ADM (NYSE: ADM) released its financial results for the fourth quarter and full year ended December 31, 2024. The highlights of the full-year 2024 included net earnings of $1.8 billion, adjusted net earnings of $2.3 billion, earnings per share of $3.65, and adjusted earnings per share of $4.74. The trailing four-quarter average return on invested capital (ROIC) was 6.7%, and the trailing four-quarter average adjusted ROIC was 8.3%. Cash flows from operating activities were $2.8 billion in 2024, compared to $4.5 billion in 2023.
In the fourth quarter of 2024, earnings before income taxes were $667 million, down 9% from the prior year quarter. Earnings per share on a GAAP basis were $1.17, up 10% from the prior year quarter, while adjusted earnings per share were $1.14, down 16% from the prior year quarter. Total segment operating profit was $1,051 million, down 16% from the prior year quarter.
For the full year 2024, earnings before income taxes were $2.3 billion, down 47% from the prior year. Earnings per share on a GAAP basis were $3.65, and adjusted earnings per share were $4.74, both lower than the prior year. Total segment operating profit was $4.2 billion, down 28% from the prior year.
The Ag Services & Oilseeds (AS&O) segment operating profit was $644 million in the fourth quarter of 2024, down 32% compared to the prior year quarter. For the full year, the AS&O segment operating profit was $2.4 billion, down 40% compared to 2023.
Carbohydrate Solutions segment operating profit was $319 million in the fourth quarter of 2024, up 3% compared to the prior year quarter. For the full year, the segment operating profit was $1.4 billion, flat compared to the prior year.
The Nutrition segment operating profit was $88 million in the fourth quarter of 2024, compared to a segment operating loss of $(10) million in the prior year quarter. For the full year, the segment operating profit was $386 million, down 10% compared to the prior year.
Other businesses contributed operating profit of $47 million in the fourth quarter, down 68% compared to the prior year quarter, and $247 million for the full year, down 34% compared to the prior year.
ADM provided guidance for the full year 2025, expecting adjusted earnings per share in the range of $4.00 to $4.75 per share, reflecting weaker market fundamentals and ongoing biofuel and trade policy uncertainty.
The company also announced targeted actions to deliver between $500 * $750 million in cost savings over the next 3 * 5 years, in response to ongoing market challenges, including global legislative and regulatory policy uncertainty. Specifically, ADM expects to achieve the majority of the cost savings on an annual run-rate basis through improvement in manufacturing costs, reduction in purchased materials and services, and targeted workforce reduction. The market has reacted to these announcements by moving the company's shares -4.1% to a price of $47.98. If you want to know more, read the company's complete 8-K report here.
