ADM 10-K & 10-Q changes, risk factors and insider trading

The Company is exposed to potential business disruption risks which could adversely affect the Company’s operating results.results and could result in increased expenses and liabilities.

The assetsCompany engages in manufacturing and operationsdistribution ofactivities across numerous markets and geographies. As a result, the Company could beis subject to risks inherent in such activities and from time to time has experienced unplanned downtime or extensive property damage and business disruption from various events and external factors, some of which are beyond the Company’s control. These events and factors include, but are not limited to, equipment failure, raw material shortages, natural disasters, severeadverse weather conditions, accidents, explosions, fires, environmental events, strikes or other labor or industrial disputes, war or acts of terrorism, cybersecurity attacks, or other unexpected outages. These events could result in personal injury, loss of life, and environmental damage. In some cases, the Company is dependent on a single plant or facility to manufacture or process certain products in a geographical region or otherwise. The Company may not be able to resolve emergenciesdisruptions timely or effectively, and the associated liability which could result from these risks may not always be covered by or could exceed liability insurance.insurance, and any insurance proceeds may not be received for several years after an event occurrence. The impact of these events and factors has and could in the future require significant investments and expenditures to repair damaged facilities or equipment and require management attention and other resources, which has and could adversely impact the Company’s results of operations.

The Company’s operating costs and the selling prices of certain finished products are sensitive to changes in energy prices, inflationary pressures, and certain logistic constraints. The Company’s processing plants are powered principally by electricity, natural gas, and coal. The Company’s transportation operations are partially dependent upon rail access, diesel fuel and other petroleum-based products.products, as well as on the availability and cost of ocean freight and port operations. Significant increases in the cost or access of these items, including any consequences of inflationary impacts, regulation or taxation of greenhouse gases, has and could in the future adversely affect the Company’s production costs and operating results.

The Company may fail to realize the benefits of or experience delays in the execution of its growthstrategic strategy.priorities.

As theThe Company executesis itsalso growthfocused strategy, through bothon organic and inorganic growth,growth itand mayits encountersuccess in achieving growth could be adversely affected by a broad range of risks whichthat could result in increased costs, decreased revenues, and delayed synergies. ADM’s growth also depends in part on innovation in products, processes and services. The Company’s ability to realize the anticipated benefits of its R&D efforts and other investments depends on a variety of factors, and may not result in new products and services at a rate or of a quality sufficient to gain market acceptance. In addition, the markets for these products may not develop or grow as the Company anticipates. Growth in new geographies outside the U.S. can expose the Company to volatile economic, political, and regulatory risks that may negatively impact its operations and ability to achieve its growth strategy. Expanding businesses where the Company has limited presence may expose the Company to risks related to the inability to identify an appropriate partner or target and favorable terms, inability to retain/hire strategic talent, or integration risks that may require significant management resources that would have otherwise been available for ongoing growth or operational initiatives. Acquisitions may involve unanticipated delays, costs, and other problems. Due diligence performed prior to an acquisition may not identify a material liability or issue that could impact the Company’s reputation or adversely affect results of operations resulting in a reduction of the anticipated acquisition benefits. Additionally, acquisitions may involve integration risks such as: internal control effectiveness, system integration risks, the risk of impairment charges related to goodwill and other intangibles, ability to retain acquired employees, and other unanticipated risks. The Company may fail to realize the operational or financial benefits expected from acquisitions, which may impact the Company’s growth strategy.

The Company has limited control over andover, may not realize the expected benefits ofof, and may be required to write down, its equity investments and joint venturesventures, and may not be able to monetize the investments at an attractive value when the Company decides to exit the investments.

The Company has invested in or advanced funds to joint ventures and investments over which the Company has limited control as to governance and management activities (see Part II. Item 8. Note 8. Investments in and Advances to Affiliates for investment balances and related net sales amounts). Risks related to these investments may include: the financial strength of the investment partner; loss of revenues and cash flowsflows, and related gross profit, to the investment partner and related gross profit; the inability to implement beneficial management strategies, including risk management and compliance monitoring, with respect to the investment’s activities; the risk that the Company may not be able to resolve disputes with the partners; the continued fit of such investments relative to the Company’s strategies; and the risk that the Company may not realize the operational or financial benefits expected from the investment. The Company may encounter unanticipated operating issues, financial results, or compliance and reputational risks related to these investments.

The Company faces risks related to international conflicts, acts of terrorism orterrorism, war, or other geopolitical events, such as the ongoing Russia-Ukraine war, Israel-Hamas war, sanctions,conflict, maritime piracy, and other economic disruptions.

ADM’s assets and operations could be subject to extensive property damage, business disruption, loss in value, nationalization, and expropriation as a result of geopolitical conflicts, acts of terrorism (e.g. purposeful adulteration of the Company’s products), war, and piracy, as well as any sanctions or embargoes resulting from these events. TheThese assetsevents can disrupt trade flows, damage infrastructure, limit access to raw materials, reduce customer demand, or impede the Company’s ability to operate facilities or move product. They also may trigger macroeconomic volatility, including fluctuations in commodity prices, interest rates, and operationsforeign locatedexchange inrates, thewhich regioncan affectednegatively byaffect themargins, warinventory between Russiavalues, and Ukrainehedging arepositions. atFurther, ancompliance increasedwith rapidly evolving sanction regimes may require operational adjustments and could increase the risk of propertyinadvertent damage, inventory loss, business disruption, and expropriation. In addition, the Company may not be able to realize any financial or other benefits from its investments in Russia due to ongoing sanctions or actions of the Russian government. The Black Sea region is a major exporter of wheat and corn to the world, and the disruption of supply may continue to cause volatility in volumes, prices, and margins of these commodities and related products. Further, there is a risk that ADM and its related parties could trade with a sanctioned partner due to the number of sanctions taken against Russia.violations.

Trade receivables may be at risk of higher defaults, and other third-party risks could affect ADM’s ability to obtain inputs if suppliers are unable to perform or face insolvency, as certain supplies may not be attainable due to sanctions and/or restrictions on cross-border payment transactions. The Company could be materially impacted if, in the worst-case scenario, the conflict in Ukraine advances to other countries. The risk to ADM’s business from the war in Israel could increase if it expands into other countries. As the Company continues to monitor geopolitical developments, shipping routes are adjusted accordingly as increased use of technology, including drones, has provided pirates with enhanced capabilities to identify and target vessels. Most attacks on ships in high-risk areas result in boarding, which poses significant safety and security risks to crew and cargo. Piracy and related maritime threats could negatively impact the Company. Crew extractions, potential ransom payments, lease obligations, and expenses related to rerouting vessels to circumvent high-risk areas may result in financial loss. Furthermore, disruptions in shipping schedules may be impacted for an extensive period. In these circumstances, trade policies and the Company’s critical global supply chain and logistical networks could be affected, impairing the Company’s ability to satisfy contractual obligations, and impacting working capital requirements. Insurance may not adequately cover these risks. In addition, provisions for certain products that ADM produces, particularly those that support the food services channels, could be materially impacted.

PoliticalGeopolitical instabilityrisks could disrupt global markets and changes in trade policies could negatively impact the Company’s business and financial results.

The Company is subject to geopolitical, economic and other risks of doing business globally. The Company’s operating results could be affected by political instability and by changes in monetary, fiscal, trade, and environmental policies, laws, regulations, and acquisition approvals,approval schemes, creating risks including, but not limited to: changes in a country’s or region’s economic or political conditions; burdensome local labor conditions and regulations, and safety and environmental regulations; reduced protection of intellectual property rights; changes in the regulatory or legal environment; restrictions on currency exchange activities; currency exchange fluctuations; burdensome taxes and trade tariffs; limited enforceability of legal agreements and judgments; adverse tax,tax audit assessments, administrative agency or judicial outcomes; and regulation or taxation of greenhouse gases. International risks and uncertainties, including changing social and economic conditions as well as terrorism, political hostilities, and war, could limit the Company’s ability to transact business in these markets. The Company has historically benefited from the free flow of agricultural and food and feed ingredient products from the U.S. and other sources to markets around the world. Increases in tariff and restrictive trade policies around the world could negatively impact the Company’s ability to enter certain markets or the price of products may become less competitive in those markets.

FoodThe orCompany feedis riskssubject derivedto froma qualitywide issuesrange orof offfood labelsafety productand usage,quality, manufacturing and labeling, occupational health and safetysafety, issues,environmental, and ineffectiveother diversificationregulatory programsrequirements which may expose the Company to certain regulatory or reputational risks.

The Company’s carbon capture and sequestrationstorage operations(CCS) operations, through which ADM is able to capture and store CO2, are also subject to potential risks and uncertainties, including complying with complex and evolving regulations, obtaining and maintaining permits and regulatory approvals, and managing operational challenges.challenges, which could have an adverse effect on its reputation, business and results of operations. ADM is currently diversifying and scaling its CCS operations to capture and store greater amounts of CO2, which may not be successful and are subject to similar risks and uncertainties.

The availability and prices of agricultural commodities are subject to wide fluctuations, including impacts from factors outside the Company’s control such as changes in market conditions, weather conditions, crop disease, plantings, government programs and policies, including global trade, renewable energy/biofuel policies and other regulatory considerations, climate change, competition, and changes in global demand, which could adversely affect the Company’s operating results. Additionally, the Company depends globally on agricultural producers to ensure an adequate supply of the agricultural commodities.

The Company is subject to economicrisks downturnsrelating to global and regional economic volatilities,downturns, which could adversely affect the Company’s operating results.

TheA Companysignificant conductsdownturn itsin the global economy could lead to reduced demand for agricultural commodities and food products, which could adversely affect the Company’s business and has substantial assets located in many countries and geographic areas. While 64%results of theoperations. Company’s long-lived assets are inBeyond the United States, the Company also has significant operations in both developed areas (such as Western Europe and Canada) and emerging market areas. One of the Company’s strategies is to expand the global reach of its core model, which may include expanding or developing its business in emerging market areas. Both developed and emerging market areas are subject to impacts of economic downturns, including decreased demand for the Company’s products, and reduced availability of credit, or declining credit quality of the Company’s suppliers, customers, and other counterparties. In addition, emerging market areas could be subject to more volatile operating conditions including, but not limited to, logistics limitations or delays, labor-related challenges, epidemic outbreaks and economic recovery, limitations or regulations affecting trade flows, local currency concerns, and other economic and political instability. Political fiscal instability could generate intrusive regulations in emerging markets, potentially creating unanticipated assessments of taxes, fees, increased risks of corruption, etc. Economic downturns and volatile market conditions could adversely affect the Company’s operating results and ability to execute its long-term business strategies, although the nature of many of the Company’s products (i.e. food and feed ingredients) is less sensitive to demand reductions in any economic downcycle.strategies.

The Company faces significant competition in each of its businesses and has numerous competitors, who can be different depending upon each of the business segments in which it participates. The Company competes for the acquisition of inputs such as raw materials, transportation services, and other materials and supplies, as well as for workforce and talent. Competition impacts the Company’s ability to generate and increase its gross profit as a result of the following factors:

The Company competes for the acquisition of inputs such as raw materials, transportation services, and other materials and supplies, as well as for workforce and talent. The Company is also subject to industry-specific risks which include but are not limited to: launch of new products by other industries that can replace the functionalities of the Company’s production; shifting consumer preferences; and product safety and quality. For example, changes in consumer health or dietary preferences could reduce demand for food products that contain sweeteners, such as high fructose corn syrup, edible oils, genetically modified products, and/or other processed ingredients, which could negatively impact our sales and profitability.

The Company has a Chief Risk Officer who oversees the Enterprise Risk Management (ERM) Program and regularly reports to the Board of Directors through the Audit Committee, which assists the Board in its oversight of the Company's ERM program, on the myriad of risks facing the Company and the Company’s strategies for mitigating those risks. The Company’s business is affected byby, among other things, geopolitical and market risks, including fluctuations in agricultural commodity cash prices and derivative prices, transportation costs, energy prices, interest rates, foreign currency exchange rates, and equity markets.markets, as well as operational and other disruptions, and compliance and regulatory exposures. The Company’s risk monitoringmanagement efforts may not be successful at detecting a significant risk exposure, and such exposure could adversely affect the Company’s operating results.

This MD&A generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023. Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 are not included in this Form 10-K and can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II. Item 7 of the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2023,2024, filed on NovemberFebruary 18,20, 2024.2025.

Archer-Daniels-Midland Company and its subsidiaries (the "Company" or "ADM") unlockunlocks the power of nature to enrich the quality of life. The Company is an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. ADM is also a premier human and animal nutrition provider, offeringas onewell of the industry's broadest portfolios of ingredients and solutions from nature. The Company isas a trailblazerleader in health and well-being,well-being with an industry-leading range of products for consumers looking for new ways to live healthier lives. ADM is a cutting-edge innovator, guiding the way to a future of new consumer and industrial solutions. ADM is a leader in sustainability, scaling across entire value chains to help decarbonize the multiple industries it serves. Around the globe, the Company's innovation and expertise are meeting critical needs while nourishing quality of life and supporting a healthier planet.products.

The Company’s operations are organized, managed, and classified into three reportable segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified within either Corporate or Other Business. See Part II. Item 8. Financial Statements and Supplementary Data,Data. Note 17. Segment and Geographic Information for further detailsinformation on the nature of our business and our reportable operating segments.

2025 Strategy

Recent Significant Portfolio Actions

TheADM’s Company’srecent significant portfolio actions and announcements during 2024 include the following acquisitionsincluded:

The Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments are principally agricultural commodity-based businesses where changes in selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials. As a result, changes in agricultural commodity prices have relatively equal impacts on both revenues and cost of products sold. Therefore, margins per volume or metric ton generally are meaningful as a performance indicator in these businesses.

The Company's Nutrition segment alsoprimarily utilizes agricultural commodities (or products derived from agricultural commodities) as raw materials. However, in these operations, agricultural commodity market price changes do not necessarily strongly correlate to changes in cost of products sold. As a result, changes in revenues of these businesses may correspond to changes in margins. Therefore margin rates generally are meaningful as a performance indicator in these businesses.

The Company has consolidated subsidiaries in approximately 8075 countries. For the majority of the Company’s subsidiaries located outside the United States, the local currency is the functional currency except for certain significant subsidiaries in Switzerland where Euro is the functional currency, and Brazil and Argentina where U.S. dollar is the functional currency. Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the weighted average exchange rates for the applicable periods. For the majority of the Company’s business activities in Brazil and Argentina, the functional currency is the U.S. dollar; however, certain transactions, including taxes, occur in local currency and require remeasurement to the functional currency. Changes in revenues are expected to be correlated to changes in expenses reported by the Company caused by fluctuations in the exchange rates of foreign currencies, primarily the Euro, British pound, Canadian dollar, and Brazilian real, as compared to the U.S. dollar.

The Company measures its performance using key financial metrics including net earnings, adjusted diluted earnings per share (EPS), margins, segment operating profit, total segment operating profit, earnings before interest and taxes (EBIT), earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, return on invested capital,and adjusted economic value added, and operating cash flows before working capital.EBITDA. Some of these metrics are not defined by generally accepted accounting principles in the United States (GAAP) and should be considered in addition to, and not in lieu of, GAAP financial measures. For more information, see the “Non-GAAP Financial Measures” section below.

Market Factors Influencing Operations orand Results in the Twelve Months Ended December 31, 20242025

The Company is subject to a variety of market factors which affect the Company’s operatingoperations and results, including those discussed below related to 2024.2025.

Processed volumes by product for the years ended December 31, 20242025 and 20232024 arewere as follows (in metric tons):

The Company generally operates its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to the current margin environment and seasonal local supply and demand conditions. The overall increase in processed oilseeds processedvolumes volumesin 2025 was primarily related to higher volumes in South America due to improved plant reliability, in addition to improved North America crush capacity in North America,volumes driven by theimproved Company'sutilization new facility in Spiritwood, North Dakota, and in EMEA in 2024 compared to lower crush rates inafter the previousrestoration yearof due to inclement weather, unplanned downtime, and reduced capacity due to the Russian-Ukraine war. The overall increase in corn processed volumes was related to increased plant reliability in 2024 compared to lower volumes in the previous year driven by unplanned downtimeoperations at the Company’s Decatur, Illinois plant.facility. The processed corn volumes were consistent year over year.

Federal Clean Fuel Production Credits and Federal Blenders’ and Producers’ Credits

Biodiesel tax incentives have been provided through various U.S. statutes. The Blenders'BTC Taxwas Credit (BTC) ispreviously the primary regulation, applicable to qualifying biodiesel. The BTC has lapsed and been reinstated numerous times over the last decade. The Inflation Reduction Act of 2022 extended the BTC through December 31, 2024 and established athe new Clean Fuel Production Credit (CFPC)45Z effective January 1, 2025.2025, as discussed above. For the year ended December 31, 2024, the Company recorded a benefitbenefits of $316 million related to the BTC. The Company estimates a significant decrease in the CFPC available in the year ending December 31, 2025 compared with the BTC claimed during the year ended December 31, 2024.

Analysis of Results of Operations

Total segment operating profit (a non-GAAP measure) in 20242025 decreased 28%23% or $1.7$1.0 billion, to $4.2$3.2 billion, primarily driven by lower results in the Ag Services and Oilseeds segment and the NutritionCarbohydrate Solutions segment. Total segment operating profit (a non-GAAP measure) in 2024the year ended December 31, 2025 excluded specified items of $236 million that were primarily comprised of asset impairment, restructuringexit, and restructuring costs, as well as net settlementimpacts contingenciesrelated ofto $490 million, and a gain on the sale of certain assets of $10 million.Wilmar. Total segment operating profit (a non-GAAP measure) in 2023the year ended December 31, 2024 excluded asset impairment, restructuring, and net settlement contingencies of $361 million, and a gain on the sale of certain assets of $17$490 million.

Revenues decreased $8.4$5.3 billion to $85.5$80.3 billion driven by lower sales volumes ($2.9 billion) and lower sales prices ($16.0 billion), partially offset by higher sales volumes ($7.6$2.3 billion). Lower sales pricesvolumes of soybeans, corn, meal, oils, wheat and alcohol,sorghum were partially offset by higher sales volumes of soybeans, corn, oils, wheat, alcohol,meal and flavors.oils. Lower sales prices of meal, soybeans, and wheat were partially offset by higher sales prices of corn and oils. Ag Services and Oilseeds revenues decreased 9%7% to $66.5$61.6 billion driven by lower sales volumes ($2.8 billion) and lower sales prices ($2.1 billion). Carbohydrate Solutions revenues decreased 4% to $10.7 billion driven by lower sales prices ($13.5$330 billionmillion), partiallyand offset by higherlower sales volumes ($6.6 billion). Carbohydrate Solutions revenues decreased 13% to $11.2 billion driven by lower sales prices ($2.3 billion), partially offset by higher sales volumes ($612$167 million). Nutrition revenues increased 2% to $7.3$7.5 billion driven by higher sales volumesprices ($386$68 million), partiallyand offsetthe bybenefit lowerof salesa pricescontract cancellation in Health and Wellness ($248$55 million).

On February 4, 2025, the Company announced targeted actions expected to deliver in excess of $500 million of aggregate cost savings in 3 to 5 years.years, which commenced in 2025. These include cost optimization and portfolio simplification initiatives designed to help the Company achieve cost efficiencies. See Note 13. Asset Impairment, Exit, and Restructuring Costs of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for additional information regarding restructuring related charges.

•In February 2026, the U.S. Treasury and IRS proposed regulations relating to policy incentives under Section 45Z of the Internal Revenue Code (“Section 45Z”). In March 2026, the U.S. Environmental Protection AgencyAgency’s announcement of the final Renewable Volume Obligations (“RVO”) for 2026 and 2027 under the U.S. Renewable Fuel Standard that increased certain renewable fuel blending requirements.

TheseIn developmentsthe havethree months ended March 31, 2026, these regulatory announcements provided additional visibility into renewable fuel demand and incentive frameworks and arepositively expected to affectimpacted renewable fuel blending economics, clean fuel credit values, and demand for certain agricultural feedstocks,feedstocks. whichThe mayimpact on the U.S. biofuel market continued in the three months ended June 30, 2026, and continued to benefit the Company’s ethanol and biofuel operations, as well as crush and grind margins. However, renewable fuel markets remain subject to ongoing regulatory, legislative, and implementation risks, including the timing and substance of final Section 45Z regulations, future policy actions, changes in credit values and shifts in blending economics which could continue to drive volatility in the Company’s results of operations.

On February 20, 2026, the U.S. Supreme Court held that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the imposition of tariffs by the executive branch. While the decision invalidated the presidential administration’s tariffs imposed under IEEPA, it did not establish a refund mechanism, which was subsequently set up by the U.S. Customs and Border Protection (“CBP”) in April 2026. The CBP initiated the refund process in the three months ended June 30, 2026. The Company is monitoring the refund process and related tariff risks, including potential new tariffs and expectsthe tariffexpected relatedUnited States-Mexico-Canada Agreement (“USMCA”) review process. However, based on the information currently available to it, the Company does not expect tariff-related risks will notto have a significant impact on the Company’s financial position, results of operations, or cash flows.

The Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments are principally agricultural commodity-based businesses where changes in selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials. As a result, changes in agricultural commodity prices have relatively equal impacts on both Revenues and Cost of products sold. Mark-to-market and timing impacts represent changes in agricultural commodity pricing and foreign currency market factors and are not necessarily reflective of the operating performance of our business. Mark-to-market and timing impacts represent the estimated net unrealized gain and loss impacts of market factor changes on the valuation of certain of our merchandisable commodity inventories (including certain commodity inventories valued at the lower of cost or market), forward cash purchase and sales contracts, and futures and foreign currency contracts. The final mark-to-market and timing impacts will be realized when the underlying inventory, forward cash purchase and sales contracts, and futures and foreign currency contracts are settled.

The Company has consolidated subsidiaries in approximatelymore 75than 70 countries. For the majority of the Company’s subsidiaries located outside the United States, the local currency is the functional currency except for certain significant subsidiaries in Switzerland where the Euro is the functional currency, and Brazil and Argentina where the U.S. dollar is the functional currency. Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the weighted average exchange rates for the applicable periods. For the majority of the Company’s business activities in Brazil and Argentina, the functional currency is the U.S. dollar; however, certain transactions, including taxes, occur in local currency and require remeasurement to the functional currency. Changes in revenues are expected to be correlated to changes in expenses reported by the Company caused by fluctuations in the exchange rates of foreign currencies, primarily the Euro, British pound, Canadian dollar, and Brazilian real, as compared to the U.S. dollar.

Market Factors Influencing Operations and Results in the Three and Six Months Ended MarchJune 31,30, 2026

The Company is subject to a variety of market factors which affect the Company's operating results, including those discussed below related to the three and six months ended MarchJune 31,30, 2026.

In the Ag Services and Oilseeds segment, geopolitical uncertainty, including global conflicts, logistical and weather challengeschallenges, combined with confirmation of U.SU.S. biofuel policy contributed to crush margin expansion in both soy and canola. North America benefited from higher urea prices, strong domestic demand from crush producersproducers, andresulting from the RVO announcement combined with higher global energy prices, continued sales to China.China as well as strong execution in fertilizer. Transportation benefited from higher freight rates,rates due to strong corn demand, which more than offset volume constraints. Global Trade was impacted by freight supply concerns, logistical dislocationsdislocations, including congestion at the Panama Canal, and increased bunker costs. In the Crushing and Refined Products and Other (“RPO”) subsegments, confirmation of the U.S. biofuel policy and higherHigher heating oil values expandedcontributed cashto margins.improved U.S. biodiesel margins and, as a result, soybean oil demand. Higher soybean meal export demand provided additional support to the crushing complex.

In the Carbohydrate Solutions segment, lower North America corn prices and sustained strength in international energy prices allowed ethanol stocksvalues tightenedfrom relativethe US to lastbe yearcompetitive asaround plantsthe andworld. supplyAfter chainsseasonal sloweddowntime initiallyin duethe first half of the quarter, the industry responded to adversethe weathermarket conditions, combinedsignals with stronghigh exportcapacity demand and positive Renewable Volume Obligations (“RVO”) clarity. Geopolitical issues contributed to ethanol being priced competitive to higher competing oxygenates.utilization. North America liquid sweetener demand remained soft while starch demand showedcontinues earlyto show signs of recoveryrecovery. afterEurope, athe slowMiddle startEast, toand 2026.Africa (“EMEA”) Starches and Sweeteners were pressured by demand softness across the food and industrial segments.

Earnings before income taxes was $384$1.1 millionbillion compared to $353$279 million in the prior year quarter. Results in the current year quarter were primarily driven by improved operatingoperational performanceexecution amid a dynamic pricing environment. The increase in earnings before income taxes reflected impairment, exit, and restructuring costs and revaluation losses of $324 million in the Carbohydrateprior Solutionsyear segment and the Nutrition segment, partially offset by net negative mark-to-market and timing impacts, within the Ag Services and Oilseeds segment.quarter.

RevenuesProcessed volumes by certain products for the three months ended MarchJune 31,30, 2026 and 2025,2025 were as follows (in millionsthousand metric tons):.

Cost of products sold increased $273$950 million to $19.3$20.7 billion, primarily driven by higher commodity pricesand freight costs. Manufacturing expenses increased $109 million to $2.0 billion, driven by an increase in energy costs in North America, increased maintenance expenses, and higher manufacturingemployee expenses.compensation costs.

Gross profit increased $42$565 millionmillion, or 41%, to $1.2$1.9 billion, primarily driven by an increase in margins of $112$495 million in Carbohydrate Solutions and $62 million in Nutrition, partially offset by a decrease in margins of $119$76 million in Ag Services and Oilseeds.Oilseeds and Carbohydrate Solutions segments, respectively.

Selling, general, and administrative (SG&A) expenses increased $29$115 million to $961$1.0 million,billion, primarily driven by higher employee compensation costs, partially offset by lower third partythird-party service costs.

Asset impairment, exit, and restructuring costs decreased $26$124 million to $12$13 million.million, Chargesdriven by restructuring charges of $137 million in the current and prior year quarterquarter, primarily consisted of restructuring charges. See Note 13. Asset Impairment, Exit, and Restructuring Costs within “Notesthe toNutrition Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information.segment.

Equity in earnings of unconsolidated affiliates decreasedincreased $55$8 million to $89$142 million driven by higher earnings from the Company’s investments in SoyVen Holding B.V., Hungrana Kft, and Terminal de Grãos Ponta da Montanha S.A, partially offset by lower earnings from the Company’s investmentsinvestment in Wilmar andInternational OlenexLimited Holdings B.V., partially offset by higher earnings from the Company’s investment in LSCP, LLLP and SoyVen Holding B.V.(“Wilmar”).

Interest and investment income decreasedincreased $13$186 million to $125$116 million, primarily driven by lower$187 tax-relatedmillion incomeof revaluation losses in the prior year quarter, within Corporate and creditsthe inNutrition Corporate.segment.

Interest expense decreased $9$11 million to $149$148 million, due to a decrease in financing costs, driven by lower interestoutstanding ratesdebt and balancesinterest on the Company’s commercial paper programs.rates.

Income tax expense increased $20$114 million to $81$176 million. The Company’s effective tax rate for the quarter ended MarchJune 31,30, 2026 was 21.1%16.2% compared to 17.3%22.2% for the quarter ended MarchJune 31,30, 2025. The increasedecrease in the effective tax rate for the three months ended MarchJune 31,30, 2026 compared to the prior year quarter is primarily driven by non-taxable benefits associated with Section 45Z, as well as the impacttax effects of discretecertain taximpairment items.charges recognized during the corresponding quarter of 2025.

Segment operating profit for the three months ended MarchJune 31,30, 2026 and 2025 was as follows (in millions):

In the Ag Services and Oilseeds segment, segment operating profit decreasedincreased 34%.by $488 million. Current periodquarter results included net positive mark-to-market and timing impacts of approximately $100 million, primarily attributable to the Crushing subsegment. The Ag Services subsegment operating profit was higher compared to the prior year quarter. Global Trade results improved due to increased ocean freight and trading margins. South America results improved in the current year quarter, due to the Barcarena, Brazil, grain export terminal returning to full operations, leading to increased soybean exports which were supported by higher farmer selling. Transportation results improved, driven by increased freight rates. The Crushing subsegment operating profit was higher compared to the prior year quarter, reflecting margin improvement across the business, particularly in North America, where results were supported by the favorable RVO announcement, higher soybean meal sales, and higher crush volumes. The current year quarter also benefitted from $20 million of insurance proceeds related to Decatur East. The Refined Products and Other (“RPO”) subsegment operating profit was lower when compared to the prior year quarter driven by net negative mark-to-market and timing impacts of approximately $275 million, of which approximately 10%, 70%, and 20% were attributable to our Ag Services, Crushing, and Refined Products and Other subsegment operating profit results, respectively. The Ag Services subsegment operating profit increased 26% compared to the prior year quarter supported by higher export activity from North America, which included increased soybean and sorghum trade with China and strong corn exports. Results also reflected a favorable comparison to the prior year quarter, which was impacted by certain non-recurring export duties. The Crushing subsegment operating profit was lower bymargins $126in millionSouth compared to the prior year quarter, driven by negative mark-to-market timing impacts,America, partially offset by improvementmargin expansion in plantNorth processedAmerica volumesand in the first quarter of 2026. Additionally, soybean meal sales remained strong throughout the quarter. The RPO subsegment operating profit decreased 36% when compared to the prior year quarter,EMEA driven by negativeimproved mark-to-marketrefining margins as a result of the RVO announcement and timingglobal whichenergy stemmed from the strengthening margin environment.volatility. Wilmar earnings decreased by $6 million to $66 million in the current year quarter.

In the Carbohydrate Solutions segment, segment operating profit increased 48%22% compared to the prior year quarter. The Starches and Sweeteners subsegment operating profit was higher compared to the prior year quarter, primarily due to higher ethanol margins supported by policy incentives related to ADM’s corn wet-milling ethanol operations, which were partially offset by lower global liquid sweeteners and starches volumes and margins.margins and increased manufacturing costs. Global Wheat Milling results were relatively flat compared to the prior year quarter, as volumes remained relatively stable against a more competitive pricing backdrop. The Vantage Corn Processors subsegment operating profit increased $94$52 million compared to the prior year quarterquarter, driven by strengtheningstronger ethanol margins,margins supported by policy incentives and effective risk management and policy incentives.management.

In the Nutrition segment, segment operating profit increased 42%51% due to improved performance in both the Human and Animal Nutrition subsegments. Human Nutrition subsegment operating profit was higher compared to the prior year quarter, as a result of higher Flavors sales,sales includingand margins, foreign exchange gains, and the continued recovery of the Decatur East plant. Animal Nutrition subsegment operating profit was higher compared to the prior year quarter driven by portfolio actions and increased focus on higher-margin product lines, on-going cost optimization efforts, and foreign exchange gains.efforts.

Other Business contribution of operating profit decreased from $96$94 million to $53$80 million. Captive insurance results were lower drivencompared byto higherprior claimyear settlements.quarter. ADM Investor Services results were higherconsistent dueyear toover increased volumes and higher customer balances.year.

Corporate results for the three months ended MarchJune 31,30, 2026 and 2025 were as follows (in millions):

The table below provides a reconciliation of net earnings (the most directly comparable GAAP measure) to adjusted net earnings (a non-GAAP measure) and diluted EPS (the most directly comparable GAAP measure) to adjusted diluted EPS (a non-GAAP measure) for the three months ended MarchJune 31,30, 2026 and 2025.

The table below provides a reconciliation of net earnings (the most directly comparable GAAP measure) to EBITDA (a non-GAAP measure) and adjusted EBITDA (a non-GAAP measure) for the three months ended MarchJune 31,30, 2026 and 2025 (in millions).

(2) Excludes $4$1 million and $3$5 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended MarchJune 31,30, 2026 and MarchJune 31,30, 2025, respectively.

The table below provides a reconciliation of earnings before income taxes (the most directly comparable GAAP measure) to total segment operating profit (a non-GAAP measure) for the three months ended MarchJune 31,30, 2026 and 2025 (in millions).