ADM raises its 2026 profit forecast amid rising demand for biofuel

In the second quarter of the current year, Archer-Daniels-Midland Co.'s adjusted earnings exceeded analysts' forecasts, reaching $1.84 per share against expectations of $1.49. Against this backdrop, the company raised its 2026 profit outlook for the second time. Specifically, the annual target for adjusted earnings per share was revised to a range of $5.15–$5.60, compared to the $4.15–$4.70 forecast announced in May.

The company's management attributes the strong results to favorable market conditions in the biofuel segment, as well as operational efficiency. ADM is one of the largest processors of corn and soybeans — the primary raw materials for biofuel production. Growing interest in alternative fuel is driven both by the policies of many governments to increase the share of biocomponents in diesel and gasoline, and by the shortage of traditional energy sources amid global conflicts.

ADM plans to increase oilseed processing capacities at four facilities in the United States. Similar trends are observed among other market participants: Bunge Global SA also raised its 2026 forecast, and Andersons Inc. reported revenue growth in the renewable energy segment, driven by record volumes of ethanol production.

For the U.S. agricultural sector, the biofuel industry is becoming an important source of demand amid trade restrictions. According to ADM, China is expected to continue purchasing U.S. soybeans in accordance with its commitments to import 25 million tons annually through 2028. The company's second-quarter report also noted an increase in processing volumes by nearly 5% compared to last year and the achievement of record operating profit figures in the flavor production segment.