ADM Board of Directors Extend Share Repurchase Program

Rhea-AI Summary

ADM (NYSE: ADM) announced its Board of Directors has extended and expanded its share repurchase program. The program, which originally authorized the purchase of 100 million shares between 2015-2019, was first extended to 2024 and increased to 200 million shares in 2019. Now, it has been further extended to December 31, 2029, with an additional authorization of 100 million shares, bringing the total program authorization to 300 million shares. Currently, 114,764,049 shares remain available for future repurchases. The timing and number of shares to be repurchased will be determined at the company's discretion.

Positive

• Authorization of additional 100 million shares for repurchase
• Extension of buyback program through 2029
• Large remaining capacity of 114.7 million shares available for repurchase
• Demonstrates company's commitment to returning value to shareholders

Negative

• Significant cash outlay required for share repurchases could limit other investment opportunities

Insights

Financial Analyst

This significant expansion of ADM's share repurchase program sends a strong signal about management's confidence in the company's financial position and future prospects. The authorization for an additional 100 million shares through 2029, bringing the total program to 300 million shares, represents a substantial commitment to returning capital to shareholders. With approximately 114.7 million shares remaining available for repurchase, ADM has considerable flexibility to execute buybacks opportunistically. Given ADM's current market cap of $24.8 billion, this authorization represents a meaningful portion of the company's outstanding shares. Share repurchases can help boost earnings per share and signal that management believes the stock may be undervalued at current levels. However, the actual impact will depend on the timing and execution of the buybacks, which remain at management's discretion.

Market Research Analyst

The extension and expansion of ADM's buyback program comes at a strategic time when many agricultural commodities companies are focusing on shareholder returns amid market volatility. The long-term nature of the program, extending through 2029, provides ADM with extensive runway to capitalize on market opportunities and potential stock price fluctuations. The discretionary nature of the program is particularly noteworthy, as it allows management to balance share repurchases with other capital allocation priorities such as investments in growth initiatives and maintaining financial flexibility. This approach aligns with industry best practices and suggests a thoughtful approach to capital management in a cyclical industry.

CHICAGO--(BUSINESS WIRE)-- ADM (NYSE: ADM) announced today that its Board of Directors authorized an extension of ADM’s share repurchase program.

The original 5-year program authorized the purchase of 100,000,000 shares of ADM stock in between Jan. 1, 2015, and Dec. 31, 2019. In 2019, the program was extended through Dec. 31, 2024 and increased to 200,000,000 shares. The program has now been extended an additional five years, and the Board also authorized repurchases of up to an additional 100,000,000 shares under the extended program.

The share repurchase program now authorizes the purchase of 300,000,000 shares through Dec. 31, 2029. Following this increase, there are 114,764,049 shares remaining available for future repurchases after reflecting past repurchases under the program. As previously disclosed, the number and timing of any shares repurchased will be determined at the discretion of the Company.

About ADM

ADM unlocks the power of nature to enrich the quality of life. We’re an essential global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. We’re a premier human and animal nutrition provider, offering one of the industry’s broadest portfolios of ingredients and solutions from nature. We’re a trailblazer in health and well-being, with an industry-leading range of products for consumers looking for new ways to live healthier lives. We’re a cutting-edge innovator, guiding the way to a future of new consumer and industrial solutions. And we're a leader in sustainability, scaling across entire value chains to help decarbonize the multiple industries we serve. Around the globe, our innovation and expertise are meeting critical needs while nourishing quality of life and supporting a healthier planet. Learn more at www.adm.com.

Source: Corporate Release

Source: ADM

View source version on businesswire.com: https://www.businesswire.com/news/home/20241211470126/en/

ADM Media Relations

Jackie Anderson

media@adm.com

312-634-8484

Source: ADM

FAQ

How many additional shares did ADM authorize for repurchase in its latest program extension?

ADM authorized an additional 100 million shares for repurchase, bringing the total program authorization to 300 million shares.

When does ADM's extended share repurchase program expire?

ADM's extended share repurchase program runs through December 31, 2029.

How many shares remain available for repurchase under ADM's current program?

114,764,049 shares remain available for future repurchases under ADM's current program.

What was the original size of ADM's share repurchase program in 2015?

The original program authorized in 2015 was for 100 million shares over a 5-year period.

How has ADM's share repurchase program evolved since 2015?

The program started with 100 million shares in 2015, increased to 200 million shares in 2019, and has now been increased to 300 million shares through 2029.