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Bunge Global (BG) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Consumer Staples· Apr 29, 2026

Source: earnings call transcript

Executive summary

Bunge Global Q1 FY26 — Strong Q1 Performance Drives Full-Year EPS Guidance Raise

Bunge delivered a strong first quarter, significantly exceeding expectations, primarily driven by its soybean and softseed processing and refining segments. This performance, coupled with the benefits of the Viterra integration, led to a substantial increase in full-year adjusted EPS guidance. The company navigates a dynamic and uncertain global environment, marked by geopolitical tensions and inverted forward curves, leveraging its diversified footprint and operational agility.

Highlights

5

  • Adjusted EPS of $1.83 in Q1 FY26, exceeding expectations and up from $1.81 in prior year.

  • Full-year adjusted EPS guidance raised to $9.00-$9.50, up from $7.50-$8.00.

  • Soybean Processing and Refining segment results were higher, driven by strong performance in South America and North America.

  • Softseed Processing and Refining segment results were higher across all regions, reflecting increased production capacity and expanded origination footprint.

  • Viterra cost synergies are running ahead of plan, with significant network and commercial opportunities identified.

Concerns

5

  • Grain Merchandising and Milling segment results were lower due to ocean freight impacts from significant spike in bunker fuel costs.

  • Tropical Oils and Specialty Ingredients segment results expected to be lower due to lower food customer volumes, reduced cocoa butter equivalent margins, and geopolitical/tariff uncertainty.

  • Net interest expense guidance raised to $620M-$660M, up from $575M-$625M, due to higher short-term debt and working capital.

  • Middle East conflict has meaningfully disrupted global trade flows, logistics costs, and supply chains.

  • Forward curves are heavily inverted, reflecting uncertainty and lack of liquidity, particularly in the second half of the year.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Adjusted EPS
$9.00-$9.50
high materiality
High
Full-year 2026 Adjusted Annual Effective Tax Rate
22%-26%
medium materiality
Medium
Full-year 2026 Net Interest Expense
$620M-$660M
medium materiality
Medium
Full-year 2026 Capital Expenditures
$1.5B-$1.7B
medium materiality
Medium
Full-year 2026 Depreciation and Amortization
approximately $975M
medium materiality
Medium
Full-year 2026 Adjusted EPS Cadence
40% H1 / 60% H2
medium materiality
Medium
Q3 vs Q4 2026 Adjusted EPS Cadence
45% Q3 / 55% Q4
low materiality
Medium
Viterra Buyback Completion
$250M
medium materiality
High

Deals & partnerships

IFF Acquisition of IFF's soy protein concentrate and processing businesses.

This transaction complements Bunge's existing protein portfolio and expands the company's lecithin and offerings, reinforcing its commitment to providing a diverse and reliable range of ingredient solutions to food customers. Announced closing in March.

Risks & headwinds

Middle East Conflict Impact ongoing

meaningfully disrupted global trade flows, logistics costs and supply chains

Mitigation:taking prudent operational steps to support continuity of supply, maintaining flexibility in shipping, leveraging global capabilities

Uncertain Duration of Middle East Conflict next growing season

impact on farmer inputs (fertilizer), fuel prices, mix of crops planted

Inverted Forward Curves balance of the year

heavily inverted

Lower Volumes in Tropical Oils and Specialty Ingredients Q1 FY26, expected to continue into Q2 FY26

lower volumes overall

Cocoa Price Impact on CBE Margins Q1 FY26

margins definitely down

Geopolitical and Tariff Uncertainty ongoing

shorter bought customers

Ocean Freight Costs Q1 FY26

significant spike in bunker fuel costs

Higher Interest Costs Q2 FY26 onwards

up from previous range

Mitigation:monitoring leverage ratio

Elevated Leverage Ratio (Moody's) end of FY26

a little elevated

Mitigation:monitoring to reach target by year-end

El Nino Development later in the year

increasing concern about El Nino developing

China-U.S. Trade Uncertainty ongoing

yet to play out

Softseed Crops in Europe prior 2 years

2 tough softseed crops the last 2 years

Mitigation:waiting for new crop improvement

What to watch in Q2 FY26

Soy Oil Inventory Drawdown

Q3 FY26 and Q4 FY26
Current stocks built up
Target start to draw down

Why it matters

Indicates the impact of RVO clarity and global biofuel policies on feedstock availability and pricing.

I think you're right. We'll now see those start to draw down as we move through the year and move into Q3 and especially Q4.

Find out whether BG delivers this. Inve re-checks your case every morning.

Q&A highlights

How are the dynamics in the renewable diesel and biodiesel market, especially with increased capacity and feedstock demand, impacting Bunge?

Management confirmed a strong environment for biofuels, driven by RVO clarity in the U.S., evolving policies in Brazil, Indonesia, and Europe, and higher crude/diesel prices. This drives value back to the farm gate and supports crop production, despite inverted forward curves.

“So it is a good environment, although the forward curves are heavily inverted and that continues to show kind of some of the uncertainty or the speed that it will play out. But the supplies there, the stocks are there, and we're here to supply the vegetable oils that are needed.”

asked by Manav Gupta · answered by Gregory Heckman

2 min read 6 chapters

Detailed narrative

Dynamic Operating Environment and Geopolitical Impact

The first quarter of 2026 presented a rapidly changing operating environment, with the Middle East conflict significantly disrupting global trade flows, logistics costs, and supply chains. Bunge has taken prudent operational steps to maintain flexibility in shipping and leverage its global capabilities to ensure continuity of supply for customers. The company emphasizes its business model is designed for complexity and change, allowing it to perform through cycles.

Biofuels and Renewable Feedstocks

Biofuels are highlighted as a bright spot, particularly in the U.S., with the EPA's RVO decision supporting investments in the sector. Globally, there's a macro shift towards utilizing more biofuels, driven by fuel security and higher crude/diesel prices. This environment supports demand for renewable feedstocks and sends positive signals to farmers for crop mix and production, despite inverted forward curves.

Viterra Integration and Strategic Positioning

The integration of Viterra is progressing well, with cost synergies running ahead of plan and significant network and commercial opportunities identified. The combined entity boasts an unmatched global footprint and capabilities, making Bunge a more diversified business across geographies, origination, processing, and crops. This enhanced platform helps mitigate risk and brings balance to the processing footprint, positioning the company for value creation in any environment.

South America Crush Dynamics and Origination

South America, particularly Argentina, showed stronger-than-expected processing results in Q1, driven by Bunge's expanded footprint and capabilities post-Viterra integration. The combined company is now the largest agricultural business in Argentina. Farmer selling in both Argentina and Brazil responded to flat price rallies in Q1, though it slowed in Q2. The region benefits from good bean crops and a strong sunseed business in Argentina, providing seasonal offset and year-round supply.

Inverted Forward Curves and Market Visibility

Forward curves across various segments, including soy and softseed, are heavily inverted, reflecting significant uncertainty and a lack of liquidity. This is attributed to farmers and end consumers not engaging further out on the curve. Key factors contributing to this limited visibility include the duration of the Middle East conflict, northern hemisphere crop development, potential El Nino effects, and uncertainties in China-U.S. trade flows.

Capital Allocation and Leverage

Bunge generated $530 million in adjusted funds from operations in Q1, with $435 million in discretionary cash flow after sustaining CapEx. The company paid $136 million in dividends, invested $240 million in growth/productivity CapEx, and $105 million in the IFF soy protein acquisition. The adjusted leverage ratio stood at 1.6x, down from 1.9x at year-end 2025, with readily marketable inventories exceeding net debt by $400 million. The company aims to finish the $250 million Viterra buyback by year-end.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.