ADM beats quarterly estimates, lifts annual profit forecast on stronger processing margins

By Katha Kalia and Karl Plume

Nov 3 (Reuters) – Archer-Daniels-Midland beat third-quarter earnings estimates and raised its full-year adjusted profit forecast for a third straight quarter on Tuesday, helped by strong oilseed processing margins across its businesses.

The Chicago-based grain merchant and processor raised its 2026 adjusted earnings per share forecast to $5.50 to $5.80 from its prior outlook of $5.15 to $5.60. 

Here are a few more details:

• US corn and soybean prices have surged since the war on Iran started, prompting farmers to accelerate sales of grain stockpiled from last year’s harvest after months of holding back supplies amid weak market prices.

• The conflict has also driven crude oil prices sharply higher, lifting demand for biofuel feedstocks and supporting prices for crops such as corn and soybeans used to produce renewable fuels.

• Operating profit from its agricultural services and oilseeds segment, its largest segment, more than doubled in the reported quarter to $778 million. But that profit was below the consensus analyst forecast of $842 million, according to JPMorgan.

• The division houses the company’s global crop trading, transportation and storage, and oilseed processing operations.

• The crushing business, which sources oilseeds from farmers and processes them into products for food, animal feed and industrial markets, reported profit of $311 million, up from $13 million a year earlier.

• The company reported adjusted earnings of $1.77 per share for the quarter ended September 30, topping analysts’ average estimate of $1.60 per share, according to data compiled by LSEG.

• ADM and agribusiness rivals such as Bunge and privately held Cargill continued to benefit from favorable biofuel blending policies. The company does not expect a “fundamental shift” in US biofuel policies after the midterm elections on Tuesday, ADM CEO Juan Luciano said in a conference call with analysts.

• ADM said it expects a “constructive” macro environment that supported earnings in 2026 to continue into 2027. Earnings next year are likely to be in “somewhere in the range of what 2026 was, plus/minus a little bit,” Luciano said.

• ADM shares were down 5.5% in early trading at $71.60 per share.

(Reporting by Katha Kalia in Bengaluru and Karl Plume in Chicago; Editing by Sahal Muhammed and Franklin Paul)

Brought to you by www.srnnews.com

Click here to read the full article