Operational execution leads to strong gains at ADM

CHICAGO — “Robust commercial and operational execution” by the ADM leadership team, combined with an improved biofuels margin environment and elevated global energy prices helped drive significant earnings gains at ADM in the second quarter.

Net earnings for ADM in the second quarter ended June 30 surged 315% to $908 million, equal to $1.87 per share on the common stock, up from $219 million, or 45¢ per share, in the previous year’s second quarter, which was the company’s lowest second-quarter profit in five years. Earnings before income taxes were $1.09 billion, up from $279 million in the previous year’s second quarter.

Revenues increased 7% to $22.68 billion from $21.17 billion.

“During the quarter, energy markets were supportive of North American biofuel margins following the finalization in March of the renewable volume obligations (RVO) for 2026 and 2027,” Juan Luciano, president and chief executive officer, said during an Aug. 4 conference call with analysts. “Additionally, global energy volatility was also supportive of biofuel, including crush margins. Our business executed well across our asset footprint amid this constructive backdrop increasing global oilseed process volumes by close to 5% compared to the prior year period, driven by higher asset utilization.”

The stronger results led ADM to raise its previously provided adjusted earnings-per-share guidance for fiscal 2026 to approximately $5.15 to $5.60 per share, up from a range of $4.15 to $4.70.

“As we look to the second half of the year, we are focused on continuing to deliver on our financial and operational commitments and that same discipline extends to how we allocate capital and return value to our shareholders,” Luciano said.

Operating profit in ADM’s Ag Services and Oilseeds segment during the second quarter rose 129% to $867 million from $379 million. The increase primarily reflected margin expansion across the segment, most notably in Ag Services and North American crushing, which was supported by the RVO and elevated global energy prices, ADM said.

Within the segment, operating profit in Ag Services climbed 159% to $293 million from $113 million. Luciano said the company’s operations in South America benefited from its grain terminal in Barcarena, Brazil, returning to full operations along with increased soybean exports. Operating profit in Crushing jumped to $363 million from $33 million, reflecting strong execution by ADM in an improved margin environment, the company said.

Operating profit in the segment’s Refined Products & Other decreased 3% to $151 million from $156 million. The decrease largely resulted from net negative mark-to-market and timing impacts in the second quarter of 2026. In addition, ADM said underlying regional performance was mixed, with strong North American and European biodiesel margins partially offset by net negative mark-to-market timing impacts and supply and demand imbalances in South America impacting local margins.

In ADM’s Carbohydrates Solutions segment, operating profit increased 22% to $411 million from $337 million. ADM attributed the gain to “robust North American ethanol margins, including policy incentives.” Within the segment, operating profit increased 7% in Starches and Sweeteners, to $326 million from $304 million, and 158% in Vantage Corn Processors, to $85 million from $33 million.

In ADM’s Nutrition segment, operating profit increased 51% to $172 million from $114 million. Within the segment, Human Nutrition operating profit rose 51% to $139 million from $92 million. Within the Nutrition segment, Animal Nutrition operating profit was $33 million, up 50% from $22 million in the previous year’s second quarter.

Moving forward, Luciano said ADM’s growth plan will focus on accretive targeted organic investments across its platform where it sees the most compelling opportunities. Examples include expanding domestic crushing and ethanol capacity existing facilities.

The company recently identified four US crush facilities (Frankfort, Ind.; Deerfield, Mo.; Lincoln, Neb.; and Spiritwood ND) for its first phase of expansion. ADM plans to expand the facilities by adding about 700,000 tonnes of capacity and using an additional 25 million bus of oilseeds. to support biofuels demand. The projects follow other recent investments to enhance ADM’s US footprint, including upgrades at its Clinton, Iowa, corn facility and  elevator in Optima, Okla.

In the six-month period ended June 30, ADM had net earnings of $1.21 billion, or $2.49 per share, up from $514 million, or $1.06 per share, in the same time of the previous year. Revenues for the six months totaled $43.17 billion, up 4.4% from $41.34 billion.