Bunge Global Q4 Earnings Call Highlights

Key Points

• Bunge said the Viterra combination is increasing connectivity across the business and “unlocking synergies” across origination, merchandising, processing and distribution, with CFO guidance for about $190 million of realized cost synergies in 2026 (just over $70 million realized by end‑2025) and a run rate near $220 million by end‑2026; management will provide more detail at an Investor Day on March 10.
• Fourth‑quarter reported EPS was $0.49 versus $4.36 a year earlier—hit by a $0.55 mark‑to‑market timing impact and $0.95 of notable items—while adjusted EPS was $1.99 and adjusted segment EBIT rose to $756 million with all segments improving year‑over‑year.
• Bunge expects full‑year 2026 adjusted EPS of $7.50–$8.00 with a back‑half–weighted cadence (~30% H1 / 70% H2) and said visibility is limited due to U.S. biofuel/RVO uncertainty; the outlook assumes capex of $1.5–$1.7B, net interest of $575–$625M, and reflects strong liquidity (≈$9B unused committed credit) and net debt excluding inventories of about $700M (adjusted leverage ~1.9x).

Bunge Global NYSE: BG executives used the company’s fourth-quarter earnings call to emphasize integration progress following the Viterra combination, outline a capital allocation update, and provide an initial 2026 outlook that reflects what management described as limited forward visibility—particularly tied to U.S. biofuel policy.

Viterra integration and synergy commentary

CEO Greg Heckman said 2025 was a year of “execution, investment, and integration,” highlighted by completion of the Viterra combination. Heckman said the combination is increasing connectivity and information flow across the organization, which he described as central to Bunge’s operating model.

Heckman said the company is “unlocking synergies in origination, merchandising, processing, and distribution,” including optimizing flows between origin and destination and capturing margin through improved logistics and coordination. He offered an example of Viterra’s origination decision-making shifting from a purely merchandising lens to a more integrated view of the combined global platform.

CFO John Neppl provided specific synergy figures. He said Bunge expects about $190 million of realized cost synergies in 2026, which he said is ahead of schedule versus prior expectations laid out at the time of the proxy. Neppl also said the company had realized a little over $70 million of synergy by the end of 2025 and expects a run rate of around $220 million by the end of 2026. On commercial synergies, Neppl said there is line of sight to opportunities but quantification is more difficult; he characterized the amount baked into the forecast as “relatively modest.”

Management said it plans to provide more detail on synergy capture, capital allocation priorities, and a combined long-term outlook at an Investor Day on March 10.

Fourth-quarter results and notable items

Neppl said fourth-quarter reported EPS was $0.49, compared with $4.36 in the fourth quarter of 2024. Reported results included an “unfavorable mark-to-market timing difference” of $0.55 per share and an unfavorable impact of $0.95 per share from notable items. He said those notable items were primarily related to the settlement of the company’s U.S. defined benefit pension plan, Viterra transaction integration costs, and an impairment of a long-term investment.

Adjusted EPS was $1.99 for the quarter (including about $50 million of net tax benefits), compared with $2.13 in the prior-year quarter. Adjusted segment EBIT was $756 million, up from $546 million a year earlier, with Neppl saying all segments posted higher year-over-year results.

In segment discussion, Neppl said soybean processing and refining results were slightly higher, primarily driven by South America. He said the destination value chain saw lower processing results in Europe and origination in the Americas, partially offset by improved results in Asia, while North America results were lower in both processing and refining.

Softseed processing and refining results were higher, which Neppl attributed to better average processing margins and the addition of Viterra softseed assets and capabilities. Other oilseeds processing and refining improved on stronger specialty oils performance in Asia and North America, along with higher global oils merchandising activity. Grain merchandising and milling results increased, driven by global wheat and barley and wheat milling, partially offset by lower results in global corn and ocean freight; Neppl noted the prior-year period included corn milling, which was divested in the second quarter of 2025.

Cash flow, leverage, and liquidity update

For the full year, Neppl said Bunge generated just over $1.7 billion of adjusted funds from operations. After $485 million of sustaining capex, he said the company had approximately $1.25 billion of discretionary cash flow available.

Neppl detailed uses of cash, including $459 million in dividends, about $1.2 billion in growth and productivity capex, and $551 million of share repurchases for 6.7 million shares. He also said the company received approximately $1.2 billion of proceeds from the sale of various assets and businesses, resulting in $1.173 billion of retained cash flow.

At year-end, net debt excluding readily marketable inventories was about $700 million. Neppl said adjusted leverage was 1.9x at the end of the fourth quarter. On liquidity, he said Bunge had committed credit facilities of about $9.7 billion, with approximately $9 billion unused and available.

When asked about the sharp reduction in buybacks from the third quarter to the fourth quarter, management said the company “stepped in the market to get a majority of it done,” had not completed the program, and intends to “wrap that up” soon. Management also said it expects to discuss returning capital to shareholders in more detail at Investor Day.

2026 outlook: adjusted EPS range and cadence

Heckman said Bunge expects full-year 2026 adjusted EPS of $7.50 to $8.00. Neppl said the forecast is based on the “current margin and macro environment of forward curves,” while management emphasized uncertainty tied to U.S. biofuel policy and the Renewable Volume Obligation (RVO). Neppl added that the company believes forward curves do not properly reflect the opportunities that could develop once policy is finalized.

Additional 2026 outlook items provided by Neppl included:

• Adjusted effective tax rate: 23% to 27%
• Net interest expense: $575 million to $625 million
• Capital expenditures: $1.5 billion to $1.7 billion
• Depreciation and amortization: approximately $975 million

On earnings cadence, management said it expects 2026 to be more back-half weighted than typical, with a rough split of 30% in the first half and 70% in the second half. For the first half, management described a 35%/65% split between the first and second quarters, and characterized the first quarter as “really light,” citing uncertainty and spot behavior from both farmers and customers.

In Q&A, management discussed watching developments tied to biofuel policy, soybean oil stocks in the U.S., and global meal demand, which management said has been steady. Executives also said they have not baked anything meaningful into 2026 guidance related to sustainable aviation fuel (SAF) and expect any developments there to represent upside if they materialize during the year.

Capex projects and timing of returns

Addressing growth investment and returns, Neppl said spending on four “mega projects” is expected to drop by about $350 million in 2026 as projects approach completion. He said Bunge has not modeled “much, if any” contribution from those projects in 2026, with a larger contribution expected in 2027 as assets ramp up.

He cited the Morristown plant as being in commissioning with qualification work for food customers expected to limit meaningful 2026 contribution, and said the Destrehan barge unloading and crush plant expansion (in a joint venture with Chevron) is expected to come online midyear, with more impact in 2027. Neppl also said the Westzaan plant in the Netherlands would be largely up in early 2027.

Closing the call, Heckman said the combined company has greater reach across origins and destinations and more optionality to serve customers and manage risk. Management reiterated it plans to provide additional detail at its March 10 Investor Day.

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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