Archer-Daniels-Midland Co
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 4, 2026
ADM$69.97-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0000007084-26-000023
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial MeasuresCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0000007084-26-000042
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 108 previous paragraphs and 79 current paragraphs.
47 unchanged; 18 reworded; 14 added; 42 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
The Company continues to monitor regulatory and other developments in the U.S. biofuel market.
Current report
In the Carbohydrate Solutions segment, lower North America corn prices and sustained strength in international energy prices allowed ethanol values from the US to be competitive around the world. After seasonal downtime in the first half of the quarter, the industry responded to the market signals with high capacity utilization. North America liquid sweetener demand remained soft while starch demand continues to show signs of recovery. Europe, the Middle East, and Africa (“EMEA”) Starches and Sweeteners were pressured by demand softness across the food and industrial segments.
Current report
Earnings before income taxes was $1.1 billion compared to $279 million in the prior year quarter. Results in the current year quarter were primarily driven by improved operational execution amid a dynamic pricing environment. The increase in earnings before income taxes reflected impairment, exit, and restructuring costs and revaluation losses of $324 million in the prior year quarter.
Current report
Total segment operating profit (a non-GAAP measure) increased $620 million, from $830 million to $1.5 billion, driven by higher results across all three reportable segments. Total segment operating profit (a non-GAAP measure) in the three months ended June 30, 2026 excluded gains on the sale of assets of $21 million and asset impairment, exit and restructuring costs, and net settlement contingencies of $3 million. Total segment operating profit (a non-GAAP measure) in the three months ended June 30, 2025 excluded asset impairment, exit and restructuring costs, and net settlement contingencies of $224 million, a gain on contract termination of $69 million, and gains on sales of assets of $8 million.
Current report
Revenues increased $1.5 billion to $22.7 billion, driven by Ag Services and Oilseeds segment revenues reflecting higher sales prices of oils, soybeans, and biodiesel ($2.0 billion), partially offset by lower sales volumes of corn and soybeans ($356 million). Carbohydrate Solutions segment revenues were consistent compared to the prior year quarter. Nutrition segment revenues decreased primarily due to lower sales volumes ($95 million) reflecting portfolio actions and the formation of the Akralos Holding Company LLC joint venture, partially offset by higher sales prices. The prior year quarter also benefitted from a contract cancellation ($55 million).
Current report
Cost of products sold increased $950 million to $20.7 billion, primarily driven by higher commodity and freight costs. Manufacturing expenses increased $109 million to $2.0 billion, driven by an increase in energy costs in North America, increased maintenance expenses, and higher employee compensation costs.
Current report
Asset impairment, exit, and restructuring costs decreased $124 million to $13 million, driven by restructuring charges of $137 million in the prior year quarter, primarily within the Nutrition segment.
Current report
Interest and investment income increased $186 million to $116 million, driven by $187 million of revaluation losses in the prior year quarter, within Corporate and the Nutrition segment.
Current report
Interest expense decreased $11 million to $148 million, due to a decrease in financing costs, driven by lower outstanding debt and interest rates.
Current report
Other income — net increased $30 million to $82 million, primarily driven by higher foreign exchange gains and gains on sale of assets.
Current report
In the Ag Services and Oilseeds segment, segment operating profit increased by $488 million. Current quarter results included net positive mark-to-market and timing impacts of approximately $100 million, primarily attributable to the Crushing subsegment. The Ag Services subsegment operating profit was higher compared to the prior year quarter. Global Trade results improved due to increased ocean freight and trading margins. South America results improved in the current year quarter, due to the Barcarena, Brazil, grain export terminal returning to full operations, leading to increased soybean exports which were supported by higher farmer selling. Transportation results improved, driven by increased freight rates. The Crushing subsegment operating profit was higher compared to the prior year quarter, reflecting margin improvement across the business, particularly in North America, where results were supported by the favorable RVO announcement, higher soybean meal sales, and higher crush volumes. The current year quarter also benefitted from $20 million of insurance proceeds related to Decatur East. The Refined Products and Other (“RPO”) subsegment operating profit was lower when compared to the prior year quarter driven by net negative mark-to-market and timing impacts and lower margins in South America, partially offset by margin expansion in North America and EMEA driven by improved refining margins as a result of the RVO announcement and global energy volatility. Wilmar earnings decreased in the current year quarter.
Current report
(1)Unallocated corporate function costs increased, primarily driven by higher employee compensation costs, partially offset by lower legal expenses and lower financing costs related to the Company’s accounts receivable securitization program.
Current report
(2)Revaluation losses, including impairment and restructuring charges decreased, driven by prior year quarter revaluation losses on certain investments.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Removed paragraphs (42)
Previous report
In the three months ended March 31, 2026, the U.S. biofuel market continued to be affected by regulatory developments including issuance by:
Previous report
•U.S. Treasury and IRS of proposed regulations relating to policy incentives under Section 45Z of the Internal Revenue Code (“Section 45Z credits”), the Clean Fuel Production Credit, enacted under the Inflation Reduction Act of 2022, amended by the One Big Beautiful Bill Act of 2025. Section 45Z policy incentives provides for credits for clean transportation fuels produced and sold between January 1, 2025 and December 31, 2029.
Previous report
In the Carbohydrate Solutions segment, North America ethanol stocks tightened relative to last year as plants and supply chains slowed initially due to adverse weather conditions, combined with strong export demand and positive Renewable Volume Obligations (“RVO”) clarity. Geopolitical issues contributed to ethanol being priced competitive to higher competing oxygenates. North America liquid sweetener demand remained soft while starch demand showed early signs of recovery after a slow start to 2026. EMEA Starches and Sweeteners were pressured by demand softness across the food and industrial segments.
Previous report
Earnings before income taxes was $384 million compared to $353 million in the prior year quarter. Results in the current year quarter were primarily driven by improved operating performance in the Carbohydrate Solutions segment and the Nutrition segment, partially offset by net negative mark-to-market and timing impacts, within the Ag Services and Oilseeds segment.
Previous report
Total segment operating profit (a non-GAAP measure) increased $17 million from $747 million to $764 million driven by higher results in the Carbohydrate Solutions segment and the Nutrition segment, partially offset by lower results in the Ag Services and Oilseeds segment. Total segment operating profit (a non-GAAP measure) in the three months ended March 31, 2026 excluded net gains on the sale and contribution of assets of $62 million, the Company's share of Wilmar International Limited (“Wilmar”) non-recurring charges of $55 million, and $17 million of portfolio optimization and impairment charges. Total segment operating profit (a non-GAAP measure) in the three months ended March 31, 2025 excluded restructuring and net settlement contingencies of $49 million.
Previous report
Revenues increased $315 million to $20.5 billion, driven by higher sales prices ($743 million), partially offset by lower sales volumes ($428 million). Higher sales prices of soybeans, oils and biodiesel were partially offset by lower sales prices of corn. Lower sales volumes of corn, oils, and biodiesel were partially offset by higher sales volumes of sorghum and meal. Ag Services and Oilseeds revenues increased 2% to $16.0 billion, driven by higher sales prices ($625 million), partially offset by lower sales volumes ($299 million). Carbohydrate Solutions revenues of $2.6 billion were consistent year over year. Nutrition revenues decreased 1% to $1.8 billion.
Previous report
Cost of products sold increased $273 million to $19.3 billion, primarily driven by commodity prices and higher manufacturing expenses.
Previous report
Asset impairment, exit, and restructuring costs decreased $26 million to $12 million. Charges in the current and prior year quarter primarily consisted of restructuring charges. See Note 13. Asset Impairment, Exit, and Restructuring Costs within “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information.
Previous report
Interest and investment income decreased $13 million to $125 million, primarily driven by lower tax-related income and credits in Corporate.
Previous report
Interest expense decreased $9 million to $149 million, driven by lower interest rates and balances on the Company’s commercial paper programs.
Previous report
Other income — net increased $51 million to $70 million, primarily driven by gains on sale and contribution of assets. See Note 11. Other Income - Net within “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information.
Previous report
In the Ag Services and Oilseeds segment, segment operating profit decreased 34%. Current period results included net negative mark-to-market and timing impacts of approximately $275 million, of which approximately 10%, 70%, and 20% were attributable to our Ag Services, Crushing, and Refined Products and Other subsegment operating profit results, respectively. The Ag Services subsegment operating profit increased 26% compared to the prior year quarter supported by higher export activity from North America, which included increased soybean and sorghum trade with China and strong corn exports. Results also reflected a favorable comparison to the prior year quarter, which was impacted by certain non-recurring export duties. The Crushing subsegment operating profit was lower by $126 million compared to the prior year quarter, driven by negative mark-to-market timing impacts, partially offset by improvement in plant processed volumes in the first quarter of 2026. Additionally, soybean meal sales remained strong throughout the quarter. The RPO subsegment operating profit decreased 36% when compared to the prior year quarter, driven by negative mark-to-market and timing which stemmed from the strengthening margin environment. Wilmar earnings decreased by $6 million to $66 million in the current year quarter.
Previous report
The Company’s objective is to have sufficient liquidity, balance sheet strength, and financial flexibility to fund the operating and capital requirements of a capital-intensive agricultural commodity-based business. The Company depends on access to credit markets, which can be impacted by its credit rating and factors outside of the Company’s control, to fund its working capital needs and capital expenditures.
Previous report
The primary source of funds to finance the Company’s operations, capital expenditures, and advancement of its growth strategy is cash generated by operations and lines of credit, including a commercial paper borrowing facility and accounts receivable securitization programs. In addition, the Company believes it has access to funds from public and private equity and debt capital markets in both U.S. and international markets.
Previous report
At March 31, 2026, the Company’s capital resources included shareholders’ equity of $22.8 billion and lines of credit, including the accounts receivable securitization programs described below, totaling $12.4 billion, of which $8.4 billion was unused. Of the Company’s total lines of credit, $5.1 billion supported the combined U.S. and European commercial paper borrowing programs. At March 31, 2026, there was $1.6 billion of commercial paper outstanding.
Previous report
As of March 31, 2026, the Company had $591 million of cash and cash equivalents, $315 million of which was cash held by foreign subsidiaries whose undistributed earnings are considered indefinitely reinvested. Based on the Company’s historical ability to generate sufficient cash flows from its U.S. operations and unused and available U.S. credit capacity of $4.1 billion, the Company has asserted that these funds are indefinitely reinvested outside the U.S.
Previous report
As of March 31, 2026, the Company had total available liquidity of $9.0 billion comprised of cash and cash equivalents and unused lines of credit. The Company believes that cash flows from operations, cash and cash equivalents on hand, and unused lines of credit will be sufficient to meet its ongoing liquidity requirements for at least the next twelve months.
Previous report
Net cash provided by operating activities was $150 million for the three months ended March 31, 2026. Net cash used in operating activities was $342 million for the three months ended March 31, 2025.
Previous report
The increase in cash provided by operating activities in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily driven by changes in net working capital. Changes in net working capital were primarily driven by payables to brokerage customers, accrued expenses and other payables and trade payables, partially offset by changes in inventory and other current assets.
Previous report
Changes in Payables to brokerage customers resulted in a cash inflow of $1.3 billion in the current year quarter compared to an outflow of $79 million in the prior year quarter. The inflow in the current year quarter is driven by increased customer trading and margin requirements in the Company’s futures commission and brokerage business.
Previous report
Changes in Accrued expenses and other payables resulted in a cash inflow of $940 million in the current year quarter compared to an outflow of $244 million in the prior year quarter. The inflow in the current year quarter is driven by changing market conditions impacting the valuation of derivative contracts.
Previous report
Changes in Trade payables resulted in a cash inflow of $245 million in the current year quarter compared to an outflow of $423 million in the prior year quarter, primarily driven by higher commodity pricing in the current year quarter.
Previous report
Changes in Inventories resulted in a cash outflow of $1.4 billion in the current year quarter compared to an inflow of $137 million in the prior-year quarter, primarily reflecting higher commodity pricing in the current year quarter.
Previous report
Changes in Other current assets resulted in a cash outflow of $552 million in the current year quarter compared to an inflow of $263 million in the prior-year quarter, primarily reflecting increased cash and securities deposited with clearing houses and brokers, for increased customer margin requirements, within the Company’s futures commission and brokerage business and changing market conditions impacting valuation of derivative contracts.
Previous report
Net cash used in investing activities was $128 million and $129 million for the three months ended March 31, 2026 and March 31, 2025, respectively.
Previous report
Net cash used in investing activities for the three months ended March 31, 2026 included additions to property, plant, and equipment of $194 million, partially offset by proceeds from the sale of assets and cash inflows from certain affiliates.
Previous report
Net cash used in investing activities for the three months ended March 31, 2025 included additions to property, plant and equipment of $291 million and a business acquisition, net of cash acquired, of $90 million, partially offset by proceeds from sales of marketable securities of $248 million.
Previous report
Net cash provided by financing activities was $612 million and $587 million for the three months ended March 31, 2026 and 2025, respectively.
Previous report
Net cash provided by financing activities for the three months ended March 31, 2026 and March 31, 2025 included net borrowings under short-term credit agreements of $919 million and $863 million, respectively.
Previous report
Dividends paid for the three months ended March 31, 2026 and March 31, 2025 were $254 million and $247 million, respectively.
Previous report
No share repurchases were made in the three months ended March 31, 2026. As of March 31, 2026, the Company had 115 million remaining shares under its share repurchase program until December 31, 2029.
Previous report
Accounts Receivable Securitization Programs
Previous report
The Company has accounts receivable securitization programs (the “Programs”) with certain commercial paper conduit purchasers and committed purchasers. The Programs provide the Company with up to $3.0 billion in funding against accounts receivable transferred into the Programs and expands the Company’s access to liquidity through efficient use of its balance sheet assets (see Note 14. Sale of Accounts Receivable within “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for further information). As of March 31, 2026, the Company had $750 million unused capacity of its facility under the Programs.
Previous report
Contractual Obligations and Commercial Commitments
Previous report
The Company’s purchase obligations as of March 31, 2026 and December 31, 2025 were $16.3 billion and $13.8 billion, respectively. As of March 31, 2026, the Company expects to make payments related to purchase obligations of $14.7 billion within the next twelve months. There were no other material changes in the Company’s contractual obligations during the three months ended March 31, 2026.
Showing the first 40 of 42 passages. Open the source sections for the rest.
Reworded paragraphs (18)
Previous wording
On February 4, 2025, the Company announced targeted actions expected to deliver in excess of $500 million of aggregate cost savings in 3 to 5 years. These include cost optimization and portfolio simplification initiatives designed to help the Company achieve cost efficiencies. See Note 13. Asset Impairment, Exit, and Restructuring Costs of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for additional information regarding restructuring related charges.
Current wording
On February 4, 2025, the Company announced targeted actions expected to deliver in excess of $500 million of aggregate cost savings in 3 to 5 years, which commenced in 2025. These include cost optimization and portfolio simplification initiatives designed to help the Company achieve cost efficiencies. See Note 13. Asset Impairment, Exit, and Restructuring Costs of “Notes to Consolidated Financial Statements” included in Item 1. Consolidated Financial Statements for additional information regarding restructuring related charges.
Previous wording
•U.S. Environmental Protection Agency of final Renewable Volume Obligations (“RVO”) for 2026 and 2027 under the U.S. Renewable Fuel Standard that increased certain renewable fuel blending requirements.
Current wording
In February 2026, the U.S. Treasury and IRS proposed regulations relating to policy incentives under Section 45Z of the Internal Revenue Code (“Section 45Z”). In March 2026, the U.S. Environmental Protection Agency’s announcement of the final Renewable Volume Obligations (“RVO”) for 2026 and 2027 under the U.S. Renewable Fuel Standard increased certain renewable fuel blending requirements.
Previous wording
These developments have provided additional visibility into renewable fuel demand and incentive frameworks and are expected to affect renewable fuel blending economics, clean fuel credit values, and demand for certain agricultural feedstocks, which may benefit the Company’s ethanol and biofuel operations, as well as crush and grind margins. However, renewable fuel markets remain subject to ongoing regulatory, legislative, and implementation risks, including the timing and substance of final Section 45Z regulations, future policy actions, changes in credit values and shifts in blending economics which could continue to drive volatility in the Company’s results of operations.
Current wording
In the three months ended March 31, 2026, these regulatory announcements provided additional visibility into renewable fuel demand and incentive frameworks and positively impacted renewable fuel blending economics, clean fuel credit values, and demand for certain agricultural feedstocks. The impact on the U.S. biofuel market continued in the three months ended June 30, 2026, and continued to benefit the Company’s ethanol and biofuel operations, as well as crush and grind margins. However, renewable fuel markets remain subject to ongoing regulatory, legislative, and implementation risks, including the timing and substance of final Section 45Z regulations, future policy actions, changes in credit values and shifts in blending economics which could continue to drive volatility in the Company’s results of operations.
Previous wording
On February 20, 2026, the U.S. Supreme Court held that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the imposition of tariffs by the executive branch. While the decision invalidated the presidential administration’s tariffs imposed under IEEPA, it did not establish a refund mechanism, which was subsequently set up by the U.S. Customs and Border Protection (“CBP”) in April 2026. The Company is monitoring the refund process and related risks, and expects tariff related risks will not have significant impact on the Company’s financial position, results of operations, or cash flows.
Current wording
On February 20, 2026, the U.S. Supreme Court held that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the imposition of tariffs by the executive branch. While the decision invalidated the presidential administration’s tariffs imposed under IEEPA, it did not establish a refund mechanism, which was subsequently set up by the U.S. Customs and Border Protection (“CBP”) in April 2026. The CBP initiated the refund process in the three months ended June 30, 2026. The Company is monitoring the refund process and related tariff risks, including potential new tariffs and the expected United States-Mexico-Canada Agreement (“USMCA”) review process. However, based on the information currently available to it, the Company does not expect tariff-related risks to have a significant impact on the Company’s financial position, results of operations, or cash flows.
Previous wording
The Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments are principally agricultural commodity-based businesses where changes in selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials. As a result, changes in agricultural commodity prices have relatively equal impacts on both Revenues and Cost of products sold. Mark-to-market and timing impacts represent changes in agricultural commodity pricing and foreign currency market factors and are not necessarily reflective of the operating performance of our business. Mark-to-market and timing impacts represent the estimated net unrealized gain and loss impacts of market factor changes on the valuation of certain of our merchandisable commodity inventories (including certain commodity inventories valued at the lower of cost or market), forward cash purchase and sales contracts, and futures and foreign currency contracts. The final mark-to-market and timing impacts will be realized when the underlying inventory, forward cash purchase and sales contracts, and futures and foreign currency contracts are settled.
Current wording
The Company’s Ag Services and Oilseeds and Carbohydrate Solutions segments are principally agricultural commodity-based businesses where changes in selling prices move in relationship to changes in prices of the commodity-based agricultural raw materials. As a result, changes in agricultural commodity prices have relatively equal impacts on both Revenues and Cost of products sold. Mark-to-market and timing impacts represent changes in agricultural commodity pricing and foreign currency market factors and are not necessarily reflective of the operating performance of our business. Mark-to-market and timing impacts represent the estimated net unrealized gain and loss impacts of market factor changes on the valuation of certain of our merchandisable commodity inventories (including certain commodity inventories valued at the lower of cost or market), cash purchase and sales contracts, and futures and foreign currency contracts. The final mark-to-market and timing impacts will be realized when the underlying inventory, cash purchase and sales contracts, and futures and foreign currency contracts are settled.
Previous wording
The Company has consolidated subsidiaries in approximately 75 countries. For the majority of the Company’s subsidiaries located outside the United States, the local currency is the functional currency except for certain significant subsidiaries in Switzerland where the Euro is the functional currency, and Brazil and Argentina where the U.S. dollar is the functional currency. Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the weighted average exchange rates for the applicable periods. For the majority of the Company’s business activities in Brazil and Argentina, the functional currency is the U.S. dollar; however, certain transactions, including taxes, occur in local currency and require remeasurement to the functional currency. Changes in revenues are expected to be correlated to changes in expenses reported by the Company caused by fluctuations in the exchange rates of foreign currencies, primarily the Euro, British pound, Canadian dollar, and Brazilian real, as compared to the U.S. dollar.
Current wording
The Company has consolidated subsidiaries in more than 70 countries. For the majority of the Company’s subsidiaries located outside the United States, the local currency is the functional currency except for certain significant subsidiaries in Switzerland where the Euro is the functional currency, and Brazil and Argentina where the U.S. dollar is the functional currency. Revenues and expenses denominated in foreign currencies are translated into U.S. dollars at the weighted average exchange rates for the applicable periods. For the majority of the Company’s business activities in Brazil and Argentina, the functional currency is the U.S. dollar; however, certain transactions, including taxes, occur in local currency and require remeasurement to the functional currency. Changes in revenues are expected to be correlated to changes in expenses reported by the Company caused by fluctuations in the exchange rates of foreign currencies, primarily the Euro, British pound, Canadian dollar, and Brazilian real, as compared to the U.S. dollar.
Previous wording
Market Factors Influencing Operations and Results in the Three Months Ended March 31, 2026
Current wording
Market Factors Influencing Operations and Results in the Three and Six Months Ended June 30, 2026
Previous wording
The Company is subject to a variety of market factors which affect the Company's operating results, including those discussed below related to the three months ended March 31, 2026.
Current wording
The Company is subject to a variety of market factors which affect the Company's operating results, including those discussed below related to the three and six months ended June 30, 2026.
Previous wording
In the Ag Services and Oilseeds segment, geopolitical uncertainty, logistical and weather challenges combined with confirmation of U.S biofuel policy contributed to crush margin expansion in both soy and canola. North America benefited from higher urea prices, strong domestic demand from crush producers and continued sales to China. Transportation benefited from higher freight rates, which more than offset volume constraints. Global Trade was impacted by freight supply concerns, logistical dislocations and increased bunker costs. In the Crushing and Refined Products and Other (“RPO”) subsegments, confirmation of the U.S. biofuel policy and higher heating oil values expanded cash margins.
Current wording
In the Ag Services and Oilseeds segment, geopolitical uncertainty, including global conflicts, logistical and weather challenges, combined with confirmation of U.S. biofuel policy contributed to crush margin expansion in both soy and canola. North America benefited from strong domestic demand from crush producers, resulting from the RVO announcement combined with higher global energy prices, continued sales to China as well as strong execution in fertilizer. Transportation benefited from higher freight rates due to strong corn demand, which more than offset volume constraints. Global Trade was impacted by freight supply concerns, logistical dislocations, including congestion at the Panama Canal, and increased bunker costs. Higher heating oil values contributed to improved U.S. biodiesel margins and, as a result, soybean oil demand. Higher soybean meal export demand provided additional support to the crushing complex.
Previous wording
The Company generally operates its production facilities, on an overall basis, at or near capacity, adjusting facilities individually, as needed, to react to the current margin environment and seasonal local supply and demand conditions. The increase in processed oilseeds volumes in the current year quarter was primarily related to improved North America and South America crush volumes due to improved utilization.
Current wording
The increase in processed oilseeds volumes in the current year quarter was primarily related to improved North America and South America crush volumes due to improved utilization, partially offset by planned downtime in EMEA. The processed corn volumes were consistent year over year.
Previous wording
Gross profit increased $42 million to $1.2 billion, primarily driven by an increase in margins of $112 million in Carbohydrate Solutions and $62 million in Nutrition, partially offset by a decrease in margins of $119 million in Ag Services and Oilseeds.
Current wording
Gross profit increased $565 million, or 41%, to $1.9 billion, primarily driven by an increase of $495 million and $76 million in Ag Services and Oilseeds and Carbohydrate Solutions segments, respectively.
Previous wording
Selling, general, and administrative (SG&A) expenses increased $29 million to $961 million, primarily driven by higher employee compensation costs, partially offset by lower third party service costs.
Current wording
Selling, general, and administrative (SG&A) expenses increased $115 million to $1.0 billion, primarily driven by higher employee compensation costs, partially offset by lower third-party service costs.
Previous wording
Equity in earnings of unconsolidated affiliates decreased $55 million to $89 million driven by lower earnings from the Company’s investments in Wilmar and Olenex Holdings B.V., partially offset by higher earnings from the Company’s investment in LSCP, LLLP and SoyVen Holding B.V.
Current wording
Equity in earnings of unconsolidated affiliates increased $8 million to $142 million driven by higher earnings from the Company’s investments in SoyVen Holding B.V., Hungrana Kft, and Terminal de Grãos Ponta da Montanha S.A, partially offset by lower earnings from the Company’s investment in Wilmar International Limited (“Wilmar”).
Previous wording
Income tax expense increased $20 million to $81 million. The Company’s effective tax rate for the quarter ended March 31, 2026 was 21.1% compared to 17.3% for the quarter ended March 31, 2025. The increase in the effective tax rate for the three months ended March 31, 2026 compared to the prior year quarter is driven by the impact of discrete tax items.
Current wording
Income tax expense increased $114 million to $176 million. The Company’s effective tax rate for the quarter ended June 30, 2026 was 16.2% compared to 22.2% for the quarter ended June 30, 2025. The decrease in the effective tax rate for the three months ended June 30, 2026 compared to the prior year quarter is primarily driven by non-taxable benefits associated with Section 45Z, as well as the tax effects of certain impairment charges recognized during the corresponding quarter of 2025.
Previous wording
In the Carbohydrate Solutions segment, segment operating profit increased 48% compared to the prior year quarter. The Starches and Sweeteners subsegment operating profit was higher compared to the prior year quarter, primarily due to higher ethanol margins related to ADM’s corn wet-milling ethanol operations, which were partially offset by lower global liquid sweeteners and starches volumes and margins. The Vantage Corn Processors subsegment operating profit increased $94 million compared to the prior year quarter driven by strengthening ethanol margins, supported by effective risk management and policy incentives.
Current wording
In the Carbohydrate Solutions segment, segment operating profit increased 22% compared to the prior year quarter. The Starches and Sweeteners subsegment operating profit was higher compared to the prior year quarter, primarily due to higher ethanol margins supported by policy incentives related to ADM’s corn wet-milling operations, which were partially offset by lower global liquid sweeteners volumes and margins and increased manufacturing costs. Global Wheat Milling results were relatively flat compared to the prior year quarter, as volumes remained relatively stable against a more competitive pricing backdrop. The Vantage Corn Processors subsegment operating profit increased $52 million compared to the prior year quarter, driven by stronger ethanol margins supported by policy incentives and effective risk management.
Previous wording
In the Nutrition segment, segment operating profit increased 42% due to improved performance in both Human and Animal Nutrition subsegments. Human Nutrition subsegment operating profit was higher compared to prior year quarter, as a result of higher Flavors sales, including foreign exchange gains, and the continued recovery of the Decatur East plant. Animal Nutrition subsegment operating profit was higher compared to the prior year quarter driven by portfolio actions and increased focus on higher-margin product lines, on-going cost optimization efforts, and foreign exchange gains.
Current wording
In the Nutrition segment, segment operating profit increased 51% due to improved performance in both the Human and Animal Nutrition subsegments. Human Nutrition subsegment operating profit was higher compared to the prior year quarter, as a result of higher Flavors sales and margins, foreign exchange gains, and the continued recovery of the Decatur East plant. Animal Nutrition subsegment operating profit was higher compared to the prior year quarter driven by portfolio actions and on-going cost optimization efforts.
Previous wording
Other Business contribution of operating profit decreased from $96 million to $53 million. Captive insurance results were lower driven by higher claim settlements. ADM Investor Services results were higher due to increased volumes and higher customer balances.
Current wording
Other Business contribution of operating profit decreased from $94 million to $80 million. Captive insurance results were lower compared to prior year quarter. ADM Investor Services results were consistent year over year.
Previous wording
(2) Excludes $4 million and $3 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended March 31, 2026 and March 31, 2025, respectively.
Current wording
(2) Excludes $1 million and $5 million of accelerated depreciation recorded within restructuring charges as a specified item for the three months ended June 30, 2026 and June 30, 2025, respectively.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS