ADM 4Q Profit, Revenue Fall on Biofuel Policy and Trade Uncertainty
Archer Daniels Midland logged lower fourth-quarter profit and revenue, hurt by a challenging operating environment marked by trade and policy uncertainty.
(Dow Jones) — Archer Daniels Midland logged lower fourth-quarter profit and revenue, hurt by a challenging operating environment marked by trade and policy uncertainty.
The processor of agricultural commodities like oilseeds, corn and wheat on Tuesday posted a profit of $456 million, or 94 cents a share, compared with $567 million, or $1.17 a share, a year earlier.
Stripping out certain one-time items, earnings were 87 cents a share. Analysts polled by FactSet expected adjusted earnings of 80 cents a share.
Revenue fell 14% to $18.56 billion, missing the $21.06 billion that Wall Street modeled.
Chief Executive Juan Luciano said the company proved resilient last year, despite operating in a challenging environment plagued by a dynamic global trade landscape and the continuing uncertainty around U.S. biofuel policy.
Shares fell 5.4%, to $64.40, in premarket trading. Looking ahead, Archer Daniels Midland remains on track to cut up to $750 million in costs over the next three to five years.
“We believe increased clarity on biofuel policy combined with the evolution of global trade should support a more constructive operating environment for us in 2026,” Luciano said.
For the year, the company guided for adjusted earnings of $3.60 to $4.25 a share, compared with analyst views for $4.22 a share.
Archer Daniels Midland said the low end of the range reflects continued U.S. biofuel policy deferral and flat crush margins, which measure the difference between what the company pays for crops and earns from selling their processed products. The high end assumes expanding crush-margin, increasing manufacturing efficiencies and improving demand.
Capital expenditures are projected to come in between $1.3 billion and $1.15 billion.