ADM Raises 2026 Adjusted EPS Guidance After Strong Q3 Results

Archer-Daniels Midland (NYSE: ADM ) reported third-quarter financial results on Tuesday. The transcript from the company's third-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

Access the full call at Summary Archer-Daniels Midland reported a strong third quarter 2026 with adjusted earnings per share of $1.77 and total segment operating profit of $1.4 billion, reflecting a 64% increase from the prior year quarter. The company raised its full-year 2026 adjusted EPS guidance to a range of $5.50 to $5.80, up from the previous range of $5.15 to $5.60, due to strong performance and favorable market conditions.

Strategic initiatives include the focus on precision fermentation within the Carbohydrate Solutions segment, aiming to drive food innovation and expand the protein supply chain, leveraging existing fermentation assets and supply chain advantages. Operational highlights include increased global crush volumes, a record soybean crush in South America, and advancements in carbon dioxide sequestration. Management emphasized ongoing cost control measures, targeted investments in high-return projects, and continued shareholder returns through dividends and share repurchases.

The company's outlook for 2027 remains optimistic with expectations of strong biofuels demand and favorable margins, supported by strategic investments in growth pathways such as Nutrition, Biosolutions, and decarbonization. Full Transcript OPERATOR Good morning. Welcome to the Archer-Daniels Midland third quarter 2026 earnings conference call. All lines have been placed on a listen-only mode to prevent background noise.

As a reminder, this conference call is being recorded. I would now like to introduce your host for today's call, Kate Walsh, Director of Investor Relations for Archer-Daniels Midland. Ms. Walsh, you may begin.

Kate Walsh (Director of Investor Relations) Welcome to the third quarter 2026 earnings conference call for Archer-Daniels Midland. Our prepared remarks today will be led by Juan Luciano, Chair of the Board and Chief Executive Officer; Jeff Rowe, Executive Vice President and Chief Operating Officer; and Mohnish Patilwala, Executive Vice President and Chief Financial Officer. We have prepared presentation slides to supplement our remarks on the call today, which are posted to the Investor Relations section of the Archer-Daniels Midland website and through the link to our webcast.

Some of our comments and materials may constitute forward-looking statements that reflect management's current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These statements and materials are based on many assumptions and factors that are subject to numerous risks and uncertainties. Archer-Daniels Midland has provided additional information in its reports on file with the SEC concerning assumptions and factors that could cause actual results to differ materially from those presented in the materials.

Unless otherwise required by law, Archer-Daniels Midland assumes no obligation to update any forward-looking statements due to new information or future events. In addition, during today's call we will refer to certain non-GAAP or adjusted financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are available in our earnings press release and presentation slides, which can be found in the Investor Relations section of the Archer-Daniels Midland website. I will now turn the call over to Juan.

Juan Luciano (Chair of the Board and Chief Executive Officer) Thank you, Kate. Hello and welcome to all who have joined the call. Please turn to Slide 4, where we have outlined our third quarter highlights. Today, Archer-Daniels Midland reported adjusted earnings per share of $1.77 and total segment operating profit of $1.4 billion for the third quarter of 2026.

Over the trailing first, our adjusted ROIC was 9% and year to date cash from operations before working capital changes was $3 billion. Total segment operating profit increased by 64% from the prior year quarter, reflecting another strong set of results. Our team executed well in a complex operating environment where global energy prices remained elevated and biofuel margins remained favorable. In Nutrition, teams delivered operating profit growth year over year, and in Animal Nutrition, the portfolio actions we've taken along with operational improvements are gaining traction and showing up in results.

Given our strong performance year to date and our outlook for the remainder of the fourth quarter, we are again raising our full-year 2026 adjusted EPS guidance. We now expect a range of $5.50 to $5.80 for adjusted EPS, increased from our prior range of $5.15 to $5.60. Throughout this year, our substantial crushing, canola, and biodiesel footprints have given us tremendous access to a favorable North American margin environment and have been a true competitive advantage. And in Nutrition, we are building momentum as we close out the year.

We remain focused on continuing to deliver value for our shareholders. In the third quarter, we paid our 379th consecutive quarterly dividend and resumed opportunistic share repurchases, which reflects the resiliency of our business, the health of our balance sheet, and our commitment to returning capital to shareholders. Please turn to Slide 5. As I reflect on what we have accomplished so far in 2026, our goal coming into the year was clear: control what we can control and achieve better returns as the market delivers.

We made real progress on that front, and the team executed well again this quarter. I'll give a few highlights from the second quarter. Global crush volumes increased year over year, and our South American team delivered a record quarter for soybean crush volumes. In Carbohydrate Solutions, we sequestered approximately 300,000 metric tons of carbon dioxide during the quarter, and year to date we have sequestered close to 1 million metric tons.

And in Nutrition, tangible progress is being made, particularly in Flavors and Animal Nutrition. We also recently announced plans to form a venture with CJ to combine the Illinois amino acid facility with select CJ assets. Global market pressures are putting U.S. production of feed-grade amino acids, particularly lysine, at risk.

This joint venture is designed to change that by creating a more cost-competitive, reliable, and long-term U.S. source of supply for our customers. Please turn to Slide 6. Over the past few quarters, we walked you through the long-term growth pathways we are investing in to power our next phase of growth.

Last quarter we focused on natural colors in the U.S. That opportunity remains robust, and our target is unchanged: $80 to $100 million of annual operating profit uplift over time in Nutrition as customers launch products with natural colors. Today I want to take a closer look at another pathway: precision fermentation, which sits within our Carbohydrate Solutions segment. Fundamentally, we believe that combining biology and technology will be a major driver of food innovation at scale for decades to come.

Protein is one of the clearest examples of this. Global demand is outpacing traditional supply, and the world needs new sources of high-quality, sustainable protein. By combining our deep R&D expertise with our substantial fermentation assets, we are helping build a more resilient protein supply chain through biomanufacturing. We're already building customers and partnerships across several key areas.

In pet food, we're investing in opportunities to scale animal-free, meat-like proteins, including chicken and lamb alternatives. For baked goods, protein bars, pasta, and other products, we're moving toward commercial-scale production of an egg white ingredient alternative. And in dairy and food manufacturing, where whey is in short supply, we're working with a technology partner to produce a whey alternative that matches the molecular profile of conventional whey with more consistent quality. Three advantages set us apart from peers and de-risk the near-term opportunity set for us.

First, our feedstock: our access to commercial-scale dextrose supply gives us a cost and reliability edge. Second, capital efficiency: we're using fermentation assets we already own, so we can scale without the time and capital of greenfield projects. And third, our integrated value chain: our R&D expertise, our global supply chain network, and our customer relationships enable us to deliver a wide range of clean-label ingredients around the world. Together, these advantages position us to deploy capital efficiently while helping customers meet growing demand.

And the opportunity extends well beyond protein, including natural colors, and highlights the strength of our organic growth plans. We'll continue to showcase other growth platforms in future earnings calls. I'd like to wrap up by thanking our colleagues around the world. Every day you deliver for our customers while building what's next.

To the farmers who anchor our value chain, and to our customers and partners who trust us to innovate alongside them, thank you. Together we are connecting the harvest to the home with solutions for today and tomorrow. I'm now pleased to welcome Jeff Rowe to our earnings call for the first time. Jeff assumed the newly created role of Executive Vice President and Chief Operating Officer in August, with responsibility for our segments, global operations, and sustainability.

With that, let me turn the call over to Jeff. Jeff Rowe (Chief Operating Officer) Thank you, Juan, and good morning, everyone. I'm excited to join my first ADM earnings call since arriving in August. I've spent a lot of time with our teams and our operations around the world.

I've been deeply impressed by the quality and the commitment of the employees and the strength and scale of our assets. Right now I am most focused on three key operational areas. First, operating as a world-class manufacturer. We have made meaningful progress reducing unplanned downtime across much of our network, and we see significant opportunity ahead to modernize our facilities and incorporate more automation.

That progress is showing up in our results. For example, global crush volumes increased by 1.6% over the third quarter of last year, and we have more room to grow. Second is innovation, which is a particular passion of mine. Throughout my career I have led large innovation organizations that have embraced technology to create value for customers around the world.

As Juan noted, combining technology and biology to drive food innovation at scale is a significant long-term opportunity for us in a space where we intend to be a leader. We are uniquely positioned to capture this opportunity with our global asset network, which gives us a daily view of how trends are evolving from the farm to the consumer. Few companies can match the depth of data we hold, and AI lets us put that data to work, helping make faster and better-informed decisions. We are turning these insights into better solutions for customers and a more durable competitive advantage.

I'm excited to leverage my 30 years of innovation experience to advance our efforts in this area. And third, targeted organic investment guided by what our customers need and what will deliver the best returns for our stakeholders. We see two categories of compelling opportunity. First is near-term, like debottlenecking and expanding existing domestic crush and ethanol facilities, which we recently announced.

The second is investing in our value-creation pathways like precision fermentation capabilities and natural colors. ADM has a strong foundation and a real opportunity ahead as we advance our growth strategy and deliver on our priorities. I look forward to working with the team to build on that momentum, and I'm also looking forward to getting to know many of you in the months ahead. With that, I'll hand it to Mohnish to walk you through our third quarter financials and full-year outlook.

Mohnish Patilwala (Executive Vice President and Chief Financial Officer) Thank you, Jeff, and I wish you all a very good morning. Please turn to Slide 7. Ag Services and Oilseeds segment operating profit for the third quarter of 2026 was $778 million, up 105% compared to the prior-year quarter. Included in the third quarter results were approximately $35 million of net positive mark-to-market and timing impacts.

Refined products and other had a net positive impact of approximately $45 million, which were partially offset by modest net negative impacts attributable to Ag Services and Crushing. Ag Services in the current quarter generated operating profit of $172 million, representing a decrease of 9% compared to the prior quarter. Higher corn and soybean exports out of the United States partially offset softer results in certain markets such as Ukraine. For Crushing, operating profit was $311 million for the quarter, an increase of approximately $300 million from the prior quarter, as the business performed in a constructive North American biofuels margin environment.

A constructive margin environment continues to be driven by market demand resulting from the RVO policy which was finalized in March of this year, combined with higher global energy prices. Additionally, the team increased global crush volumes year over year, and soybean meal demand remained strong throughout the quarter. In South America, crush margins have been pressured by the delay in Brazil's biofuels policy changes. For Refined Products and Other, operating profit was $218 million, up 82% compared to the prior-year quarter.

The year-over-year increase was largely attributable to favorable North American biodiesel margins driven by higher domestic demand resulting from the RVO policy finalization, combined with higher global energy prices. The results were further helped by mark-to-market and timing impacts. For our investment in Wilmar, equity earnings were $77 million for the quarter, up 38% compared to the prior-year quarter. Turning now to Slide 8.

For the third quarter, Carbohydrate Solutions segment operating profit was $470 million, representing an increase of 40% compared to the prior-year quarter. In Starches and Sweeteners, operating profit was $324 million, up 11% year over year. The improvement was driven by strong ethanol margins, including the benefit of policy incentives. Strength in ethanol margins continued to more than offset the ongoing pressure in liquid sweetener margins and volumes.

Further, starches continue to show stability, while global wheat milling volumes remain stable in a competitive pricing environment. In Vantage Corn Processors, operating profit was $146 million, representing a $103 million increase from the prior-year quarter, as our corn dry milling ethanol operations benefited from stronger ethanol margins, including policy incentives. Overall base ethanol EBITDA margins for the quarter were higher compared to the prior-year quarter. Now turning to Slide 9.

Nutrition segment revenues in the third quarter were $1.8 billion, down 4% compared to the prior quarter. Human Nutrition revenue decreased by 2%, largely driven by pressure on the Wholesome Ingredients product line. Animal Nutrition revenue decreased by 6% year over year, primarily reflecting our previously disclosed portfolio actions and the formation of the Aqualose joint venture. Nutrition segment operating profit was $134 million for the third quarter, representing an increase of 3% compared to the prior-year quarter.

Human Nutrition operating profit was $93 million, down 3% compared to the prior quarter. Progress made in Flavors and the recovery of the Decatur East plant were offset by unplanned downtime, inflation pressures, market softness in Biotics, and the prior-year quarter benefiting from approximately $10 million of insurance proceeds. Animal Nutrition operating profit was $41 million for the quarter, up 21% compared to the prior quarter, primarily attributable to ongoing improvements and benefits from portfolio actions taken during 2025. Corporate expenses declined year over year due to the non-recurrence of prior-year impairment losses.

Other business results were higher year over year, primarily due to a one-time benefit related to the release of certain insurance reserves. Now turning to Slide 10. For the first nine months of the year, ADM generated cash flow from operations before working capital of approximately $3 billion. We remain disciplined in how we allocate capital, directing investment to the projects with the strongest returns.

Through the first nine months of 2026, we invested $773 million in our footprint. As we continue to be very disciplined on where we invest, we now expect 2026 capital expenditures will be in the range of $1.2 billion to $1.3 billion, down from our prior range of $1.3 billion to $1.5 billion. During the quarter, we returned approximately $254 million in dividends, marking our 379th consecutive quarter of paying a dividend. We also resumed opportunistic share repurchases, buying back approximately $360 million of shares, and we will remain selective on bolt-on M&A that complements our core businesses.

Our net leverage ratio at the end of September was 1.5 times, and our year-end target remains unchanged. Turning now to Slide 11, where we have provided updated details regarding our 2026 outlook. Earlier in the call, as Juan mentioned, we raised our outlook for 2026 adjusted EPS to a range of $5.50 to $5.80, up from the previous range of $5.15 to $5.60. Our raised guidance reflects both our year-to-date performance and our expectations for the fourth quarter.