ADM Boosts 2026 Profit Forecast on Strong Ethanol Margins
Archer-Daniels-Midland (ADM) has raised its profit forecast for 2026, citing strong margins and favorable biofuels policies in the US. The company's adjusted earnings are now expected to be between $5.15 and $5.60 per share, up from a previous forecast of $4.15 to $4.70.
The improvement is largely due to increased demand for corn-based ethanol fuel, which has seen soaring energy prices since the Iran war. Additionally, higher US biofuel blending mandates have lifted uncertainty and improved earnings for ADM.
ADM's shares rose 3.8% in premarket trading after the announcement. The company's operating profit in its ag services and oilseeds unit jumped 129% from the same quarter a year earlier, while its carbohydrate solutions segment saw a 22% gain year-over-year.