Archer Daniels Midland Company (ADM) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted EPS was $1.03, with adjusted segment operating profit at $1.0B; net earnings were $486M, down 46–48% year-over-year, and 1H 2024 adjusted EPS reached $2.49 with adjusted segment operating profit of $2.3B.

• Earnings declined year-over-year due to lower margins and prices, especially in Ag Services & Oilseeds, partially offset by improved volumes, cost controls, and share repurchases.

• Human Nutrition revenues rose 3–6% year-to-date, driven by M&A and Flavors, while Animal Nutrition improved on cost optimization.

• Four acquisitions completed in H1 2024 expanded Human and Animal Nutrition capabilities.

• The 370th consecutive quarterly dividend was announced, and share repurchases contributed to EPS.

Financial highlights

• Q2 2024 revenue was $22.2B (down 12–13% year-over-year); 1H 2024 revenue was $44.1B (down 11%).

• Q2 net earnings were $486M ($0.98–$0.99 per share), down from $927M ($1.70 per share) in Q2 2023.

• Q2 segment operating profit was $1.0B, down 34–56% year-over-year; adjusted segment operating profit was $1.0–$1.02B, down 37%.

• Trailing four-quarter adjusted ROIC was 9.7%.

• $2.8B returned to shareholders year-to-date via dividends and share repurchases.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance is $5.25–$6.25, unchanged from prior outlook.

• Soybean crush margin expected at $35–$60/MT; strong ethanol export opportunities anticipated.

• Capital expenditures projected at ~$1.4B; effective tax rate expected between 18%–21%.

• Ag Services & Oilseeds and Carbohydrate Solutions operating profit expected to be lower year-over-year; Nutrition segment expected to be higher in Q4.

• Significant portion of $500M cost savings expected by end of 2024, with upside potential in 2025.