Archer Daniels Midland (ADM) Q2 2026 Earnings Report

The call was broadly positive: the company delivered a strong quarter with substantial YoY operating profit gains across AS&O and Carbohydrate Solutions, meaningful improvement in Nutrition operating profit, a raised full-year EPS guidance, strong cash generation and sustained balance-sheet strength. Management highlighted concrete growth initiatives (debottlenecking, natural colors TAM capture, precision fermentation pilots), sustainability progress and continued cost-savings execution. Key risks include revenue softness in parts of Nutrition, liquid sweetener weakness, mark-to-market/timing volatility, a decline in Wilmar earnings, geopolitical uncertainties and exposure to Q4 margin volatility given limited coverage. On balance, the operational and financial upside materially outweighs the noted risks and uncertainties.

ADM raised full‑year 2026 adjusted EPS guidance to $5.15–$5.60 (from $4.15–$4.70), citing Q2 adjusted EPS of $1.84 and total segment operating profit of $1.5B, with first‑half adjusted EPS of ~$2.55, trailing four‑quarter adjusted ROIC of 7.8% and cash flow from operations before working capital of ~$1.8B in H1; the raise rests on three pillars—continued execution, a constructive crushing/ethanol margin backdrop, and Nutrition momentum—and management expects more than half of 2026 operating profit in H2 (Q3 potentially > Q4). Guidance assumptions include China continuing to buy against its ~25M‑ton U.S. soybean commitment, realization of reversals to prior net negative mark‑to‑market/timing (Q2 AS&O included ~ $100M net positive MTM impacts and RPO had ~($50M) headwind), and an increased net benefit from 45Z to ~ $250M (from ~$150M). Other planning metrics called out on the call: Q2 AS&O op profit $867M (+129%), Ag Services $293M (+159%), Crushing $363M (+~$330M), Carb Solutions $411M (+22%), Starches & Sweeteners $326M (+7%), Vantage $85M (+$52M), Nutrition revenue $1.9B (−5%) and Nutrition op profit $172M (+51%); 337k metric tons CO2 sequestered in the quarter; H1 CapEx $466M with FY CapEx guide $1.3–$1.5B; dividends $256M (378th consecutive); net leverage 1.6x (target YE ~2x); and aggregated cost‑savings target of $500–$750M over 3–5 years.