ADM · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Archer-Daniels-Midland Co · 2026-08-04 · Importance 64 · Surprise 56 · In source text

Six-month gross profit increased $607 million, or 24%, to $3.2 billion, while second-quarter gross profit increased $565 million, or 41%, to $1.9 billion. Six-month gross-profit growth included increases of $376 million in Ag Services and Oilseeds, $188 million in Carbohydrate Solutions, and $70 million in Nutrition. Cost of products sold increased $1.2 billion to $40.0 billion in the six months because of higher average commodity and freight costs, while manufacturing expense increased $150 million to $4.0 billion because of North American energy costs, employee compensation, and maintenance. Improved ethanol margins from policy incentives, favorable renewable-fuel economics, higher soybean meal demand, and improved crush utilization were key contributors to segment margin expansion.

Key facts

• Gross profit increased $565 million, or 41%, to $1.9 billion, primarily driven by an increase of $495 million and $76 million in Ag Services and Oilseeds and Carbohydrate Solutions segments, respectively, for the three months ended June 30, 2026. source
• Gross profit for the six months ended June 30, 2026 increased $607 million, or 24%, to $3.2 billion, with increases of $376 million, $188 million, and $70 million for Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition segments respectively. source
• Current quarter Ag Services and Oilseeds segment operating profit included net positive mark-to-market and timing impacts of approximately $100 million, primarily attributable to the Crushing subsegment. source
• Current period Ag Services and Oilseeds segment operating profit included net negative mark-to-market and timing impacts of approximately $200 million attributable to the RPO and Crushing subsegments for the six months ended June 30, 2026. source

Impact estimates