ADM Q2 2026 earnings: Biofuel margins lift profit and guidance

ADM (NYSE: ADM) reported second-quarter 2026 net earnings of $908 million and diluted EPS of $1.87, compared with EPS of $0.45 a year earlier; adjusted diluted EPS rose 98% to $1.84. Total segment operating profit increased 75% to $1.45 billion as all three segments improved, led by oilseed crushing and Ag Services, prompting ADM to raise its full-year adjusted EPS guidance.

Core financial results

For the quarter ended June 30, GAAP earnings before income taxes rose to $1.09 billion from $279 million. Corporate results also improved because prior-year impairment losses did not recur and financing costs declined, partially offset by higher performance-based compensation.

On a non-GAAP basis, segment operating profit increased by $620 million. This measure excludes Corporate, Other Business and specified items; the quarter included $18 million of net specified-item gains outside segment operating profit.

ADM defines increases above 200%, or comparisons involving income in one period and a loss in the other, as not meaningful, or NM.

Business and segment performance

Ag Services & Oilseeds generated most of the increase in segment profit, rising by $488 million. Carbohydrate Solutions and Nutrition also improved, producing broad-based growth across ADM’s three reporting segments.

Ag Services & Oilseeds: Crushing profit increased by $330 million to $363 million as margins improved and global oilseed volumes rose approximately 5%, partly due to better asset utilization. Stable soybean meal prices supported demand and record meal exports from Brazil and the United States. Ag Services profit climbed 159% to $293 million, helped by ADM’s global asset network, the return to full operations at its Barcarena export terminal in Brazil and higher soybean exports.

The segment included approximately $100 million of positive net mark-to-market and timing effects, mainly in Crushing. Refined Products and Other declined 3% to $151 million as negative timing effects and South American supply-demand imbalances outweighed stronger North American and European biodiesel margins. Equity earnings from Wilmar fell 22% to $60 million.

Carbohydrate Solutions: Operating profit rose 22% to $411 million, primarily because of stronger North American ethanol margins and policy incentives. Lower U.S. corn prices, elevated energy prices and the renewable volume obligations made ethanol more competitive with alternative blendstocks, supporting domestic blending and industry exports. Vantage Corn Processors profit increased from $33 million to $85 million, while Starches and Sweeteners grew 7% despite lower North American liquid sweetener volumes and margins.

Nutrition: Operating profit increased 51% to $172 million. Human Nutrition profit rose 51% to $139 million, driven largely by seasonal momentum in Flavors and continued progress at the Decatur East plant. Animal Nutrition profit increased 50% to $33 million, reflecting operating improvements and benefits from portfolio actions taken in 2025.

Biofuel economics connected quarterly gains with the higher outlook

The finalized 2026 and 2027 renewable volume obligations under the U.S. Renewable Fuel Standard supported both oilseed crushing and ethanol economics. Elevated global energy prices further strengthened margins, while lower corn costs improved ethanol’s position relative to competing blendstocks.

These same factors underpin ADM’s higher full-year outlook. The company expects year-over-year earnings improvement in crushing and ethanol, alongside continued Nutrition progress. However, part of the quarterly Ag Services & Oilseeds gain came from approximately $100 million of positive mark-to-market and timing effects, which ADM says are not necessarily representative of underlying operating performance.

Earnings guidance

ADM raised both ends of its 2026 adjusted EPS range, increasing the lower end by $1.00 and the upper end by $0.90. The company maintained its capital expenditure projection while continuing to monitor macroeconomic, geopolitical, policy and trade conditions.

The EPS outlook is a non-GAAP forecast. ADM did not provide forecast GAAP EPS or a quantitative reconciliation because the timing and impact of possible impairments, restructuring costs, acquisition expenses and legal, regulatory or tax matters cannot be estimated with reasonable certainty.

Recent insider transactions

Aggregate six-month data show 972,943 shares purchased across 16 transactions and 144,106 shares sold across four transactions, resulting in net purchases of 828,837 shares. The four detailed sales below had a combined reported value of approximately $10.11 million; the remaining recent records were zero-price stock-award grants for which quantities were not provided.

These records describe the transactions but do not establish the insiders’ views about ADM’s future performance.

Risks investors should monitor

• Dependence on biofuel economics: The improved results and raised outlook rely partly on renewable fuel policy, energy prices and favorable crushing and ethanol margins. Changes in these conditions could affect segment profit.
• Mark-to-market and timing effects: Approximately $100 million of positive effects supported Ag Services & Oilseeds profit. These valuation and timing movements can reverse and may not reflect underlying operations.
• Uneven performance within segments: North American liquid sweetener volumes and margins remained under pressure, Refined Products faced South American supply-demand imbalances, and Wilmar equity earnings declined 22%.
• Trade and geopolitical exposure: ADM continues to monitor changes in global trade, policy, macroeconomic and geopolitical conditions, all of which can affect commodity flows and margins.

Summary

ADM’s second-quarter improvement was broad-based, but the largest contribution came from Ag Services & Oilseeds as crushing margins, oilseed volumes and Ag Services performance strengthened. Better ethanol economics and recovering Nutrition profit provided additional support. The main issues to monitor are whether biofuel margins remain constructive, how much of the segment improvement persists without favorable timing effects, and whether Nutrition and weaker product areas continue to recover.