Q3 2025 Archer-Daniels-Midland Co Earnings Call Transcript
Key Points
- Archer-Daniels-Midland Co (ADM) reported adjusted earnings per share of $0.92 and total segment operating profit of $845 million for the third quarter.
- The company achieved the best total export volume for the month of September since 2016, driven by strong corn and meal programs.
- ADM's Nutrition segment revenues increased by 5% compared to the prior year quarter, with Human Nutrition revenue up by 6% and Animal Nutrition revenue up by 3%.
- The company is on track to achieve its targeted $200 million to $300 million in cost savings in 2025 and aggregate cost savings of $500 million to $750 million over the next three to five years.
- ADM announced a joint venture with Alltech to transition its Animal Nutrition business into higher-margin Specialty Ingredients, expected to commence operations in 2026.
- The deferral of US biofuel policy and evolving global trade landscape negatively impacted demand for ADM's Ag Services and Oilseeds (AS&O) segment, with operating profit down 21% compared to the prior year quarter.
- Crushing subsegment operating profit was down 93% from the prior year quarter due to significantly lower global soybean and canola crush execution margins.
- ADM lowered its full-year 2025 adjusted earnings per share expectations to between $3.25 to $3.50, down from the approximately $4 per share previously guided.
- The Carbohydrate Solutions segment saw a 26% decline in operating profit compared to the prior year quarter, primarily due to a decline in global demand for sweeteners and starches.
- Uncertainty around US biofuel policy and global trade dynamics continues to create challenges in predicting the timing of a structural increase in biofuel demand.
Good morning, and welcome to the ADM third quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
I'd now like to introduce your host for today's call, Kate Walsh, Director, Investor Relations for ADM. Ms. Walsh, you may begin.
Welcome to the third quarter earnings conference call for ADM. Our prepared remarks today will be led by Juan Luciano, Chair of the Board and Chief Executive Officer; and Monish Patolawala, our EVP and Chief Financial Officer. We have prepared presentation slides to supplement our remarks on the call today, which are posted on the Investor Relations section of the ADM website and through the link to our webcast.
Some of our comments and materials may constitute forward-looking statements that reflect management's current views and estimates of future economic circumstances, industry conditions, company performance and financial results. These statements and materials are based on
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