ADM · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Archer-Daniels-Midland Co · 2026-11-03 · Importance 30 · Surprise 40

ADM’s effective tax rate for the nine months ended September 30, 2026, declined to 17.3% from 20.5% in the prior-year period, while income tax expense increased $268 million to $428 million because pretax earnings were higher. The lower rate primarily reflected non-taxable benefits associated with Section 45Z policy incentives and tax effects of impairment charges recognized in the corresponding 2025 period. For the third quarter, the effective tax rate was 17.2%, compared with 25.2% a year earlier, and income tax expense increased $134 million to $171 million. The quarterly rate decrease was attributed to Section 45Z benefits and prior-year impairment-related tax effects.

Key facts

• ADM’s effective tax rate for the quarter ended September 30, 2026 was 17.2%, compared with 25.2% for the quarter ended September 30, 2025; the decline was primarily driven by non-taxable Section 45Z benefits and tax effects of prior-year impairment charges. source
• Nine-month 2026 ADM effective tax rate was 17.3%, compared with 20.5% in the prior-year period; the reduction was primarily driven by non-taxable Section 45Z benefits and tax effects of 2025 impairment charges. source