Strong oilseed processing results and biofuel demand support ADM earnings

ADM significantly improved its financial performance thanks to stronger oilseed processing margins and robust biofuel demand. In Q2 2026, operating profit in the Ag Services & Oilseeds segment surged 129% year on year to $867 mln, driven primarily by strong soybean crushing performance in North America.

U.S. renewable fuel policy is providing additional support to processors. Renewable fuel obligations finalized for 2026–2027 are supporting demand for soybean oil and ethanol, while higher energy prices and lower corn costs are improving biofuel production economics. ADM also plans to expand its U.S. soybean processing capacity.

Against the backdrop of stronger results, the company raised its earnings outlook for the second time this year. Its 2026 adjusted earnings per share forecast was increased to $5.15–5.60 from the previous range of $4.15–4.70. ADM attributed the upgrade mainly to stronger oilseed processing and ethanol results, as well as favorable biofuel market conditions.

The improved performance has already been reflected in investor sentiment. ADM shares have gained 20.6% over the past six months, compared with growth of just 1.3% for the broader industry. As of August 18, ADM shares were trading at $81.92, around 7% below their 52-week high.

ADM’s outlook will largely depend on soybean crushing margins and developments in the U.S. biofuel market. Expanding processing capacity and steady demand for soybean oil could continue to support the company’s results, while commodity and energy price volatility and potential changes in U.S. trade and biofuel policies remain key risks.

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