Bunge Global NYSE: BG reported first-quarter 2026 results that topped management’s expectations, driven primarily by stronger performance in its soybean and softseed processing and refining businesses amid what CEO Greg Heckman described as a “very dynamic” and rapidly changing operating environment.
On the company’s earnings call, Heckman said global conditions have shifted meaningfully even since Bunge’s Investor Day in March, pointing to the ongoing Middle East conflict as a major disruptor to trade flows, logistics costs, and supply chains. He said Bunge is taking “prudent operational steps” to maintain continuity of supply for customers, including working with regulators and partners and maintaining flexibility in shipping while leveraging the company’s global network.
Adjusted earnings rose as processing and refining improved
CFO John Neppl said Bunge’s reported first-quarter earnings per share were $0.35, down from $1.48 a year earlier. Neppl attributed the difference largely to items within reported results, including an unfavorable mark-to-market timing difference of $1.28 per share and an unfavorable $0.20 per share impact related to Viterra transaction and integration costs. On an adjusted basis, EPS was $1.83, slightly higher than $1.81 in the prior-year quarter.
Adjusted segment EBIT increased to $661 million from $406 million in the first quarter of 2025. Neppl said the soybean processing and refining segment improved primarily due to South America, reflecting stronger processing performance in Argentina and Brazil, while North America also posted higher results across both processing and refining.
Within that segment, Neppl noted:
- In the destination value chain, higher origination in Brazil was “more than offset” by lower processing results in Europe and Asia.
- Global Oils merchandising activities increased, which he attributed to “strong execution.”
- Processed volumes rose largely due to expanded production capacity in Argentina following the combined company footprint, and volumes also increased in North America and Brazil.
Softseed processing and refining results were higher “across all regions,” Neppl said, citing increased processing and refining in Argentina, stronger processing in North America that more than offset slightly lower refining, and in Europe higher processing and biodiesel results that more than offset lower refining. Neppl also cited increased origination results in Canada and Australia, and improved Global Oils merchandising results.
Grain merchandising faced higher fuel costs; tropical oils outlook softened
Not all segments benefited equally. Neppl said grain merchandising and milling saw higher results in wheat milling, global cotton, and commercial services, but that was “more than offset” by lower ocean freight results due to a “significant spike in bunker fuel costs.” Global Grains merchandising was in line with the prior year, and higher volumes reflected an expanded grain handling footprint and large global grain crops. Neppl also noted that the prior-year comparison included corn milling that was divested in 2025.
In tropical oils and specialty ingredients, Neppl said higher results in Asia, Europe, and Global Oils merchandising were partially offset by lower results in North America.
During Q&A, Heckman added that Bunge has seen lower volumes from some food customers and that cocoa prices have come down. He said the company’s cocoa butter equivalent business is seeing margins “definitely down” versus prior dynamics, and that geopolitical and tariff uncertainty has left food customers “shorter bought,” which he said can pressure margins.
Guidance raised as biofuels tailwinds and Q1 strength reshape outlook
Based on first-quarter performance and forward curves, Bunge raised its full-year 2026 adjusted EPS guidance range to $9.00 to $9.50, up from $7.50 to $8.00 provided on the fourth-quarter call. Heckman said the company’s diversified footprint and value chains help it adapt, even as macro and geopolitical conditions remain uncertain.
Neppl said the updated full-year view reflects higher expected results in soybean and softseed processing and refining, while tropical oils and specialty ingredients and grain merchandising and milling are expected to be lower versus the prior outlook. Corporate and other results are expected to be in line.
Additional 2026 outlook items provided by Neppl included:
- Adjusted effective tax rate: 22% to 26% (down slightly from prior 23% to 27%).
- Net interest expense: $620 million to $660 million (up from $575 million to $625 million), driven primarily by higher short-term debt levels supporting increased working capital.
- Capital expenditures: $1.5 billion to $1.7 billion.
- Depreciation and amortization: approximately $975 million.
Asked about earnings cadence, Neppl said the company now expects a 40%/60% split between the first and second half of 2026, compared with its prior view of 30%/70%. Within the second half, Neppl said Bunge expects a roughly 45%/55% split between the third and fourth quarters.
Biofuels policy and renewable feedstocks featured prominently
Heckman highlighted biofuels as a “bright spot” in U.S. agriculture and praised the EPA’s recent renewable volume obligation (RVO) decisions, saying the agency set volumes that support investments by fuel producers, oilseed processors, and farmers. In response to an analyst question about renewable diesel and biodiesel dynamics, Heckman said the market has benefited from greater clarity around the U.S. RVO and also from policy evolution in Brazil, Indonesia, and Europe toward greater use of biofuels and renewable feedstocks.
Heckman added that higher crude and diesel prices are supportive for renewable diesel and biodiesel blending economics, though he cautioned that forward curves are “heavily inverted,” reflecting uncertainty in timing and liquidity. “The supply is there, the stocks are there and we’re here to supply the vegetable oils that are needed,” he said.
On soybean oil inventories, Heckman said stocks built after the delayed RVO but should begin to draw down through the year, particularly in the third and fourth quarters. He added that the pace will depend in part on biofuels policy globally, including Indonesia, Brazil, and Europe.
Cash flow, liquidity, and Viterra integration update
Bunge generated $530 million of adjusted funds from operations in the quarter, Neppl said. After $95 million of sustaining capital expenditures, Bunge had $435 million of discretionary cash flow. The company paid $136 million in dividends, invested about $240 million in growth and productivity-related capex, and spent $105 million to acquire IFF’s soy protein concentrate and processing businesses, resulting in a net use of $47 million.
Neppl said Bunge ended the quarter with readily marketable inventories exceeding net debt by about $400 million, and an adjusted leverage ratio of 1.6x, down from 1.9x at the end of 2025. He also said liquidity remained strong, with approximately $9.7 billion in committed credit facilities unused and nearly all of the company’s $3 billion commercial paper program unutilized.
Heckman emphasized the strategic benefits of the Viterra integration, saying Bunge now has an “unmatched global footprint.” He added that Viterra cost synergies are “running ahead of plan” and that the company has identified “significant network and commercial opportunities.”
About Bunge Global NYSE: BG
Bunge Global is a leading agribusiness and food company that processes oilseeds and grains, produces sugar and bioenergy, and supplies fertilizers and other agricultural inputs. The company operates an integrated value chain that spans origination, processing, and distribution, enabling it to serve food processors, livestock producers, and retail customers worldwide. Through its network of processing plants, port terminals and logistics assets, Bunge handles a diverse portfolio of commodities, including soybeans, corn, wheat, vegetable oils, and sugarcane.
The company's core business activities are organized into agribusiness and food & ingredients segments.
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