• Adjusted Earnings Per Share (EPS): $0.70 for the first quarter.
• Total Segment Operating Profit: $747 million for the quarter.
• Trailing Four Quarter Adjusted ROIC: 7%.
• Cash Flow from Operations Before Working Capital Changes: $439 million.
• AS&O Segment Operating Profit: $412 million, down 52% compared to the prior year quarter.
• Ag Services Subsegment Operating Profit: $159 million, down 31% versus the prior year quarter.
• Crushing Subsegment Operating Profit: $47 million, down 85% compared to the prior year quarter.
• Refined Products and Other Subsegment Operating Profit: $134 million, down 21% compared to the prior year quarter.
• Equity Earnings from Wilmar: $72 million, down 52% compared to the prior year quarter.
• Carbohydrate Solutions Segment Operating Profit: $240 million, down 3% compared to the prior year quarter.
• Starches and Sweeteners Subsegment Operating Profit: $207 million, down 21% compared to the prior year quarter.
• Vantage Corn Processors Subsegment Operating Profit: $33 million, up compared to the prior year quarter.
• Nutrition Segment Revenues: $1.8 billion, down 1% compared to the prior year quarter.
• Nutrition Segment Operating Profit: $95 million, up 13% versus the prior year quarter.
• Human Nutrition Subsegment Operating Profit: $75 million, down 1% compared to the prior year quarter.
• Animal Nutrition Subsegment Operating Profit: $20 million, higher than the prior year quarter.
• Cash Returned to Shareholders: $247 million in the form of dividends in the quarter.
• Full Year Adjusted EPS Guidance: Expected to be between $4 to $4.75 per share, likely at the lower end of the range.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ADM reported adjusted earnings per share of $0.70, aligning with market expectations.
• The carbohydrate solutions team delivered solid results, supported by positive margins in sweeteners and strong execution in ethanol.
• Nutrition segment operating profit increased by 13% year-over-year, driven by improvements in flavors and animal nutrition.
• ADM achieved the lowest total recordable incident rate in its history, highlighting a strong focus on safety.
• The company made significant progress on its cost-saving target, aiming for $500 million to $750 million in savings over the next three to five years.

Negative Points

• AS&O segment operating profit was down 52% compared to the prior year, impacted by lower margins across all subsegments.
• Trade policy uncertainty, particularly with Canada and China, created volatility and negatively affected canola meal and oil margins.
• Crushing subsegment operating profit decreased by 85%, with significantly lower global soybean and canola crush execution margins.
• Refined products and other subsegment operating profit fell by 21% due to lower biodiesel and refining margins.
• The company expects to be at the lower end of its full-year adjusted EPS guidance due to current market conditions.

Q & A Highlights

Q: What is ADM's expectation for the Renewable Volume Obligation (RVO) and its impact on biodiesel margins in the second half of 2025? A: Juan Luciano, CEO, stated that a strong RVO is crucial for the biofuel outlook. The company is engaged with the administration to support strong RVOs, which are expected to drive margins higher in the second half. Monish Patolawala, CFO, added that if replacement margins do not improve, it could result in a $0.50 headwind for the second half.

Q: How does ADM view the potential impact of trade policy on its operations, particularly regarding China? A: Juan Luciano explained that the impact of tariffs has not been significant in Q1. The USTR's ruling removed much of the risk from agricultural exports. ADM is working to offset any potential impacts by gaining market share in other export markets.

Q: What are ADM's expectations for the soy crush industry given the new capacity coming online and the current weak market conditions? A: Juan Luciano noted that ADM is focused on managing what it can control, including shutting down its Kershaw plant. The industry is expected to adjust capacity based on demand, and clarity on RVO mandates is crucial for the new capacity to make sense.

Q: Can you provide more details on the performance of ADM's Nutrition segment and its outlook for the year? A: Juan Luciano highlighted that foundational improvements in the Nutrition segment are starting to show results, with strong performance in flavors and health and wellness. The East plant is being commissioned, and its full capacity is expected to positively impact the second half of the year.

Q: What is the status of the Decatur East plant, and what benefits does ADM expect once it is fully operational? A: Juan Luciano confirmed that the Decatur East plant is ramping up and will impact the P&L in the second half of the year. The plant's downtime previously resulted in a $25 million per quarter impact on Nutrition, and its full operation is expected to contribute positively.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.