How Does Archer-Daniels-Midland Make its Money?
Archer-Daniels-Midland (ADM) is one of the world’s largest agricultural processors and food ingredient companies. The company operates a global network of over 400 crop procurement locations, 250+ ingredient plants, and 38 innovation centers. ADM takes raw agricultural commodities — corn, soybeans, wheat, and oilseeds — and processes them into ingredients and products used in food, animal feed, industrial applications, and energy. The company has been shifting its portfolio toward higher-margin nutrition and health ingredients through acquisitions while maintaining its massive commodity origination and processing infrastructure.
Archer-Daniels-Midland (ADM) Business Model
Archer-Daniels-Midland operates in the agriculture sector. Below is a summary of Archer-Daniels-Midland’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Archer-Daniels-Midland’s 2024 fiscal year filings with the SEC.
Archer-Daniels-Midland Competitors
Archer-Daniels-Midland’s key competitors and comparable public companies in the agriculture sector include Deere & Company, Caterpillar, Mondelez International, and PepsiCo. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Archer-Daniels-Midland stacks up by comparing their revenue breakdown, margins, and growth metrics.
Archer-Daniels-Midland Competitors
Archer-Daniels-Midland’s key competitors and comparable public companies in the agriculture sector include Deere & Company, Caterpillar, Mondelez International, and PepsiCo. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Archer-Daniels-Midland stacks up by comparing their revenue breakdown, margins, and growth metrics.
Archer-Daniels-Midland Competitors
Archer-Daniels-Midland’s key competitors and comparable public companies in the agriculture sector include Deere & Company, Caterpillar, Mondelez International, and PepsiCo. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Archer-Daniels-Midland stacks up by comparing their revenue breakdown, margins, and growth metrics.
Archer-Daniels-Midland Competitors
Archer-Daniels-Midland’s key competitors and comparable public companies in the agriculture sector include Deere & Company, Caterpillar, Mondelez International, and PepsiCo. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Archer-Daniels-Midland stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Ag Services & Oilseeds (Origination, Crushing, Refining) | $60,000 | $66,000 | -9.1% |
| Carbohydrate Solutions (Corn Processing, Sweeteners, Ethanol) | $11,500 | $12,200 | -5.7% |
| Nutrition (Human & Animal Nutrition, Flavors) | $7,200 | $7,500 | -4.0% |
| Total Revenue | $78,000 | $86,000 | -9.3% |
Ag Services & Oilseeds (Origination, Crushing, Refining) — 77% of Revenue
Carbohydrate Solutions (Corn Processing, Sweeteners, Ethanol) — 15% of Revenue
Nutrition (Human & Animal Nutrition, Flavors) — 9% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $78,000 | $86,000 |
| Cost of Revenue | $72,500 | $79,600 |
| Gross Profit | $5,500 | $6,400 |
| Operating Expenses | $2,800 | $2,900 |
| Operating Income | $2,700 | $3,500 |
| Net Income | $1,800 | $2,400 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 7.1%
- Operating Margin: 3.5%
- Revenue Growth: -9.3%
Is Archer-Daniels-Midland Profitable?
Yes, Archer-Daniels-Midland is profitable. The company reported net income of $1,800 on total revenue of $78,000. With an operating margin of 3.5%, Archer-Daniels-Midland demonstrates solid profitability for the agriculture sector. The gross margin of 7.1% reflects Archer-Daniels-Midland’s pricing power and cost structure.
What to Watch
- Commodity crush margins and global crop supply/demand dynamics
- Nutrition segment growth and margin improvement from portfolio transformation
- Regulatory and accounting remediation progress after internal control issues
- Renewable energy feedstock demand for sustainable aviation fuel and biodiesel
Archer-Daniels-Midland (ADM) Financial Summary
Archer-Daniels-Midland (ADM) is an agriculture company that generated $78,000 in total revenue in fiscal year 2024. Revenue grew -9.3% year-over-year. The company earned $1,800 in net income, making it profitable. For a deeper look at Archer-Daniels-Midland’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.