ADM lifts 2026 earnings outlook on new U.S. biofuel blending rules
Archer-Daniels-Midland raised its full-year adjusted earnings outlook again on Tuesday, after new U.S. rules issued earlier this year required gasoline and diesel to contain more biofuels. The food-processing company said it now expects adjusted earnings of $5.15 to $5.60 a share for the year, up from its previous forecast of $4.15 to $4.70 a share. Analysts polled by FactSet expected adjusted earnings of $4.82 a share.
The updated outlook reflects expected year-over-year earnings improvement in ADM’s crushing and ethanol businesses, which the company said have benefited from new quotas released earlier this year by the U.S. government requiring more crop-based biofuels to be blended into the nation’s gasoline and diesel supply.
“These results, and the expectations we have into the back half of this year, give us confidence to again raise our 2026 earnings outlook,” Chief Executive Juan Luciano said.
The new outlook came as ADM reported a second-quarter profit of $908 million, or $1.87 a share, compared with $219 million, or 45 cents a share, a year earlier. Stripping out one-time items, adjusted earnings were $1.84 a share, above the $1.49 a share analysts were looking for.
Revenue rose 7.2% to $22.68 billion, below Wall Street models of $22.75 billion. Shares were up 4.7% to $81.70 in premarket trading.