01—Abstract
Summary
Summary of the 10-Q filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Archer-Daniels-Midland Company (ADM) reported robust financial results for the three and six months ended June 30, 2026.
The company demonstrated significant year-over-year improvements in earnings before income taxes, primarily driven by enhanced operational execution and a more favorable pricing environment. Revenue growth was substantial, fueled by strong performance in the Ag Services and Oilseeds segment, which benefited from higher sales prices for key commodities and improved crush volumes. ADM's profitability was bolstered by increased gross profit across all its reportable segments, particularly Ag Services and Oilseeds and Carbohydrate Solutions.
Despite an increase in Selling, General, and Administrative (SG&A) expenses, the company managed to reduce asset impairment, exit, and restructuring costs compared to the prior year. This operational strength, coupled with favorable market conditions and strategic initiatives like the Clean Fuel Production Credit (Section 45Z) and the Renewable Volume Obligations (RVO), positions ADM for continued growth. Investors should note the company's ongoing focus on cost optimization, digitalization, and investments in high-growth areas within nutrition and biosolutions.
02—Key points
Key Highlights
- Net Earnings Attributable to Archer-Daniels-Midland Company increased significantly to $908 million for the three months ended June 30, 2026, up from $219 million in the prior year period.
- Total Revenues rose by $1.5 billion to $22.7 billion for the three months ended June 30, 2026, primarily driven by the Ag Services and Oilseeds segment.
- Gross Profit saw a substantial increase of 41% to $1.9 billion for the three months ended June 30, 2026, indicating improved operational efficiency and pricing power.
- Segment operating profit increased by $620 million to $1.5 billion for the three months ended June 30, 2026, with all three reportable segments contributing positively.
- The company benefited from favorable regulatory announcements in the biofuel market, including proposed regulations for Section 45Z and final RVO for 2026 and 2027, positively impacting ethanol and biofuel operations.
- ADM is actively managing its portfolio, having launched two joint ventures in early 2026: Two Rivers Premium Oils, LLC (cottonseed) and Akralos Holding Company LLC (animal feed).
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 4, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $22.68B$21.17B | +7.2% |
| Cost of Revenue | $20.75B$19.80B | +4.8% |
| Gross Profit | $1.94B$1.37B | +41.2% |
| SG&A Expenses | $1.03B$911.00M | +12.6% |
| Interest Expense | $148.00M$159.00M | −6.9% |
| Net Income | $908.00M$219.00M | +314.6% |
| EPS (Basic) | $1.87$0.45 | +315.6% |
| EPS (Diluted) | $1.87$0.45 | +315.6% |
| Shares Outstanding (Basic) | 485.00M484.00M | +0.2% |
| Shares Outstanding (Diluted) | 485.00M484.00M | +0.2% |
05—Questions
Frequently Asked Questions
What was the main driver behind the significant increase in ADM's net earnings for the second quarter of 2026?
The significant increase in net earnings for the second quarter of 2026 was primarily driven by improved operational execution amidst a dynamic pricing environment. This was further supported by a substantial reduction in asset impairment, exit, and restructuring costs compared to the prior year, and favorable market conditions, including enhanced crush margins and benefits from biofuel-related policy incentives.
How did ADM's different segments perform in the second quarter of 2026?
All three reportable segments showed improved performance. The Ag Services and Oilseeds segment experienced revenue growth driven by higher commodity prices and improved crush volumes. Carbohydrate Solutions saw higher ethanol margins supported by policy incentives. The Nutrition segment benefited from increased Flavors sales and margins, as well as the recovery of the Decatur East plant.
What is the company's outlook on its liquidity and capital resources?
ADM maintains a strong liquidity position, with $11.1 billion in total available liquidity as of June 30, 2026, comprising cash, cash equivalents, and unused lines of credit. The company believes these resources are sufficient to meet its ongoing liquidity requirements for at least the next twelve months.
Are there any significant legal proceedings that investors should be aware of?
ADM is involved in several legal proceedings, including putative class action lawsuits related to commodities trading and shareholder litigation concerning intersegment sales. While the company is vigorously defending itself and believes the outcome will not have a material adverse effect on its financial condition, it is unable to predict the final outcome with certainty for all matters.
06—Continue