TLDR
- ADM profit drops, but cash flow strength keeps outlook stable for 2026
- Dividend rises again as ADM signals policy-driven recovery ahead
- Weak crush margins hit earnings, yet liquidity remains solid
- Mixed quarter shows pressure now but optimism for next year
- ADM leans on efficiency gains while waiting for trade rebound
ADM (ADM) shares closed at $68.08, up 1.14%, as the stock showed a mild rebound after earlier weakness. The company reported mixed quarterly results that highlighted declining profit but strong operational cash flow. Management issued a structured 2026 outlook that pointed to an improving environment as global policies shift.
Archer-Daniels-Midland Company, ADM
Profit Falls as Key Segments Weaken
ADM reported fourth quarter EPS of $0.94 and adjusted EPS of $0.87, and both figures declined from last year. The company recorded $456 million in net earnings, and adjusted net earnings reached $422 million during the period. Segment profit fell 22% as weaker crush margins and softer trade flows continued to pressure several divisions.
Ag Services and Oilseeds delivered $444 million in operating profit, and the figure marked a 31% annual decline. Lower soybean export activity and reduced trading opportunities weighed on results during the quarter. In addition, mark-to-market impacts and fewer insurance proceeds further limited overall segment performance.
Carbohydrate Solutions posted $299 million in operating profit, and the decrease reached 6% from last year. Lower starches and sweeteners volumes combined with pricing pressure shaped the result. Yet higher ethanol margins partly softened the impact as the segment maintained stable production levels.
Cash Flow Remains Firm as Efficiency Measures Advance
ADM generated $5.5 billion in operating cash flow for the year and the company maintained strong liquidity throughout 2025. Management emphasized improved plant efficiency and cost actions that supported core cash generation. Furthermore, portfolio changes and disciplined spending helped reinforce balance sheet flexibility.
Cash flows from operations before working capital reached $2.7 billion, and the measure reflected continued operational strength. The company also noted progress on its multiyear cost-saving plan designed to reduce expenses. Restructuring steps aimed at long-term efficiency continued across several units.
Nutrition delivered $78 million in quarterly operating profit, down 11% from last year. However, the full-year figure improved 8% as the segment gained organic momentum. The unit continued to execute on targeted growth areas, and management expects further expansion in 2026.
Dividend Growth Continues as ADM Outlines 2026 Outlook
ADM raised its quarterly dividend by 2%, and this increase marked its 53rd consecutive year of growth. The company highlighted strong cash flow and steady financial discipline as the foundation for the dividend decision. Moreover, management reiterated its long-term plan to achieve significant cost savings through 2029.
ADM expects 2026 adjusted EPS between $3.60 and $4.25, and the range reflects several policy-driven scenarios. The lower end assumes delayed U.S. biofuel policy clarity, while the upper end assumes improved crush margins and stronger demand. The company also plans capital expenditures of $1.3 billion to $1.5 billion as market conditions shift.
Global trade dynamics remained fluid during 2025, and ADM faced lower export volumes across key markets. Even so, management expects improved trade flows as global policies evolve. The company stated that earlier policy clarity could unlock stronger performance throughout 2026.
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