Bunge Earnings: Strong Processing Offsets Weak Oils in Transitional Quarter
- Hardik Shah
- Jul 30
- 3 min read
TLDR
• Revenue Strength:Net sales fell to $12.8B from $13.2B YoY, but South American processing drove upside surprise.
• Margin Trends:Adjusted EPS dropped to $1.31 from $1.73 YoY, as weak oils and merchandising weighed on EBIT.
• Forward Outlook:Full-year adjusted EPS outlook of ~$7.75 maintained, excluding Viterra impact; Q4 expected to drive earnings.
Business Overview
Bunge Global SA (NYSE: BG) is a global agribusiness and food company connecting farmers to consumers through the supply of essential food, feed, and fuel. With a presence in over 50 countries and a workforce of ~37,000, Bunge operates across three main segments:
Agribusiness (grain origination, oilseed processing)
Refined & Specialty Oils (plant-based oils and fats for food and biofuels)
Milling (wheat, corn, and rice products)
Its recent merger with Viterra significantly expands Bunge's footprint, particularly in oilseed processing and logistics.
Bunge Earnings Q2'25
Headline Figures:
GAAP EPS: $2.61 (up from $0.48 YoY)
Adjusted EPS: $1.31 (vs. $1.73 prior year)
Adjusted Segment EBIT: $376M (vs. $519M prior year)
Net Sales: $12.77B (down 4% YoY)
Key Drivers:
Processing (South America, Asia): Strong crush margins and volume amid farmer selling
Refined & Specialty Oils: Global softness, mainly North America and Europe, due to biofuel policy uncertainty
Milling: Benefited from gain on U.S. corn milling sale; adjusted EBIT steady at $27M
“We successfully navigated a highly complex period... while making significant progress against our strategic priorities. Most notably, we completed our transformative combination with Viterra.” — CEO Greg Heckman
Forward Guidance
Management Outlook:
FY2025 adjusted EPS forecast reaffirmed at ~$7.75
Excludes Viterra (merged July 2) and U.S. corn milling (sold June 30)
Risks & Opportunities:
Upside: Higher crush margins in Q4, integration synergies from Viterra, potential lift from biofuel demand
Downside: Uncertainty in U.S. biofuel policy, global soft oil demand, potential volatility in merchandising
Operational Performance
Processing: South America (Brazil, Argentina) drove upside; Europe/North America lagged
Merchandising: Gains in grains/oils offset by weak financial services and freight
RSO (Refined & Specialty Oils): Volumes and EBIT down across all regions; policy overhang persists
Milling: Reported EBIT boosted by $155M gain from divestiture
“We're already moving to implement logistical and transportation efficiencies... durable synergies that will benefit everyone across the value chain.” — Greg Heckman
Market Insights
Soft biofuel demand and tariff policy uncertainty are pushing customers to spot-buying behavior.
Refining margins under pressure, but crude oil demand expected to rebound with Brazil B15 mandates and U.S. biofuel incentives (45Z credit).
Meal supply expected to grow, but pricing supported by strong animal protein demand.
Consumer Behavior & Sentiment
Food segment demand for refined oils remains strong despite energy volatility.
Flexibility in Bunge’s supply chain allows for switching between seed oils based on functionality and price.
No major trade-down behavior noted; consumers continue to value oil quality and brand.
Strategic Initiatives
Viterra Merger: Completed July 2025; synergy capture underway across logistics, commercial, and functional layers
Corn Milling Sale: Simplifies portfolio and boosts balance sheet
Growth CapEx: $583M invested YTD; projects in Morristown and Destrehan progressing well
Digital & Risk Systems: Unified risk model being applied across new asset base
“We have a clear path to bringing our companies together, capturing meaningful efficiencies and operational synergies.” — Greg Heckman
Capital Allocation
Cash Balance: $6.8B (up from $3.3B YoY)
Leverage Ratio: 1.1x adjusted net debt to EBITDA
Dividends: $185M paid YTD
Credit Rating: Upgraded to A- by S&P post-merger
CapEx Plan: $1.5B–$1.7B for 2025
The Bottom Line
Bunge enters its next chapter as a larger, more globally integrated company. Despite short-term headwinds in refined oils and merchandising, its scale, diversified asset base, and cost capture from the Viterra merger position it well to deliver stronger results in Q4 and beyond.
Investor Watchlist:
Q3 performance may be soft due to hedging lag, but Q4 looks stronger
Watch for updated combined company guidance in Q3
Viterra synergy execution, biofuel policy clarity, and global margin trends are key inflection points
—
Comments