AI Takeaway
ADM's FY2025 results showed significant pressure across all profitability metrics, with revenue declining 6.2% to $80.3B, net income falling 40.1% to $1.08B, and EPS dropping to $2.23, though operating cash flow nearly doubled to $5.45B.
Revenue
$80.27B
-6.15% YoY
EPS (Basic)
$2.23
-39.07% YoY
Gross Margin
6.3%
-0.49% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 6.2% year-over-year from $85.5B to $80.3B in FY2025, reflecting weaker commodity prices and reduced volumes across ADM's agricultural processing and merchandising segments. Cost of revenue also declined 5.7% to $75.2B, but not enough to offset the top-line pressure.
Source: Source: 10-K Income Statement
Gross profit declined 12.9% to $5.03B, compressing gross margin from 6.76% to 6.27%. Net margin fell sharply to 1.34% from approximately 2.10% in the prior year, reflecting the combined impact of lower revenues and elevated SG&A costs of $3.61B.
Source: Source: 10-K Income Statement
Despite weaker earnings, operating cash flow nearly doubled, rising 95.4% to $5.45B from $2.79B in the prior year. This improvement was driven by working capital optimization and non-cash charges including D&A of $1.18B, signaling improved cash conversion efficiency.
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockADM's business is highly sensitive to agricultural commodity prices, which directly impact both revenue and cost of goods sold. The 6.2% revenue decline alongside only a 5.7% reduction in cost of revenue in FY2025 illustrates how price movements can compress margins rapidly. With gross margin already thin at 6.27%, further commodity price weakness could push profitability to critically low levels.
Source: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.87 versus the $0.80 analyst consensus — a +8.2% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $80.27B | $85.53B | -6.15% |
Cost of Revenue | $75.24B | $79.75B | -5.66% |
Gross Profit | $5.03B | $5.78B | -12.89% |
Net Income | $1.08B | $1.8B | -40.11% |
EPS (Basic) | $2.23 | $3.66 | -39.07% |
EPS (Diluted) | $2.23 | $3.65 | -38.90% |
R&D Expense | $246M | $269M | -8.55% |
SG&A Expense | $3.61B | $3.71B | -2.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $52.39B | $53.27B | -1.66% |
Current Assets | $26.66B | $27.72B | -3.80% |
Current Liabilities | $19.53B | $19.94B | -2.03% |
Cash & Equivalents | $1.01B | $611M | +66.12% |
Long-Term Debt | $7.61B | $8.25B | -7.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $5.45B | $2.79B | +95.41% |
Investing Cash Flow | $-1.02B | $-2.7B | +62.36% |
Financing Cash Flow | $-2.89B | $-1.53B | -88.69% |
Dividends Paid | $987M | $985M | +0.20% |
Share Buybacks | $0 | $2.33B | -100.00% |
D&A | $1.18B | $1.14B | +3.51% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 6.3% | 6.8% | -0.49% |
Net Margin | 1.3% | — | — |
ROA | 2.1% | — | — |
Current Ratio | $1.365 | — | — |
Other companies in Agricultural Products & Services
ADM reported FY2025 revenue of $80.3B, down 6.2% from $85.5B in the prior year, while net income fell 40.1% to $1.08B and EPS dropped to $2.23 from $3.66. The results reflect significant commodity price headwinds and margin compression, though operating cash flow surged 95.4% to $5.45B.
ADM's net income fell 40.1% to $1.08B in FY2025, primarily because revenue declined 6.2% while cost of revenue only fell 5.7%, compressing gross profit by 12.9% to $5.03B. With SG&A expenses remaining elevated at $3.61B, there was limited room to absorb the top-line weakness.
ADM paid $987M in dividends in FY2025, nearly flat compared to $985M in the prior year, but completely suspended share buybacks, which had totaled $2.33B in the prior year. This capital allocation shift suggests management prioritized balance sheet strength and liquidity over shareholder returns via buybacks.
ADM's balance sheet shows $1.02B in cash (up 66.1% YoY), a current ratio of 1.37x, and long-term debt reduced to $7.61B (-7.8% YoY), indicating a stable but not robust financial position. The near-doubling of operating cash flow to $5.45B is a positive sign, though the 40% drop in net income and thin 1.34% net margin highlight ongoing profitability challenges.
The most significant risks include continued commodity price volatility that could further compress ADM's already thin 6.27% gross margin, and the sustainability of profitability given net income fell 40.1% to $1.08B in FY2025. Additionally, ADM carries $7.61B in long-term debt, which requires careful management especially if earnings remain under pressure.