PresentationGood morning, everyone. I'm Salvator Tiano, thank you very much for coming and making through this weather. For the next fireside chat, we have ADM, and we have 2 people actually, so all the experts from biofuels from the company. So we start with Chris Cuddy, who's the President of the Carbohydrate Solutions segment and also Regional Head of North America as well as Greg Morris, who is the Head of the Ag Services and Oilseeds segment. And I believe you have some prepared remarks first.Christoph ...

Archer Daniels Midland Company (NYSE:ADM) 2026 Conference February 25, 2026 08:15 AM ET Company ParticipantsChris Cuddy - President of Carbohydrate Solutions SegmentGreg Morris - President of the Ag Services and Oilseeds SegmentConference Call ParticipantsSalvator Tiano - Equity Research AnalystSalvator TianoGood morning, everyone. I'm Salvator Tiano. Thank you very much for coming and making it through this weather. For the next fireside chat, we have ADM, and we have two people actually, so all the expert ...

Consumer staples stocks have surged this year, pushing valuations higher—but a handful of names still trade at reasonable multiples with solid earnings growth ahead. ...

OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 Commission file number 1-44 ARCHER-DANIELS-MIDLAND COMPANY (Exact name of registrant as specified in its charter) DE 41-0129150 (State or other jurisdiction of incorporation or organization) (I. R. S. Employer Identification No.) 77 West Wacker Drive, Suite 4600 Chicago, IL 60601 (Address of pr ...

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Core Viewpoint - Admiral Group has announced the acquisition of Flock, a digital commercial fleet insurance provider, valued at £80 million, pending regulatory approval [1][2]. Group 1: Acquisition Details - The acquisition aims to enhance Admiral's focus on commercial motor customers and is part of a strategy to evolve and futureproof its motor insurance offerings [2][5]. - Flock's technology platform will integrate into Admiral's fleet insurance proposition, with Flock's CEO joining Admiral Pioneer’s leadership team [5][6]. Group 2: Flock's Technology and Market Position - Flock utilizes AI-driven risk models based on extensive real-world driving data to provide personalized safety guidance to commercial fleet customers [3][13]. - The company has established itself as a leader in the motor fleet insurance sector, having raised over £40 million from notable venture capital investors [13]. Group 3: Strategic Implications - The acquisition is expected to provide Admiral with immediate access to a high-growth segment and enhance its existing strengths in data, technology, and customer service [2][7]. - The transaction is projected to complete in Q2 2026, with a minimal impact on Admiral's solvency ratio, ensuring the company remains above target levels [6].

Core Insights - Archer-Daniels-Midland Company's (ADM) Nutrition segment is a key growth pillar, but is currently facing challenges due to shifting demand patterns and inflationary pressures [2][3] - The Nutrition segment includes flavors, specialty ingredients, proteins, and health-focused solutions, benefiting from trends like clean-label products and plant-based diets [3] - Recent demand softness has led to flat revenues of $1.8 billion in Q4 2025, with Human Nutrition growing by 5% and Animal Nutrition declining by 4% [3][8] Segment Performance - The Nutrition segment has historically helped stabilize earnings volatility and improve margins compared to ADM's traditional Ag Services and Oilseeds businesses [3] - Despite recent challenges, ADM has optimized its portfolio and maintained disciplined capital allocation, resulting in a 66% operating profit growth in the Animal Nutrition segment for 2025 [4] - Management remains confident in the Nutrition segment's ability to sustain organic growth, with expectations for continued progress beyond 2026 [5][8] Future Outlook - ADM anticipates ongoing momentum in the Nutrition segment, driven by growth in Flavors, recovery in Specialty Ingredients, and increasing demand for Health and Wellness products [6] - The company expects margin expansion in Animal Nutrition as it shifts towards higher-margin products and benefits from optimization initiatives [6] - ADM's shares have gained 13.8% over the past six months, outperforming the industry growth of 0.2% [7]

Group 1 - Brett Ashcroft Green is a CERTIFIED FINANCIAL PLANNER™ advocating for early retirement through disciplined, tax-efficient investing [1] - He has a background in private credit and commercial real estate mezzanine financing, having worked as a business director at a large family office [1] - His experience includes working with high-net-worth and ultra-high-net-worth families across the U.S. and Asia, with significant time spent in China [1] - Brett is fluent in Mandarin Chinese and has served as a court interpreter, enhancing his ability to operate in business and legal settings [1] - He has collaborated with notable commercial real estate developers such as The Witkoff Group, Kushner Companies, The Durst Organization, and Fortress Investment Group [1]

Core Insights - Archer Daniels Midland Company (ADM) reported fourth-quarter 2025 results with revenues falling short of estimates and declining year over year, while earnings exceeded estimates but also decreased compared to the previous year [1][2]. Financial Performance - Adjusted earnings were 87 cents per share, surpassing the Zacks Consensus Estimate of 83 cents, but down from $1.14 per share in the same quarter last year [2] - Reported earnings for the quarter were 94 cents per share, down from $1.17 in the prior-year quarter [2] - Revenues decreased by 13.7% year over year to $18.6 billion, missing the consensus estimate of $22.3 billion [2] Segment Performance - Ag Services & Oilseeds revenues fell 16.9% year over year to $14 billion, while Carbohydrate Solutions revenues decreased 3.9% to $2.6 billion [3] - Nutrition segment revenues rose 0.7% year over year to $1.8 billion, with the Zacks Consensus Estimate for these segments being $17.7 billion, $2.6 billion, and $1.9 billion respectively [3] - Other Business revenues remained flat at $117 million compared to the prior-year period [3] Profitability Metrics - Gross profit decreased by 10.7% year over year to $1.2 billion, with a gross margin of 6.5% [4] - Selling, general and administrative expenses declined to $893 million from $943 million in the year-ago quarter [4] - Adjusted segmental operating profit was $821 million, down 22% from the previous year [4] Segmental Operating Profit Analysis - Adjusted operating profit for Ag Services & Oilseeds dropped 31% year over year to $444 million, primarily due to lower soybean export activity and unfavorable mark-to-market impacts [5] - Crushing subsegment's operating profit plunged 69% year over year due to weaker crush margins, despite higher global crush volumes [6] - Carbohydrate Solutions segment posted an operating profit of $299 million, reflecting a 6% decline from the year-ago period [8] Dividend and Future Guidance - ADM raised its quarterly dividend by 2% to 52 cents per share, marking the company's 94th consecutive year of uninterrupted dividends [14] - For 2026, ADM expects adjusted EPS in the range of $3.60-$4.25, with the lower end reflecting continued deferral of U.S. biofuel policy clarity [15] - The outlook for 2026 anticipates year-over-year operating profit growth in Ag Services & Oilseeds, while Carbohydrate Solutions' operating profit is expected to remain flat [16] Financial Position - As of December 31, 2025, ADM had cash and cash equivalents of $1.02 billion, long-term debt of $7.6 billion, and shareholders' equity of $34.7 billion [13] - The company generated $5.45 billion in cash from operating activities and paid out dividends totaling $987 million during 2025 [13]

Financial Data and Key Metrics Changes - The company reported fourth quarter adjusted earnings per share of $0.87 and full year adjusted earnings per share of $3.43 [5] - Total segment operating profit was $821 million for the fourth quarter and $3.2 billion for the full year [5] - The trailing fourth quarter adjusted return on invested capital (ROIC) was 6.3% [5] - Cash flow from operations before working capital changes was $2.7 billion for 2025, with a $1.5 billion cash flow benefit from inventory reduction [5][22] Business Line Data and Key Metrics Changes - The Ag Services and Oilseeds (AS&O) segment operating profit for the fourth quarter was $444 million, down 31% year-over-year, and $1.6 billion for the full year, down 34% [14] - The Carbohydrate Solutions segment operating profit was $299 million for the fourth quarter, down 6% year-over-year, and $1.2 billion for the full year, down 12% [17] - The Nutrition segment revenues were $1.8 billion for the fourth quarter, remaining flat year-over-year, with human nutrition revenue increasing by 5% and animal nutrition revenue decreasing by 4% [19] Market Data and Key Metrics Changes - The company noted that the operating environment throughout 2025 was challenging, but there are expectations for a more constructive market environment in 2026 due to improved trade relations with China and anticipated clarity in U.S. biofuel policy [11][12] - The company expects segment operating profit for Carbohydrate Solutions to remain relatively flat, with lower starches and sweeteners volumes offset by higher ethanol margins [12] Company Strategy and Development Direction - The company is focusing on five key growth areas: enhanced nutrition, biotics, biosolutions, precision fermentation, and decarbonization [9] - The company executed over 20 projects as part of portfolio optimization and simplification initiatives, achieving approximately $200 million in cost savings [8] - The company aims to achieve targeted aggregate cost savings of $500-$750 million over three to five years, which began in 2025 [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for growth driven by improved market conditions and strategic initiatives [11][12] - The outlook for adjusted EPS in 2026 is projected to be between $3.60 and $4.25, reflecting growth over 2025 [12][23] Other Important Information - The company paid its 376th consecutive quarterly dividend [6] - The joint venture with Alltech has commenced operations, although it is not expected to have a material impact on nutrition operating profit in 2026 [25] Q&A Session Summary Question: Comments on the RVO and its impact on operating rates - Management acknowledged the uncertainty surrounding the Renewable Volume Obligation (RVO) and its timing, but expressed confidence in positive outcomes once clarity is achieved [33][34] Question: Update on Nutrition segment performance and customer recovery - Management noted strong performance in flavors and biotics, with ongoing efforts to regain market share lost during the Decatur East plant downtime [41][42] Question: Insights on crush margins and demand for Starches and Sweeteners - Management indicated that the softness in demand is influenced by consumer behavior changes and pricing pressures, but they are focused on offsetting these trends [66][67] Question: Clarification on corporate expenses and tax rates - Management provided guidance on an expected effective tax rate between 18% and 20% and noted that corporate costs would increase due to reinvestment in R&D and digital platforms [72] Question: Discussion on the impact of RVO on future earnings - Management emphasized that multiple factors will influence future earnings, including RVO clarity, consumer demand, and operational efficiency [80][81]