ADM · 8-K · 20260804PR000040

Gross Margin Drivers

Archer-Daniels-Midland Co · 2026-08-04 · Importance 58 · Surprise 56

Second-quarter gross profit increased 41.2% to $1.935 billion from $1.370 billion, raising gross margin to approximately 8.5% from 6.5%. Margin expansion in Ag Services and North American Crushing was supported by the finalized U.S. Renewable Volume Obligations, elevated global energy prices, and stronger biofuels economics. Global oilseed volumes increased approximately 5%, while stable soybean meal prices supported strong global meal demand and record meal exports from Brazil and the United States. Carbohydrate Solutions benefited from robust North American ethanol margins, policy incentives, lower U.S. corn prices, and higher domestic blend rates and exports.

Key facts

• Cost of products sold for the quarter ended June 30, 2026: $20,746 million source
• 2Q26 AS&O results included around $100 million of net positive mark-to-market and timing impacts, primarily attributable to the Crushing subsegment source
• Gross profit for the quarter ended June 30, 2026: $1,935 million source
• ADM noted Refined Products and Other subsegment operating profit was 3% lower vs prior year quarter, largely due to net negative mark-to-market and timing impacts source