ADM Reports Q2 Earnings, Revenue Down 4.9% Y/Y, Tightens FY25 EPS Outlook

Archer-Daniels-Midland (ADM) reported Q2 results with non-GAAP EPS of $0.93, beating expectations by $0.13, but revenue of $21.17B (-4.9% Y/Y) missed by $640M. The company tightened its FY25 EPS outlook, with year-to-date cash flows from operating activities reaching $4.0 billion.

Archer-Daniels-Midland (ADM) reported its Q2 2025 results, with non-GAAP EPS of $0.93, exceeding expectations by $0.13. However, revenue of $21.17 billion was down 4.9% year-over-year, missing estimates by $640 million. The company also tightened its full-year 2025 EPS outlook to approximately $4.00 per share, down from the previous guidance of $4.00 to $4.75 per share. Year-to-date cash flows from operating activities reached $4.0 billion [1].

The company attributed the revenue miss to a combination of factors, including a challenging agricultural environment and lower-than-expected crop prices. ADM noted that the second quarter's performance was impacted by the transition to FIFO-based inventory accounting, which resulted in a decrease in cost of goods sold (COGS) [3].

Looking ahead, ADM expects the recently improved margins to benefit the fourth quarter of 2025 and beyond. The company's outlook is based on first-half performance and the expectation of continued margin improvements. ADM's strategic focus on cost management and operational efficiency is expected to support its earnings growth in the second half of the year.

References:

[1] https://seekingalpha.com/news/4478248-archer-daniels-midland-reports-mixed-q2-results-tightens-fy25-eps-outlook
[3] https://seekingalpha.com/news/4473232-hubbell-reports-mixed-q2-results-updates-fy25-outlook