ADM earnings analysis
What we found in ADM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
ADM posted a materially stronger Q2: revenue rose 7.2% year over year to $22.681 billion, GAAP EPS increased to $1.87 from $0.45, and gross margin expanded to approximately 8.4% from 6.5%. The improvement was led by crushing and biofuel-related margins, with all three operating segments delivering higher profit despite lower Nutrition revenue. The principal offset is cash conversion: six-month operating cash flow declined to $1.3 billion from $4.0 billion as inventories, receivables, segregated investments, and other current assets consumed working capital.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS accelerated sharply
- Q2 revenue increased $1.515 billion year over year to $22.681 billion (+7.2%) and rose from $20.490 billion in Q1 2026 (+10.7%). GAAP diluted EPS was $1.87, versus $0.45 in Q2 2025 and $0.62 in Q1 2026.
- Gross-margin expansion drove earnings
- Gross profit rose $565 million, or 41%, to $1.9 billion. This implies a gross margin of approximately 8.4%, above 6.5% in Q2 2025 and 6.0% in Q1 2026.
- Oilseeds and crushing delivered the upside
- Ag Services and Oilseeds operating profit more than doubled to $867 million from $379 million, led by Crushing profit of $363 million versus $33 million. Segment revenue increased $1.647 billion to $17.916 billion.
- Profit growth was broad based
- All three reportable segments increased operating profit: Ag Services and Oilseeds by $488 million, Carbohydrate Solutions by $74 million, and Nutrition by $58 million. Total segment operating profit rose $620 million to $1.450 billion.
- Positive cash generation after capex
- Six-month operating cash flow was $1.3 billion, and property, plant and equipment additions were $466 million, implying $834 million of cash flow after capex. Capex represented approximately 1.1% of six-month revenue of $43.171 billion.
- Liquidity capacity remains strong
- Liquidity remained substantial at $11.1 billion at June 30, including $1.1 billion of cash and cash equivalents and $10.0 billion of unused credit capacity. Commercial paper outstanding was only $30 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Working-capital cash conversion weakened
- Six-month operating cash flow fell to $1.3 billion from $4.0 billion, as working-capital movements turned unfavorable. Inventory changes used $298 million of cash versus a $2.2 billion source in the prior-year period, while receivables used $379 million versus a $197 million source.
- Nutrition sales and volumes remain pressured
- Nutrition revenue decreased $91 million year over year to $1.902 billion, including a $95 million impact from lower sales volumes. Management cited portfolio actions and formation of the Akralos joint venture; the prior-year quarter also included a $55 million contract-cancellation benefit.
- Wilmar and timing effects temper results
- Within Ag Services and Oilseeds, Wilmar operating profit fell to $60 million from $77 million. In addition, the six-month period included approximately $200 million of net negative mark-to-market and timing impacts in Refinined Products and Other and Crushing.
- Higher near-term purchase commitments
- Purchase obligations increased to $16.2 billion at June 30, 2026 from $13.8 billion at December 31, 2025, with $13.5 billion expected to be paid within 12 months. This raises funding needs in a commodity-price-sensitive working-capital business.
- No formal risk-factor update disclosed
- No new or revised risk factors were disclosed in Item 1A; the filing directs investors to the 2025 Form 10-K risk factors. Separately, management identifies commodity-price, foreign-exchange, equity-price, and interest-rate exposure, while Q2 cost of products sold rose $950 million with higher commodity and freight costs.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.87
- Gross margin
- 8.4%
- Segment
- Ag Services and Oilseeds revenue: $17.916 billion (+$1.647 billion YoY); segment operating profit: $867 million (+$488 million YoY)
- Segment
- Carbohydrate Solutions revenue: $2.757 billion (-$35 million YoY); segment operating profit: $411 million (+$74 million YoY)
- Segment
- Nutrition revenue: $1.902 billion (-$91 million YoY); segment operating profit: $172 million (+$58 million YoY)
What they said about what is next.
The 10-Q MD&A does not provide a quantitative earnings or revenue outlook. It states that operating cash flow, $1.1 billion of cash, and unused credit lines are expected to meet ongoing liquidity requirements for at least the next 12 months.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- Archer-Daniels-Midland Company (ADM) reported Q1 2026 results, with revenues of $20.49 billion and an EPS of $0.71, surpassing the prior year's EPS of $0.62. The revenue increased by $315 million year-over-year, driven…
- 10-K · February 17, 2026
- ADM positions itself as an integrated global agricultural supply‑chain manager and processor focused on food, feed, fuel and industrial ingredients, organized into three reportable segments (Ag Services & Oilseeds;…
- 10-Q · November 4, 2025
- ADM reported Q3 revenue of $20,372 million, up $435 million versus Q3 2024, while diluted EPS rose to $0.22 from $0.04 a year ago. Gross profit and margins contracted (gross profit $1,270M vs $1,365M; gross margin ~6.2%…
- 10-K · February 20, 2025
- ADM’s 10-K emphasises a sustainability-driven growth strategy built on three reportable segments (Ag Services & Oilseeds, Carbohydrate Solutions, Nutrition), broad upstream origination and downstream processing…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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