Archer-Daniels-Midland Co. raised its 2026 profit outlook for a second time, as the crop trader increasingly looks to biofuels as a major driver of growth.
The Chicago-based company’s second-quarter adjusted earnings also handily beat analysts’ expectations.
“Our second-quarter results reflect the marked step up in our earnings driven by a constructive biofuels environment, strong commercial and operational execution, and momentum in nutrition,” Chief Executive Officer Juan Luciano said on an earnings call Tuesday.
The results come as many countries are looking to blend increasing amounts of biofuels into gasoline and diesel, and as wars disrupt crude oil flows out of the Middle East and shipments of grain from the Black Sea. ADM is one of the largest processors of soybeans and corn, which are key feedstocks for plant- and animal-based fuels that often track moves in crude.
“We think that the favorable margin backdrop across biofuels will continue — we see that in policies around the world,” Luciano said. “There certainly has been a disruption in the energy markets that has benefited us this year.”
ADM’s shares rose 1.5% as of 11:41 a.m. in New York on Tuesday. The stock has gained 38% so far this year.
The company last week said it planned to expand its oilseed processing capacity at four US facilities to capitalize on ramped up biofuels demand spurred by strong US policy. The Trump administration in March unveiled the highest ever requirements for blending biofuels into gasoline and diesel.
The aggressive mandates have many anticipating growth tied to the alternative fuel. ADM rival Bunge Global SA, the world’s largest processor of oilseeds, also raised its 2026 outlook last week.
Bill Krueger, chief executive officer of crop trader Andersons Inc., said in a Tuesday earnings call that US biofuels policy is helping increase domestic demand for corn and soybeans, and that the company’s quarterly results in its renewables business were driven by record ethanol production and higher margins. Its shares rose as much as 11%, the most since October 2025.
“We expect increased production to continue throughout the biofuels industry,” Krueger said on the call. “Ethanol exports are expected to remain strong.”
Biofuels are widely seen as a critical emerging market for US agriculture companies and struggling farmers. Growers have been on the hunt for new sources of demand as tariffs and geopolitical tensions have impaired trade and exports to key countries, like China, the largest customer for US soybeans.
ADM said it expects China to continue buying soybeans as the Asian nation looks to meet a commitment to secure 25 million tons from the US annually through 2028. The White House has said China also committed to buying $17 billion of US agricultural products prorated through the end of the year.
“We are assuming that China continues buying North American soybeans, which is expected to benefit our ag services subsegment,” Monish Patolawala, ADM’s chief financial officer, said on the company’s call. “We have seen good progress thus far.”
Luciano said China recently has been buying “maybe a million tons per week.”
ADM now forecasts full-year adjusted earnings between $5.15 and $5.60 a share, it said in a statement. In May, the company raised its guidance to between $4.15 and $4.70 a share.
It reported adjusted earnings for the three months ended in June of $1.84 a share. That topped analyst expectations of $1.49 a share.
ADM said its agriculture services and oilseeds segment benefited from a strong US biofuels policy and elevated global energy prices, as well as increased soybean exports and higher farmer selling in some areas. It said global crush volume throughput increased nearly 5% from a year earlier.
In its nutrition business, ADM said results were largely driven by growth in flavors, where operating profit saw record results for the second quarter.
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