Global trade challenges and commodity issues cut into ADM’s ag business during its second quarter of 2025, despite the ag leader reporting higher operating profits overall.
Operating profits for ADM’s ag service and oilseeds (AS&O) division dropped to $379 million in Q2 2025, ending June 30, compared to $459 million in the same quarter last year for a decline of 17%, the company reported in a press release. ADM’s AS&O division profits came in at $791 million for the first half of the year, compared to $1.32 billion in the first half of 2024.
ADM’s ag services and crushing division dropped to $113 million and $33 million, declining 7% and 75% from the same period last year, respectively.
However, operating profits for refined products rose to $156 million for a 14% increase from the same quarter last year, while ADM’s strategic partnership with Asian agribusiness company Wilmar netted the company $77 million in gross profits for a 13% increase over Q2 2024.
Declines in ADM’s crushing businesses to lower soybean demand and uncertainty around biofuel policy in the US, Manish Padalawala, executive VP and CFO at ADM, explained. Additionally, canola crushing margins were compressed by lower demand and trade policies, Padalawala added.
ADM expects soybean crush margins to be similar in Q3 with improvements in Q4, Padalawala said. ADM is projecting a margin range of $60-70 per metric tons of soybean, and global canola crush margins within a range of $55-65 per metric tons, Padalawala stated.
“In the second quarter, ADM continued to make progress on operational improvements, driving cost savings through targeted realignments and advancing our pipeline of portfolio simplification opportunities, all while continuing our disciplined approach to capital allocation,” Juan Luciano, CEO and chair of the board, said in prepared remarks.
He added, “In AS&O, we maintained focus on actions to improve our operational resilience, announcing additional targeted network consolidations, as we worked to bridge a challenging environment that is expected to ease beginning in the fourth quarter, given the clarity around renewable volume obligations.”
ADM changes guidance but remains optimistic on 2025, beyond
For the quarter overall, total operating profits rose from $747 million in Q1 2025 to $830 million in the proceeding quarter.
Additionally, ADM achieved $279 million in earnings before income taxes, for a 53% decline compared to Q2 2024 results. This was lower than the prior quarter, with $353 million in earnings before income taxes in Q1 2025.
In response to macroeconomic conditions, ADM narrowed its guidance for 2025, now projecting earnings per share to be $4.00, down from a range of $4.00-4.75, but remained optimistic about the rest of the year.
“Looking to 2025 and onwards, we see several reasons for optimism. Clarity in biofuel policy and legislative support for agriculture are creating a favorable environment for market access for our farmer partners and enhance ADM’s ability to deliver economic value to the broader sector,” Juan Luciano, CEO and chairman of the board for ADM, shared on an investors’ call.
ADM’s stock closed at $57.62 on Aug. 5 — the day of the financial report release — up nearly 6% for the day.
