ADM Archer Daniels Midland 10-Q 2026-09-30 section summaries

ADM — Q3 and nine months ended September 30, 2026

Consolidated results

Dollars in millions, except per-share amounts.

Revenue increased 9.6% in Q3 and 6.1% for 9M. Most of the growth came from sales contracts accounted for as derivatives (Topic 815): Q3 revenue was $15,707 versus $13,956, and 9M was $46,350 versus $42,809. Topic 606 revenue was $6,628 versus $6,416 in Q3 and $19,156 versus $18,904 for 9M.

Segment and business-line results

Segment operating profit is the measure used by ADM’s chief operating decision maker and includes equity-method affiliate results. Segment revenue is from external customers.

Ag Services and Oilseeds revenue grew 11.7% in Q3, while Nutrition declined 4.1%. Year-to-date growth was slower than Q3 for Ag Services and Oilseeds (8.0% versus 11.7%), Crushing (14.8% versus 25.2%), Refined Products and Other (19.8% versus 30.0%), and Vantage Corn Processors (8.2% versus 25.8%); Carbohydrate Solutions growth accelerated to 7.5% in Q3 from 2.0% for 9M. Nutrition revenue declined 3.2% for 9M.

Q3’s improvement included a sharp recovery in Ag Services and Oilseeds affiliate results, which contributed $116 million versus a $77 million loss a year earlier. For 9M, specified items included $83 million of asset/business-sale gains, $56 million of impairment/exit/restructuring charges and $55 million of equity-method nonrecurring charges; 2025 included a $163 million Wilmar penalty charge and a $69 million contract-termination gain.

Cash flow and capital returns

Cash generation fell despite higher earnings, principally because working capital absorbed cash: inventories used $1,410 versus providing $3,165 in 9M 2025; receivables used $632 versus providing $231; and other current assets used $1,076 versus $190. ADM repurchased 4.4 million shares in both Q3 and 9M; shares outstanding declined from 480 million at the start of 9M to 478 million at period-end (482 million to 478 million during Q3). Weighted-average diluted shares were 484 million in Q3 and 485 million for 9M, unchanged from 2025.

Balance sheet and liquidity

ADM’s implied tangible equity (equity less goodwill and intangible assets) was $17,435. Segregated cash and investments, which include restricted customer, clearinghouse and insurance balances, were $8,873 versus $8,432. Debt included $1,156 million of short-term borrowings, versus $798 million at year-end; the weighted-average short-term borrowing rate declined to 3.7% from 4.0%. ADM issued $1.0 billion of senior unsecured notes in Q3—$500 million at 4.83% due 2031 and $500 million at 5.27% due 2036—and redeemed $1.0 billion principal of 2.50% notes at maturity. Long-term debt excluding current maturities had $7.4 billion carrying value and $6.7 billion fair value. Credit lines, including receivables securitization, totaled $12.7 billion, of which $9.2 billion was unused.

Market inventories rose to $7,586 from $6,222; total inventories were $11,675 versus $10,369. ADM’s 22.5% Wilmar investment had a $4.2 billion carrying value and $4.0 billion market value. ADM judged it not other-than-temporarily impaired, citing its intent and ability to hold the strategic investment, while continuing to reassess it.

Market, tax and strategic considerations

Non-hedge derivatives swung to pretax losses of $411 million in Q3 and $472 million for 9M, from gains of $173 million and $598 million, respectively. Commodity contracts accounted for losses of $453 million in Q3 and $753 million for 9M; foreign-currency contracts generated gains of $42 million and $281 million. Derivative valuations, as well as some inventory and physical-contract valuations, rely on limited local price sources; where unobservable inputs are significant, ADM classifies them as Level 3. Such valuations are exposed to local supply and demand, weather, freight, futures-to-physical correlations and counterparty risk.

The effective tax rate declined to 17.2% in Q3 from 25.2%, and to 17.3% for 9M from 20.5%, primarily reflecting non-taxable Section 45Z clean-fuel incentives and prior-period impairment charges. ADM recognizes Section 45Z benefits when qualifying fuel is produced and sold and eligibility is probable. The company’s cost-optimization and portfolio-simplification program targets $500–$750 million of aggregate savings over three to five years.

Legal matters

ADM faces ethanol-derivative benchmark-pricing class actions alleging collective damages of approximately $500 million to more than $2.0 billion; some claims were dismissed, while other proceedings and appeals continue. Separate contract-related cases have had several dismissals, including dismissals with prejudice in 2026, though one dismissal is on appeal. A shareholder securities class action and related derivative suits concerning ADM’s investigation into intersegment sales are also ongoing. ADM says outcomes are uncertain and it cannot estimate reasonably possible losses for the shareholder matters.

ADM — Q3 and nine months ended September 30, 2026

ADM’s results improved substantially year over year, driven by stronger crushing and biofuel economics, policy incentives, improved execution and a more favorable pricing environment. Comparisons also benefited from unusually high 2025 impairment, restructuring and Wilmar-related charges. Commodity and freight costs, higher energy and compensation expenses, and weakness in some markets remained offsets.

Consolidated results

Revenue growth mainly reflected higher selling prices—particularly for oils, soybeans and biodiesel—partly offset by lower volumes. ADM notes that commodity price changes generally affect merchandising revenue and product costs together, so margins better reflect underlying performance; mark-to-market and timing effects can also cause reported results to differ from underlying operations. Q3 cost of products sold rose with commodity and freight costs, partly offset by policy incentives. Manufacturing expenses increased $117M to $2.1B and SG&A increased $73M to $946M, reflecting higher energy, maintenance and compensation costs.

Q3 net earnings and segment profit comparisons were affected by prior-year charges, including $163M of ADM’s share of Wilmar-related penalties, $201M of impairment, exit, restructuring and settlement-contingency costs, and a $24M after-tax gain on asset and business sales. Q3 2026 segment operating profit excluded $36M of impairment, exit, restructuring and settlement-contingency costs. For 9M 2025, $771M of impairment, restructuring, penalty and revaluation costs affected pretax earnings. The 9M 2026 adjusted EBITDA measure included $102M of impairment, exit, restructuring and settlement-contingency charges, $55M of equity-method investment non-recurring charges, $42M of railroad maintenance expenses and $83M of gains on asset and business sales.

Q3 segment results

Ag Services and Oilseeds’ improvement was led by Crushing, benefiting from stronger North American margins, meal demand, tight inventories and higher crush rates; Refined Products and Other benefited from stronger biodiesel margins. The segment had about $35M of net positive Q3 mark-to-market and timing impacts. Carbohydrate Solutions profit rose 40%, led by ethanol margins and incentives at Vantage Corn Processors; liquid sweeteners remained challenged. Nutrition profit was slightly higher despite lower sales, with mixed conditions across its markets.

For context, 9M revenue and operating profit were: Ag Services and Oilseeds $51.362B / $1.918B versus $47.557B / $1.170B; Carbohydrate Solutions $8.254B / $1.236B versus $8.096B / $912M; and Nutrition $5.544B / $441M versus $5.726B / $340M. The differing quarterly and nine-month profit trends reflect segment-specific market conditions and prior-period comparisons.

Q3 processed oilseed volume was 8.945M metric tons versus 8.803M; corn volume was 4.729M tons versus 4.666M. For 9M, oilseed processing volume was 27.721M metric tons versus 26.944M, and corn processing volume was 14.007M versus 13.861M. Corporate costs were $470M versus $532M in Q3; other expense was $25M versus $5M of income. Q3 interest expense rose $12M to $165M, while interest and investment income fell $22M to $99M. The Q3 effective tax rate was 17.2% versus 25.2%; the 9M rate was 17.3% versus 20.5%, primarily reflecting non-taxable Section 45Z benefits and prior-year impairment tax effects.

Cash flow, liquidity and capital

Lower operating cash flow primarily reflected working-capital movements: inventory used $1.4B versus providing $3.2B, and trade receivables used $632M versus providing $231M. At September 30, 2026, cash and cash equivalents were $711M, including $452M held by foreign subsidiaries and considered indefinitely reinvested. Available liquidity was $9.9B; credit lines totaled $12.7B, of which $9.2B was unused. Commercial paper outstanding was $690M. ADM expects cash, operating flows and available lines to cover liquidity needs for at least 12 months. Receivables securitization programs provided up to $2.9B of funding, with $647M of capacity unused.

ADM issued $1.0B of senior unsecured notes—$500M of 4.83% notes due 2031 and $500M of 5.27% notes due 2036—and redeemed $1.0B of 2.50% notes that matured in August 2026. Dividends were $764M versus $743M; share repurchases were $358M, with 110M shares still authorized through December 31, 2029. Shareholders’ equity was $23.9B. Purchase obligations were $17.9B, up from $13.8B at December 31, 2025, with $16.1B due within 12 months.

Strategy and risks

ADM’s priorities include manufacturing efficiency, digitalization and AI, investment in advanced nutrition, biosolutions and decarbonization, and cash generation for investment, acquisitions and shareholder returns. A cost-optimization program targets $500M–$750M of savings over three to five years. ADM launched cottonseed and animal-feed joint ventures in 2026 and signed an agreement for a proposed majority-CJ-owned amino-acids venture in the Americas, subject to customary steps and regulatory approvals.

EPA renewable-volume requirements and proposed Section 45Z regulations supported renewable-fuel demand and Q3 margins, but benefits remain exposed to rulemaking, exemptions, credit values and blending economics. Other sensitivities include crops and weather, geopolitics, trade policy, energy and logistics costs, foreign exchange and commodity volatility. ADM said it was receiving refunds following the start of CBP processing after a Supreme Court ruling invalidated IEEPA-based tariffs, while monitoring potential new tariffs and the USMCA review.

ADM identifies potential losses from adverse movements in commodity prices relative to its net commodity position, foreign-exchange rates, equity prices, and interest rates. The section provides no quantitative exposure or sensitivity measures and directs readers to Item 7A of ADM’s 2025 Form 10-K for further detail.

Item 4. Controls and Procedures

As of September 30, 2026, ADM’s Chief Executive Officer and Chief Financial Officer concluded that the company’s disclosure controls and procedures were effective. No changes in internal control over financial reporting during the quarter materially affected, or were reasonably likely to materially affect, those controls. This section reported no financial results or business developments.

ADM’s report provides no new or specifically updated risk disclosures. Readers are directed to Item 1A, “Risk Factors,” in ADM’s Form 10-K for the year ended December 31, 2025, for the risks to consider alongside this report. This section states no financial metrics, business developments, or changes in risk exposure.

During the three months ended September 30, 2026, three executives adopted Rule 10b5-1 trading plans permitting potential share sales:

Each plan ends earlier if all covered shares are sold. The filing reports no other Rule 10b5-1 or non-Rule 10b5-1 trading arrangements adopted, modified, or terminated by directors or executive officers during the quarter. These plans authorize potential sales under pre-arranged arrangements; the filing does not report completed sales.