Archer-Daniels-Midland Boosts Profit Outlook on Strong Soybean Crushing

Archer-Daniels-Midland Company lifted its 2026 adjusted earnings outlook for the third time this year, projecting $5.50 to $5.80 per share compared to its previous target range of $5.15 to $5.60. For the third quarter of 2026, the agricultural processor generated net income of US$821 million on sales of US$22,335 million, while maintaining its quarterly cash payout of US$0.52 per share scheduled for December 2026.

A sharp rebound in soybean processing economics propelled the improved results. Operating profit from crushing inside the Ag Services and Oilseeds unit reached $311 million in the third quarter of fiscal 2026, roughly $300 million above the prior-year level. Supportive biofuel rules and strong ethanol pricing also bolstered the Carbohydrate Solutions segment. Looking ahead, executive leadership anticipates operating profit across every corporate division will climb compared to the prior-year period in the fourth quarter.

To safeguard financial strength, the company trimmed its projected 2026 capital expenditures to between $1.2 billion and $1.3 billion, down from an earlier band of $1.3 billion to $1.5 billion. A broader efficiency initiative aiming to eliminate $500 million to $750 million in costs remains on schedule. ADM is also allocating approximately US$100 million toward initial debottlenecking projects across four American processing facilities to expand processing capacity by over 700,000 metric tons by 2028 to 2029.

Despite accelerating paper profits, cash generation has lagged. Over the twelve months ending in September 2026, operating cash flows stood at $1.48 billion, dropping from $6.09 billion during the comparable prior stretch. Free cash flow of $0.35 billion over those four quarters trailed the $1.01 billion disbursed for dividends. Analysts on Simply Wall St also noted that legal overhang regarding disclosures, accounting, and a former chief financial officer continues to draw scrutiny from market participants.