United States : ADM reports strong Q1 for ethanol operations
ADM reported strong Q1 results, with carbohydrate solutions profit rising 48% and ethanol operations driving gains. Improved margins, policy support, and the 45Z credit boosted performance, while ongoing investments in decarbonization and sustainable fuel technologies strengthen future growth prospects.
ADM on May 5 reported first quarter operating profit for its carbohydrate solutions business segment increased 48%, primarily due to strengthening ethanol margins. Operating profit for the Vantage Corn Processors segment, which includes the company’s dry mill ethanol plants, nearly quadrupled.
The carbohydrates solutions segment reported first quarter operating profit of $356 million, up from $240 million reported for the same period of 2025. ADM primarily attributed the increase to strengthening ethanol margins, supported by effective risk management and policy initiatives.
Starches and sweeteners subsegment operating profit increased by 11% compared to the prior year quarter, primarily due to higher ethanol margins related to ADM’s corn wet-milling ethanol operations, which were partially offset by lower global liquid sweeteners and starches volumes and margins.
Vantage Corn Processors subsegment operating profit reached $127 million, up from $33 million, as ADM’s corn dry-milling ethanol operations benefited from strengthening ethanol margins, supported by effective risk management and policy incentives.
During a first quarter earnings call, ADM President and CEO Juan Luciano said the company’s ethanol business benefited from an increasingly constructive commodity and margin environment during the first quarter.
The 45Z clean fuel production credit is also expected to benefit ADM’s ethanol operations. Luciano said the company continues to work on the details of implementing the 45Z credit. Currently, ADM expects a 45Z impact of approximately $150 million for the full year 2026, he said.
According to Luciano, ADM continues to innovate in the decarbonization space. “We are leveraging our existing carbon capture and storage footprint to develop a broader portfolio of solutions,” he said. “This includes serving customers with high-purity CO2 needs, expanding renewable natural gas operations and advancing pathways to convert ethanol into sustainable aviation fuel.”
Luciano said the company sequestered approximately 300,000 metric tons of carbon dioxide during the first quarter, calling it “a milestone that underscores [ADM’s] leadership in this space.”
Moving into the second quarter of 2026, ADM Chief Financial Officer Monish Patolawala said the company expects the improved margin environment for ethanol to continue.
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Source : Ethanol Producer Magazine
