Stock market today: S&P 500 falls as job cuts stoke economic fears, tech stutters
CHICAGO - Archer Daniels Midland (NYSE:ADM) reported third-quarter adjusted earnings that beat analyst expectations, and slashed its full-year guidance amid ongoing uncertainty in the biofuel sector.
The agricultural giant’s shares tumbled 8.49% in pre-market trading after the results.
The Chicago-based company posted adjusted earnings of $0.92 per share for the quarter ended September 30, exceeding the analyst consensus of $0.85. Revenue came in at $20.37 billion, falling short of the $20.96 billion analysts had expected. The company also reported that revenue was up 2.2% compared to the same quarter last year. ADM cut its full-year 2025 earnings guidance to $3.25-$3.50 per share from its previous forecast of approximately $4.00, well below the analyst consensus of $3.79.
The significant downward revision primarily reflects lower crush margins resulting from muted demand due to the deferral of U.S. biofuel policy and challenges with international trade flows. Investors reacted negatively to the guidance cut, sending shares sharply lower.
"During the third quarter, we made solid progress in areas within our control, as we navigated a highly dynamic global environment," said Juan Luciano, Chair of the Board and CEO. "We advanced our portfolio optimization initiatives, accomplished cost savings through targeted streamlining, efficiently ran our plants, and generated robust cash flow."
The company’s Ag Services & Oilseeds segment saw operating profit decline 21% YoY to $379 million, with crushing subsegment profit plunging 93% due to lower margins. Carbohydrate Solutions segment operating profit fell 26% to $336 million. The Nutrition segment was a bright spot, with operating profit increasing 24% to $130 million.
ADM generated strong cash flow, with year-to-date cash flows from operations reaching $5.8 billion. The company expects biofuel policy clarity and trade policy evolution to provide demand signals for its industry in the coming months.
"We are a company built to endure cycles, and our asset network, combined with our skilled workforce, will remain a source of reliable strength for our farmers, customers, partners and investors," Luciano added.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.