Archer-Daniels-Midland Company

ADM reported first-quarter 2026 adjusted EPS of $0.71 and total segment operating profit of $764 million. Trailing fourth-quarter adjusted ROIC was 6.4%, and cash flow from operations before working capital changes was $442 million. By segment, AS&O operating profit was $273 million, down 34% year over year, including about $275 million of net negative mark-to-market and timing impacts; Ag Services operating profit rose 26% to $200 million, crushing posted a $79 million operating loss, refined products and other was $86 million, and Wilmar equity earnings were $66 million, down 8%. Carbohydrate Solutions operating profit was $356 million, up 48%, with starches and sweeteners at $229 million and Vantage corn processors at $127 million. Nutrition revenue was $1.8 billion, down 1%, while Nutrition operating profit was $135 million, up 42%. ADM raised 2026 adjusted EPS guidance to $4.15-$4.70 from $3.60-$4.25. The company maintained full-year CapEx guidance of $1.3 billion to $1.5 billion, expects year-end net leverage of about 2x, and said full-year cost savings remain targeted at $500 million to $750 million over the 3- to 5-year period that began in 2025.

Juan Luciano framed the quarter as evidence that ADM is benefiting from a more constructive commodity and margin environment, especially in soy crush and ethanol after the EPA finalized RVOs. He emphasized execution on strategic priorities: lower costs, stronger cash flow, growth-platform investment, and talent development, while also highlighting portfolio actions, automation, and AI-driven workflow improvements. His tone was upbeat and increasingly constructive on 2026, but he also repeatedly noted that the company is still watching trade, policy, energy, and other external risks.

Monish Patolawala pointed to the mechanics behind the quarter: AS&O operating profit was pressured by about $275 million of net negative mark-to-market and timing impacts, most of which he expects to reverse in Q2. He said Q1 operating cash flow before working capital was approximately $442 million, CapEx was $194 million in the quarter, and full-year CapEx is still expected at $1.3 billion to $1.5 billion. He also said net leverage was 2.2x at March 31 versus the prior quarter, but year-end net leverage is still expected at about 2x, and the company remains on track for $500 million to $750 million of aggregate cost savings over 3-5 years. He highlighted that Q2 should be stronger than Q1 due to mark-to-market reversals, seasonal Nutrition strength, and continued ethanol strength.

Analysts focused on how much of the guidance raise was driven by the RVO/biofuels backdrop versus underlying demand, and management said the policy clarity has accelerated RINs, biodiesel and renewable diesel activity, which pulled soybean oil demand and boosted crush rates. Questions on human nutrition and Decatur East drew a response that flavors, product mix, cost management and the plant’s recovery are driving profitability, though management said the lost customer base has not been fully regained yet. Analysts also pressed on ethanol and 45Z; ADM said ethanol margins were already strong before the Iran conflict, exports were running about 10% year over year, and 45Z is now expected to add about $150 million for full-year 2026, with the benefit included in segment income.