Archer-Daniels-Midland Raises Outlook as Oilseed Profit Rebounds
Revenue increased 7% to $22.68 billion as the oilseed business returned to growth.
Archer-Daniels-Midland (ADM), the agricultural processor, nearly doubled second-quarter adjusted earnings to $1.84 a share from $0.93 a year earlier. Adjusted earnings also climbed from $0.71 a share in the first quarter.
The quarter marked a sharp change in trajectory. Total segment operating profit rose 75% to $1.45 billion, accelerating from 2% growth in the first quarter and nearly doubling from $764 million sequentially. Mark-to-market and timing effects shifted to a roughly $100 million benefit in Ag Services & Oilseeds after reducing first-quarter results by about $275 million.
Revenue rose from $21.17 billion a year earlier, driven by a 10% increase in Ag Services & Oilseeds revenue to $17.92 billion. Carbohydrate Solutions revenue slipped 1% to $2.76 billion, while Nutrition revenue declined 5% to $1.90 billion. GAAP earnings increased to $1.87 a share from $0.45 a year earlier and $0.62 in the preceding quarter.
Ag Services & Oilseeds operating profit more than doubled to $867 million from $379 million and more than tripled from the first quarter, reversing the segment’s 34% year-over-year decline in that period. Crushing profit increased by $330 million to $363 million as global oilseed volumes grew about 5%, utilization improved and biofuel-supported margins strengthened. Ag Services profit rose 159% to $293 million, aided by increased soybean exports, higher farmer selling and the return of ADM’s Barcarena, Brazil, terminal to full operations.
Carbohydrate Solutions operating profit rose 22% to $411 million, with stronger dry-milling ethanol margins lifting Vantage Corn Processors profit 158% to $85 million. Nutrition profit increased 51% to $172 million as Flavors grew, the Decatur East plant progressed and operational improvements supported Animal Nutrition.
ADM raised its 2026 adjusted-earnings forecast to $5.15 to $5.60 a share from $4.15 to $4.70, due to stronger crushing and ethanol expectations and improving Nutrition performance. The company had already increased the range from $3.60 to $4.25 in May. Capital-spending guidance remains $1.3 billion to $1.5 billion.
Year-to-date cash flow from operations before working capital rose 50% to $1.8 billion. Reported operating cash flow fell to $1.3 billion from $4.0 billion because working-capital changes provided a substantially larger benefit in the prior year.