Archer Daniels Midland (NYSE:ADM) raised its full-year 2026 adjusted earnings outlook for the third time this year after reporting third-quarter results supported by favorable North American biofuels margins, higher global crush volumes and operational execution.
The company reported adjusted earnings per share of $1.77 for the third quarter and total segment operating profit of $1.4 billion, up 64% from the prior-year period. ADM said adjusted return on invested capital was 9% over the trailing four quarters, while cash flow from operations before working-capital changes totaled $3 billion through the first nine months of 2026.
ADM now expects adjusted EPS of $5.50 to $5.80 for the full year, compared with its earlier forecast of $5.15 to $5.60. CEO Juan Luciano said the updated outlook reflects year-to-date performance and expectations for continued constructive conditions during the fourth quarter.
Biofuels Environment Drives Segment Growth
Ag Services and Oilseeds segment operating profit rose 105% year over year to $778 million. The result included approximately $35 million in net positive mark-to-market and timing effects, according to CFO Monish Patolawala.
Crushing operating profit reached $311 million, increasing by about $300 million from a year earlier. Patolawala attributed the performance to a constructive North American biofuels margin environment, stronger domestic demand associated with the Renewable Volume Obligation policy finalized in March, elevated global energy prices and continued strong soybean meal demand.
Global crush volumes increased 1.6% from the prior-year quarter, while ADM’s South American operations posted a record quarter for soybean crush volumes. Ag Services operating profit, however, declined 9% to $172 million as higher U.S. corn and soybean exports only partly offset softer performance in markets including Ukraine.
Refined Products and Other generated $218 million in operating profit, up 82% from the previous year, aided by favorable North American biodiesel margins and positive mark-to-market and timing impacts. Equity earnings from ADM’s Wilmar investment were $77 million, up 38% year over year.
Carbohydrate Solutions Benefits From Ethanol Margins
Carbohydrate Solutions operating profit increased 40% to $470 million. Starches and Sweeteners profit rose 11% to $324 million, as strong ethanol margins and policy incentives more than offset continuing pressure on liquid sweetener margins and volumes.
Vantage Corn Processors posted operating profit of $146 million, an increase of $103 million from the prior-year quarter, supported by improved corn dry-milling ethanol economics. ADM also raised its expected net benefit from the 45Z clean fuel production credit to approximately $350 million for 2026, from a previous forecast of about $250 million.
During the quarter, ADM sequestered approximately 300,000 metric tons of carbon dioxide, bringing its year-to-date total to nearly 1 million metric tons. Luciano also said the company’s Columbus, Nebraska, corn-processing complex has the capacity to capture and permanently store more than 800,000 tons annually of biogenic carbon dioxide. ADM expects initial voluntary carbon-removal credit issuance by the end of 2026, although it did not provide a financial estimate for 2027.
Nutrition Shows Progress Despite Operational Headwinds
Nutrition revenue fell 4% to $1.8 billion, with Human Nutrition revenue down 2% and Animal Nutrition revenue down 6%. The revenue declines reflected pressure in wholesome ingredients, previously disclosed portfolio actions and the formation of the Akralos joint venture.
Nutrition operating profit nevertheless rose 3% to $134 million. Human Nutrition operating profit declined 3% to $93 million, as progress in Flavors and recovery at the Decatur East plant were offset by unplanned downtime, inflation, softness in biotics and a comparison against approximately $10 million in prior-year insurance proceeds.
Animal Nutrition operating profit increased 21% to $41 million, which ADM attributed to operational improvements and portfolio actions taken during 2025. Luciano said the company identified and is addressing the issue behind downtime at one plant, adding that it should not linger significantly in the company’s profit and loss results.
ADM also announced plans for a joint venture with CJ that would combine ADM’s Decatur amino acid facility with select CJ assets. Luciano said the venture is intended to establish a more cost-competitive and reliable long-term U.S. supply source for feed-grade amino acids, particularly lysine.
Capital Allocation and 2027 Outlook
ADM reduced its 2026 capital-expenditure expectation to $1.2 billion to $1.3 billion, from a previous range of $1.3 billion to $1.5 billion. Patolawala said the company is prioritizing projects with the strongest returns, including debottlenecking and expansion work at domestic crush and ethanol facilities.
The company invested $773 million in its footprint through the first nine months of the year. During the third quarter, it paid approximately $254 million in dividends, its 379th consecutive quarterly dividend, and resumed opportunistic share repurchases, buying roughly $360 million of stock. ADM ended September with a net leverage ratio of 1.5 times.
Looking ahead, Luciano said management sees 2027 as broadly similar to 2026 in terms of underlying market conditions. He cited favorable biofuels demand and margins, continued ethanol export demand, multi-year biofuels policies in certain markets and expected growth in Nutrition. He also cautioned that market volatility, interest costs, policy developments and trade conditions could affect results.
ADM said it remains on track to achieve the $500 million to $750 million aggregate savings target under its enterprise-wide cost-savings program announced in early 2025.
About Archer Daniels Midland (NYSE:ADM)
Archer Daniels Midland Company (NYSE: ADM) is a global agricultural origination and processing company. Founded in 1902, ADM connects farmers and producers with markets worldwide by sourcing, transporting, storing and processing crops and other agricultural commodities.
The company processes oilseeds, corn, wheat and other crops into ingredients and products used in food and beverages, animal nutrition, renewable fuels and industrial applications. Its offerings include vegetable oils, protein meals, sweeteners, starches, flour, food ingredients, animal feed ingredients and biofuels, as well as specialty ingredients developed through its nutrition businesses.
ADM operates an integrated network of agricultural facilities, processing plants, transportation assets and commercial offices serving customers across North America, South America, Europe, Asia and other international markets.
