ADM raises 2026 profit forecast as Q3 tops estimates

Archer-Daniels-Midland (ADM) said on Nov. 3 that third-quarter adjusted earnings per share rose to $1.77 from 92 cents a year earlier, topping the consensus estimate, and that it raised its 2026 adjusted EPS forecast.

The company said it now expects 2026 adjusted EPS of approximately $5.50 to $5.80, up from its prior range of $5.15 to $5.60.

Here's how the company did:

• Adjusted EPS: $1.77 vs. 92 cents a year earlier, against a $1.62 consensus estimate
• Diluted EPS, as reported: $1.70 vs. 22 cents a year earlier
• Revenue: $22.34 billion vs. $20.37 billion a year earlier, against a $22.41 billion consensus estimate
• Net earnings attributable to ADM: $821 million vs. $108 million a year earlier

Revenue was in line with the consensus estimate, while profit beat it by a wider margin.

"ADM delivered strong third quarter results, with earnings up significantly from the prior year quarter and operating profit growth across all segments," said Juan Luciano, Chair of the Board and Chief Executive Officer. He credited a constructive biofuels environment and the company's North American footprint.

Segment results

Agriculture Services and Oilseeds operating profit was $778 million, up 105% from a year earlier. Crushing added $298 million compared with the prior year quarter.

The company linked the crushing gain to higher domestic demand from the Renewable Volume Obligation policy finalized in March, combined with higher global energy prices.

Carbohydrate Solutions operating profit was $470 million, up 40%. Vantage Corn Processors rose by $103 million on robust North American ethanol margins.

Nutrition operating profit was $134 million, up 3%. Animal Nutrition rose 21%, while Human Nutrition fell 3%, the company said.

Guidance and capital spending

The company said its updated outlook reflects expected year-over-year operating profit improvement in the fourth quarter in all segments.

Capital expenditures are now projected at $1.2 billion to $1.3 billion, revised from the prior range of $1.3 billion to $1.5 billion.

The company said it is not presenting forecasted GAAP earnings per share because it cannot predict with reasonable certainty the timing of impairments and restructuring charges.

Cash and capital returns

Net cash provided by operating activities was $1.79 billion year-to-date, compared with $5.77 billion a year earlier. Cash dividends paid were $764 million year-to-date.