Archer Daniels Midland Company (ADM) Q3 2024 earnings summary

Executive summary

• Q3 2024 adjusted EPS was $1.09, down 33% year-over-year, with net earnings of $18 million, reflecting a $461 million Wilmar impairment charge; total segment operating profit was $1.0 billion, down 28%.

• Year-to-date adjusted EPS was $3.61, segment operating profit $3.2 billion, and adjusted ROIC 8.8%; net earnings YTD were $1.23 billion, down from $2.92 billion a year ago.

• Cash flow from operations before working capital was $2.3 billion YTD, down 39% year-over-year, while operating cash flow for the nine months ended September 30, 2024 was $2.5 billion, up from $1.9 billion in the prior year.

• $3.1 billion returned to shareholders year-to-date through $744 million in dividends and $2.3 billion in share repurchases.

• Internal control weaknesses over segment disclosures persist, with ongoing remediation and restated financials for 2023 and early 2024 having no impact on consolidated results.

Financial highlights

• Q3 2024 revenues were $19.9 billion, down 8% year-over-year, with net earnings of $18 million and gross profit of $1.4 billion.

• Adjusted EBITDA for the trailing four quarters was $6.57 billion, with adjusted ROIC at 8.8%.

• Asset impairment, exit, and restructuring costs rose to $507 million, mainly from the Wilmar investment write-down.

• Cash and equivalents at period end were $4.4 billion.

• Corporate net interest expense expected in the range of $475–$525 million.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance lowered and reaffirmed at $4.50–$5.00 per share, reflecting year-to-date results and ongoing headwinds.

• Fourth-quarter Ag Services & Oilseeds results expected to be lower than the prior year; Carbohydrate Solutions in line; Nutrition lower sequentially but higher than Q4 2023.

• Capital expenditures for 2024 expected to be approximately $1.5 billion; effective tax rate guidance raised to 20–22%.

• Insurance proceeds of $50–$135 million expected in Q4 related to Decatur East and West, with further proceeds anticipated in 2025–2026.

• Adjusted net debt/adjusted EBITDA expected at 1.5x–2.0x; actual YTD is 1.9x.