Key facts
- Conagra Brands reported a 34% decrease in earnings from its Ardent Mills joint venture for the fiscal 2026 second quarter.
- Lower commodity trading revenue negatively impacted Ardent Mills' results.
- Ardent Mills' full-year earnings forecast was reduced by 15%.
- The company plans to close two flour mills and a processing facility in January 2026.
Conagra Brands Inc. reported a 34% decrease in earnings from its Ardent Mills joint venture for the fiscal 2026 second quarter, primarily due to lower commodity trading revenue. Equity method investment earnings, largely representing Conagra's stake in Ardent Mills, fell to $32.2 million from $48.5 million in the prior year.
For the first half of fiscal 2026, equity method earnings were $61.6 million, a nearly 21% decrease from $77.6 million a year earlier. Excluding $6.7 million in pre-tax costs related to Ardent Mills' restructuring activities, adjusted equity earnings for the second quarter were down nearly 20% to $38.9 million. For the half, adjusted equity earnings were $68.3 million, down 12% year over year.
Despite the decline, Conagra reaffirmed its overall fiscal 2026 guidance, but lowered its earnings forecast specifically for Ardent Mills by 15%. The company now expects adjusted equity earnings from Ardent Mills to be approximately $170 million, down from a previous expectation of $200 million. Conagra's CEO Sean Connolly noted that the company had guided to a wider range for the year due to a volatile environment, allowing navigation of issues like Ardent's trading performance.
Ardent Mills, formed in 2014, is North America's largest milling company, with Conagra and Cargill each holding a 44% stake and CHS, Inc. holding 12%. The core flour milling business has continued to perform solidly, but lower prices and reduced volatility in wheat markets have impacted commodity trading revenue. Ardent Mills plans to close two flour mills in Omaha, Nebraska, and York, Pennsylvania, along with a garbanzo bean processing facility in Steptoe, Washington, in January 2026. Following these closures, Ardent Mills will operate 28 flour mills in the United States and three in Canada.