Description
Archer-Daniels-Midland: 6.4% ROIC And A Crushing Loss Explain The Underperform Rating!
Archer-Daniels-Midland Company reported first quarter 2026 results with adjusted earnings per share (EPS) of $0.71 and total segment operating profit of $764 million. The trailing four-quarter adjusted return on invested capital (ROIC) stood at 6.4%, while cash flow from operations before working capital changes was $442 million, roughly flat year-over-year. The company raised its full-year 2026 adjusted EPS guidance range to $4.15-$4.70 from a previous $3.60-$4.25, citing continued margin improvements and execution against strategic priorities. The company’s Agricultural Services and Oilseeds segment (AS&O) saw operating profit decrease by 34% to $273 million, largely due to approximately $275 million in net negative mark-to-market and timing impacts stemming from increasing commodity prices. However, Ag Services within the segment posted a 26% increase in operating profit driven by higher North American exports, especially soybeans and sorghum to China, and a strong corn export program.
