Archer Daniels Midland (NYSE:ADM) reported second-quarter 2026 adjusted earnings per share of $1.84 and total segment operating profit of $1.5 billion, citing strong commercial and operational execution, favorable biofuels margins, elevated global energy prices and continued momentum in its Nutrition business.
The company raised its full-year adjusted EPS outlook to $5.15 to $5.60, from prior guidance of $4.15 to $4.70. Chair and Chief Executive Officer Juan Luciano said the updated outlook reflects first-half performance and management’s expectation that favorable conditions in crushing and ethanol will continue through the second half of the year.
Biofuels and Oilseed Processing Support Results
ADM’s Ag Services and Oilseeds segment posted operating profit of $867 million in the second quarter, up 129% from the prior quarter. Results included approximately $100 million in net positive mark-to-market and timing impacts, led by crushing, while refined products and other recorded about $50 million in net negative impacts.
Ag Services operating profit reached $293 million, an increase of 159% from the prior quarter. Chief Financial Officer Monish Patolawala said the business benefited from using ADM’s global asset network to navigate a complex trade environment, as well as improved operations in South America after the company’s Barcarena, Brazil, export terminal returned to full service.
Crushing operating profit was $363 million, up approximately $330 million from the prior quarter. ADM said stronger domestic demand following renewable volume obligation policy developments, along with higher global energy prices, supported a constructive biofuels margin environment. Global oilseed processing volumes increased nearly 5% year over year, driven by higher utilization across the company’s facilities.
Luciano also pointed to strong global demand for pork and poultry, which supported soybean meal sales and contributed to record U.S. and Brazilian soybean meal exports during the quarter. Results included approximately $20 million of insurance proceeds related to the Decatur East facility.
Refined products and other operating profit was $151 million, down 3% from the prior quarter. ADM said margins in South America were pressured by oversupply conditions. Equity earnings from its Wilmar investment totaled $60 million, down 22% from the prior quarter.
Ethanol Strength Offsets Sweetener Pressure
Carbohydrate Solutions generated operating profit of $411 million, up 22% from the prior quarter. Starches and sweeteners operating profit was $326 million, up 7% year over year, as ethanol margin strength and policy incentives more than offset continued pressure on liquid sweetener volumes and margins, particularly in North America.
ADM said starch demand stabilized during the quarter, while global wheat milling volumes remained relatively stable in a more competitive environment. The company’s Vantage Corn Processors business reported operating profit of $85 million, a $52 million increase from the prior quarter, aided by stronger corn dry-milling ethanol margins, incentives and risk management.
Management increased its expected 2026 benefit from the 45Z clean-fuel production credit to approximately $250 million, from about $150 million previously. Luciano said the company has gained greater visibility into the benefit as it completes carbon-intensity verification and implements operating processes across its ethanol facilities.
ADM sequestered 337,000 metric tons of carbon during the quarter. Luciano said the company continues to advance its broader decarbonization strategy, including the Broadwing Energy project intended to bring lower-carbon energy and steam to Decatur.
Nutrition Profit Rises as Flavors Gain Momentum
Nutrition segment revenue was $1.9 billion, down 5% from the prior quarter and including foreign-exchange gains. Human Nutrition revenue declined 4% from the prior quarter, which had included a $55 million benefit from a contract cancellation in health and wellness. Animal Nutrition revenue fell 6% year over year, reflecting portfolio actions and the formation of the Akralos joint venture.
Nutrition operating profit rose 51% from the prior quarter to $172 million. Human Nutrition operating profit increased 51% to $139 million, led by flavor growth and progress at Decatur East. Animal Nutrition operating profit increased 50% to $33 million, supported by ongoing improvements and benefits from portfolio actions taken in 2025.
Luciano said flavor sales rose in every key region, with particular strength in Europe, the Middle East and Africa, while Asia Pacific delivered a record quarter. He said ADM is targeting a growing market for natural colors as food and beverage makers shift from artificial ingredients to cleaner-label alternatives.
The company estimates the U.S. natural colors market represents roughly $1 billion in revenue opportunity and expects the category to generate $80 million to $100 million in operating profit for ADM over time. Luciano said ADM recently signed contracts involving the replacement of artificial red, yellow and orange colors in a packaged-food line and flavored beverages.
Capital Plans and Second-Half Outlook
ADM invested $466 million in its footprint during the first half and maintained its full-year capital expenditure expectation of $1.3 billion to $1.5 billion. The company is expanding crushing capacity at four existing U.S. facilities in the first phase of a broader effort to unlock capacity at 10 plants. Luciano said the initial four-project phase could require about $100 million and has capital intensity of roughly one-fourth that of a greenfield expansion.
The company paid $256 million in dividends during the quarter, marking its 378th consecutive quarterly dividend. Its net leverage ratio stood at 1.6 times at June 30, and management continues to expect a ratio of about two times at year-end. Patolawala said ADM is evaluating a return to opportunistic share repurchases later this year.
For the second half, ADM expects operating profit to exceed first-half levels, with the third quarter potentially stronger than the fourth quarter depending on executed crushing margins. The company said its outlook assumes China continues purchasing North American soybeans and noted that China is progressing toward its commitment to buy 25 million tons of U.S. soybeans in 2026.
Management also reiterated its target of $500 million to $750 million in aggregate cost savings over the three- to five-year period that began in 2025. ADM said it has reduced accounts-payable cost per transaction by roughly 25% since the start of the year through process improvements.
Luciano acknowledged geopolitical and weather-related risks, including conflict affecting Ukraine, where ADM operates. He said disruptions to the company’s Ukrainian operations are expected to have limited financial impact, though further disruption to regional grain exports could affect global grain stocks and food prices.
ADM also announced that Jeff Rowe will join the company as executive vice president and chief operating officer effective Aug. 17. Rowe previously served as chief executive officer of Syngenta.
About Archer Daniels Midland (NYSE:ADM)
Archer Daniels Midland Company (ADM) is a global agricultural processor and food-ingredient provider that sources, transports and processes oilseeds, corn, wheat and other agricultural commodities. The company operates large-scale crushing, refining and processing facilities that produce vegetable oils, protein meals, corn sweeteners, starches, ethanol, animal feeds and a wide range of food and industrial ingredients. ADM also develops specialty ingredients and solutions for human and animal nutrition, food and beverage formulation, and industrial applications such as bio-based materials and renewable fuels.
ADM’s business combines commodity origination and merchandising with downstream manufacturing and ingredient formulation.
