Archer-Daniels Powers Ahead As CEO Says Biofuel Clarity Will Ignite Q4 Margin Upside

Archer-Daniels-Midland Company ADM shares are trading higher on Tuesday.

The company reported second-quarter adjusted earnings per share of 93 cents, beating the analyst consensus estimate of 83 cents.

Quarterly sales of $21.166 billion missed the street view of $21.468 billion.

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Earnings before income taxes were $279 million for the second quarter, down 53% from the prior year quarter.

Gross profit in the quarter under review was $1.370 billion, down from $1.396 billion a year ago. Adjusted EBITDA in the quarter under review was $931 million.

The total segment operating profit was $830 million, down 10% compared to the prior year’s quarter.

“With biofuel policy clarity emerging toward the end of the second quarter, we have less of our order book open in the third quarter to benefit from improved margins,” said Chair of the Board and CEO Juan Luciano. “However, we are well-positioned to exit 2025 with strong momentum.” 

The Ag Services and Oilseeds segment operating profit was $379 million during the second quarter of 2025, down 17%.

Carbohydrate Solutions segment operating profit was $337 million during the second quarter, down 6% compared to the prior year quarter.

The operating profit of the Nutrition segment was $114 million during the second quarter of 2025, a 5% increase compared to the prior year’s quarter.

The company exited the quarter with cash and equivalents worth $1.057 billion.

Outlook

Archer-Daniels-Midland has narrowed its fiscal 2025 adjusted EPS guidance to $4, down from a prior range of $4 to $4.75, matching the $4 consensus estimate.

The outlook reflects first‐half performance and assumes that the recently improved margins will primarily benefit the fourth quarter of 2025 and beyond.

Price Action: ADM shares are trading higher by 4.10% to $56.63 at last check Tuesday.

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