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 $18M and a $461M Wilmar impairment charge; YTD adjusted EPS was $3.61 and segment operating profit $3.2B.

• Total segment operating profit for Q3 was $1.0B, down 28% year-over-year; YTD was $3.2B, down 32% year-over-year.

• Cash flow from operations before working capital was $2.3B YTD, down 39% from prior year; operating cash flow YTD was $2.5B, up from $1.9B in the prior year period.

• $3.1B returned to shareholders YTD: $744M in dividends and $2.3B in share repurchases.

• Restated financials for 2023 and early 2024 had no impact on consolidated results; internal control weaknesses persist.

Financial highlights

• Q3 2024 revenues were $19.9B, down 8% year-over-year; YTD revenues were $64.0B, down from $71.0B.

• Q3 2024 net earnings attributable to ADM were $18M ($0.04 per share), down from $821M ($1.52 per share) in Q3 2023.

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

• Gross profit declined 25% to $1.4B; Q3 2024 gross margin was 6.8%, down from 8.3% in Q3 2023.

• Adjusted EBITDA for the trailing four quarters was $4.7B.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance lowered to $4.50–$5.00 per share, reflecting ongoing market headwinds and operational challenges.

• Corporate cost guidance set at $1.7B–$1.8B; capital expenditures expected at ~$1.5B; effective tax rate 20%–22%.

• Q4: Ag Services & Oilseeds results expected significantly lower vs. prior year; Carbohydrate Solutions in line; Nutrition lower sequentially but higher than Q4 2023.

• Insurance proceeds of $50M–$135M expected in Q4 for Decatur incidents, with further payments into 2025–2026.

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