ADM reports improved Q1 margins for ethanol
ADM reported stronger Q1 earnings in its ethanol segment, driven by higher production and improved margins. Despite slightly negative ethanol margins, the Vantage Corn Processor subsegment posted $33M profit, reversing last year’s $13M loss. ADM expects margins to rise in Q2. Total segment profit fell to $747M, with EPS down 57% year-over-year to 61 cents.
Archer Daniels Midland Co. on May 6 reported improved first quarter earnings for its ethanol segment on higher production volumes and improved margins. Margins were slightly negative but are expected to improve during the second quarter.
ADM’s ethanol operations are included in the company’s Carbohydrate Solutions segment, which reported segment operating profit of $240 million for the first quarter, down 3% when compared to the same period of 2024. The company’s dry mill ethanol operations are included in the Vantage Corn Processor subsegment, which reported $33 million in operating profit for the first quarter, up from a $13 million loss reported for the same period of last year. ADM attributed the improved operating profit to higher ethanol volumes and improved margins.
During a first quarter earnings call, ADM Chief Financial Officer Monish Patolawala said that overall ethanol EBTDA margins per gallon were slightly negative during the first quarter. Margins are currently expected to improve during the second quarter, reaching slightly above breakeven.
ADM CEO Juan Luciano credited the company’s ethanol team with outperforming the market and industry in terms of risk management during the first quarter. He said the company is hopeful ethanol margins will improve as the year progresses, but noted there is uncertainty in the market.
Overall, ADM reported $747 million in total segment operating profit for the first quarter, down from $1.2 billion during the same period of last year. Earnings before income taxes were $353 million, down 60%. Earnings per share on a GAAP basis were 61 cents, down 57%, and adjusted earnings per share were 70 cents, down 52%.
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Source : Ethanol Producer Magazine
