What Bunge Global (BG) Said on Its Q3 Earnings Call

Key Points

• Q3 adjusted EPS rose to $2.56 from $2.27 a year earlier, driven by improved soybean and softseed processing and early Viterra benefits. Bunge maintained its full-year adjusted EPS outlook of $9.25–$9.75.
• Bunge expects Viterra-related cost savings to exceed $200 million in 2026, with commercial and cost synergies each contributing roughly $0.50 per share in 2027. Newly commissioned facilities are also expected to add about $0.50 per share in 2027.
• The company generated more than $2 billion in adjusted funds from operations during the first nine months and ended Q3 with adjusted leverage of 1.9 times. Management expects elevated working-capital needs through year-end and early 2027 amid commodity, harvest, weather and trade uncertainties.

Bunge Global NYSE: BG reported third-quarter adjusted earnings per share of $2.56, up from $2.27 a year earlier, as improved soybean and softseed processing performance and early benefits from its Viterra combination helped offset a volatile agricultural trading environment.

Reported earnings per share were $1.64, compared with $0.86 in the prior-year quarter. Chief Financial Officer John Neppl said reported results included a $0.28-per-share unfavorable mark-to-market timing difference and $0.64 per share of unfavorable notable items. Those items included costs tied to the planned sale of two Brazilian sugarcane mills, charges related to the Ukraine-Russia conflict and Viterra integration expenses.

Adjusted segment earnings before interest and taxes rose to $997 million from $924 million a year earlier. The company maintained its full-year adjusted EPS outlook of $9.25 to $9.75.

Processing Results Improve, Though Conditions Remain Uneven

In soybean processing and refining, Bunge cited stronger North American processing results as the largest contributor to improvement, partly offset by lower refining results. South American performance benefited from stronger processing in Argentina and Brazil, though fertilizer and refining results declined in both countries.

European processing also improved, while lower origination results and weaker Asian processing partly offset those gains within the destination value chain. Global soybean-oil merchandising results were lower than last year. Soybean processing volumes declined in South America and Asia, increased in Europe and were roughly unchanged in the U.S.

Softseed processing and refining results improved across regions, led by North American processing and refining. European processing was strong, although refining and biodiesel results declined. Global distribution results fell, partly offset by stronger canola origination in Canada and Australia. Bunge said softseed processing volumes increased across all regions amid a more favorable margin environment.

Tropical oils and specialty ingredients results declined in North America, Europe and Asia. Neppl attributed the declines primarily to geopolitical trade disruptions affecting near-term margins, as well as commissioning, ramp-up and plant-transition costs in tropical oils and soy protein concentrate businesses.

Grain merchandising and milling saw higher global grain merchandising and commercial-services results, but those gains were more than offset by weaker ocean freight, sugar and wheat-milling results. The company said corporate expenses declined because of performance-based compensation and favorable foreign-exchange effects.

Viterra Combination and New Assets Move Toward Contribution

Chief Executive Officer Greg Heckman said the company is moving from integrating Viterra toward realizing cost, commercial and network opportunities from the combination. He said the expanded network gives Bunge more flexibility to redirect crop flows, manage physical constraints and connect supplies with demand across regions amid changing trade policies, weather and geopolitical tensions.

Neppl said Bunge expects to generate slightly more than $200 million in cost savings during 2026, above its prior expectation of $190 million. The company expects additional cost synergies to contribute about $0.50 per share in 2027 compared with 2026, along with roughly another $0.50 per share from commercial synergies.

Management pointed to several examples of commercial coordination, including using expanded origination capabilities to support soybean processing in North America, supplying Brazilian wheat mills from a broader Argentine and Australian sourcing network, and extending the Rosa Branca retail brand across a larger Brazilian footprint.

Bunge also said its multiyear investment cycle is reaching an inflection point. The company has commissioned its soy protein facility in Morristown, Indiana; a multi-seed processing facility in Destrehan, Louisiana, operated through a joint venture with Chevron; and a barge unloader at the same complex. A multi-oil refinery in Westzaan, Netherlands, remains the one major project expected to start up, with commissioning anticipated in the first quarter of 2027.

Neppl said the projects are not expected to make a meaningful earnings contribution in 2026 because of earlier startup and commissioning costs. However, Bunge expects about $0.50 per share of earnings improvement in 2027 from the new facilities and related growth capital projects.

Cash Flow, Leverage and Outlook

Through the first nine months, Bunge generated just over $2 billion in adjusted funds from operations. After $410 million of sustaining capital expenditures, it had approximately $1.6 billion of discretionary cash flow available.

• $414 million paid in dividends
• $753 million invested in growth and productivity capital expenditures
• $105 million spent on the acquisition of IFF soy protein concentrate and processing businesses
• About $250 million used for share repurchases

The company ended the quarter with net debt exceeding readily marketable inventories by $1.2 billion and an adjusted leverage ratio of 1.9 times. Bunge had about $8.5 billion available under committed credit facilities and approximately $900 million available under its commercial-paper program.

For 2026, Bunge now expects an adjusted effective tax rate of 23% to 25%, net interest expense of $640 million to $670 million and capital expenditures near the high end of its $1.5 billion to $1.7 billion range. Depreciation and amortization is expected to be approximately $975 million.

Management forecast slightly lower full-year soybean processing and refining results than its previous outlook, unchanged softseed results, lower tropical oils and specialty ingredients results, and higher grain merchandising and milling results. Neppl said the implied fourth-quarter pressure relative to the full-year outlook is largely attributable to higher interest costs from elevated working capital and a somewhat higher tax rate, while operating profit is expected to be broadly flat.

Heckman said Bunge expects elevated working-capital needs through year-end and early 2027, reflecting commodity prices, seasonal crop flows and inventory requirements. The company expects large Australian and Canadian harvests, uncertainty in Black Sea grain exports, weather conditions and U.S.-China trade developments to remain important factors for markets in the coming quarters.

About Bunge Global (NYSE:BG)

Bunge Global SA NYSE: BG is a global agribusiness and food company involved in sourcing, processing and distributing agricultural commodities. Its operations span the agricultural supply chain, connecting farmers with food, feed and fuel customers through a network of origination, storage, transportation and processing facilities.

The company processes oilseeds such as soybeans, canola and sunflower seeds into vegetable oils and protein meals used in cooking, packaged foods, animal feed and renewable fuels.

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