IN Brief:
- ADM increased adjusted earnings guidance to US$5.15–US$5.60 per share.
- Ag Services and Oilseeds operating profit rose 129% year on year.
- Nutrition operating profit increased 51%, led by flavours and plant improvements.
ADM has raised its full-year earnings outlook after stronger oilseed crushing, improved nutrition performance, and favourable biofuel economics lifted second-quarter segment operating profit by 75%.
The agricultural processor now expects adjusted earnings per share of approximately US$5.15 to US$5.60 for 2026, compared with its previous range of US$4.15 to US$4.70. Capital expenditure remains forecast at US$1.3 billion to US$1.5 billion.
Second-quarter net earnings were US$908 million, with adjusted net earnings of US$895 million. Reported diluted earnings per share reached US$1.87, while adjusted earnings per share were US$1.84.
Juan Luciano, Chair of the Board and Chief Executive Officer of ADM, said: “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.”
Total segment operating profit reached US$1.45 billion, up from US$830 million a year earlier. The largest increase came from Ag Services & Oilseeds, where operating profit rose 129% to US$867 million.
Crushing contributed US$363 million, an increase of US$330 million. ADM attributed the improvement to stronger margins, better execution, and an approximately 5% rise in global oilseed volumes, supported partly by improved asset utilisation.
The margin environment benefited from United States renewable fuel obligations, elevated global energy prices, and positive mark-to-market and timing effects. Stable soybean meal prices also supported demand and record meal exports from Brazil and the United States.
The quarter included around US$100 million of net positive mark-to-market and timing effects within Ag Services & Oilseeds. Those movements are part of commodity processing and risk management, but they make it necessary to distinguish plant utilisation and customer demand from gains that may shift between periods.
Ag Services operating profit increased 159% to US$293 million. South American operations benefited from the Barcarena grain export terminal in Brazil returning to full operation and from higher farmer selling that supported increased soybean exports.
Carbohydrate Solutions generated operating profit of US$411 million, up 22%. Corn wet-milling and dry-milling ethanol operations benefited from higher margins and policy incentives, while the food-ingredient picture was more mixed.
Starches and Sweeteners operating profit rose 7% to US$326 million. Higher ethanol returns supported the result, but liquid sweetener volumes and margins were lower, particularly in North America, while global starch volumes and margins stabilised.
The same corn-processing network can produce sweeteners, starches, ethanol, feed ingredients, and other co-products. Changes in energy policy, corn prices, and product demand alter the economics of the full complex rather than affecting each output in isolation.
Nutrition operating profit increased 51% to US$172 million. Human Nutrition rose by the same percentage to US$139 million, led by flavour growth, seasonal demand, and continued improvement at the Decatur East plant.
Animal Nutrition operating profit reached US$33 million, up 50%, after operational improvements and portfolio measures taken during 2025. The result gives ADM a broader earnings contribution than the unusually strong oilseed and ethanol environment alone.
The revised outlook assumes continued improvement in crushing and ethanol and further progress in Nutrition. It also depends on renewable fuel policy, global trade, energy prices, crop availability, and reliable plant operation.
ADM’s food-facing businesses therefore present a mixed picture. Flavours and nutrition improved, global starch volumes and margins stabilised, and Decatur East made progress, while North American liquid sweeteners remained under pressure.
For customers buying starches, sweeteners, oils, proteins, and flavour systems, the stronger group result does not remove exposure to crop and energy volatility. It may, however, support maintenance and capital programmes across a network where reliability and conversion efficiency determine both supply continuity and margin.
The higher guidance is management’s current expectation rather than a guaranteed outcome. The range assumes constructive processing conditions persist through the second half and that external trade, policy, and geopolitical factors do not materially change.
The next reporting period will show whether the quarter’s margin strength can be sustained as timing benefits unwind and seasonal crop flows change. Nutrition performance and food ingredient volumes will provide a clearer measure of improvement beyond biofuels and oilseed crushing.
