- Adjusted EPS: $1.84 for the second quarter of 2026.
- Total Segment Operating Profit: $1.5 billion for the second quarter of 2026.
- Adjusted ROIC: 7.8% on a trailing fourth quarter basis.
- Cash Flow from Operations (before working capital changes): $1.8 billion for the first half of 2026.
- Full-Year 2026 Adjusted EPS Guidance: Raised to a range of $5.15 to $5.60, up from the previous range of $4.15 to $4.70.
- AS&O Segment Operating Profit: $867 million, up 129% year over year.
- Ag Services Operating Profit: $293 million, up 159% year over year.
- Crushing Operating Profit: $363 million, up approximately $330 million from the prior year quarter.
- Refined Products and Other Operating Profit: $151 million, down 3% year over year.
- Wilmar Equity Earnings: $60 million, down 22% year over year.
- Carbohydrate Solutions Operating Profit: $411 million, up 22% year over year.
- Starches and Sweeteners Operating Profit: $326 million, up 7% year over year.
- Vantage Corn Processors Operating Profit: $85 million, up $52 million from the prior year quarter.
- Nutrition Segment Revenue: $1.9 billion, down 5% year over year.
- Nutrition Segment Operating Profit: $172 million, up 51% year over year.
- Human Nutrition Operating Profit: $139 million, up 51% year over year.
- Animal Nutrition Operating Profit: $33 million, up 50% year over year.
- CapEx: $466 million invested in the first half of 2026; full-year guidance maintained at $1.3 billion to $1.5 billion.
- Dividends: $256 million distributed in the second quarter, marking the 378th consecutive quarterly dividend.
- Net Leverage Ratio: 1.6 times at June 30, with year-end expectations of approximately 2 times.
- Net Benefit from 45Z: Raised to approximately $250 million for 2026, up from prior expectations of approximately $150 million.
- Global Crush Volumes: Increased close to 5% year over year.
- Carbon Sequestered: 337,000 metric tonnes in the second quarter.
Release Date: August 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Archer-Daniels-Midland Co ADM raised its full-year 2026 adjusted EPS guidance to $5.15-$5.60, up from $4.15-$4.70, reflecting strong first-half performance and a constructive outlook.
- Total segment operating profit surged to $1.5 billion in Q2 2026, driven by robust commercial execution, a favorable biofuels margin environment, and momentum in Nutrition.
- The company is expanding its North American crushing capacity through four debottlenecking projects, which offer capital intensity about one-fourth that of greenfield builds and are expected to deliver high returns.
- Nutrition segment operating profit increased 51% year-over-year, led by record flavor sales in Asia Pacific and progress at Decatur East, with natural colors presenting a $80-$100 million operating profit opportunity.
- ADM raised its 45Z benefit expectation to approximately $250 million for 2026, up from $150 million, due to improved carbon intensity verification and operational processes.
- The company generated strong cash flow from operations before working capital of $1.8 billion in the first half, maintaining a net leverage ratio of 1.6 times and evaluating opportunistic share repurchases.
Negative Points
- Archer-Daniels-Midland Co (ADM) faces ongoing pressure on liquid sweetener volumes and margins, particularly in North America, which partially offsets ethanol strength in Carb Solutions.
- The company's Refined Products and Other subsegment saw a 3% year-over-year decline in operating profit, impacted by net negative mark-to-market and timing effects and oversupply in South America.
- Nutrition segment revenues decreased 5% year-over-year, with Human Nutrition down 4% (excluding a prior-year contract cancellation benefit) and Animal Nutrition down 6% due to portfolio actions.
- Geopolitical tensions, including the Russia-Ukraine conflict and Middle East instability, create uncertainty in global grain exports and energy prices, potentially impacting future results.
- The company's guidance assumes China continues buying North American soybeans, but any disruption in trade relations could negatively affect Ag Services performance.
- ADM expects higher corporate costs in 2026 driven by performance-based compensation and continued investments in R&D and automation, which could pressure margins.
Q & A Highlights
Q: Can you talk about the brownfield expansion plans for US crush facilities and the expected returns compared to greenfield projects?
A: Juan Luciano (CEO) confirmed that ADM has identified 10 US plants with potential for capacity unlocks, with capital intensity about one-fourth of greenfield construction costs. The company has announced phase one, moving forward with 4 of those 10 plants with the most attractive returns. The total investment for phase one is expected to be in the range of $100 million, keeping within the $1.3 billion to $1.5 billion CapEx range. Monish Patolawala (CFO) added that debottlenecking also reduces manufacturing costs per unit due to fixed cost dilution, further enhancing returns.
Q: Given the strong Ag Services performance in Q2, do you expect Q3 and Q4 to be higher or lower than Q2?
A: Juan Luciano (CEO) noted that Ag Services will likely be slightly lower in Q3 than Q2 due to internal reasons, but Q4 will depend on export flows. He highlighted that China continues to buy US soybeans, honoring its commitment of 25 million tonnes for 2026, and there may be additional purchases of sorghum or barley. The team continues to execute well with strong global trade results, improved destination marketing margins in Asia, and good grain trading results, leveraging ADM's global asset network during times of disruption.
Q: What are the key factors that would drive results to the high end versus the low end of the raised guidance range?
A: Juan Luciano (CEO) outlined several factors: continued successful execution against the plan, favorable biofuel margins persisting through the second half, and Nutrition improving operational performance. For the high end, assumptions include China continuing to buy North American soybeans, good exports of corn and milo, and North America crushing being 90% locked for Q3. He noted Q4 crush margins are only 30% locked, so execution there will be critical. The company also raised its 45Z benefit expectation to approximately $250 million for 2026, up from $150 million previously.
Q: Can you provide more detail on the crush margin coverage levels for the second half and how that informs the guidance?
A: Juan Luciano (CEO) confirmed North America crushing is 90% covered for Q3 and about 30% covered for Q4, with global coverage at approximately 70% for Q3 and lower for Q4. Monish Patolawala (CFO) added that the second half should represent more than half of 2026 operating profit, with Q3 potentially higher than Q4. He emphasized that cash margins, not just board crush, will determine outcomes, and the company feels good about the $5.15 to $5.60 guidance range based on current market conditions.
Q: What is underpinning the increased 45Z outlook, and have we reached the appropriate level?
A: Juan Luciano (CEO) explained that the increase from $150 million to $250 million reflects growing line of sight into realizing benefits as the company continues carbon intensity verification and builds operational processes across North American ethanol plants. Key factors include plant-by-plant carbon intensity scores, prevailing wage requirements, carbon sequestration volumes (337,000 tonnes in Q2, up from 300,000 in Q1), ethanol production volumes, and industry pricing. He noted this may not be the maximum as the company continues implementing bottlenecks and operational excellence improvements.
Q: How should we think about the durable growth rate of Human Nutrition, and what are the key drivers beyond natural colors?
A: Juan Luciano (CEO) highlighted strong flavor growth, particularly in Asia Pacific where flavors grew 20% year-over-year with local customer wins. Specialty Ingredients is improving as Decatur East makes progress, recapturing volume lost during the 18-month outage. Emulsifiers are performing better, and the company sees traction in postbiotics and fiber incorporation into diets. He stated that medium-term, flavors should grow at least mid-single digits, with operating profit growing higher due to operational leverage.
Q: Can you put the precision fermentation opportunity in context with the natural colors opportunity and provide a timeframe for uplift?
A: Juan Luciano (CEO) described precision fermentation as a synergistic platform leveraging ADM's existing fermentation capacity and dextrose supply. The company has two projects demonstrating feasibility: EVERY for egg replacement and Bond for lamb in pet food. ADM also plans to launch at least one natural color based on precision fermentation to alleviate supply chain burdens. He declined to provide a specific financial target comparable to the $80 million to $100 million natural colors opportunity, citing early-stage customer engagements, but expressed excitement about the platform's potential.
Q: Was there an insurance proceeds benefit in the quarter, and should we expect more for the balance of the year?
A: Monish Patolawala (CFO) confirmed that ADM received approximately $20 million in insurance proceeds related to Decatur East, which is included in the AS&O segment results. The company is still working with insurance providers on potential additional proceeds and will keep investors posted as more information becomes available.
Q: Are you seeing better trends in starches, and what is helping to stabilize that market?
A: Juan Luciano (CEO) confirmed stabilization in the starch market, partly driven by improved cardboard and packaging demand in the industrial sector. He emphasized the importance of deriving over 22 different products from corn, with biosolutions continuing to grow and find non-food or feed uses for corn derivatives. This diversification adds resilience to the business, as evidenced by the $1.8 billion in cash flow from operations before working capital in the first half, which funds organic investments and potentially opportunistic share repurchases later this year.
Q: How should we think about the Q3 versus Q4 cadence given the guidance raise?
A: Monish Patolawala (CFO) explained that with first-half adjusted EPS of approximately $2.55, the second half will be higher than the first half to reach the $5.15 to $5.60 range. Q3 could be higher than Q4, driven by crush margins already booked (90% locked in North America), continued Nutrition execution, and strong ethanol margins, partially offset by lower liquid sweetener volumes. The Q3 versus Q4 differential will largely depend on where crush margins get locked for Q4, which is currently only 30% covered in North America.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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