ADM · 10-Q · 2026Q2 · Full report
Operating Expense Trends
Archer-Daniels-Midland Co · 2026-08-04 · Importance 42 · Surprise 14 · In source text
Six-month manufacturing expenses increased $150 million to $4.0 billion, driven by higher North American energy costs, employee compensation, and maintenance expenses. Six-month SG&A increased $144 million to $2.0 billion, primarily because of higher employee compensation costs, partly offset by lower third-party service costs. Second-quarter manufacturing expense increased $109 million to $2.0 billion, and SG&A increased $115 million to $1.0 billion. Corporate unallocated function costs increased $71 million to $718 million for the six months because of higher incentive compensation adjustments, partly offset by lower legal and accounts-receivable-securitization financing costs.
Key facts
- Manufacturing expenses increased $109 million to $2.0 billion, driven by an increase in energy costs in North America, increased maintenance expenses, and higher employee compensation costs for the three months ended June 30, 2026. source
- Selling, general, and administrative (SG&A) expenses increased $115 million to $1.0 billion, primarily driven by higher employee compensation costs, partially offset by lower third-party service costs for the three months ended June 30, 2026. source
- Manufacturing expenses for the six months ended June 30, 2026 increased $150 million to $4.0 billion driven by higher energy costs in North America, higher employee compensation costs, and higher maintenance expenses. source
- Selling, general, and administrative expenses for the six months ended June 30, 2026 increased $144 million to $2.0 billion, primarily driven by higher employee compensation costs, partially offset by lower third-party service costs. source
- Unallocated corporate function costs increased, contributing to Corporate results where Total Corporate was $(460) million for the three months ended June 30, 2026 compared to $(498) million in the prior year quarter. source
- The Company operates consolidated subsidiaries in more than 70 countries. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -2.4% | Manufacturing expenses for the six months ended June 30, 2026 increased $150 million to $4.0 billion driven by higher energy costs in… |
| operating_income | negative | realized | -2.3% | Selling, general, and administrative expenses for the six months ended June 30, 2026 increased $144 million to $2.0 billion, primarily… |
| operating_income | negative | realized | -1.8% | Selling, general, and administrative (SG&A) expenses increased $115 million to $1.0 billion, primarily driven by higher employee… |
| operating_income | negative | realized | -1.7% | Manufacturing expenses increased $109 million to $2.0 billion, driven by an increase in energy costs in North America, increased… |