Can you discuss the broad wind project and its benefits for industrial decarbonization?

Juan Luciano stated it's an important project for low carbon intensity energy, part of ADM's broader decarbonization strategy. He highlighted 337,000 metric tons of carbon sequestered this quarter, up from 300,000 last quarter. “So is a large project. We continue to move forward with that. And as I said, this is 1 of the several elements that we have in our decarbonization path a reminder we've been leaders in carbon capture and sequestration that we started like 11 years ago in our wells we're pleased that I think we sequestered 337,000 tons of carbons in this quarter, up from 300,000 in the last quarter.”

Can you elaborate on the expected cadence of operating profit between Q3 and Q4, especially regarding crush margins?

Monish Patolawala confirmed 90% of Q3 crush margins and 30% of Q4 crush margins are locked in for North America. He stated Q3 could be higher than Q4, largely dependent on how Q4 crush margins develop and get locked in. “I said there's a possibility that Q3 will be higher than in Q4, and that's partly Tim, we have booked already on for crush. So that helps continued execution in Nutrition. Ethanol continues to remain strong, offset partially by the lower liquid sweeteners volume. How whether Q3 becomes higher than Q4 will also largely depend on where crush margins get locked in for Q4 because we just said we are 30% locked in. in North America for Q4.”

ADM

Archer-Daniels-Midland Company (ADM) Q2 FY26 earnings call: guidance and Q&A

Q: Given Ukraine tensions and China purchases, was Q2 the high point for Ag Services, or could Q3/Q4 be better?

Juan Luciano expects Ag Services to be slightly lower in Q3 than Q2, with Q4 performance dependent on U.S. exports, particularly corn and sorghum programs. He emphasized ADM's flexibility and strong commercial execution in volatile environments. “I would say probably Ag Services will be slightly lower only for our own results in Q3 than it was but Q4, it will depend on some of how those exports come into the U.S. and how much can we build sorghum and core program on top of the soybean program that seems to be built in for the later part of the year.”

Earnings call· Jun 2026 (Q2 FY26)· Consumer Staples· Aug 4, 2026

Source: earnings call transcript

Executive summary

Archer-Daniels-Midland Company Q2 FY26 — Strong Biofuels Environment and Nutrition Momentum Drive Raised Full-Year EPS Guidance

ADM delivered a strong Q2 FY26, significantly raising its full-year EPS guidance, driven by robust performance in Ag Services and Crushing amid a constructive biofuels market, coupled with strong momentum in Nutrition. The company is focused on strategic organic investments and capital allocation while navigating global geopolitical and macroeconomic uncertainties.

Highlights

Reported adjusted earnings per share of $1.84.
Total segment operating profit increased significantly to $1.5 billion compared to the prior year quarter.
Full-year 2026 adjusted EPS guidance raised to a range of $5.16 to $5.60, up from $4.15 to $4.70.
Ag Services operating profit increased 159% to $293 million.
Crushing operating profit increased by approximately $330 million to $363 million, with global crush volumes up close to 5%.

Concerns

Refined Products and Other subsegment operating profit decreased 3% to $151 million, largely due to net negative mark-to-market and timing impacts.
Equity earnings from Wilmar decreased 22% to $60 million.
Liquid sweetener volumes and margins experienced ongoing pressure, most pronounced in North America.
Geopolitical conflicts in the Middle East and Ukraine create global volatility and potential for increased food prices.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Adjusted EPS	$5.16 to $5.60 high materiality	FY26	High
Net benefit from 45 (RVO policy incentives)	approximately $250 million medium materiality	FY26	High
Year-end Net Leverage Ratio	approximately 2x medium materiality	FY26	High
Cost Savings Program	$500 million to $750 million medium materiality	3- to 5-year period	High
Medium-term Flavors Growth	mid-single digit low materiality	medium term	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Ag Services & Oilseeds (AS&O) Operating profit increased significantly, driven by strong commercial execution, strategic leveraging of global assets, and improved South American operations. Crushing benefited from a constructive biofuels margin environment and higher asset utilization. Refined Products and Other saw a slight decrease due to negative mark-to-market and timing impacts. Ag Services Operating Profit: $293 millionAg Services Operating Profit Growth YoY: 159%Crushing Operating Profit: $363 millionCrushing Operating Profit Increase YoY: ~$330 millionGlobal Oilseed Process Volumes Growth: ~5% YoYRefined Products and Other Operating Profit: $151 millionRefined Products and Other Operating Profit Growth YoY: -3%Wilmar Equity Earnings: $60 millionWilmar Equity Earnings Growth YoY: -22%	—	129%	—	$867 million
Carbohydrate Solutions Operating profit increased, primarily driven by ethanol margin strength and policy incentives. This offset ongoing pressure on liquid sweetener volumes and margins in North America. Starch demand stabilized, and corn dry milling ethanol operations benefited from stronger margins and effective risk management. Starches and Sweeteners Operating Profit: $326 millionStarches and Sweeteners Operating Profit Growth YoY: 7%Vantage Corn Processors Operating Profit: $85 millionVantage Corn Processors Operating Profit Increase YoY: $52 million	—	22%	—	$411 million
Nutrition Operating profit increased significantly, driven by growth in flavors, particularly in EMEA and Asia Pacific, and progress at the Decatur East plant. Revenue decreased, inclusive of foreign exchange gains, with Human Nutrition impacted by a contract cancellation benefit and Animal Nutrition by portfolio actions and the Aquilo's joint venture. Human Nutrition Operating Profit: $139 millionHuman Nutrition Operating Profit Growth YoY: 51%Human Nutrition Revenue Decrease YoY: 4% (included $55M contract cancellation benefit)Animal Nutrition Operating Profit: $33 millionAnimal Nutrition Operating Profit Growth YoY: 50%Animal Nutrition Revenue Decrease YoY: 6%	$1.9 billion	-5%	—	$172 million

ADM operating KPIs by quarter

ADM operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
CO2 sequestered	~300K metric tonnes During the first quarter alone, we sequestered approximately 300,000 metric tonnes of CO2, a milestone that underscores our leadership in this space. Source: earnings call transcript	337K metric tonnes In Car Solutions, ethanol production rose in a strong margin environment and we sequestered 337,000 metric tons of carbon this quarter. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline	Details
Natural colors	expansion	year-to-date
Precision fermentation platform	milestone	—

Deals & partnerships

Aquilo's Formation of a joint venture

The formation of the Aquilo's joint venture was mentioned as a factor in the decrease of Animal Nutrition revenue.

Capital programs

Enterprise-wide cost saving programs on track $500 million to $750 million

Start: 2025

Benefit:Reductions in transaction costs; cost per transaction in accounts payable reduced by roughly 25%; meaningful savings in Global Technology.

Progressing towards targeted aggregated cost savings. Examples include 'frictionless finance' in accounts payable and consolidating global technology platforms.

Risks & headwinds

Geopolitical Conflict (Middle East & Ukraine) ongoing

Ukraine operations not financially material for us; oil prices swing by $3 or $4 daily.

Mitigation:Leveraging ADM's flexible global asset network; team's ability to navigate disruptions.

Global Energy Prices ongoing

Higher energy cost and higher packaging.

Mitigation:Managing through the impacts.

Weather (Potential El Nino) coming

Threatening some crops.

Liquid Sweetener Volumes and Margins ongoing

Softness, most pronounced in North America.

Mitigation:Offset by strength in ethanol margins.

What to watch in Q3 FY26

Ag Services performance

next quarter

Current Q2 operating profit $293M (+159% YoY)

Target Q3 performance relative to Q2

Why it matters

Ag Services is a key segment, and its performance is sensitive to global trade dynamics and geopolitical events.

I would say probably Ag Services will be slightly lower only for our own results in Q3 than it was but Q4, it will depend on some of how those exports come into the U.S. and how much can we build sorghum and core program on top of the soybean program that seems to be built in for the later part of the year.

Find out whether ADM delivers this. Inve re-checks your case every morning.

Q&A highlights

Are brownfield expansions at existing crush plants more cost-effective and higher ROI than greenfield projects?

Juan Luciano confirmed that brownfield expansions have a capital intensity about 1/4 of greenfield, offering attractive returns. Phase 1 involves 4 plants, costing around $100 million, and Monish added benefits of lower manufacturing cost per unit due to higher throughput.

“the capital intensity is about 1/4 of what we will cost to build greenfield. So certainly very attractive opportunities.”

asked by Manav Gupta · answered by Juan Luciano

2 min read 7 chapters

Detailed narrative

Strong Q2 Performance & Guidance Raise

ADM reported adjusted EPS of $1.84 and total segment operating profit of $1.5 billion for Q2 FY26, marking a significant increase year-over-year. This strong performance led the company to raise its full-year 2026 adjusted EPS guidance to a range of $5.16 to $5.60, up from the previous range of $4.15 to $4.70, reflecting confidence in continued execution and a constructive market outlook.

Ag Services & Crushing Strength

The Ag Services segment saw operating profit surge by 159% to $293 million, driven by strategic leveraging of ADM's global asset network and improved South American operations, including the Barcarena export terminal returning to full operation. The Crushing subsegment's operating profit increased by approximately $330 million to $363 million, benefiting from a constructive biofuels margin environment, higher domestic demand, and nearly 5% global crush volume growth.

Nutrition Business Momentum

The Nutrition segment delivered a 51% increase in operating profit to $172 million. Human Nutrition's operating profit grew 51% to $139 million, primarily fueled by strong flavors sales, particularly in EMEA and Asia Pacific, and progress at the Decatur East plant. Animal Nutrition also improved by 50% to $33 million, reflecting ongoing improvements and benefits from portfolio actions.

Strategic Organic Investments

ADM is making purposeful organic investments to drive future growth, focusing on expanding domestic crushing and ethanol capacity at existing facilities. Four U.S. crush facilities have been identified for a Phase 1 expansion, which is expected to cost around $100 million and offers a capital intensity approximately one-fourth of greenfield projects.

The company is also building precision fermentation capabilities and expanding its natural colors footprint to capitalize on market shifts.

Capital Allocation & Shareholder Returns

The company maintained its commitment to shareholder returns, paying its 378th consecutive quarterly dividend. With a strong balance sheet, reflected by a net leverage ratio of 1.6x at June 30, and robust cash flow generation, ADM is evaluating opportunistic share repurchases later in the year, aligning with its disciplined capital allocation strategy.

Cost Savings & Operational Efficiency

ADM remains on track to achieve its enterprise-wide cost savings target of $500 million to $750 million over a three- to five-year period, which began in 2025. Notable progress includes a roughly 25% reduction in cost per transaction in accounts payable through 'frictionless finance' initiatives and meaningful savings expected from consolidating global technology platforms.

Geopolitical & Macroeconomic Environment

Management acknowledged the ongoing conflicts in the Middle East and Ukraine, noting their potential to create global volatility, impact oil prices, and increase food prices. Despite these external challenges, ADM expressed confidence in its ability to navigate disruptions through its flexible global asset network and continued focus on executing its strategic priorities.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.