Why did ADM raise its 2026 profit forecast, and what specific factors drove the improvement?

ADM raised its 2026 adjusted earnings forecast to $5.15–$5.60 per share from $4.15–$4.70 per share due to improved margins in its crushing and ethanol businesses, driven by soaring energy prices triggered by the Iran war, which swelled margins for corn-based ethanol and soybean crushing for crop-based diesel; additionally, higher U.S. biofuel blending mandates—issued after a lengthy delay—reduced uncertainty and supported profitability, while strong grain export demand and increased crop processing volumes (fueled by farmer selling of stored corn and soybeans amid rising grain prices) further bolstered results.

How did ADM’s second-quarter 2024 financial performance compare to analyst expectations, and which business segments showed the strongest growth?

ADM posted an adjusted profit of $1.84 per share for the quarter ended June 30, 2024, surpassing analysts’ average estimate of $1.44 per share, according to LSEG data; its ag services and oilseeds unit—the largest segment—saw operating profit jump 129% year-over-year due to expanded margins following the U.S. government’s record biofuel blending mandate, while the carbohydrate solutions segment (including ethanol and sweeteners) rose 22% year-over-year and the high-margin nutrition unit surged 51% year-over-year.

ADM lifts 2026 profit forecast on strong margins, favorable biofuels outlook

Aug 4, 2026

Archer-Daniels-Midland raised its 2026 earnings forecast to $5.15–$5.60 per share, driven by strong margins in crushing and ethanol businesses amid high energy prices and biofuel mandates. Shares jumped 3.8% after the company beat Q2 earnings estimates.

reuters

2026-08-04

ADM lifts 2026 profit forecast on strong margins, favorable biofuels outlook

ADM lifts 2026 profit forecast on strong margins, favorable biofuels outlook

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