576.
• Revenue: $20.37 billion, missing analyst estimates of $20.86 billion.
• Market Reaction: The stock was down approximately 8.1% in pre-market trading following the earnings release, indicating investor disappointment primarily with the revenue miss and reduced full-year outlook.

Revised Full-Year Outlook

A key factor influencing market sentiment was ADM's decision to lower its full-year 2025 adjusted EPS guidance. The company revised its forecast to a range of $3.25 to $3.50 per share, down from a previous expectation of approximately $4.00 per share. This revised outlook falls below the analyst estimate of $3.88 for the full year, signaling continued headwinds for the remainder of the year. The downward revision was attributed primarily to lower crush margins in the Ag Services and Oilseeds segment.

Third Quarter 2025 Financial and Operational Summary

ADM's third-quarter results reflected a dynamic operating environment, with strength in some areas offset by significant pressures in others.

• Adjusted EPS decreased 16% versus the prior year quarter to $0.92.
• Total Segment Operating Profit, a non-GAAP measure, was $845 million, down 19% year-over-year.
• Cash Flow: The company highlighted robust cash generation, with year-to-date cash flows from operating activities of $5.8 billion.

Segment Performance Breakdown

The company's performance varied significantly across its three core business segments, illustrating the diverse pressures within the global agricultural market.

• Ag Services and Oilseeds: Segment operating profit decreased 21% to $379 million. The results were mixed, with a 78% profit increase in Ag Services driven by strong North American export activity, but this was overwhelmed by a 93% collapse in Crushing profits due to lower margins from muted biofuel demand and international trade challenges.
• Carbohydrate Solutions: Segment operating profit fell 26% to $336 million. The decline was led by lower global demand and margins in the Starches and Sweeteners subsegment, though this was partially offset by a significant improvement in the Vantage Corn Processors business.
• Nutrition: This segment was a bright spot, with operating profit increasing 24% to $130 million. Both Human Nutrition and Animal Nutrition delivered strong growth, driven by higher margins and a focus on more profitable product lines.

Chair of the Board and CEO Juan Luciano acknowledged the challenging conditions, stating, "During the third quarter, we made solid progress in areas within our control, as we navigated a highly dynamic global environment." He added, "Looking forward, we expect biofuel policy clarity and trade policy evolution to provide demand signals for our industry. However, based on the environment since our last earnings call, we are revising our 2025 full-year expectations primarily to reflect lower crush margins."

For a detailed look at historical earnings, future estimates, and analyst projections for ADM, you can review the complete earnings and estimates data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in ADM. All investment decisions should be based on your own research, financial circumstances, and risk tolerance.