ADM · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Archer-Daniels-Midland Co · 2026-08-04 · Importance 57 · Surprise 64

The six-month effective tax rate decreased to 17.5% from 19.5%, a 2.0 percentage-point reduction, while income-tax expense increased $134 million to $257 million because of higher pretax earnings. The second-quarter effective tax rate decreased to 16.2% from 22.2%, a 6.0 percentage-point reduction, while tax expense increased $114 million to $176 million. The lower rates were primarily driven by non-taxable benefits associated with Section 45Z and tax effects from impairment charges recognized in the 2025 comparison periods. Section 45Z-related tax benefits reduced the tax burden while renewable-fuel policy incentives also supported ethanol and biofuel operating results.

Key facts

• Income tax expense increased $114 million to $176 million and the Company’s effective tax rate for the quarter ended June 30, 2026 was 16.2% compared to 22.2% for the quarter ended June 30, 2025. source
• Income tax expense for the six months ended June 30, 2026 increased $134 million to $257 million and the Company’s effective tax rate was 17.5% compared to 19.5% for the six months ended June 30, 2025. source