Archer-Daniels-Midland Co (ADM) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Archer-Daniels-Midland Co surfaced in its latest filing.

• As of December 31, 2025, the three major credit rating agencies maintained the Company's credit ratings at investment grade levels with a negative outlook, and further downgrades could adversely affect access to commercial paper and debt markets and costs of borrowings.December 31, 2025
• The Company's results of operations were impacted by changes in and uncertainty relating to global trade and tariffs in 2025, including trade flow disruptions such as U.S. soybean trade with China.2025
• Deferral of U.S. biofuel policy with respect to renewable volume obligations (RVO) created uncertainty impacting demand for soybean oil and other feedstocks.
• The Company has implemented plans to improve the performance of its manufacturing and production facilities, increase operating leverage within the Nutrition segment, and reduce third party spend and selling, general, and administrative expenses.
• ADM proactively reviews its portfolio of businesses to identify opportunities to simplify and optimize its portfolio and enhance shareholder value, and seeks to divest certain assets or businesses by selling them or entering into joint ventures.
• ADM is upgrading its technology platforms, including certain ERP systems, in phases over several years, and recently refined its digital strategy, pivoting away from large global implementations to prioritize regional, more agile projects.
• ADM operates carbon capture and storage (CCS) operations and is diversifying and scaling CCS operations to capture and store greater amounts of CO2.
• The Clean Fuels Production Tax Credit and the related '45Z' tax credit can impact the Company’s operating results, and the ability to generate significant 45Z tax credits relating to its CCS operations is subject to regulatory and operational challenges.
• The U.S. One Big Beautiful Bill Act ('OBBBA') includes significant changes to corporate tax rules, deductions, expensing, and international tax provisions.
• The OECD's Pillar Two initiative introduced a 15% global minimum tax applied on a country-by-country basis, and the ultimate impact on the Company remains uncertain.
• The U.S., under the current Administration, has opposed adoption of Pillar Two and other OECD initiatives, and the OECD has reached an agreement with the G7 to exempt U.S. multinationals from certain impacts and introduced certain related safe harbors.
• Implementation of Pillar Two will result in additional mandatory disclosures, which will likely cause additional scrutiny of the Company's tax positions and potentially increased tax assessments.
• The Company's assets and operations in the region affected by the Russia-Ukraine conflict are at increased risk of property damage, inventory loss, business disruption, and expropriation, and disruption in the Black Sea region may cause volatility in volumes, prices, and margins of wheat and corn.
• ADM's assets and operations are subject to numerous sanctions against Russia, and there is a risk that ADM and related parties could trade with sanctioned partners.
• The Renewable Fuel Standard under the Energy Independence and Security Act of 2007 in the United States, including small refinery exemptions, can impact the Company’s operating results.2007
• Environmental liabilities exist for past operations at current facilities, at facilities that the Company no longer owns, operates or uses, and for operations of acquired companies.
• Increased use of technology including drones has provided pirates with enhanced capabilities to identify and target vessels, potentially causing crew extractions, ransom payments, lease obligations, and expenses related to rerouting.