Archer-Daniels-Midland Co

The Company uses certain “non-GAAP” financial measures as defined by the SEC. These are measures of performance not defined by accounting principles generally accepted in the United States, and should be considered in addition to, not in lieu of, GAAP reported measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this section.

The Company uses adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit, non-GAAP financial measures as defined by the SEC, to evaluate the Company’s financial performance.

Adjusted net earnings is defined as net earnings adjusted for the effects on net earnings of specified items as more fully described in the reconciliation tables. Adjusted diluted EPS is defined as diluted EPS adjusted for the effects on reported diluted EPS of specified items as more fully described in the reconciliation tables.

EBITDA is defined as earnings before interest on borrowings, taxes, and depreciation and amortization. Adjusted EBITDA is defined as earnings before interest on borrowings, taxes, depreciation, and amortization, adjusted to exclude the impact of specified items as more fully described in the reconciliation tables.

Total segment operating profit is defined as ADM’s consolidated earnings before income taxes, adjusted for Other Business, Corporate, and specified items as more fully described in the reconciliation tables.

Management believes that adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit are useful measures of the Company’s performance because they provide investors additional information about the Company’s operations allowing better evaluation of underlying business performance and better period-to-period comparability. Adjusted net earnings, adjusted diluted EPS, EBITDA, adjusted EBITDA, and total segment operating profit are not intended to replace or be an alternative to net earnings, diluted EPS, earnings before income taxes and cash flows from operating activities, the most directly comparable amounts reported under GAAP.

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 March 31, 2026 and 2025.

(1) Tax effected using the U.S. and other applicable tax rates.

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 March 31, 2026 and 2025 (in millions).

(1) Represents interest expense on borrowings and therefore excludes ADM Investor Services related interest expense.

(2) Excludes $4 million and $3 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended March 31, 2026 and March 31, 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 March 31, 2026 and 2025 (in millions).

Liquidity and Capital Resources

The Company’s objective is to have sufficient liquidity, balance sheet strength, and financial flexibility to fund the operating and capital requirements of a capital-intensive agricultural commodity-based business. The Company depends on access to credit markets, which can be impacted by its credit rating and factors outside of the Company’s control, to fund its working capital needs and capital expenditures.

The primary source of funds to finance the Company’s operations, capital expenditures, and advancement of its growth strategy is cash generated by operations and lines of credit, including a commercial paper borrowing facility and accounts receivable securitization programs. In addition, the Company believes it has access to funds from public and private equity and debt capital markets in both U.S. and international markets.

At March 31, 2026, the Company’s capital resources included shareholders’ equity of $22.8 billion and lines of credit, including the accounts receivable securitization programs described below, totaling $12.4 billion, of which $8.4 billion was unused. Of the Company’s total lines of credit, $5.1 billion supported the combined U.S. and European commercial paper borrowing programs. At March 31, 2026, there was $1.6 billion of commercial paper outstanding.

As of March 31, 2026, the Company had $591 million of cash and cash equivalents, $315 million of which was cash held by foreign subsidiaries whose undistributed earnings are considered indefinitely reinvested. Based on the Company’s historical ability to generate sufficient cash flows from its U.S. operations and unused and available U.S. credit capacity of $4.1 billion, the Company has asserted that these funds are indefinitely reinvested outside the U.S.

As of March 31, 2026, the Company had total available liquidity of $9.0 billion comprised of cash and cash equivalents and unused lines of credit. The Company believes that cash flows from operations, cash and cash equivalents on hand, and unused lines of credit will be sufficient to meet its ongoing liquidity requirements for at least the next twelve months.

Operating Cash Flows

Net cash provided by operating activities was $150 million for the three months ended March 31, 2026. Net cash used in operating activities was $342 million for the three months ended March 31, 2025.

The increase in cash provided by operating activities in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily driven by changes in net working capital. Changes in net working capital were primarily driven by payables to brokerage customers, accrued expenses and other payables and trade payables, partially offset by changes in inventory and other current assets.

Changes in Payables to brokerage customers resulted in a cash inflow of $1.3 billion in the current year quarter compared to an outflow of $79 million in the prior year quarter. The inflow in the current year quarter is driven by increased customer trading and margin requirements in the Company’s futures commission and brokerage business.

Changes in Accrued expenses and other payables resulted in a cash inflow of $940 million in the current year quarter compared to an outflow of $244 million in the prior year quarter. The inflow in the current year quarter is driven by changing market conditions impacting the valuation of derivative contracts.

Changes in Trade payables resulted in a cash inflow of $245 million in the current year quarter compared to an outflow of $423 million in the prior year quarter, primarily driven by higher commodity pricing in the current year quarter.

Changes in Inventories resulted in a cash outflow of $1.4 billion in the current year quarter compared to an inflow of $137 million in the prior-year quarter, primarily reflecting higher commodity pricing in the current year quarter.

Changes in Other current assets resulted in a cash outflow of $552 million in the current year quarter compared to an inflow of $263 million in the prior-year quarter, primarily reflecting increased cash and securities deposited with clearing houses and brokers, for increased customer margin requirements, within the Company’s futures commission and brokerage business and changing market conditions impacting valuation of derivative contracts.

Investing Cash Flows

Net cash used in investing activities was $128 million and $129 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

Net cash used in investing activities for the three months ended March 31, 2026 included additions to property, plant, and equipment of $194 million, partially offset by proceeds from the sale of assets and cash inflows from certain affiliates.

Net cash used in investing activities for the three months ended March 31, 2025 included additions to property, plant and equipment of $291 million and a business acquisition, net of cash acquired, of $90 million, partially offset by proceeds from sales of marketable securities of $248 million.

Financing Cash Flows

Net cash provided by financing activities was $612 million and $587 million for the three months ended March 31, 2026 and 2025, respectively.

Net cash provided by financing activities for the three months ended March 31, 2026 and March 31, 2025 included net borrowings under short-term credit agreements of $919 million and $863 million, respectively.

Dividends paid for the three months ended March 31, 2026 and March 31, 2025 were $254 million and $247 million, respectively.

Stock Repurchase Program

No share repurchases were made in the three months ended March 31, 2026. As of March 31, 2026, the Company had 115 million remaining shares under its share repurchase program until December 31, 2029.

Accounts Receivable Securitization Programs

The Company has accounts receivable securitization programs (the “Programs”) with certain commercial paper conduit purchasers and committed purchasers. The Programs provide the Company with up to $3.0 billion in funding against accounts receivable transferred into the Programs and expands the Company’s access to liquidity through efficient use of its balance sheet assets (see Note 14. Sale of Accounts Receivable within “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information). As of March 31, 2026, the Company had $750 million unused capacity of its facility under the Programs.

Contractual Obligations and Commercial Commitments

The Company’s purchase obligations as of March 31, 2026 and December 31, 2025 were $16.3 billion and $13.8 billion, respectively. As of March 31, 2026, the Company expects to make payments related to purchase obligations of $14.7 billion within the next twelve months. There were no other material changes in the Company’s contractual obligations during the three months ended March 31, 2026.

Critical Accounting Estimates

There were no material changes in the Company’s critical accounting estimates during the three months ended March 31, 2026. For a description of the Company’s critical accounting estimates and assumptions used in the preparation of the Company’s financial statements, see Part II. Item 7 and Note 1 of “Notes to Consolidated Financial Statements” included in Part II. Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.