Archer Daniels Midland (NYSE:ADM) shares dropped sharply on Tuesday after the agricultural and biofuels giant reported better-than-expected third-quarter earnings but cut its full-year profit forecast amid uncertainty surrounding U.S. biofuel policy.
The stock fell 8.49% in pre-market trading following the release.
The Chicago-based company posted adjusted earnings of $0.92 per share, ahead of analyst expectations of $0.85, while revenue came in at $20.37 billion, missing forecasts of $20.96 billion. Revenue still rose 2.2% year-over-year, supported by stable performance in its nutrition business.
ADM lowered its full-year 2025 earnings guidance to $3.25–$3.50 per share, down from a prior estimate of around $4.00 and well below the analyst consensus of $3.79. The company said the revision reflects weaker crush margins linked to deferred U.S. biofuel regulations and disruptions in global trade flows, both of which have weighed on demand.
“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.”
ADM’s Ag Services & Oilseeds division reported a 21% decline in operating profit to $379 million, as crushing profits plunged 93% on lower margins. The Carbohydrate Solutions unit also saw profits drop 26% to $336 million, while the Nutrition segment stood out, delivering a 24% increase in operating profit to $130 million.
The company highlighted strong cash generation, with $5.8 billion in cash flow from operations year-to-date. ADM said it expects greater clarity on biofuel policy and improved trade conditions to help restore demand signals 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.