Archer Daniels Midland (ADM) has raised its full-year 2026 adjusted earnings per share (EPS) forecast to a range of $4.15 to $4.70, up from its previous guidance of $3.60 to $4.25. This upward revision is primarily attributed to the finalization of the 2026 and 2027 renewable volume obligations under the U.S. Renewable Fuels Standard in March 2026, which provides a stable regulatory framework for biofuels. The company's crushing and ethanol businesses are expected to see significant earnings improvement as a result.
In the first quarter of 2026, ADM reported an adjusted profit of $0.71 per share, surpassing analysts' average estimate of $0.66 per share. Despite a 34% decrease in operating profit for its Ag Services & Oilseeds segment to $273 million, the Ag Services subsegment saw a 26% increase in operating profit, driven by higher export activity from North America, including increased soybean and sorghum shipments to China and strong corn exports. The Crushing subsegment, however, experienced a $126 million decrease in operating profit due to net negative mark-to-market and timing impacts, despite improved plant processed volumes and strong soybean meal sales.
Capital expenditures for 2026 are still projected to be in the range of $1.3 billion to $1.5 billion. While some analysts, like JPMorgan, noted that the guidance increase was somewhat lower than expected by some, especially after rival Bunge Global also raised its outlook, ADM's shares rose 1.3% in premarket trading following the announcement.
