ADM Bets $100 Million on US Oilseed Crush Expansion

Earnings
โดย Insider Monkey·US·Read original
Summary · why it matters

Archer-Daniels-Midland (ADM) announced on August 4 that it will expand capacity at four US oilseed-crushing plants, a roughly $100 million investment that follows its strongest quarter in years. The plants are located in Frankfort, Indiana; Deerfield, Missouri; Lincoln, Nebraska; and Spiritwood, North Dakota, the last a joint venture with Marathon Petroleum. Together, these upgrades are expected to add about 700,000 metric tons of crush capacity by 2028 or 2029, with six more sites flagged for potential future growth. CEO Juan Luciano said the projects cost about a quarter of what a new facility would require, and they fit within ADM's existing 2026 capital expenditure range of $1.3 billion to $1.5 billion. The company reported second-quarter adjusted earnings per share of $1.84, beating the $1.44 analyst estimate, and raised its full-year 2026 adjusted EPS guidance to $5.15 to $5.60 from $4.15 to $4.70. Operating profit in its ag services and oilseeds segment jumped 129% year over year to $867 million, with the crushing subsegment up $330 million as oilseed volumes climbed about 5%. However, roughly $100 million of that profit came from mark-to-market and timing impacts, and refined products profit fell 3%, while equity earnings from Wilmar dropped 22%. Luciano described the expansion as a "phased approach to allow for offramps," indicating management's caution about the durability of current conditions.

Impact on stocks 2

Synthetic Biology (non-pharma)▲ · 2 stocks
Archer-Daniels-Midland Company
ADM
▲ PositiveCapitalDemandrelevance

ADM announced a ~$100M oilseed-crush capacity expansion within its existing capex range, following a Q2 EPS beat and raised 2026 guidance.

Off-coverage companies 1

Wilmar InternationalPrivate▼ Negative
Capitalrelevance

ADM reported equity earnings from Wilmar dropped 22%, a negative read-through for the associate.

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