(Reuters) -Archer-Daniels-Midland on Tuesday cut its full-year 2025 profit outlook after weaker crush margins and delays in U.S. biofuel policy weighed on results, sending the grain trader's shares down nearly 11% in pre-market trading.
World's major agriculture processors, including ADM, are facing challenges such as volatile commodity cycles, soft crop prices and uncertain energy policies.
The deferral of U.S. biofuel policy decisions, particularly regarding renewable fuel blending requirements under
the Renewable Fuel Standard, has restrained demand for soybean oil and other feedstocks.
This has pressured crush and refining margins in the Ag Services and Oilseeds unit, causing a 21% drop in operating profit to $379 million in the segment.
Trade concerns stoked by U.S. President Donald Trump's sweeping tariffs have also disrupted trade flows, including halting Chinese purchases of U.S. soybeans and other farm goods, driving crop prices to multiyear lows.
However, the company said it sees policy clarity and improving global trade flows supporting growth in 2026.
"We expect biofuel policy clarity and trade policy evolution to provide demand signals for our industry," CEO Juan Luciano said.
ADM now expects adjusted earnings of $3.25 to $3.50 per share for 2025, down from its earlier forecast of around $4.00 and below analysts' estimate of $3.79 per share.
The company posted an adjusted profit of 92 cents per share for the three months ended September 30, beating the average estimate of 85 cents, according to data compiled by LSEG.
(Reporting by Katha Kalia in Bengaluru; Editing by Vijay Kishore)
