Archer-Daniels-Midland Reports Significant Earnings Decline for 2025, Remediates Material Weakness in Internal Controls
ADM sits 67% above its 52-week low of $40.98.
Summary
Archer-Daniels-Midland reported a significant 40% drop in 2025 net earnings and disclosed substantial impairment charges, alongside the positive news of fully remediating a material weakness in internal controls.
Key Events · Earnings and Guidance · ADM
-
Net Earnings Decline Significantly
Net earnings attributable to controlling interests decreased by 40% to $1.078 billion ($2.23 diluted EPS) in 2025, down from $1.800 billion ($3.65 diluted EPS) in 2024. Earnings before income taxes also fell by 44% to $1.255 billion.
-
Material Weakness in Internal Controls Remediated
The company announced the full remediation of a previously disclosed material weakness in internal control over financial reporting related to intersegment sales, effective June 30, 2025. This follows the SEC investigation settlement disclosed on January 28, 2026.
-
Substantial Impairment and Revaluation Charges
Total asset impairment, exit, and restructuring costs were $473 million in 2025, including a $179 million impairment for capitalized software and $372 million in revaluation losses on alternative protein investments. A $163 million penalty charge related to the Wilmar equity investment was also recorded.
-
Cessation of Share Repurchases
The company did not repurchase any shares in 2025, a notable change from $2.3 billion in share repurchases during 2024, despite extending its repurchase program through 2029.
Analysis · ADM · Manufacturing
Archer-Daniels-Midland's 2025 annual report reveals a substantial decline in financial performance, with net earnings attributable to controlling interests falling by 40% and earnings before income taxes decreasing by 44% compared to 2024. This downturn was primarily driven by lower pricing, compressed margins in Ag Services and Oilseeds, and significant impairment charges totaling $473 million, including $179 million for capitalized software and $372 million in revaluation losses on alternative protein investments. Additionally, the company recorded a $163 million penalty charge related to its Wilmar equity investment. While the financial results are a clear negative, a critical positive development is the full remediation of the previously disclosed material weakness in internal control over financial reporting as of June 30, 2025, addressing a key concern that led to a recent SEC settlement. The company also reported strong operating cash flow, but notably ceased share repurchases in 2025 after a $2.3 billion program in 2024, and maintains an investment-grade credit rating with a negative outlook. Investors should monitor the impact of ongoing legal proceedings and the effectiveness of strategic initiatives to restore profitability.
How filings like this one have moved
In the 30 days to Sep 15, 2026, 35.6% of the 1100 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ADM was trading at $68.57 on NYSE in the Manufacturing sector, with a market capitalization of approximately $33B. The 52-week trading range was $40.98 to $70.09. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.