Archer-Daniels-Midland Co (ADM): Results of Operations and Financial Condition
Archer-Daniels-Midland Co (ADM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ADM Reports Second Quarter 2026 Results Reports second quarter 2026 EPS 2 of $1.87 and adjusted EPS 1,2 of $1.84 Raises full-year 2026 adjusted EPS guidance on strong commercial and operational execution, constructive biofuels environment, and momentum in Nutrition C
How this was made
The 30-second read
Why it matters
Traders can reprice ADM’s earnings expectations based on the new adjusted EPS range ($5.15 to $5.60) and the stated drivers: improved crushing/ethanol margins supported by RVOs, elevated energy prices, and Nutrition momentum.
Market read
A primary earnings and guidance update with explicit new full-year adjusted EPS range and segment-level margin drivers tied to renewable fuel obligations.
What to watch
The outlook is explicitly tied to finalized 2026 and 2027 RVOs and external macro/geopolitical/policy conditions; any policy or trade disruption could pressure the back-half earnings trajectory.
ADM Reports Second Quarter 2026 Results
Second-quarter total segment operating profit rose 75%, adjusted EPS increased to $1.84 from $0.93, all three operating segments posted year-over-year profit growth, and ADM raised full-year adjusted EPS guidance to approximately $5.15 to $5.60 from $4.15 to $4.70.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net earningsGAAP | $908 million | – | – |
| Adjusted net earningsnon-GAAP | $895 million | – | – |
| Earnings before income taxesGAAP | $1,088 million | – | NM |
| EPSGAAP | $1.87 | – | increase of $1.42 |
| Total segment operating profitnon-GAAP | $1,450 million | – | 75% |
| Adjusted EPSnon-GAAP | $1.84 | – | 98% |
| Net specified item gainsother | $18 million | – | – |
| Year-to-date earnings before income taxesGAAP | $1,472 million | – | 133% |
| Year-to-date EPSGAAP | $2.49 | – | 135% |
| Year-to-date total segment operating profitnon-GAAP | $2,214 million | – | 40% |
| Year-to-date adjusted EPSnon-GAAP | $2.56 | – | 57% |
| Ag Services & Oilseeds segment operating profitnon-GAAP | $867 million | – | 129% |
| Ag Services operating profitnon-GAAP | $293 million | – | 159% |
| Crushing operating profitnon-GAAP | $363 million | – | NM |
| Refined Products and Other operating profitnon-GAAP | $151 million | – | (3)% |
| Wilmar operating profitnon-GAAP | $60 million | – | (22)% |
| Year-to-date Ag Services & Oilseeds segment operating profitnon-GAAP | $1,140 million | – | 44% |
| Year-to-date Ag Services operating profitnon-GAAP | $493 million | – | 81% |
| Year-to-date Crushing operating profitnon-GAAP | $284 million | – | NM |
| Year-to-date Refined Products and Other operating profitnon-GAAP | $237 million | – | (19)% |
| Year-to-date Wilmar operating profitnon-GAAP | $126 million | – | (15)% |
| Carbohydrate Solutions segment operating profitnon-GAAP | $411 million | – | 22% |
| Starches and Sweeteners operating profitnon-GAAP | $326 million | – | 7% |
| Vantage Corn Processors operating profitnon-GAAP | $85 million | – | 158% |
| Year-to-date Carbohydrate Solutions segment operating profitnon-GAAP | $767 million | – | 33% |
| Year-to-date Starches and Sweeteners operating profitnon-GAAP | $555 million | – | 9% |
| Year-to-date Vantage Corn Processors operating profitnon-GAAP | $212 million | – | NM |
| Nutrition segment operating profitnon-GAAP | $172 million | – | 51% |
| Human Nutrition operating profitnon-GAAP | $139 million | – | 51% |
| Animal Nutrition operating profitnon-GAAP | $33 million | – | 50% |
| Year-to-date Nutrition segment operating profitnon-GAAP | $307 million | – | 46% |
| Year-to-date Human Nutrition operating profitnon-GAAP | $243 million | – | 45% |
| Year-to-date Animal Nutrition operating profitnon-GAAP | $64 million | – | 52% |
full-year 2026 outlook
- Noteadjusted EPS of approximately $5.15 to $5.60
- NoteCapital expenditures continue to be projected to be in the range of $1.3 billion to $1.5 billion
What drove it
- Margin expansion across Ag Services & Oilseeds, most notably in Ag Services and North American crushing, supported by the RVO and elevated global energy prices.
- Current-quarter Ag Services & Oilseeds results included around $100 million of net positive mark-to-market and timing impacts, primarily attributable to Crushing.
- Global oilseed volumes increased by approximately 5% compared to the prior year quarter, in part due to improved asset utilization.
- Stable soybean meal prices supported strong global meal demand, resulting in record meal exports from Brazil and the U.S.
- Robust North American ethanol margins, including policy incentives, supported Carbohydrate Solutions.
- Human Nutrition improvement was largely driven by Flavors growth, supported by seasonal momentum, and continued progress at the Decatur East plant.
- Animal Nutrition benefited from operational improvements and portfolio actions taken during 2025.
Concerns
- Refined Products and Other operating profit was 3% lower, largely due to net negative mark-to-market and timing impacts.
- Supply and demand imbalances in South America impacted local margins.
- Equity earnings from Wilmar were approximately 22% lower compared to the prior year quarter.
- Lower liquid sweetener volumes and margins, most notably in North America, partially offset Starches and Sweeteners strength.
- Other Business operating-profit contribution decreased primarily due to lower captive insurance results.
- ADM is continuing to monitor external factors across the macroeconomic, geopolitical, policy, and trade environments.
What to watch
- Whether ADM continues to capitalize on the constructive margin environment in crushing and ethanol through the remainder of 2026.
- The effect of the finalized 2026 and 2027 renewable volume obligations under the U.S. Renewable Fuel Standard, global trade dynamics, and elevated energy prices.
- The persistence and financial impact of mark-to-market and timing effects, including the around $100 million net positive effect in the current quarter.
- Continued Nutrition performance, particularly Flavors growth, Decatur East plant progress, and Animal Nutrition operational improvements.
- Capital expenditures projected to be in the range of $1.3 billion to $1.5 billion.
Analysis
ADM reported a strong second quarter for the period ended June 30, 2026. Net earnings were $908 million and adjusted net earnings were $895 million. GAAP EPS was $1.87, compared with $0.45 in the prior-year quarter, while adjusted EPS was $1.84, compared with $0.93. Total segment operating profit rose 75% to $1,450 million, with all three operating segments reporting year-over-year profit gains.
Ag Services & Oilseeds was the principal earnings contributor, with segment operating profit of $867 million, up 129%. Margin expansion in Ag Services and North American crushing was supported by the RVO and elevated global energy prices. Crushing operating profit was $363 million versus $33 million, while Ag Services was $293 million versus $113 million. Results also included around $100 million of net positive mark-to-market and timing impacts, principally in Crushing. Refined Products and Other and Wilmar were weaker year over year, with operating profit down (3)% and (22)%, respectively.
Carbohydrate Solutions operating profit rose 22% to $411 million, reflecting robust North American ethanol margins and policy incentives. Vantage Corn Processors increased to $85 million from $33 million, while Starches and Sweeteners rose 7% to $326 million despite lower liquid sweetener volumes and margins in North America. Nutrition operating profit increased 51% to $172 million, with Human Nutrition at $139 million and Animal Nutrition at $33 million. Flavors growth, Decatur East progress, operational improvements, and 2025 portfolio actions supported the Nutrition improvement.
Year-to-date performance also strengthened. Earnings before income taxes were $1,472 million, compared with $632 million in the prior-year period, and total segment operating profit increased 40% to $2,214 million. Year-to-date GAAP EPS was $2.49 and adjusted EPS was $2.56. The filing attributes the improved operating backdrop to constructive biofuels economics supported by the finalized 2026 and 2027 RVO, elevated global energy prices, and trade dynamics.
ADM raised its full-year 2026 adjusted EPS outlook to approximately $5.15 to $5.60 from the prior range of $4.15 to $4.70. The company expects year-over-year earnings improvement in crushing and ethanol and continued Nutrition improvement. Capital expenditures remain projected to be in the range of $1.3 billion to $1.5 billion. Key risks identified in the reported quarter include South American supply and demand imbalances, lower captive insurance results, lower liquid sweetener volumes and margins, weaker Wilmar equity earnings, and macroeconomic, geopolitical, policy, and trade factors.
Management, verbatim
ADM delivered robust second-quarter financial and operating results.
Juan Luciano, Chair of the Board and CEO
Segment operating profit rose significantly year-over-year and sequentially, with broad-based growth across all three segments—driven by strong commercial and operational execution by the team, a constructive biofuels environment, and momentum in Nutrition, led by Flavors.
Juan Luciano, Chair of the Board and CEO
These results, and the expectations we have into the back half of this year, give us confidence to again raise our 2026 earnings outlook.”
Juan Luciano, Chair of the Board and CEO
Not in the filing
stated, not guessed- Total revenue and revenue comparisons
- Segment revenue and revenue comparisons
- Gross profit and gross margin
- Operating income and operating margin
- GAAP net income comparison for the prior-year quarter
- Adjusted net earnings comparison for the prior-year quarter
- Diluted share count
- Cash, debt, and liquidity figures
- Operating cash flow and free cash flow
- Share repurchases and dividends
- Prior-quarter comparisons for reported metrics
- Guidance for revenue, gross margin, operating expenses, and tax rate
- Previous-release outlook for formal actual-versus-prior-guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
ADM filed an 8-K with Exhibit 99.1 covering 2Q26 results and an updated full-year 2026 outlook, including segment operating profit and EPS guidance.
Ticker impact
ADM reported 2Q26 EPS of $1.87 (adjusted $1.84) and raised full-year 2026 adjusted EPS guidance to $5.15 to $5.60.
Near-term upside bias versus prior guidance range, with follow-through risk if margin assumptions or RVO execution disappoint.
The filing is a primary 8-K earnings and outlook update with explicit new full-year adjusted EPS range and segment drivers (crushing, ethanol, Nutrition).
Market effects
Reinforces the biofuels and renewable fuels margin narrative for ag processors, especially those exposed to RVO-driven ethanol economics.
Supports sentiment for US-listed agri-processing names tied to North American crushing and ethanol demand.
Highlights global trade dynamics and elevated energy prices as ongoing margin supports, relevant to global commodity-linked processors.
Counterpoint
The guidance raise may be sensitive to mark-to-market/timing impacts and energy price assumptions, so upside could fade if those normalize.
Key entities
- public_companyArcher-Daniels-Midland Co
US-listed agri-processing company reporting 2Q26 results and raising full-year 2026 adjusted EPS guidance.
- executiveJuan Luciano
CEO and Chair of the Board, quoted on robust quarter performance and confidence in raising outlook.
