By Connor Hart and Patrick Thomas

Archer Daniels Midland cut its outlook for the third time this year, saying confusion around tariffs and lower soybean prices continue to hurt its business.

The processor of agricultural commodities including soybeans, corn and wheat said confusion around trade with China and policies on biofuels are weighing on customers.

"Farmers are kind of selling reluctantly, and buyers are kind of hand-to-mouth," ADM Chief Executive Juan Luciano said on an earnings call.

Luciano added that the timing of any benefits from President Trump's recent trade deal with China, which involves purchasing 12 million metric tons this year, remains unclear.

"We really need this clarity on the trade deal. But although on the surface it is positive for ADM and for grain in general, we haven't seen yet a joint document, highlighting the details of this," Luciano said.

ADM shares, which initially fell almost 10% in premarket trading, reversed course and recently about flat on Tuesday. Overall, the stock is up more than 19% year-to-date.

ADM said it now expects adjusted earnings of $3.25 to $3.50 a share for 2025, down from a previous forecast of $4 a share. Analysts surveyed by FactSet were expecting adjusted earnings of $3.76 a share.

Problems at ADM and other grain companies stem from declining earnings after years of low crop prices and weaker demand from buyers. Luciano said the company's lower outlook reflects tighter crush margins, which measure the difference between what the company pays for crops and earns from selling their processed products.

"As we close out 2025, we will continue to act on our self-help agenda while adapting to evolving trade policy and remain flexible to offset the impact of challenging dynamics to the best of our ability," Luciano said.

Archer Daniels Midland posted a profit of $108 million, or 22 cents a share, for its three months ended Sept. 30, compared with $18 million, or 4 cents a share, a year earlier.

Stripping out one-time items, adjusted earnings were 92 cents a share, ahead of the 85 cents a share that analysts polled by FactSet had expected.

Revenue increased 2.2% to $20.37 billion, just below Wall Street's projection for $20.77 billion.

Write to Connor Hart at connor.hart@wsj.com and Patrick Thomas at patrick.thomas@wsj.com

(END) Dow Jones Newswires

November 04, 2025 13:35 ET (18:35 GMT)

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