Archer-Daniels-Midland Company

Good morning and welcome to the ADM fourth quarter 2025 earnings conference call. All lines have been placed on a listen-only mode to prevent any background noise. As a reminder, this conference call is being recorded. I would now like to introduce your host for today's call, Kate Walsh, Director, Investor Relations for ADM. Miss Walsh, you may begin.

Welcome to the fourth quarter earnings conference call for ADM. Our prepared remarks today will be led by Juan Luciano, Chair of the Board and Chief Executive Officer, and Monish Patilawala, our Executive Vice President and Chief Financial Officer. We have prepared presentation slides to supplement our remarks on the call today, which are posted on the investor relations section of the ADM website and through the link to our webcast. Some of our comments and materials may constitute forward-looking statements that reflect management's current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These statements and materials are based on many assumptions and factors that are subject to numerous risks and uncertainties. ADM has provided additional information in its reports on file with the SEC concerning assumptions and factors that could cause actual results to differ materially from those in this presentation and the materials. Unless otherwise required by law, ADM assumes no obligation to update any forward-looking statements due to new information or future events. In addition, During today's call, we will refer to certain non-GAAP or adjusted financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are available in our earnings press release and presentation slides, which can be found in the investor relations section of the ADM website. With that, I will now turn the call over to Juan.

Thank you, Kate. Hello, and welcome to all who have joined the call. Please turn to slide four, where we have outlined our performance highlights. Today, ADM reported fourth quarter adjusted earnings per share of 87 cents and full year adjusted earnings per share of $3.43. Total segment operating profit was $821 million for the fourth quarter and $3.2 billion for the full year. Our trailing fourth quarter adjusted ROIC was 6.3% and cash flow from operations before working capital changes was $2.7 billion for 2025. We also made good strides in managing our working capital. And for example, we realized a $1.5 billion cash flow benefit from inventory reduction. I'll share a few highlights from across our business for fourth quarter. Our ASNO team delivered record crash volumes in South America. Our carbohydrate solutions team capitalized on ethanol opportunities, and our nutrition team continued to improve execution across the board. And throughout our operating footprint, global teams improved manufacturing efficiencies. I am proud of the team's rigor around focused execution and capital discipline throughout the year. And in the fourth quarter, we paid our 376 consecutive quarterly dividend. Please enter slide five. We navigated the dynamic and difficult market during 2025, and as we steered through those headwinds, we intensified our focus on areas within our control and prepared our business to take full advantage of what is expected to become a more constructive operating environment going forward. Here is a recap of the significant progress we made during 2025. First, We executed more than 20 projects as part of portfolio optimization and simplification initiatives that are helping strengthen our business and support our core strategy going forward. Through this work, we achieved approximately $200 million of cost savings and announced the joint venture with Alltech, which I'm pleased to report has commenced operations recently. Second, We address plant efficiency issues across our asset network and reduce our unplanned downtime. We restored operations at our decay store east plant and achieved an important safety milestone by having the lowest injury rate in the company's history. Third, we reached an important decarbonization milestone. We connected our Columbus, Nebraska corn milling plant to Tallgrass Trailblazer pipeline. extending our carbon capture and storage infrastructure beyond our Decatur operations. Fourth, we advanced nutrition recovery, improved execution, and increased revenue. Fifth, we generated a strong cash flow as we relentlessly focused on improving working capital. And as we announced last week, we reached the closure of government investigations of ADM related to the company's prior reporting regarding intersegment sales. We are pleased to put these matters behind the company. Please, turn to slide six. Our operating environment throughout 2025 was challenging, and our team demonstrated impressive resilience as we strengthened the core of our business through portfolio optimization, disciplined capital allocation, tighter 1K capital execution, enhanced cost control, and lower transaction costs. This strengthening of our business not only allows us to continue to increase our dividend and return cash to shareholders, it also affords us the ability to invest in future growth regardless of the commodity cycle. There are five key focus areas for our next wave of growth. We are leveraging our assets and expertise along with technology to build out our operations in enhanced nutrition, biotics, bio solutions, precision fermentation, and decarbonization. Each of these business has a different growth profile and timeline for value creation, but each complement what we're doing today and present the potential for compelling enduring returns. For example, we are advancing innovations in enhanced nutrition for allergen-free pea protein, unlocking opportunities in specialized nutrition such as ultra-high protein drinks, protein bars, and fortified snacks. On the natural flavor side, we have created patented technology for clean citrus flavors that are high-value ingredients for beverages. In natural colors, we have developed a breakthrough natural blue, addressing one of the food and beverages industry's toughest challenges, producing a natural, stable, water-soluble, and safe blue pigment which is exceptionally rare in nature. We're also developing next-generation functional ingredients and combine the benefits of biotics and botanicals. Across operations, We continue to invest in sidestream valorization as part of our ongoing efforts to optimize our production processes and add value to our byproducts. We also see a long multi-year runway of growth projects connected to the work we're doing around large-scale decarbonization, including carbon sequestration. I'd now like to discuss the key market trends and company growth drivers for 2026 that support our outlook for a more constructive operating environment. The recent progress with China trade relations combined with the expectation of pending U.S. biofuel policy clarity should support an increasingly constructive market environment throughout this year, particularly for our ASNO business. We expect positive economic opportunities for the industry and the American farmer to materialize which should drive additional long-term investment throughout our business and the agricultural sector. Our outlook also assumes segment operating profits for carbohydrate solutions remain relatively flat. We lower starches and sweeteners volumes and pricing, offset by higher ethanol margins. And nutrition is expected to continue its trajectory of stronger organic growth and execution. Overall, there is much to look forward to in 2026 and beyond. Our current outlook for adjusted EPS in 2026 is a range between $3.60 and $4.25, which reflects growth over 2025 and appropriately captures the fluidity in timing and market response as global trade and biofuel policies continue to evolve. With that, Let me hand it over to Monish to share a deeper dive into fourth quarter and full year 2025 financials, as well as the assumptions underpinning our 2026 guidance.