ADM Archer Daniels Midland 10-K 2025-12-31 section summaries

Business and operations

ADM is a global agricultural supply-chain manager and processor, connecting farmers and commodity markets through origination, logistics, storage, and processing. It sells products into food, feed, fuel, industrial, and consumer markets, and also operates in human and animal nutrition, health, and biofuels. Its three reportable segments are Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition; Corporate includes early-stage investments and development projects, while Other Business includes commodity brokerage and captive insurance operations.

Business exposure, investment, and workforce

Soybeans were ADM’s largest disclosed individual commodity category by share of revenue. Soybeans, soybean meal, and corn together represented substantial revenue exposure to agricultural commodities.

FY2025 research and development expense, net of government-grant reimbursements, was $246 million. At December 31, 2025, intellectual property—including trademarks, brands, recipes, and patents—had a $579 million net book value; more than 95% was in Nutrition, though ADM was not materially dependent on any single intellectual-property asset. ADM had 41,496 employees at year-end and reported its lowest Total Recordable Incident Rate in recent company history for FY2025.

Strategy and risks

ADM is investing in research, product development, process improvement, and higher-value offerings, including natural colors and flavors, plant-based proteins, health and wellness products, and bio-based industrial and consumer solutions. In Nutrition, its priorities include science-based innovation, customer-focused solutions, new markets, partnerships, data and technology, and distribution. The company is also advancing carbon capture and sequestration, lower-carbon operations, regenerative agriculture, traceable sourcing, and lower-carbon agricultural products.

The business is exposed to crop availability and commodity-price volatility driven by weather, planting decisions, government policies, competition, and global demand. Rapid price moves can materially change working-capital requirements; inventory and financing needs are seasonal and generally peak after the Northern Hemisphere fall harvest. ADM sources raw materials from thousands of growers, elevators, and merchants, mainly through short-term agreements or spot purchases. This limits dependence on individual suppliers but leaves the company exposed to broad crop and market disruptions. No individual customer is material to the business.

Climate-related sourcing concerns include deforestation associated with South American soy and global palm, as well as water quality, erosion, soil degradation, and greenhouse-gas risks from row crops. Commodity-market competition emphasizes price, foreign exchange, quality, supply, and substitutes, making cost control, efficiency, and asset optimization important. Nutrition also competes with large ingredient suppliers, consumer-goods companies, private labels, and specialized firms.

Leadership

Juan R. Luciano remains Chair, CEO, and President. Monish Patolawala has been CFO since August 2024, bringing prior experience as 3M’s president and CFO and as a finance and transformation executive. Carrie A. Nichol became Chief Accounting Officer in March 2025, following senior finance and accounting roles at Cargill and Zimmer Biomet. Ian Pinner has led Nutrition and served as Chief Sales and Marketing Officer since November 2023. Christopher M. Cuddy leads Carbohydrate Solutions; Gregory A. Morris leads Ag Services and Oilseeds; Regina B. Jones is Chief Legal Officer and Secretary; and Jennifer L. Weber is Chief People Officer. The appointments add external finance and accounting experience to senior leadership.

ADM — Item 1A: Risk Factors

ADM’s risks arise from operating a capital-intensive agricultural processing, storage, and transportation network across more than 180 countries. Disruptions can affect production, procurement, and delivery, with consequences for costs, margins, working capital, and customer service.

Operations, commodities, and markets

Equipment failures, extreme weather, accidents, labor disputes, cyber incidents, conflict, or other outages could cause downtime, property damage, injuries, environmental harm, repair costs, and liabilities that exceed insurance coverage. Some products or regions depend on single facilities. Disruptions to waterways, rail, ports, ocean freight, energy, water, chemicals, or other inputs could interrupt operations. Inflation, fuel and energy prices, logistics constraints, greenhouse-gas regulation or taxation, and limited availability of skilled workers may add costs or constrain production.

Agricultural crop availability and prices are exposed to weather, disease, climate change, planting decisions, government policy, trade flows, renewable-fuel mandates, competition, and global demand. Supply shortages and higher input costs can disrupt procurement and raise processing costs; prolonged abundant crops may instead reduce volatility and limit market-spread and basis opportunities. Commodity-price swings can rapidly change working-capital requirements, including margin requirements on open futures positions. ADM uses derivatives to hedge anticipated exposures and protect processing margins, but hedges may not be effective. Ethanol and biodiesel prices are linked to petroleum prices.

Competition may pressure gross profit through new or reactivated processing capacity, commodity substitution, foreign-exchange movements, improved crop yields outside ADM’s core origination territories, and industry consolidation. ADM also competes for crops, transportation, and talent, including against state-owned businesses with different return objectives. Changing consumer preferences could reduce demand for sweeteners, edible oils, genetically modified products, or processed ingredients. Livestock disease could weaken feed-ingredient demand, while Nutrition businesses depend on innovation, product quality, market acceptance, and effective product claims.

Global downturns may weaken demand for agricultural commodities and food products, restrict credit, and reduce counterparty quality. Emerging markets bring additional exposure to logistics and labor constraints, currency and political instability, trade restrictions, corruption, unexpected taxes, and weaker legal protections.

Geopolitical, trade, and regulatory exposure

Conflict, sanctions, piracy, terrorism, and political instability can damage assets or inventory, interrupt trade and shipping, restrict inputs or payments, and affect customers and receivables. Resulting commodity-price, interest-rate, foreign-exchange, margin, inventory, and hedging volatility may be compounded by rerouting, security, ransom, lease, or crew-extraction costs; insurance may be insufficient. Disruption in the Black Sea—a major wheat and corn export region—could affect global volumes, prices, and margins. ADM also faces risks from inadvertent sanctions violations and supplier failure or insolvency.

Changing tariffs, taxes, trade restrictions, currency controls, agricultural policies, and regulations can alter crop production, trade flows, feedstock availability, and product economics. ADM reported that 2025 results were affected by global trade and tariff changes and uncertainty, including disrupted U.S. soybean trade with China and deferral of U.S. renewable volume obligations, which created uncertainty for demand for soybean oil and other biofuel feedstocks.

ADM is subject to extensive tax, anti-corruption, sanctions, privacy, environmental, product-safety, and other requirements. Renewable-fuel and low-carbon mandates—including the U.S. Renewable Fuel Standard, small-refinery exemptions, and Clean Fuels Production Tax Credit (45Z)—can affect biofuel economics. The ability to generate 45Z credits related to carbon capture and storage (CCS) and other initiatives depends on regulatory, operational, process, and compliance factors. Tax results may be affected by jurisdictional earnings mix, changes in tax laws and rates, audits, deferred-tax valuation, the U.S. One Big Beautiful Bill Act, and uncertain implementation of OECD Pillar Two’s 15% country-by-country minimum tax. ADM’s futures commission merchant, commodity-risk-management, and captive-insurance activities also face complex regulatory requirements.

Food safety, product quality and labeling, occupational safety, environmental, and other rules can lead to litigation, penalties, permit revocation, facility shutdowns, product withdrawal or reformulation, and reputational damage. Environmental liabilities may stem from past operations, former facilities, or acquired businesses. Evolving ESG requirements and changing pro- and anti-ESG views may raise costs, require operational or capital changes, complicate sustainability efforts, or harm reputation. CCS development and scaling face permitting, regulatory, and operational risks. Epidemics or pandemics could disrupt supply chains and logistics, raise costs and working capital, impair contract performance, or reduce demand.

Strategy, investment, and financing

ADM’s manufacturing and operational improvements, targeted cost reductions, higher Nutrition operating leverage, and reductions in third-party and SG&A spending depend on delivering cost-effective savings in manufacturing, delivery, administration, raw materials, and energy. Execution could be delayed, cost more than expected, or fail to deliver benefits.

Portfolio changes, divestitures, joint ventures, acquisitions, and organic growth bring transaction, integration, governance, and execution risks. Acquisitions may reveal undiscovered liabilities, create systems or control problems, challenge employee retention, or result in goodwill and intangible-asset impairment. Growth also depends on innovation, market development, geographic expansion, talent, customer acceptance, and expected synergies. ADM may have limited influence over equity investments and joint ventures, face disputes or lost partner revenues, fail to achieve returns, or be unable to exit at an attractive value.

The business requires substantial capital and continuing access to credit markets to fund working capital, maintain and upgrade its network, and pursue growth. As of December 31, 2025, all three major credit-rating agencies maintained investment-grade ratings with a negative outlook. Downgrades or tighter credit markets could limit commercial-paper and debt access, increase borrowing costs, constrain operations, and restrict growth.

Technology, legal, and reputational risks

ADM is upgrading ERP and other systems through multiyear projects, shifting from large global implementations toward regional, more agile projects. Benefits are uncertain; projects require substantial resources and may be delayed, cost more, disrupt operations, or create control deficiencies. Aging, customized, or integrated legacy systems and reliance on third-party technology providers add exposure. Failures or cyberattacks—including phishing incidents that have already adversely affected ADM—could disrupt procurement, processing, inventory, shipping, reporting, payroll, risk management, or compliance; expose or destroy data; and trigger recovery costs, legal action, or reputational harm. Threats include ransomware, malware, state-sponsored attacks, espionage, insider threats, denial-of-service attacks, and payment fraud.

AI and advanced analytics require ongoing investment in data infrastructure, cybersecurity, monitoring, and specialized staff. Model failure or manipulation, data breaches, intellectual-property or liability disputes, evolving regulation, skill shortages, and rapid obsolescence could undermine returns; falling behind competitors could also be adverse. Ongoing or future lawsuits, investigations, and other proceedings could result in adverse verdicts, fines, settlements, or consent-decree obligations. Negative publicity has previously contributed to declines in ADM’s common-stock price and could again harm relationships, performance, employee morale, and talent retention. ADM’s enterprise risk management program may also fail to identify or mitigate significant exposures.

Cybersecurity risks and oversight

ADM reports that no cybersecurity threats or prior incidents have materially affected, or are reasonably likely to materially affect, its business strategy, results of operations, or financial condition to date. It nevertheless faces persistent and potentially material exposure: its broad global network and systems may be targeted by state-sponsored and other threat actors, and attacks can harm operations and customers. ADM also relies on third-party products, services, and components. The company says cyberattack volume, frequency, and sophistication have increased, and that it remains vulnerable to both known and unknown threats.

Cybersecurity is integrated into ADM’s enterprise risk management (ERM) program and strategic planning. A dedicated team operates a program aligned with applicable industry standards and regularly reviewed by independent third-party auditors. Its measures include prevention and detection, incident response, employee training, threat intelligence, and technology controls. Third-party risk management includes due diligence before engagement, mitigation controls, and ongoing assessments. ADM also works with government and commercial cybersecurity experts. Its incident response plan sets escalation criteria intended to support prompt action and limit disruption; senior management periodically participates in cybersecurity scenario exercises.

The Board oversees cybersecurity through ERM. The Sustainability and Technology Committee generally reviews the program quarterly, with assistance from the Audit Committee. The Board added a director with prior CIO experience at a large public company to strengthen its oversight.

The CISO leads the cybersecurity program and reports to the Senior Vice President and Chief Information and Digital Officer (CIDO), while directing a cross-functional Global Information and Cyber Security Council. The CISO and CIDO report cybersecurity risks to the Board and relevant committees. The CIDO joined ADM effective January 14, 2026, replacing the former CTO; both executives have experience overseeing cybersecurity programs.

ADM FY2025 results and business trends

ADM’s FY2025 results weakened as lower sales volumes and prices, compressed commodity margins, and specified charges outweighed strength in parts of Nutrition and Carbohydrate Solutions. Revenue declined 6.1%; management emphasizes margins rather than revenue for commodity merchandising and processing because commodity-price movements generally affect both sales and costs. Ag Services and Oilseeds margin fell $865 million, partly offset by $113 million of Nutrition margin growth.

Consolidated results

Revenue fell $5.261 billion, reflecting $2.9 billion of lower sales volumes and $2.3 billion of lower prices. Cost of products sold declined $4.5 billion, mainly due to lower volumes and average commodity costs. Earnings before taxes fell 44%; net earnings declined $722 million. The effective tax rate was 14.5%, versus 21.1%, reflecting the tax treatment of nonrecurring items and geographic earnings mix. FY2025 adjusted results are non-GAAP measures; total adjustments to net earnings were $582 million, primarily $776 million of after-tax impairment, exit, restructuring and contingency charges, partly offset by a $91 million share of equity-method investment nonrecurring gains and a $52 million contract-termination gain.

Revenue by business and segment operating profit

Total segment operating profit was $3.242 billion, down 23% from $4.209 billion; it excludes the separately reported Other Business profit. FY2025 specified items excluded from this measure were $236 million, compared with $490 million in FY2024.

Ag Services and Oilseeds was pressured by abundant grain and oilseed supply, trade uncertainty, deferred U.S. biofuel policy, and logistics and weather constraints. Its profit declined $833 million; lower global trade margins and volumes, freight timing, weaker North American soybean exports and export duties were key pressures. Crushing also faced lower soy and canola margins and higher manufacturing costs. Mark-to-market timing was mixed: Ag Services was negative $37 million versus positive $34 million; Crushing was positive $46 million versus positive $20 million; Refined Products and Other was positive $46 million versus negative $194 million. Processed oilseed volume rose to 36.324 million metric tons from 35.719 million, while corn volume was 18.525 million metric tons versus 18.541 million.

Carbohydrate Solutions profit declined $165 million, as lower wet-mill ethanol and starch margins, higher manufacturing costs, competitive EMEA pricing, lower volumes and crop-quality issues offset stronger Vantage results. Prior-year North American results included $84 million of Decatur insurance proceeds versus $9 million in FY2025. Nutrition profit rose $31 million: Human Nutrition faced higher ingredient and manufacturing costs and weaker Health and Wellness margins, while Flavors benefited from North American volumes and margins and Animal Nutrition improved through cost optimization and lower raw-material costs.

Earnings drivers and corporate reconciliation

FY2025 included $372 million of investment revaluation losses, $283 million of restructuring charges, and a $179 million impairment of previously capitalized internal-use software. Corporate charges included $257 million of impairments tied to investment market dynamics and a changed startup/development strategy, plus a $40 million legal reserve. Wilmar-related items included ADM’s share of a $254 million remeasurement gain and a $163 million penalty charge; FY2024 included a $461 million impairment of the Wilmar investment. Equity in affiliate earnings rose $27 million to $648 million, while interest and investment income fell $444 million to $118 million. Interest expense decreased $94 million, helped by lower borrowing and rates and favorable tax-audit settlements.

Cash flow, liquidity and commitments

Higher operating cash flow reflected working-capital movements despite lower earnings, including $1.5 billion generated from inventories versus $162 million and $1.1 billion from brokerage-customer payables versus a $78 million outflow. Financing included repayment of €650 million of 1.000% notes and $1.1 billion of net short-term credit repayments; FY2024 had $1.8 billion of net short-term borrowings. Dividends were $987 million versus $985 million; there were no share repurchases, compared with $2.3 billion in FY2024.

At year-end, shareholders’ equity was $22.7 billion, cash and equivalents were $1.0 billion, and available liquidity was $10.4 billion. Credit lines totaled $12.3 billion, of which $9.4 billion was unused; $715 million of commercial paper was outstanding. The $3.0 billion receivables securitization facility was $2.1 billion utilized. ADM reported covenant compliance and sufficient liquidity for at least 12 months, while noting its reliance on credit markets. FY2026 capital expenditures are expected to be about $1.4 billion and dividends about $1.0 billion. Purchase obligations were $13.8 billion, with $12.5 billion expected within 12 months.

Strategy, valuation and risks

ADM announced initiatives expected to generate more than $500 million of cumulative cost savings over three to five years, focused on efficiency, simplification, selective growth investment and disciplined capital allocation. Growth priorities include enhanced nutrition, biotics, biosolutions, precision fermentation and decarbonization. Portfolio moves included acquiring a 700-metric-ton/day non-GMO Hungary crush facility, closing the Tres Corações facility in Brazil, launching the Plainsman cottonseed-processing JV, and agreeing to animal-feed and cottonseed JVs with Alltech and Planters. ADM shifted from large global digital implementations toward more agile regional projects, contributing to the software impairment.

At year-end, goodwill was $4.8 billion. Animal Nutrition goodwill was $958 million; its estimated fair value exceeded carrying value by about 15%, and no impairment was recorded. ADM’s 22.5% Wilmar investment had a $4.0 billion carrying value versus $3.4 billion market value; management concluded the decline was not other-than-temporary. Commodity-related balances included $6.2 billion of merchandisable agricultural commodity inventories, $822 million of derivative assets, $613 million of derivative liabilities and $730 million of inventory-related payables. Most valuations used observable inputs, while Level 3 measurements covered approximately $3.2 billion of assets and $329 million of liabilities.

Results remain exposed to commodity margins, energy, crops and weather, trade and government policy, demand, currencies and geopolitical disruption. ADM received no significant U.S. Clean Fuel Production Credit (45Z) benefit in FY2025, compared with $316 million from the prior biodiesel Blenders’ Tax Credit in FY2024, and expects greater future 45Z benefits following OBBBA changes.

Market risk

ADM’s principal market risks are agricultural commodity prices, foreign exchange rates, and interest rates. Agricultural commodity supply and prices can fluctuate substantially with weather, crop disease, planting decisions, government policy, global production and demand, and customer preferences.

Commodity exposure

ADM manages its net agricultural inventory and forward purchase and sales positions with exchange-traded and over-the-counter instruments. It also uses these instruments in merchandising strategies intended to enhance margins. Results can be affected by the correlation between futures and underlying commodity prices, counterparty defaults, and freight-market volatility. ADM monitors volumetric limits daily and value-at-risk (VaR) and related sensitivities weekly.

Average position and its associated estimated sensitivity increased in 2025, while the lowest short position was smaller.

ADM also uses futures and OTC swaps to hedge specified future commodity purchases, processing, and sales. It reports that these hedges have historically been, and are expected to remain, highly effective in offsetting price movements in the hedged items. Gains and losses on designated hedges are deferred in OCI, net of tax, and recognized in cost of products sold or revenue when the hedged item is recognized.

Foreign currency

ADM operates subsidiaries in more than 75 countries. It primarily hedges transaction exposures in euros, British pounds, Canadian dollars, and Brazilian reals using forwards, swaps, futures, and options. Currency contracts and foreign-currency-denominated debt are also used to hedge net investments in foreign subsidiaries and affiliates. The estimated fair-value loss from a hypothetical 10% adverse exchange-rate move was described as not material.

Interest rates and debt

Actual results from interest-rate movements may differ from these estimates.

ADM — FY2025

ADM’s revenue and earnings declined for a second consecutive year as lower revenue and weaker segment profits pressured results. Cash generation improved, aided by working-capital releases, while ADM reduced debt. The company also recorded significant investment and restructuring charges and announced cost actions intended to deliver more than $500 million of savings by FY2029.

Consolidated results

Revenue declined 6.1% in FY2025, following a 9.0% decline in FY2024. Gross profit fell 12.9%; gross margin was approximately 6.3%, versus 6.8% and 8.0% in FY2024 and FY2023. ADM does not present a consolidated operating-income subtotal. Most revenue arose from Topic 815 transactions—$55,313 million, down from $61,157 million—while Topic 606 revenue was $24,956 million, up from $24,373 million. Most derivatives are not designated as hedges, so fair-value changes generally flow directly through earnings, adding potential volatility.

Segment performance

Ag Services and Oilseeds was the largest contributor to the decline; its revenue and profit fell as Ag Services and Crushing revenues weakened. Nutrition grew modestly in revenue and profit. Within FY2025 segment revenue, Ag Services was $40,363 million (FY2024: $44,083 million), Crushing $10,353 million ($11,836 million), and Refined Products and Other $10,855 million ($10,597 million). Starches and Sweeteners revenue was $7,982 million ($8,587 million); Vantage Corn Processors was $2,755 million. Human Nutrition and Animal Nutrition revenue was $4,187 million and $3,325 million, respectively.

Items outside reported segment profit included corporate expense of $2,049 million (FY2024: $1,721 million) and impairment, restructuring and net settlement contingency charges of $435 million ($490 million). FY2025 also included $39 million of asset/business-sale gains, a $69 million contract-termination gain, and $91 million of ADM’s share of nonrecurring equity-method investment gains and charges. Asset impairment, exit and restructuring costs totaled $473 million ($545 million; FY2023: $342 million), including a $179 million software impairment. Restructuring and exit costs were $283 million, concentrated in Nutrition.

Cash flow and balance sheet

Cash flow benefited from inventory reductions of $1,511 million and receivables reductions of $855 million, underscoring the working-capital sensitivity of ADM’s commodity business.

FY2025 intangible assets comprised indefinite-lived trademarks/brands $315 million; finite-lived trademarks/brands $37 million; customer lists $977 million; capitalized software $291 million; land rights $63 million; other intellectual property $31 million; recipes and other $197 million; and assets in process $65 million. Segregated cash and investments are substantially tied to regulatory, commodity-exchange, brokerage-customer and insurance requirements, and are not equivalent to unrestricted cash. Goodwill was $4,769 million, of which $4,277 million related to Nutrition; the Animal Nutrition reporting unit’s estimated fair value exceeded carrying value by approximately 15%.

Debt at year-end totaled $8,410 million: short-term debt $798 million, current maturities $1,006 million, and long-term debt $6,606 million, down from total debt of $10,157 million in FY2024. ADM had $12.3 billion of credit lines, $9.4 billion unused; commercial paper outstanding was $715 million. Receivables securitization programs provided up to $3.0 billion, with $2.1 billion utilized, and both committed programs terminate in May 2026 unless extended. All three major rating agencies maintained investment-grade ratings with a negative outlook; ADM reported covenant compliance.

Other material developments and risks

ADM retained a 22.5% Wilmar stake carried at $4.0 billion versus quoted market value of $3.4 billion. It recorded no FY2025 impairment, concluding the decline was not other-than-temporary while continuing to assess recoverability; FY2024 included a $461 million pretax impairment. FY2025 also included a $254 million noncash remeasurement gain related to Wilmar’s control of AWL and a $163 million loss for a penalty imposed on Wilmar.

Cost-method investment carrying value fell to $143 million from $439 million, with FY2025 revaluation losses of $372 million, primarily on alternative-protein investments, recorded in interest and investment income. The valuation decline highlights risk in early-stage markets.

Cash dividends were $987 million ($2.04 per share), near FY2024’s $985 million ($2.00 per share); ADM made no material share repurchases, versus $2,327 million of net repurchases in FY2024. Weighted-average diluted shares were 484 million (493 million; FY2023: 542 million); period-end shares outstanding rose from 478 million to 480 million. Stock-compensation expense was $83 million. At year-end, 5.398 million restricted stock and PSU awards were nonvested, with $72 million of unrecognized compensation expense.

ADM faces ethanol-price and commodity litigation, including claims in the AOT/Maize matter alleging class damages of approximately $500 million to more than $2.0 billion. A securities-fraud class action related to ADM’s investigation of intersegment sales survived motions to dismiss in March 2025; outcomes and potential losses remain uncertain. The auditor issued unqualified opinions on the financial statements and internal control over financial reporting.

Section 9B — Other Information

For the quarter ended December 31, 2025, no ADM director or officer adopted, modified, or terminated a Rule 10b5-1 trading plan or other covered securities-trading arrangement.

During fiscal 2025, ADM International Sarl engaged CCIC Singapore PTE. Ltd. to provide inspection and fumigation-related services for agricultural commodities delivered to China from March through May. OFAC designated CCIC Singapore as a Specially Designated Global Terrorist on May 13, 2025. At the time of designation, ADM had $38,971 in unpaid invoices for the services. ADM reports that it made no payments to CCIC Singapore after the designation, undertook no further engagements, and has no plans for future engagements. The outstanding pre-designation payable and services present a sanctions-compliance exposure.