Archer-Daniels-Midland Company

ADM reported second-quarter 2026 adjusted EPS of $1.84 and total segment operating profit of $1.5 billion. AS&O segment operating profit was $867 million, up 129% year over year; Carbohydrate Solutions operating profit was $411 million, up 22%; and Nutrition segment revenue was $1.9 billion, down 5%, with operating profit of $172 million, up 51%. The company also cited first-half 2026 cash flow from operations before working capital changes of about $1.8 billion and trailing four-quarter adjusted ROIC of 7.8%. Looking ahead, ADM raised full-year 2026 adjusted EPS guidance to $5.15-$5.60, expects CapEx of $1.3 billion-$1.5 billion, raised its net benefit from 45Z to about $250 million for 2026, and said second-half operating profit should be more than half of full-year profit.

Juan Luciano framed the quarter as a strong execution period, saying results reflected a constructive biofuels environment, strong commercial and operational performance, and momentum in Nutrition. He emphasized ADM’s organic growth plan, including brownfield crushing/ethanol expansions, precision fermentation, and natural colors, and said the company is focused on disciplined capital deployment and shareholder returns. His tone was confident and constructive, but he repeatedly noted geopolitical and weather-related uncertainty.

Monish Patolawala highlighted the quarter’s key financial drivers: AS&O operating profit of $867 million, including about $100 million of net positive mark-to-market and timing impacts; Ag Services at $293 million; Crushing at $363 million; and RPO at $151 million. He also pointed to Nutrition’s $172 million operating profit, $1.8 billion of first-half cash flow from operations before working capital changes, $466 million of first-half CapEx, a $256 million dividend in the quarter, and net leverage of 1.6x at June 30. He said ADM still expects year-end net leverage of about 2x, is maintaining full-year CapEx of $1.3 billion-$1.5 billion, and is evaluating opportunistic share repurchases later this year.

Analysts focused on the durability of the raised guidance, the back-half cadence, and how much of the improvement was tied to crush and ethanol margins versus structural gains. Management said Q3 could be higher than Q4, but Q4 depends on executed crush margins, with North American crushing about 90% covered in Q3 and about 30% covered in Q4. Questions also covered the brownfield expansion strategy, Broadwing, 45Z, starch stabilization, and precision fermentation; management said brownfield projects offer roughly one-quarter the capital intensity of greenfield builds, Broadwing supports decarbonization at Decatur, 45Z visibility has improved to about $250 million, starch demand is stabilizing, and precision fermentation is still early but strategically promising.