ADM lifts 2026 profit forecast on strong margins, favorable biofuels outlook (updated)

Archer-Daniels-Midland

04/08/2026 11:09

Adds CEO quote, updates shares, adds details about crop export demand and soy crush expansion
2026 adjusted earnings forecast rises to $5.15 to $5.60 per share
Second-quarter adjusted profit comes in at $1.84 per share, above $1.44 analysts' estimate
Ag services and oilseeds operating profit jumps 129% year over year
By Karl Plume and Sumit Saha
CHICAGO, Aug 4 (Reuters) - U.S. agribusiness Archer-Daniels-Midland ADM.N raised its 2026 profit outlook on Tuesday as it beat Wall Street estimates for second-quarter earnings on strong crop processing margins and favorable U.S. biofuels policies.
Soaring energy prices triggered by the Iran war swelled margins for producing corn-based ethanol fuel and crushing soybeans for use in crop-based diesel. Higher U.S. biofuel blending mandates after a lengthy delay also removed uncertainty that had weighed on earnings.
Higher margins mark a turnaround for ADM, and peers such as Bunge Global BG.N and Cargill CARG.UL, after a global grains glut and trade disruptions had depressed earnings for the agribusinesses in recent quarters. Bunge raised its 2026 earnings forecast last week on strong margins and a robust demand outlook.
All three of ADM's business segments posted sharply higher operating profits in the quarter, including its high-margin nutrition unit that had struggled to meet earnings targets in recent years.
     "Our second quarter results reflect the marked step up in our earnings, driven by a constructive biofuels environment, strong commercial and operational execution, and momentum in nutrition," CEO Juan Luciano said during a call with analysts.
Chicago-based ADM raised its 2026 adjusted earnings outlook to between $5.15 and $5.60 per share, from a prior forecast of $4.15 to $4.70 per share, citing improvement in its crushing and ethanol businesses and as it expects a "constructive margin environment" to continue.
ADM's shares were up 1.5% at midmorning.
Crop processing volumes swelled as a rally in grain prices since the start of the Iran war triggered fresh farmer selling of corn and soybeans, which were stored from last year's crop during a prolonged period of low prices.
Operating profit in ADM's ag services and oilseeds unit, its largest business segment, jumped 129% from the same quarter a year earlier as margins expanded after the U.S. government ordered refiners this year to blend a record amount of biofuels into their gasoline and diesel this year and next.
The company said it has identified 10 U.S. soy processing plants for potential expansion, including four facilities that ADM said last week it will expand to process 25 million more bushels of soybeans annually.
Strong grain export demand offered further support to the global grains merchant.
Luciano said top soybean importer China appeared on track to fulfill a commitment to buy 25 million metric tons of U.S. soy this year and may also book shipments of sorghum, barley and other crops.
The company posted an adjusted profit of $1.84 per share for the three months ended June 30, topping analysts' average estimate of $1.44, according to data compiled by LSEG.

(Reporting by Karl Plume in Chicago and Sumit Saha in Bengaluru; Editing by Shinjini Ganguli, Susan Fenton, Rod Nickel)
((karl.plume@thomsonreuters.com; +1 313 484 5285))