ADM · Archer-Daniels-Midland Company

ADM reported first quarter 2026 results that showed mixed performance across segments. GAAP earnings before income taxes rose 9% to $384 million, while GAAP EPS increased 2% to $0.62. Adjusted EPS of $0.71 was up 1% year-over-year, slightly below the prior quarter's beat but within expectations. The headline strength came from Carbohydrate Solutions, where operating profit surged 48% to $356 million, driven by strengthening ethanol margins supported by effective risk management and policy incentives. The Nutrition segment also delivered strong growth, with operating profit up 42% to $135 million, benefiting from higher Flavors sales, foreign exchange gains, and continued recovery of the Decatur East plant. In contrast, Ag Services & Oilseeds (AS&O) saw operating profit decline 34% to $273 million, primarily due to approximately $275 million of net negative mark-to-market and timing impacts from the strengthening commodity environment following U.S. biofuels policy clarity. Within AS&O, Crushing swung to a loss of $79 million from a profit of $47 million a year ago, while Ag Services subsegment profit rose 26% on higher export activity. Management highlighted the constructive biofuels environment and raised full-year 2026 adjusted EPS guidance to $4.15-$4.70, up from the prior range of $3.60-$4.25, citing expected earnings improvement in crushing and ethanol businesses. The guidance assumes continued progress on company priorities and reflects the finalization of 2026 and 2027 renewable volume obligations. Capital expenditures remain projected at $1.3-$1.5 billion. The results underscore ADM's exposure to policy-driven margin shifts and its ability to capitalize on favorable ethanol dynamics, while the AS&O segment faces headwinds from mark-to-market volatility.