01—Abstract
Summary
Summary of the 8-K filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
ADM reported strong second-quarter 2026 results, with GAAP EPS of $1.87a (versus $0.45 a year ago) and adjusted EPS of $1.84 (versus $0.93), on total segment operating profit of $1.45 billion, up 75% year over year.
Growth was broad-based across all three segments. Ag Services & Oilseeds rose 129% to $867 millionb, driven by crushing margins and a RVO-supported biofuels environment, while Carbohydrate Solutions rose 22% to $411 million on higher ethanol margins and policy incentives. Nutrition rose 51% to $172 million, led by Flavors and Decatur East progress.
Year-to-date, adjusted EPS was $2.56c, up 57%. Roughly $100 million of the AS&O quarter benefited from net positive mark-to-market and timing effects, so part of the quarter's strength is not expected to repeat as operating earnings. Management raised 2026 adjusted EPS guidance to approximately $5.15 to $5.60, up from $4.15 to $4.70, citing the finalized 2026 and 2027 Renewable Volume Obligations, elevated energy prices, and continued Nutrition momentum.
Capital expenditure guidance of $1.3 to $1.5 billiond was reiterated. The guidance excludes GAAP EPS reconciliation because of uncertainty around impairments, restructuring, and other reconciling items. Cash flow was weaker than earnings: operating cash flow for the first half was $1.3 billion versus $4.0 billion a year earlier, driven by a $460 million working capital outflow, though the company still paid $510 million in dividends.
The key investor considerations are the durability of biofuels-driven margins, which depend on policy and energy prices, the quality of earnings given mark-to-market benefits, and whether working capital normalizes. Equity earnings from Wilmar fell 22% in the quarter, and the company continues to flag macroeconomic, trade, and policy risks.
02—Key points
Key Highlights
- GAAP diluted EPS of $1.87 vs. $0.45 in 2Q25; adjusted EPS of $1.84 vs. $0.93, up 98%
- Total segment operating profit of $1.45B, up 75% YoY; AS&O +129% to $867M, Carbohydrate Solutions +22% to $411M, Nutrition +51% to $172M
- FY2026 adjusted EPS guidance raised to $5.15–$5.60 from $4.15–$4.70, a midpoint increase of roughly 25%
- Guidance driven by the finalized 2026–2027 RFS Renewable Volume Obligations, elevated energy prices, and Nutrition momentum
- Roughly $100M of net positive mark-to-market and timing benefits in AS&O, which may not recur at the same level
- First-half operating cash flow fell to $1.3B from $4.0B, due to a $460M working capital outflow, while dividends paid were $510M
- Capex guidance of $1.3–$1.5B reiterated; Wilmar equity earnings declined 22% YoY
03—Questions
Frequently Asked Questions
What drove the large earnings increase in the second quarter?
Most of the increase came from Ag Services & Oilseeds, where crushing segment operating profit rose $330 million on stronger margins supported by the Renewable Fuel Standard volume obligations, higher global energy prices, and record meal exports. Carbohydrate Solutions benefited from robust ethanol margins and policy incentives, and Nutrition improved on Flavors growth and operational gains.
Is the raised guidance sustainable?
The guidance rests on the biofuels policy environment and energy prices, which can change. Management also noted continued monitoring of macroeconomic, geopolitical, policy, and trade factors. Mark-to-market timing benefits of about $100 million in the quarter are not operating earnings and may reverse, so investors should look at underlying segment performance in later quarters.
Why did operating cash flow decline so sharply?
Year-to-date operating cash flow was $1.3 billion compared with $4.0 billion a year earlier. The gap reflects a $460 million working capital outflow in 2026 versus a $2.7 billion working capital inflow in 2025. Cash flow before working capital was about $1.8 billion, up from $1.2 billion, so underlying cash generation improved.
Why does ADM not provide a GAAP EPS forecast?
ADM relies on the SEC's unreasonable efforts exemption for forecasted GAAP EPS. It cannot reliably predict the timing and size of impairments, restructuring and other charges, acquisition expenses, and outcomes of regulatory, legal, and tax matters, all of which could be material to reported earnings.
How is the balance sheet positioned after the quarter?
As of June 30, 2026, ADM had $1.06 billion of cash and equivalents, $407 million of short-term debt, and $7.6 billion of long-term debt including current maturities, compared with $8.4 billion a year earlier. Shareholders' equity rose to $23.6 billion from $22.4 billion, and the company reported a 7.8% adjusted ROIC for the trailing four quarters.
04—Continue