Full-Year Reported EPS2 of $3.65, Adjusted
EPS1,2 of $4.74
Announces Targeted Actions to Deliver $500 -
$750 Million in Cost Savings
Announces Increase in Quarterly Dividend
ADM (NYSE: ADM) today reported financial results for the fourth
quarter and full year ended December 31, 2024.
Full-Year 2024 Highlights
- Net earnings of $1.8 billion, adjusted net earnings1 of $2.3
billion
- Earnings per share2 of $3.65, with adjusted earnings per
share1,2 of $4.74, both down versus the prior year
- Trailing four-quarter average return on invested capital (ROIC)
of 6.7%, trailing four-quarter average adjusted return on invested
capital (ROIC)1 of 8.3%
2024 cash flows from operating activities were $2.8 billion,
with cash flows from operations before working capital1,3 of $3.3
billion, as compared to 2023 cash flows from operating activities
of $4.5 billion and cash flows from operations before working
capital1,3 of $4.7 billion.
Board Chair and CEO Juan Luciano commented, “With softer market
conditions and policy uncertainty around the world going into 2025,
we are focused on improving our operational performance,
accelerating costs savings, and simplifying our portfolio. As part
of that effort, we are announcing targeted actions to deliver $500
– 750 million in cost savings over the next several years. This
represents a continuation of ADM’s commitment to drive
simplification and better align our resources to deliver long-term
sustainable growth.
“We will also maintain our disciplined and balanced approach to
capital allocation, including prioritizing selective strategic
investments with strong return potential and returning cash to
shareholders. In line with this, we are announcing a 2% increase in
our quarterly dividend.”
Fourth Quarter and Full-Year 2024 Results
4Q 2024 Results Overview
($ in millions except per share
amounts)
Earnings Before Income
Taxes
EPS2 (as reported)
GAAP
$667
$1.17
vs. 4Q 2023
(9)%
10%
Total Segment Operating
Profit1
Adjusted EPS1,2
NON-GAAP
$1,051
$1.14
vs 4Q 2023
(16)%
(16)%
1 Non-GAAP financial measures; see pages
7-9 and 14-16 for explanations and reconciliations.
2 All references in this document to
earnings per share (EPS) and adjusted earnings per share reflect
EPS on a diluted basis.
3 Cash flows from operations before
working capital is cash flows from operating activities of $2,780
million excluding the changes in working capital of $(519) million
in YTD 2024. Cash flows from operations before working capital is
cash flows from operating activities of $4,460 million excluding
the changes in working capital of $(267) million in YTD 2023
FY 2024 Results Review
($ in millions except per share
amounts)
Earnings Before Income
Taxes
EPS2 (as reported)
GAAP
$2,255
$3.65
vs. FY 2023
(47)%
(43)%
Total Segment Operating
Profit1
Adjusted EPS1,2
NON-GAAP
$4,209
$4.74
vs FY 2023
(28)%
(32)%
1 Non-GAAP financial measures; see pages
7-9 and 14-16 for explanations and reconciliations.
2 All references in this document to
earnings per share (EPS) and adjusted earnings per share reflect
EPS on a diluted basis.
Summary of Fourth Quarter and Full Year
2024
For the fourth quarter ended December 31, 2024, earnings before
income taxes were $667 million, down (9)% versus the prior year
quarter. Earnings per share on a GAAP basis were $1.17, up 10% from
the prior year quarter, and adjusted earnings per share were $1.14,
down (16)% versus the prior year quarter. Total segment operating
profit was $1,051 million, down (16)% versus the prior year
quarter, and excluded specified items of $(36) million related to
gain on sale of assets and lowering of contingency liability
reserves.
For the full year, earnings before income taxes were $2.3
billion, down (47)% versus the prior year. Earnings per share on a
GAAP basis were $3.65 and adjusted earnings per share were $4.74,
both lower versus the prior year. Total segment operating profit
was $4.2 billion, down (28)% versus the prior year, and excluded
specified items of $480 million primarily related to the Wilmar
investment impairment, Nutrition trade name impairments, and gain
on asset sales.
4Q 2024 Segment Overview
($ in millions, except where noted)
4Q 2024
4Q 20232
% Change3
Total Segment Operating Profit1
$1,051
$1,253
(16)%
Segment Operating Profit:
Ag Services & Oilseeds
644
954
(32)%
Carbohydrate Solutions
319
309
3%
Nutrition
88
(10)
NM
3 NM: Not Meaningful. Percentage increases
above 200% or when one period includes income and other period
includes loss are considered not meaningful
FY 2024 Segment Overview
($ in millions, except where noted)
FY 2024
FY 20232
% Change
Total Segment Operating Profit1
$4,209
$5,869
(28)%
Segment Operating Profit:
Ag Services & Oilseeds
2,447
4,067
(40)%
Carbohydrate Solutions
1,376
1,375
—%
Nutrition
386
427
(10)%
1 Non-GAAP financial measures; see pages
7-9 and 14-16 for explanations and reconciliations.
Ag Services and Oilseeds
Summary
AS&O segment operating profit was $644 million during the
fourth quarter of 2024, down (32)% compared to the prior year
quarter.
The Ag Services subsegment operating profit was 19% higher
versus the prior year quarter, due to higher origination volumes
and margins in North America, supported by improved river
conditions. The subsegment also had benefits from positive timing
impacts, as well as higher destination marketing volumes and
margins in Global Trade.
The Crushing subsegment operating profit was (46)% lower versus
the prior year quarter, as increased industry run rates, higher
manufacturing costs, and biofuel and trade policy uncertainty drove
lower executed crush margins in North America, partially offset by
higher margins and volumes in EMEA. There were immaterial net
mark-to-market timing effects during the quarter compared to
approximately $35 million of net positive impacts in the prior year
quarter. The current quarter also included $52 million of insurance
proceeds for the partial settlement of the Decatur East and West
claim.
The Refined Products and Other (RPO) subsegment operating profit
was (57)% lower versus the prior year quarter, as biofuel and trade
policy uncertainty, increased pre-treatment capacity, and higher
imports of used cooking oil negatively impacted margins in Europe
and North America. Softer demand from food customers in North
America negatively impacted refining margins compared to the prior
year. During the quarter, there were approximately $50 million of
net negative mark-to-market timing effects compared to
approximately $5 million of net positive impacts in the prior year
quarter.
Equity earnings from the Company’s investment in Wilmar were
approximately (20)% lower versus the prior year period.
For the full year, the AS&O segment operating profit was
$2.4 billion, (40)% lower compared to 2023.
In the Ag Services subsegment, operating profit was (39)% lower
versus the prior year, as slower farmer selling and higher
logistics costs related industry take-or-pay commitments negatively
impacted the South American origination environment.
In the Crushing subsegment, operating profit was $844 million,
(35)% lower versus the prior year, as ample supplies out of South
America drove more balanced supply and demand conditions, leading
to lower crush margins. For 2024, there were approximately $20
million of net positive mark-to-market timing effects, compared to
approximately $185 million of net positive impacts in the prior
year. The full year also included $76 million of insurance proceeds
for the partial settlement of the Decatur East and West claims
related to incidents in 2023.
The RPO subsegment operating profit was $552 million, (58)%
lower versus the prior year, as increased pre-treatment capacity at
renewable diesel facilities and higher imports of used cooking oil
drove significantly lower biodiesel and refining margins. For 2024,
there were approximately $195 million of net negative
mark-to-market timing effects, compared to approximately $235
million of net positive impacts in the prior year.
Equity earnings from the Company’s investment in Wilmar were
$336 million in 2024, approximately 11% higher than the prior
year.
4Q 2024 AS&O Overview
($ in millions, except where noted)
4Q 2024
4Q 2023
% Change
Segment Operating Profit
$644
$954
(32)%
Ag Services
254
214
19%
Crushing
212
389
(46)%
Refined Products and Other
121
280
(57)%
Wilmar
57
71
(20)%
FY 2024 AS&O Overview
($ in millions, except where noted)
FY 2024
FY 2023
% Change
Segment Operating Profit
$2,447
$4,067
(40)%
Ag Services
715
1,168
(39)%
Crushing
844
1,290
(35)%
Refined Products and Other
552
1,306
(58)%
Wilmar
336
303
11%
Carbohydrate Solutions
Summary
Carbohydrate Solutions segment operating profit was $319 million
during the fourth quarter of 2024, up 3% compared to the prior year
quarter.
The Starches & Sweeteners (S&S) subsegment decreased
(3)%, versus the prior year quarter, as higher volumes and margins
in North America were offset by lower co-product values and margins
in EMEA. The current quarter also included $37 million of insurance
proceeds related to both the partial settlement of the Decatur East
and West insurance claim.
In the Vantage Corn Processor (VCP) subsegment, operating profit
increased due to higher ethanol export volumes and improved ethanol
margins relative to the prior year quarter.
For the full year, Carbohydrate Solutions segment operating
profit was $1.4 billion, flat compared to the prior year. In
S&S, strong margins and volumes in North America were offset by
weaker domestic ethanol margins, co-product values, and margins in
EMEA. In 2024, there were $84 million of insurance proceeds related
to the partial settlement of the Decatur East and West claims. In
VCP, operating profit declined relative to the prior year, as
strong exports volumes were more than offset by lower margins due
to higher industry production and inventory levels.
4Q 2024 Carbohydrate Solutions
Overview
($ in millions, except where noted)
4Q 2024
4Q 2023
% Change1
Segment Operating Profit
$319
$309
3%
Starches and Sweeteners
304
312
(3)%
Vantage Corn Processors
15
(3)
NM
1 NM: Not Meaningful. Percentage increases
above 200% or when one period includes income and other period
includes loss are considered not meaningful
FY 2024 Carbohydrate Solutions
Overview
($ in millions, except where noted)
FY 2024
FY 2023
% Change
Segment Operating Profit
$1,376
$1,375
—%
Starches and Sweeteners
1,343
1,329
1%
Vantage Corn Processors
33
46
(28)%
Nutrition Summary
Nutrition segment operating profit was $88 million during the
fourth quarter of 2024, an increase from the segment operating loss
of $(10) million in the prior year quarter.
Human Nutrition subsegment operating profit was $62 million
compared to a loss of $(25) million in the prior year quarter.
Results were higher due to the lapping of previously disclosed
non-recurring negative impacts from the prior year, higher volumes
and improved mix, and strong performance by recent M&A,
partially offset by higher costs. During the quarter, there were
also negative impacts due to higher costs of goods sold associated
with the termination of an unfavorable supply agreement. The
current quarter also included $46 million of insurance proceeds
related to the partial settlement of the Decatur East claim.
In the Animal Nutrition subsegment, operating profit was $26
million, up relative to the prior year quarter, as cost
optimization actions and lower input costs supported higher
margins.
For the full year, Nutrition segment operating profit was $386
million, (10)% lower versus the prior year.
Human Nutrition subsegment operating profit of $327 million was
(22)% lower than the prior year, driven primarily by negative
impacts related to unplanned downtime at Decatur East and lower
texturants pricing. The full year also included $71 million of
insurance proceeds related to the partial settlement of the Decatur
East claim.
Animal Nutrition subsegment operating profit of $59 million was
higher compared to the prior year as cost optimization efforts and
lower input costs supported higher margins.
4Q 2024 Nutrition Overview
($ in millions, except where noted)
4Q 2024
4Q 2023
% Change1
Segment Operating Profit
$88
$(10)
NM
Human Nutrition
62
(25)
NM
Animal Nutrition
26
15
73%
1 NM: Not Meaningful. Percentage increases
above 200% or when one period includes income and other period
includes loss are considered not meaningful
FY 2024 Nutrition Overview
($ in millions, except where noted)
FY 2024
FY 2023
% Change1
Segment Operating Profit
$386
$427
(10)%
Human Nutrition
327
417
(22)%
Animal Nutrition
59
10
NM
1 NM: Not Meaningful. Percentage increases
above 200% or when one period includes income and other period
includes loss are considered not meaningful
Corporate and Other Business
Summary
For the fourth quarter, Other business contributed operating
profit of $47 million, down 68% compared to the prior year quarter
due to lower Captive insurance results from higher claim losses.
ADM Investor Services results decreased on lower interest
income.
For the full year, Other business contributed operating profit
of $247 million, down 34% compared to the prior year due to lower
Captive insurance results from higher claim settlements. Included
in claim settlements were partial settlements of $231 million for
the Decatur East and West insurance claims of which $133 million
was from reinsurers during the fourth quarter.
In Corporate for the fourth quarter, unallocated corporate costs
decreased versus the prior year due to $52 million in lower
incentive compensation, partially offset by $28 million of
increased legal fees.
In Corporate for the full year, unallocated corporate costs
increased versus the prior year on higher global technology
investments to support digital transformation efforts, $103 million
in increased legal fees and $38 million in increased financing
costs, partially offset by lower incentive compensation. Other
Corporate was favorable compared to last year’s investment
valuation losses.
Outlook3
The Company provided guidance for the full year 2025. ADM
expects adjusted earnings per share in the range of $4.00 to $4.75
per share1,2, reflecting weaker market fundamentals and on-going
biofuel and trade policy uncertainty.
_________________________
1 Non-GAAP financial measures; see pages
7-9 and 14-16 for explanations and reconciliations.
2 All references in this document to
earnings per share (EPS) and adjusted earnings per share reflect
EPS on a diluted basis.
3 Forecasted GAAP Earnings Reconciliation:
ADM is not presenting forecasted GAAP earnings per diluted share or
a quantitative reconciliation to forecasted adjusted earnings per
share in reliance on the unreasonable efforts exemption provided
under Item 10(e)(1)(i)(B) of Regulation S-K. ADM is unable to
predict with reasonable certainty and without unreasonable effort
the impact of any impairment and timing of restructuring-related
and other charges, along with acquisition-related expenses and the
outcome of certain regulatory, legal and tax matters. The financial
impact of these items is uncertain and is dependent on various
factors, including timing, and could be material to our
Consolidated Statements of Earnings.
Targeted Actions to Deliver Cost
Savings
The Company announced today targeted actions to deliver between
$500 - $750 million in cost savings over the next 3 - 5 years.
These proactive actions will further reduce the Company's costs in
response to ongoing market challenges, including global legislative
and regulatory policy uncertainty. Specifically, ADM expects to
achieve the majority of the cost savings on an annual run-rate
basis through improvement in manufacturing costs, reduction in
purchased materials and services, and targeted workforce reduction.
The Company currently expects a targeted workforce reduction of
approximately 600 - 700 roles globally in 2025.
Dividend
ADM’s Board of Directors has declared a cash dividend of $51.0
cents per share, up from $50.0 cents per share, on the company’s
common stock. The dividend is payable on March 11, 2025 to
shareholders of record on February 18, 2025. This is ADM’s 93rd
consecutive year of uninterrupted dividends.
Conference Call
Information
ADM will host a webcast today, February 4, 2025, at 9 a.m.
Central Time to discuss financial results and outlook. To listen to
the webcast, go to www.adm.com/webcast. A replay of the webcast
will also be available for an extended period of time at
www.adm.com/webcast.
About ADM
ADM unlocks the power of nature to enrich the quality of life.
We’re an essential global agricultural supply chain manager and
processor, providing food security by connecting local needs with
global capabilities. We’re a premier human and animal nutrition
provider, offering one of the industry’s broadest portfolios of
ingredients and solutions from nature. We’re a trailblazer in
health and well-being, with an industry-leading range of products
for consumers looking for new ways to live healthier lives. We’re a
cutting-edge innovator, guiding the way to a future of new consumer
and industrial solutions. And we're a leader in sustainability,
scaling across entire value chains to help decarbonize the multiple
industries we serve. Around the globe, our innovation and expertise
are meeting critical needs while nourishing quality of life and
supporting a healthier planet. Learn more at www.adm.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve substantial risks and uncertainties. All statements,
other than statements of historical fact included in this release,
are forward-looking statements. You can identify forward-looking
statements by the fact they do not relate strictly to historical or
current facts. These statements may include words such as
“anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,”
“believe,” “may,” “outlook,” “will,” “should,” “can have,”
“likely,” “forecasted”, and other words and terms of similar
meaning in connection with any discussion of the timing or nature
of future operating or financial performance or other events. All
forward-looking statements are subject to significant risks,
uncertainties and changes in circumstances that could cause actual
results and outcomes to differ materially from the forward-looking
statements. These forward-looking statements are not guarantees of
future performance and involve risks, assumptions and
uncertainties, including, without limitation, those described in
the Company’s most recent Annual Report on Form 10-K/A and in other
documents that the Company files or furnishes with the Securities
and Exchange Commission. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual outcomes may vary materially from those indicated
or anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except
to the extent required by law, ADM does not undertake, and
expressly disclaims, any duty or obligation to update publicly any
forward-looking statement after the date of this announcement,
whether as a result of new information, future events, changes in
assumptions or otherwise.
Non-GAAP Financial
Measures
The Company uses certain “Non-GAAP” financial measures as
defined by the Securities and Exchange Commission. These are
measures of performance not defined by accounting principles
generally accepted in the United States, and should be considered
in addition to, not in lieu of, GAAP reported measures.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in this
press release.
Adjusted net earnings and Adjusted earnings per share (EPS).
Adjusted net earnings reflects ADM’s reported net earnings after
removal of the effect on net earnings of specified items as more
fully described in the reconciliation tables below. Adjusted EPS
reflects ADM’s fully diluted EPS after removal of the effect on EPS
as reported of specified items as more fully described in the
reconciliation tables below. Management believes that Adjusted net
earnings and Adjusted EPS are useful measures of ADM’s performance
because they provide investors additional information about ADM’s
operations allowing better evaluation of underlying business
performance and better period-to-period comparability. These
non-GAAP financial measures are not intended to replace or be
alternatives to net earnings and EPS as reported, the most directly
comparable GAAP financial measures, or any other measures of
operating results under GAAP. Earnings amounts described above have
been divided by the company’s diluted shares outstanding for each
respective period in order to arrive at an adjusted EPS amount for
each specified item.
Total segment operating profit. Total segment operating profit
is ADM’s consolidated earnings before income taxes adjusted for
Other business, Corporate, and specified items as more fully
described in the reconciliation tables below. Management believes
that total segment operating profit is a useful measure of ADM’s
performance because it provides investors information about ADM’s
reportable segment performance excluding other business, corporate
overhead costs as well as specified items. Total segment operating
profit is not a measure of consolidated operating results under
U.S. GAAP and should not be considered an alternative to earnings
before income taxes, the most directly comparable GAAP financial
measure, or any other measure of consolidated operating results
under U.S. GAAP.
Adjusted Return on Invested Capital (ROIC). Adjusted ROIC is
Adjusted ROIC earnings divided by adjusted invested capital.
Adjusted ROIC earnings is ADM’s net earnings adjusted for the
after-tax effects of interest expense on borrowings and specified
items. Adjusted invested capital is the sum of ADM’s equity
(excluding redeemable and non-redeemable noncontrolling interests)
and interest-bearing liabilities (which totals invested capital),
adjusted for specified items. Management believes Adjusted ROIC is
a useful financial measure because it provides investors
information about ADM’s returns excluding the impacts of specified
items and increases period-to-period comparability of underlying
business performance. Management uses Adjusted ROIC to measure
ADM’s performance by comparing Adjusted ROIC to its weighted
average cost of capital (WACC). Adjusted ROIC, Adjusted ROIC
earnings and Adjusted invested capital are non-GAAP financial
measures and are not intended to replace or be alternatives to GAAP
financial measures.
EBITDA is defined as earnings before interest, taxes,
depreciation and amortization. Adjusted EBITDA is defined as
earnings before interest on borrowings, taxes, depreciation, and
amortization, adjusted for specified items. The Company calculates
adjusted EBITDA by removing the impact of specified items and
adding back the amounts of income tax expense, interest expense on
borrowings, and depreciation and amortization to net earnings.
Management believes that EBITDA and adjusted EBITDA are useful
measures of the Company’s performance because they provide
investors additional information about the Company’s operations
allowing better evaluation of underlying business performance and
better period-to-period comparability. EBITDA and adjusted EBITDA
are non-GAAP financial measures and are not intended to replace or
be an alternative to net earnings, the most directly comparable
GAAP financial measure.
Cash flows from operations before working capital is defined as
cash flows from operating activities excluding the changes in
operating assets and liabilities as presented in the Company’s
consolidated statement of cash flows. Management believes that cash
flows from operations before working capital is a useful measure of
the Company’s cash generation. Cash flows from operations before
working capital is a non-GAAP financial measure and is not intended
to replace or be an alternative to cash from operating activities,
the most directly comparable GAAP financial measure.
Financial Tables Follow
Source: Corporate Release Source: ADM
Total Segment Operating Profit (a
non-GAAP financial measure) and Corporate Results
(unaudited)
Quarter ended
Year ended
December 31
December 31
(In millions)
2024
2023
Change
2024
2023
Change
Earnings before income taxes
$
667
$
734
$
(67
)
$
2,255
$
4,294
$
(2,039
)
Other Business (earnings) loss
(47
)
(146
)
99
(247
)
(375
)
128
Corporate
467
501
(34
)
1,721
1,606
115
Specified items:
(Gain) loss on sales of assets
(10
)
(7
)
(3
)
(10
)
(17
)
7
Impairment and restructuring charges and
settlement contingencies
(26
)
171
(197
)
490
361
129
Total Segment Operating Profit
$
1,051
$
1,253
$
(202
)
$
4,209
$
5,869
$
(1,660
)
Segment Operating Profit:
Ag Services and Oilseeds
$
644
$
954
$
(310
)
$
2,447
$
4,067
$
(1,620
)
Ag Services
254
214
40
715
1,168
(453
)
Crushing
212
389
(177
)
844
1,290
(446
)
Refined Products and Other
121
280
(159
)
552
1,306
(754
)
Wilmar
57
71
(14
)
336
303
33
Carbohydrate Solutions
$
319
$
309
$
10
$
1,376
$
1,375
$
1
Starches and Sweeteners
304
312
(8
)
1,343
1,329
14
Vantage Corn Processors
15
(3
)
18
33
46
(13
)
Nutrition
$
88
$
(10
)
$
98
$
386
$
427
$
(41
)
Human Nutrition
62
(25
)
87
327
417
(90
)
Animal Nutrition
26
15
11
59
10
49
Corporate Results
$
(467
)
$
(501
)
$
34
$
(1,721
)
$
(1,606
)
$
(115
)
Interest expense - net
(131
)
(105
)
(26
)
(482
)
(431
)
(51
)
Unallocated corporate costs
(302
)
(336
)
34
(1,205
)
(1,144
)
(61
)
Other
(20
)
(58
)
38
(4
)
(24
)
20
Specified items:
Expenses related to acquisitions
(3
)
(1
)
(2
)
(7
)
(7
)
—
Gain on debt conversion option
—
—
—
—
6
(6
)
Restructuring (charges) adjustment
(11
)
(1
)
(10
)
(23
)
(6
)
(17
)
Consolidated Statements of
Earnings
(unaudited)
Quarter ended
Year ended
December 31
December 31
2024
2023
2024
2023
(in millions, except per share
amounts)
Revenues
$
21,498
$
22,978
$
85,530
$
93,935
Cost of products sold (1)
20,140
21,238
79,752
86,422
Gross profit
1,358
1,740
5,778
7,513
Selling, general, and administrative
expenses (2)
943
919
3,706
3,456
Asset impairment, exit, and restructuring
costs
13
196
545
342
Equity in (earnings) losses of
unconsolidated affiliates
(123
)
(143
)
(621
)
(551
)
Interest and investment income
(162
)
(71
)
(562
)
(499
)
Interest expense (3)
179
165
706
647
Other (income) expense - net (4,5)
(159
)
(60
)
(251
)
(176
)
Earnings before income taxes
667
734
2,255
4,294
Income tax expense (benefit) (6)
106
192
476
828
Net earnings including non-controlling
interests
561
542
1,779
3,466
Less: Net earnings (losses) attributable
to non-controlling interests
(6
)
(23
)
(21
)
(17
)
Net earnings attributable to
ADM
$
567
$
565
$
1,800
$
3,483
Diluted earnings per common
share
$
1.17
$
1.06
$
3.65
$
6.43
Average diluted shares outstanding
484
531
493
542
(1) Includes $26 million in the current
quarter and YTD related to import duty contingent liability
reversal. Includes a contingency loss adjustment of $13 million
related to import duties in the prior-year quarter, and a net
reversal of charges related to inventory writedowns of $5 million
and a net contingency loss provision of $49 million related to
import duties in the prior YTD.
(2) Includes acquisition-related expenses
of $3 million and $7 million in the current quarter and YTD,
respectively. Includes acquisition-related expenses of $1 million
and $7 million in the prior-year quarter and YTD, respectively, and
a contingency loss of $8 million in the prior-year YTD.
(3) Includes (gains) losses related to the
mark-to-market adjustment of the conversion option of the
exchangeable bond issued in August 2020 ($6) million in the
prior-year YTD.
(4) Includes net (gains) losses related to
the sale of certain assets of $(10) million and $(11) million in
the current quarter and YTD, respectively, and ($7) million and
($17) million in the prior-year quarter and YTD, respectively.
(5) Includes a contingency loss adjustment
of $11 million in the prior-year quarter and YTD.
(6) Includes the tax expense (benefit)
impact of specified items and tax discrete items totaling $5
million and $28 million in the current quarter and YTD,
respectively, and ($11) million and ($49) million in the prior-year
quarter and YTD, respectively.
Summary of Financial Condition
(unaudited)
December 31, 2024
December 31, 2023
(in millions)
Net Investment In
Cash and cash equivalents
$
611
$
1,368
Short-term marketable securities
246
—
Operating working capital
9,501
9,843
Property, plant, and equipment
10,837
10,508
Investments in affiliates
5,276
5,500
Goodwill and other intangibles
6,769
6,341
Other non-current assets
2,670
2,515
$
35,910
$
36,075
Financed By
Short-term debt
$
1,903
$
105
Long-term debt, including current
maturities
8,254
8,260
Deferred liabilities
3,322
3,245
Temporary equity
253
320
Shareholders’ equity
22,178
24,145
$
35,910
$
36,075
Summary of Cash Flows
(unaudited)
Year ended
December 31
2024
2023
(in millions)
Cash flows from operating
activities
Net earnings
$
1,779
$
3,466
Depreciation and amortization
1,141
1,059
Asset impairment charges
519
309
(Gains) losses on sales/revaluation of
assets
(12
)
38
Other - net
(128
)
(145
)
Other changes in operating assets and
liabilities
(519
)
(267
)
Net cash provided by operating
activities
2,780
4,460
Cash flows from investing
activities
Purchases of property, plant and
equipment
(1,563
)
(1,494
)
Net assets of businesses acquired
(936
)
(23
)
Proceeds from sale of business/assets
46
60
Marketable securities - net
(223
)
—
Investments in affiliates
(47
)
(18
)
Other investing activities
3
(21
)
Net cash provided by investing
activities
(2,720
)
(1,496
)
Cash flows from financing
activities
Long-term debt borrowings
27
501
Long-term debt payments
(1
)
(963
)
Net borrowings (payments) under lines of
credit
1,800
(390
)
Share repurchases
(2,327
)
(2,673
)
Cash dividends
(985
)
(977
)
Acquisition of noncontrolling interest
(8
)
—
Other
(8
)
(102
)
Net cash used for financing activities
(1,502
)
(4,604
)
Effect of exchange rate on cash, cash
equivalents, restricted cash, and restricted cash equivalents
(24
)
(3
)
Net increase (decrease) in cash, cash
equivalents, restricted cash, and restricted cash
equivalents
(1,466
)
(1,643
)
Cash, cash equivalents, restricted
cash, and restricted cash equivalents - beginning of year
5,390
7,033
Cash, cash equivalents, restricted
cash, and restricted cash equivalents - end of year
$
3,924
$
5,390
Segment Operating Analysis
(unaudited)
Quarter ended
Year ended
December 31
December 31
2024
2023
2024
2023
(in ‘000s metric tons)
Processed volumes (by
commodity)
Oilseeds
9,050
8,841
35,719
34,899
Corn
4,708
4,718
18,541
18,067
Total processed volumes
13,758
13,559
54,260
52,966
Quarter ended
Year ended
December 31
December 31
2024
2023
2024
2023
(in millions)
Revenues
Ag Services and Oilseeds
$
16,874
$
18,524
$
66,516
$
73,426
Carbohydrate Solutions
2,750
2,631
11,234
12,874
Nutrition
1,774
1,721
7,349
7,211
Total Segment Revenues
21,398
22,876
85,099
93,511
Other Business
100
102
431
424
Total Revenues
$
21,498
$
22,978
$
85,530
$
93,935
Adjusted Net Earnings and Adjusted
Earnings Per Share
Non-GAAP financial measures
(unaudited)
Quarter ended December 31
Year ended December 31
2024
2023
2024
2023
In millions
Per share
In millions
Per share
In millions
Per share
In millions
Per share
Net earnings and fully diluted
EPS
$
567
$
1.17
$
565
$
1.06
$
1,800
$
3.65
$
3,483
$
6.43
Adjustments:
Loss (gain) on sales of assets and
businesses (a)
(8
)
(0.02
)
(5
)
—
(8
)
(0.02
)
(12
)
(0.03
)
Impairment and restructuring charges and
settlement contingencies (b)
(11
)
(0.02
)
158
0.30
512
1.04
310
0.57
Expenses related to acquisitions (c)
2
0.01
1
—
5
0.01
6
0.01
Gain on debt conversion option (d)
—
—
—
—
—
—
(6
)
(0.01
)
Tax adjustment (e)
—
—
1
—
30
0.06
4
0.01
Sub-total adjustments
(17
)
(0.03
)
155
0.30
539
1.09
302
0.55
Adjusted net earnings and adjusted
EPS
$
550
$
1.14
$
720
$
1.36
$
2,339
$
4.74
$
3,785
$
6.98
(a)
Current quarter and YTD gain of $10
million and $11 million pretax ($8 million and $8 million after
tax), respectively, was related to the sale of certain assets, tax
effected using the applicable tax rates. Prior-year quarter and YTD
gains of $7 million and $17 million pretax ($5 million and $12
million after tax), respectively was related to the sale of certain
assets, tax effected using the applicable tax rates.
(b)
Current quarter and YTD charges of $10
million and $539 million pretax ($9 million and $532 million after
tax), respectively, were related to the impairment of certain
long-lived assets, other intangibles, and restructuring. Also
included in the current quarter and YTD are contingency loss
adjustments of $(26) million and $(26) million pretax ($(20)
million and $(20) million after tax). Prior-year quarter and YTD
charges of $196 million and $337 million pretax ($158 million and
$310 million after tax), respectively, were related to the
impairment of certain assets, restructuring, and settlement
contingencies, tax effected using the applicable tax rates.
Prior-year YTD charges were also partially offset by an insurance
settlement, tax effected using the applicable tax rate.
(c)
Current quarter and YTD expenses of $3
million and $7 million pretax ($2 million and $5 million after
tax), respectively, were related to certain acquisitions, tax
effected using the Company’s U.S. income tax rate. Prior quarter
and YTD expenses of $1 million and $7 million pretax ($1 million
and $6 million after tax), respectively, were related to certain
acquisitions, tax effected using the Company’s U.S. income tax
rate.
(d)
Prior-year YTD gain on debt conversion of
$6 million pretax ($6 million after tax), respectively, was related
to the mark-to-market adjustment of the conversion option of the
exchangeable bonds issued in August 2020, tax effected using the
applicable tax rate.
(e)
Tax expense adjustment due to certain
discrete items totaling $0 million and $30 million in the current
quarter and YTD, respectively, and $1 million and $4 million in the
prior-year quarter and YTD, respectively.
Adjusted Return on Invested
Capital
A non-GAAP financial measure
(unaudited)
Adjusted ROIC Earnings (in
millions)
Four Quarters
Quarter Ended
Ended
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2024
Net earnings attributable to ADM
$
729
$
486
$
18
$
567
$
1,800
Adjustments:
Interest expense
115
135
124
132
506
Other adjustments
21
22
512
(22
)
533
Total adjustments
136
157
636
110
1,039
Tax on adjustments
(27
)
(32
)
(30
)
(36
)
(125
)
Net adjustments
109
125
606
74
914
Total Adjusted ROIC Earnings
$
838
$
611
$
624
$
641
$
2,714
Adjusted Invested Capital (in
millions)
Quarter Ended
Trailing Four
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Quarter Average
Equity (1)
$
23,219
$
22,148
$
21,974
$
22,168
$
22,377
+ Interest-bearing liabilities (2)
9,995
10,576
10,051
10,180
10,201
Other adjustments
21
22
512
(22
)
133
Total Adjusted Invested Capital
$
33,235
$
32,746
$
32,537
$
32,326
$
32,711
Adjusted Return on Invested
Capital
8.3
%
(1) Excludes non-controlling interests
(2) Includes short-term debt, current
maturities of long-term debt, finance lease obligations, and
long-term debt
Adjusted Earnings Before Interest,
Taxes, and Depreciation and Amortization (EBITDA)
A non-GAAP financial measure
(unaudited)
The tables below provide a reconciliation
of net earnings to adjusted EBITDA and adjusted EBITDA by segment
for the trailing four quarters ended December 31, 2024.
Four Quarters
Quarter Ended
Ended
Mar. 31, 2024
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2024
(in millions)
Net earnings
$
729
$
486
$
18
$
567
$
1,800
Net earnings (losses) attributable to
noncontrolling interests
(10
)
(5
)
—
(6
)
(21
)
Income tax expense
166
115
90
106
476
Earnings before income taxes
885
596
108
667
2,255
Interest expense
115
135
124
132
506
Depreciation and amortization
280
286
288
287
1,141
(Gain) loss on sales of assets and
businesses
—
—
(1
)
(10
)
(11
)
Impairment and restructuring charges and
settlement contingencies
18
7
504
(16
)
513
Railroad maintenance expense
—
4
28
32
64
Expenses related to acquisitions
—
4
—
3
7
Adjusted EBITDA
$
1,298
$
1,032
$
1,051
$
1,095
$
4,476
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250204109464/en/
Media Contact Brett Lutz media@adm.com 312-634-8484
Investor Relations Megan Britt Megan.Britt@adm.com
872-257-8378
Archer Daniels Midland (NYSE:ADM)
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