Its shares were down 4.25 per cent in premarket trading.

Chicago-based ADM reported its weakest fourth-quarter adjusted profit since 2019 as slumping soybean processing margins in North and South America and poor U.S. soybean exports dented earnings for its Agricultural Services and Oilseeds business, its largest segment.

Low prices erode profits

A global grains glut that has dragged down prices of staple crops like corn and soybeans to near multi-year lows has eroded profits for ADM and agribusiness peers like Bunge and Cargill. U.S. biofuel policy delays and trade turmoil stemming from U.S. President Donald Trump’s tariff wars created further pressure on the global grains merchants.

The downbeat outlook comes as the U.S. Securities and Exchange Commission and the Justice Department concluded investigations into whether ADM had inflated the performance of a key business segment. ADM agreed to pay a $40 million civil penalty to settle SEC charges while the DOJ closed its criminal investigation, drawing a line under a years-long scandal that forced the company to twice revise its financial reports.

ADM reported adjusted earnings of 87 cents per share for the quarter ended December 31, down from $1.14 a share a year earlier but above the consensus analyst estimate of 80 cents, according to data compiled by LSEG.

CEO Juan Luciano said operating profit for 2025 was affected by a turbulent global trade landscape and ongoing uncertainty around U.S. biofuel policy. Resolutions “should support a more constructive operating environment for us in 2026,” he added.

Biofuel policy delay creates caution

The U.S. government has been slow to finalize some biofuels policies, a delay that has slowed use of feedstocks like the soybean oil produced at ADM processing plants.

ADM reported adjusted earnings for 2025 of $3.43 per share. Its 2026 adjusted earnings outlook of $3.60 to $4.25 per share hinged on those biofuel policies and whether slumping soy processing margins improve. The midpoint is less than analysts’ average estimate of $4.24 apiece, according to data compiled by LSEG.

Last month, Reuters reported that the Trump administration plans to finalize long-delayed 2026 biofuel blending quotas by early March, keeping them close to its initial proposal while dropping a plan to penalize imports of renewable fuels and feedstocks.

The delays have led biofuel makers and the suppliers of feedstocks like ADM to hold back on deals and delay spending decisions that shape output and margins.

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Why it matters: Archer-Daniels-Midland, a major buyer of Canadian agricultural goods, is cutting costs globally.

ADM has been cutting jobs and downsizing some operations since it announced in February that it planned to cut costs by $500 million to $700 million (C$692.5 million to $969.4 million) over three to five years.

“After exploring a wide variety of alternatives, we’ve determined that our Kershaw crush plant no longer aligns with our future operational needs,” ADM spokesperson Dane Lisser said.

The company, still reeling from an accounting scandal last year that sent its stock price tumbling, is now facing stiff headwinds amid rising trade tensions between the United States and key markets including top soybean importer China.

The Kershaw plant will be the first U.S. soybean processing plant to close following a multi-year, industry-wide expansion amid soaring vegetable oil demand from biofuels makers, according to industry sources.

But the biofuel sector has more recently been throttling back production due to U.S. biofuels policy uncertainty and the potential for a worsening trade war.

The Kershaw plant is the smallest of more than a dozen dedicated soy processing facilities operated by ADM in the United States, with the capacity to crush 50,000 bushels a day, according to industry sources.

ADM said it will help Kershaw employees find new jobs and provide financial severance for those that elect to leave the company, but did not disclose the number of workers impacted.

The Kershaw plant employed between 11 and 50 workers, according to South Carolina Department of Commerce data.

Earlier this month, ADM announced it was shutting down domestic trading operations in China, also as part of its global cost-cutting push.

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The move was meant to help ADM, a grains trading giant that has been embroiled in an accounting scandal since last year, “remain agile in a challenging environment,” the company said in the statement. ADM’s earnings have eroded due to slumping crop prices, inflation-reduced consumer demand and weak crop processing margins, with operating profit down 40 per cent last year in its large Agricultural Services and Oilseeds (AS&O) division.

Rising trade tensions between Washington and Beijing are now stirring up new headwinds for ADM, which relies on trade between top farm goods exporter the United States and China, the top importer.

The phase-out of domestic trading at ADM’s Toepfer Shanghai subsidiary was expected to conclude by the end of September, ADM said, adding that its other operations in Shanghai would not be affected.

The company did not disclose the number of layoffs, but a source familiar with the matter said job cuts would impact 40 to 50 employees, leaving only around 10 staff in the financial hub of Shanghai.

“The entire Ag Services and Oilseeds team in China has essentially been let go,” said one source, referring to ADM’s largest business segment.

ADM began layoffs in February as part of a broader cost-cutting drive to save $500 million to $700 million (C$694.4 to $972.2 million) over the next three to five years. The company had posted its weakest fourth-quarter adjusted profit in six years.

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Why it matters: ADM is a major purchaser of Canadian crops

Chicago-based ADM said in February it would cut up to 700 jobs and reduce costs by $500 million to $750 million (C$712 million to C$1.02 billion) over the next three to five years, after posting its lowest fourth-quarter adjusted profit in six years. The job cuts would represent about 1.7 per cent of the company’s global workforce.

ADM said in a statement it was critical to ensure its cost structure allows the firm to remain globally competitive.

“The actions the company is taking are part of the targeted workforce reduction and cost saving actions we announced earlier this year,” it said.

The statement did not mention any specific locations, divisions or targets.

Reuters could not confirm the number of job cuts this week.

The new wave of cuts began at ADM’s Swiss office, which is its European headquarters, one source said, speaking on condition of anonymity.

The cuts would be disruptive to ADM’s agricultural services and oilseeds business, said another source, as employees, including experienced traders, worried over who might be targeted next. That unit, ADM’s largest, houses the company’s global crop trading, transportation and storage, and oilseed processing operations.

The division appeared to be the focus for this round of cuts, rather than ADM’s nutrition unit, one of the sources added.

Each region where ADM operates was given specific cost-cutting targets by Chief Financial Officer Monish Patolawala, according to one of the sources.

ADM tapped Patolawala for the job last July as it dealt with multiple U.S. investigations, including a criminal one, related to accounting irregularities.

— Additional reporting by Karl Plume in Chicago

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In a LinkedIn post entitled “Investor-misery has a name: ADM,” Hartwig Fuchs said ADM was the worst stock in his portfolio this year and blamed ADM CEO Juan Luciano.

Fuchs was the board chairman of German trading firm Alfred C. Toepfer International when ADM owned a majority stake in the firm. Fuchs left Toepfer in 2009 and Chicago-based ADM acquired it in 2014.

“A German proverb says: The fish always stinks from the head,” Fuchs wrote in his post, dated Sunday.

ADM declined to comment on Fuchs’ post on Monday. It was not immediately clear how many ADM shares Fuchs owns.

ADM was forced to amend years of financial reporting in March and November after discovering sales between its nutrition business and other core units were not recorded properly. The company cut its 2024 profit outlook last month, citing policy uncertainty, slow demand and “internal operational challenges.”

Federal prosecutors in recent months have expanded their inquiries into whether ADM or its employees committed crimes including securities fraud and conspiracy, according to subpoenas reviewed by Reuters and people familiar with the probe.

Government investigations are not evidence of wrongdoing and do not necessarily result in charges. A spokesperson for the U.S. Attorney’s Office in Manhattan on Monday declined to comment on the investigation.

ADM’s stock price is down nearly 30 per cent from a year ago, and ADM’s shareholders, including Fuchs, are asking questions and pointing fingers as to who is to blame.

“If a highly paid CEO of such an important company cannot manage to provide clarity within a few months – i.e. fully clear up the scandal, comunicate (sic) with full Transparency about what went wrong and what will be done in the future, regain investors trust and, above all, protect the company from long-term damage – then he has to go,” Fuchs wrote in his post.

ADM is facing other headwinds including low crop prices, uncertainty around biofuels regulations and a possible tariff battle between the United States and China that could upend global trade flows as soon as January, after President-elect Donald Trump takes office.

—Additional reporting by Chris Prentice in New York and Karl Plume in Chicago

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The company had on Nov. 5 delayed its earnings statement and cut its 2024 profit outlook to amend previous financial statements due to the discovery of fresh accounting irregularities.

ADM was forced to correct six years of financial data in March after an internal investigation found sales between its nutrition business and other core units were not recorded properly.

CEO Juan Luciano said they are focusing on improving internal controls. “Looking ahead, while we foresee softer market conditions into next year, we are taking actions to improve performance,” he said.

The company’s total segment operating profit fell 28.3 per cent to $1.04 billion (C$1.46 billion) in the quarter after restatement, while profit for Ag Services & Oilseeds segment slumped 43 per cent in the same period.

It reported net earnings of $18 million ($25.2 million), or four cents per share, for the quarter ended Sept. 30, compared with $821 million (C$1.15 billion), or $1.52 per share, a year ago.

—Reporting by Tanay Dhumal and Sourasis Bose in Bengaluru

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The company is set to lose about $2.3 billion (C$3.2 billion) of its market value if premarket losses hold through the day.

Archer-Daniels-Midland said it will amend its fiscal year 2023 Form 10-K and statements for the first and second quarter of this year.

This comes months after ADM corrected six years of financial data after an internal investigation found some sales between business units within the company were not recorded properly.

The accounting irregularities have sparked several government investigations and led to the departure of CEO Vikram Luthar in September.

“Investors will undoubtedly be disappointed that this accounting overhang has returned,” CFRA analyst Arun Sundaram said, adding that they would also question whether ADM will achieve its 2025 financial targets that were set three years ago.

The company postponed its earnings call, which was scheduled for Tuesday, and now expects to hold a webcast after it has filed the amended statements.

The restated filings will include some newly identified errors concerning additional intersegment sales for all three of its main segments, the company said late on Monday.

ADM said it does not expect any material impact and was working to complete the restatements as soon as “reasonably practicable”, but cut its 2024 adjusted earnings forecast to $4.50 to $5 per share, from $5.25 to $6.25 it had estimated earlier.

The company reported adjusted profit per share of $1.09 for the third quarter ended Sept. 30, compared with the average analyst estimate of $1.25, according to data compiled by LSEG.

ADM’s operating profit from Ag Services and Oilseeds segment, its largest by revenue, slumped 43 per cent from a year earlier.

The company also paid $96 million (C$133 million) in settlement claims in the quarter.

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The explosion was part of a string of safety incidents at ADM facilities in Decatur, Illinois, site of the global grain trader’s North American headquarters.

ADM on Thursday declined to comment on the lawsuit and the incidents.

The company’s shares have been under pressure this year from a global glut of grain supplies, and it is also facing U.S. government investigations related to accounting irregularities.

The lawsuit, filed on Wednesday in Macon County Circuit Court in Illinois, alleges that worker Antonio McElrath was in a Decatur facility known as the West Plant in April 2023 when a supervisor told him to shut down a grain “leg” tube that started smoking.

An explosion occurred when the tube was opened, and McElrath was standing in its direct path, according to the lawsuit.

McElrath, now 44, was in an induced coma for two to three weeks following the accident, his attorney Timothy Shay said. “He has suffered significant injuries and is still in recovery.”

Investigators with the U.S. Department of Labor’s Occupational Safety and Health Administration found that ADM failed to inspect or test critical safety systems in the explosion that injured McElrath and two other workers.

ADM had fire and explosion suppression systems in place to prevent problems and keep workers safe, but the systems were not working, the lawsuit alleges.

ADM’s sprawling grain and oilseed processing complex in Decatur also suffered dust explosions in 2018 and 2019, fires in 2019, and a smoldering event this summer at the West Plant, according to the lawsuit.

Separately, workers were injured from an explosion at the site’s East Plant in September 2023. And on Monday, an industrial fire broke out at ADM’s sorbitol production department of its East Plant, according to the Decatur Fire Department.

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The email did not give a reason for Batiste’s departure after seven years with the global agribusiness.

An ADM spokesperson said Batiste “informed us of her decision to leave ADM to pursue her next career opportunity.”

The departure comes after ADM was forced to correct six years of financial statements due to improperly recorded transactions between business segments and as the company contends with government investigations into its accounting practices.

—Reporting for Reuters by Ana Mano in Sao Paulo and Chris Prentice in New York

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Luthar is the highest-level executive to leave the firm since it disclosed accounting issues within its Nutrition division that later triggered two government investigations and forced it to revise six years of financial data.

ADM had put Luthar on administrative leave in January as it launched an internal investigation focused on accounting practices involving the smallest of its three business units.

The company said Luthar will receive $743,419 in cash performance incentive award for 2023 and shares awarded in 2021 that were tied to company performance. He will remain at ADM in a nonexecutive capacity until his resignation date to “provide transitional support” as the company searches for a new CFO, ADM said in a U.S. Securities and Exchange Commission filing.

“The decision to move forward in this direction was made after careful consideration of the future of our company and how to best position ADM for success,” CEO Juan Luciano said in an internal memo seen by Reuters.

Luthar joined ADM from General Motors in 2004, rising to become the CFO of ADM’s Nutrition unit in 2020 and later to company CFO in 2022.

He oversaw one of ADM’s most explosive periods of growth as the more than century-old grains merchant shifted from a crop trader and processor to a diversified food ingredients and nutrition company. The transition appealed to investors and helped ADM boost earnings to record highs in 2022.

But a string of market shocks exposed some growing pains in the new division.

In March, ADM corrected six years of financial data after an internal investigation found some sales between business units within the company were not recorded properly. ADM said it had overstated annual operating profit in the Nutrition segment by as much as 9.2 per cent.

ADM shares closed down slightly on Monday and remain around eight per cent below levels just before news of the accounting issues surfaced in January.

Government investigations are not evidence of wrongdoing and do not necessarily result in charges.

—Additional reporting for Reuters by Tanay Dhumal in Bengaluru

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