ADM Archer Daniels Midland 10-Q 2026-03-31 section summaries

Q1 2026 results

Revenue increased 1.6%. Topic 606 revenue was $6,139 million ($6,146 million prior year) and Topic 815 revenue was $14,351 million ($14,029 million); Topic 815 primarily reflects physical delivery or settlement of derivative-accounted sales contracts. Other net income increased to $70 million from $19 million, while equity in earnings of unconsolidated affiliates declined to $89 million from $144 million. Interest expense was $149 million versus $158 million. The effective tax rate rose to 21.1% from 17.3%, primarily due to discrete tax items; ADM incorporated provisions of the 2025 One Big Beautiful Bill Act into its estimated 2026 annual tax rate.

Segment revenue and profit

Segment operating profit for the three reportable segments totaled $764 million, up from $747 million. Ag Services and Oilseeds profit fell despite higher revenue, including a decrease in its equity-method earnings to $49 million from $110 million. Reconciliation items included $62 million of asset/business-sale gains, $17 million of impairment, exit, restructuring and settlement costs, and $55 million of ADM’s share of nonrecurring equity-method investment charges in 2026; 2025 included $49 million of impairment, exit, restructuring and settlement costs. Corporate results were a loss of $423 million versus $441 million.

Cash flow and balance sheet

Operating cash flow recovered to an inflow, but working-capital movements were substantial: inventory used $1.447 billion versus providing $137 million, and receivables used $726 million versus $655 million. Increased brokerage-customer payables provided $1.312 billion versus using $79 million. Ending cash, cash equivalents and restricted cash was $6.112 billion, compared with $4.056 billion at Q1 2025’s end. Restricted/segregated cash and investments were $9.526 billion, alongside $10.199 billion of brokerage-customer payables, and should not be regarded as freely available cash. Tangible equity—shareholders’ equity less goodwill and intangible assets—was $16.251 billion at March 31, 2026.

Common shares outstanding increased from 480 million at December 31, 2025 to 482 million at March 31, 2026. Q1 stock-compensation expense was $64 million versus $50 million; dividends paid were $254 million versus $247 million.

Exposures, financing and developments

Fair-value assets totaled $10.451 billion at March 31, 2026 ($1.681 billion Level 1, $4.988 billion Level 2 and $3.782 billion Level 3), versus $9.252 billion at year-end; fair-value liabilities were $2.865 billion versus $1.487 billion. Market-valued inventory was $7.570 billion, including $3.242 billion Level 3, compared with $6.222 billion and $2.673 billion Level 3. ADM cautions that some Level 3 market quotes rely on only one or two independent sources and that commodity valuations depend on local basis factors such as location, quality, transport, supply and demand.

Derivatives not designated as hedges produced a Q1 pretax net loss of $716 million, versus a $169 million gain a year earlier, primarily reflecting $874 million of commodity-contract losses in cost of products sold. ADM uses derivatives to manage inventory and forward-contract exposure and for merchandising; results can be volatile with commodity-price correlations, counterparties and freight markets. The after-tax cash-flow-hedge loss in AOCI was $39 million, expected to be reclassified to earnings within 12 months. ADM owned 22.5% of Wilmar International; its investment carrying value was $4.1 billion and quoted market value $4.2 billion, and ADM continues to assess possible other-than-temporary impairment.

Credit lines, including receivables securitization, totaled $12.4 billion, with $8.4 billion unused; commercial paper outstanding rose to $1.6 billion from $715 million. The U.S. and non-U.S. receivables programs provide capacity of up to $1.7 billion and $1.3 billion (€1.1 billion), respectively, and both terminate in May 2026 unless extended. Fair value of receivables transferred and derecognized was $2.2 billion at quarter-end. Supplier-finance obligations classified as trade payables rose to $391 million from $276 million a year earlier.

ADM’s 2025 cost-optimization and portfolio-simplification program targets more than $500 million of savings over three to five years. Q1 other income included asset-contribution gains related to Two Rivers Premium Oils and Akralos Holding Company. In ethanol-price litigation, plaintiffs allege class damages of approximately $500 million to more than $2.0 billion; ADM denies liability. A separate shareholder securities-fraud action related to the intersegment-sales investigation survived dismissal motions, and ADM says outcomes and potential losses cannot be predicted or estimated.

ADM — Q1 2026 results and financial position

Consolidated results

Revenue grew $315M: higher selling prices contributed $743M, partly offset by $428M from lower volumes. Cost of products sold increased $273M, primarily reflecting commodity prices and higher manufacturing expenses. Gross profit rose $42M; margin gains in Carbohydrate Solutions and Nutrition were partly offset by a decline in Ag Services and Oilseeds. SG&A increased $29M to $961M, mainly due to higher employee compensation.

Total segment operating profit, a non-GAAP measure, rose to $764M from $747M. Q1 2026 results excluded $62M of asset-sale and contribution gains, $55M of ADM’s share of nonrecurring equity-method investment charges, and $17M of portfolio optimization, impairment and related charges. Q1 2025 excluded $49M of restructuring and net settlement-contingency charges. The reconciliation to earnings before income taxes was:

GAAP net earnings included Q1 2026 adjustments of $47M after tax for asset/business-sale gains, $29M for after-tax impairment, restructuring and settlement charges, $55M for ADM’s share of nonrecurring equity-method investment charges, and $10M of discrete tax adjustments. Total adjustments were $47M, or $0.09 per share, compared with $43M, or $0.09 per share, in Q1 2025. Diluted weighted-average shares were 484M versus 483M.

Segment results

Ag Services and Oilseeds profit fell 34%, with approximately $275M of net negative mark-to-market and timing impacts weighing on the segment. Ag Services benefited from North American exports, including more soybean and sorghum trade with China and strong corn exports, as well as a favorable comparison with prior-year export duties. Crushing was affected by the mark-to-market impacts, partly offset by improved processing volumes and strong soybean meal sales. Refined Products and Other also faced negative mark-to-market and timing effects.

Carbohydrate Solutions profit rose 48%, led by stronger ethanol margins, policy incentives and effective risk management; lower global liquid sweetener and starch volumes and margins partly offset the gains. Nutrition profit increased 42%: Human Nutrition benefited from Flavors sales, foreign-exchange gains and continued recovery at the Decatur East plant, while Animal Nutrition benefited from portfolio actions, a focus on higher-margin products, cost optimization and foreign exchange. Other Business profit declined mainly because captive insurance results were lower amid higher claim settlements; ADM Investor Services improved on higher volumes and customer balances.

Cash flows and operating volumes

Operating cash flow improved primarily because of working-capital movements. Brokerage-customer payables provided $1.3B, compared with a $79M outflow; accrued expenses and other payables provided $940M, versus a $244M outflow; and trade payables provided $245M, versus a $423M outflow. These sources were partly offset by $1.4B of inventory cash use, compared with a $137M inflow, and $552M of cash use from other current assets, compared with a $263M inflow. Investing cash use was nearly unchanged; 2025 included a $90M acquisition, net of cash acquired, partly offset by $248M of marketable-securities sale proceeds.

Higher oilseed processing reflected improved North and South American crush volumes and utilization. ADM generally operates facilities near capacity, adjusting individual sites for margins and local supply and demand.

Liquidity, strategy and risks

At March 31, 2026, shareholders’ equity was $22.8B. Cash and equivalents were $591M, including $315M held by foreign subsidiaries whose earnings were considered indefinitely reinvested. Credit lines, including receivables securitization programs, totaled $12.4B, with $8.4B unused; total available liquidity was $9.0B. Facilities supporting U.S. and European commercial-paper programs totaled $5.1B, with $1.6B of commercial paper outstanding. U.S. unused credit capacity was $4.1B; receivables securitization programs provided up to $3.0B, of which $750M was unused. Management expects operating cash flow, cash on hand and unused credit to cover liquidity needs for at least 12 months.

Purchase obligations rose to $16.3B from $13.8B at December 31, 2025; $14.7B was expected to be paid within 12 months. ADM reported no other material changes in contractual obligations or critical accounting estimates. No shares were repurchased in Q1; 115M shares remained authorized for repurchase through December 31, 2029.

ADM’s targeted actions announced February 4, 2025, are expected to generate more than $500M in aggregate cost savings over three to five years through cost optimization and portfolio simplification. Its 2026 priorities include manufacturing efficiency and utilization, digitalization and AI, investment in advanced nutrition and related areas, decarbonization and workforce development. Recent portfolio actions include the launch of Two Rivers Premium Oils, a cottonseed joint venture with Planters, and a North American animal-feed joint venture with Alltech.

The company views sustainability as a growth strategy, including scaling regenerative agriculture, developing sustainably sourced bio-based products and modernizing operations. Q1 U.S. biofuel developments—including increased 2026–27 Renewable Volume Obligations and proposed Section 45Z clean-fuel credit rules—could support biofuel demand and crush/grind margins, but final regulations, policy changes, credit values and blending economics remain uncertain. ADM also said the February 2026 Supreme Court decision invalidating IEEPA-based tariffs did not establish a refund mechanism; the company is monitoring the later CBP process and does not expect tariff-related risks to materially affect its financial position, results or cash flows.

Commodity-linked businesses remain exposed to energy prices, weather, crop yields, trade and government policy, global supply and demand, foreign exchange and geopolitical developments. ADM noted that commodity-based revenues and costs generally move together, making margins more informative than revenue alone; mark-to-market and timing impacts are unrealized effects until related positions settle.

Market Risk

ADM identifies potential losses from adverse changes in commodity prices affecting its net commodity position, foreign-exchange rates, equity prices, and interest rates. For detailed market-risk disclosures, the section refers readers to Item 7A of ADM’s Form 10-K for the year ended December 31, 2025.

As of March 31, 2026, ADM’s CEO and CFO concluded that disclosure controls and procedures were effective. No changes during Q1 2026 materially affected, or were reasonably likely to materially affect, internal control over financial reporting. This section reports no financial results or other material business developments.

This section refers readers to ADM’s risk factors in its Form 10-K for the year ended December 31, 2025. It identifies no new or period-specific risks and provides no financial metrics.

For the three months ended March 31, 2026, no ADM director or officer adopted, modified, or terminated a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement.