Flavor company ADM reported its financial results for the second quarter of 2025. According to the report, the company’s second quarter net earnings were $219 million, down 53% compared to the same period last year, with adjusted net earnings of $452 million for the year.
According to the company’s press release, the company will adjust its earnings per share guidance for the year to approximately $4 per share. Further, company officials believe that the recently improved margins will benefit the fourth quarter of 2025 and beyond.
“In the second quarter, ADM continued to make progress on operational improvements, driving cost savings through targeted realignments and advancing our pipeline of portfolio simplification opportunities, all while continuing our disciplined approach to capital allocation,” said chief executive officer and chair of the board Juan Luciano.
The company’s Ag Services and Oilseeds (AS&O) segment had an operating profit of $379 million during the second quarter, down 17% compared to last year. The company attributes this decline to trade policy uncertainty and slower farmer selling. The Carbohydrates segment saw a 6% decrease, largely due to increased corn costs in the Middle East
The Nutrition segment was the only business that saw a profit increase, with $114 million during the second quarter. This is up 5% compared to this period last year. The flavors subsegment saw increased profits driven by increased volumes.
“Looking ahead, disciplined execution by our team will be central to navigating the ongoing uncertainty in the global markets,” Luciano concluded. “With biofuel policy clarity emerging toward the end of the second quarter, we have less of our order book open in the third quarter to benefit from improved margins. However, we are well-positioned to exit 2025 with strong momentum and we remain confident in our ability to execute on opportunities that may emerge with greater policy clarity.”
