Archer-Daniels-Midland Co. raised its full-year earnings guidance after reporting first-quarter results that reflected the impact of strengthening biofuels markets and improved nutrition segment performance. The Chicago-based agricultural processor now expects 2026 adjusted earnings per share of $4.15 to $4.70, up from its previous range of $3.60 to $4.25.
The company reported first-quarter adjusted earnings of $0.71 per share, a 1 percent increase from the prior year, while net earnings reached $298 million. Total segment operating profit climbed 2 percent to $764 million, though results included approximately $275 million in net negative mark-to-market and timing impacts.
Biofuels policy drives optimism
ADM’s revised outlook reflects expectations for continued improvement in crushing and ethanol operations following the March finalization of 2026 and 2027 renewable volume obligations under the U.S. Renewable Fuels Standard. The policy clarity has created what company executives describe as a more constructive regulatory environment for biofuels producers.
“With U.S. biofuels policy clarity now providing a stable regulatory framework, combined with our team’s solid execution, we are raising our earnings expectations for 2026,” said Juan Luciano, chair and chief executive officer.
The Carbohydrate Solutions segment demonstrated the strongest performance, with operating profit jumping 48 percent to $356 million. Strengthening ethanol margins supported by effective risk management and policy incentives drove the improvement, particularly benefiting ADM’s corn dry-milling operations through its Vantage Corn Processors subsidiary.
Oilseeds face headwinds
The Agriculture Services and Oilseeds segment experienced challenges, with operating profit declining 34 percent to $273 million. The decrease primarily resulted from negative mark-to-market impacts as commodity markets strengthened following biofuels policy developments.
Within the segment, crushing operations posted a $79 million operating loss compared to $47 million in profit during the prior year quarter. However, plant processed volumes improved, with oilseed tonnage increasing 2 percent year-over-year, and soybean meal sales remained strong throughout the quarter.
The Ag Services subsegment provided a bright spot with 26 percent higher operating profit, supported by increased export activity from North America, including expanded soybean and sorghum shipments to China and robust corn exports.
Nutrition segment gains momentum
ADM’s Nutrition segment delivered a 42 percent increase in operating profit to $135 million, driven by improvements in both human and animal nutrition operations. Human nutrition benefited from higher flavors sales, foreign exchange gains, and continued recovery at the company’s Decatur East plant.
Animal nutrition operations showed particular strength with 55 percent higher operating profit, reflecting portfolio optimization efforts and improved margins from focusing on higher-value product lines. The segment also benefited from ongoing cost reduction initiatives and favorable foreign exchange movements.
Capital investment continues
The company maintained its capital expenditure guidance of $1.3 billion to $1.5 billion for 2026, reflecting continued investment in facility upgrades and capacity expansion. ADM noted that external factors including consumer trends, energy costs, supply chain disruptions, and evolving trade conditions will continue to influence performance.
The earnings report comes as agricultural processors navigate volatile commodity markets and shifting demand patterns across food, feed, and fuel applications. ADM’s diversified portfolio spans grain handling, oilseed processing, corn refining, and specialty nutrition ingredients for both human and animal consumption.
