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    Earnings call· Mar 2026(Q1 FY26)

    Bunge Global SA Q1 FY26 earnings call BG

    Apr 29, 2026 Source

    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

    8
    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

    Operational metrics

    33
    Adjusted EPS
    $1.83vs $1.81 Q1 FY25
    Q1 FY26

    Reported adjusted EPS for the quarter.

    Reported EPS
    $0.35vs $1.48 Q1 FY25
    Q1 FY26

    Reported EPS including specific unfavorable impacts.

    Adjusted Segment EBIT
    $661Mvs $406M Q1 FY25
    Q1 FY26

    Adjusted segment earnings before interest and taxes.

    Corporate Expenses
    —
    Q1 FY26

    Increase in corporate expenses primarily driven by Viterra addition and timing impacts.

    Net Interest Expense
    $136Mup vs Q1 FY25
    Q1 FY26

    Net interest expense for the quarter.

    Adjusted Funds From Operations
    $530M
    Q1 FY26

    Generated in the first quarter.

    Sustaining CapEx
    $95M
    Q1 FY26

    Allocated for sustaining capital expenditures.

    Discretionary Cash Flow
    $435M
    Q1 FY26

    Available after sustaining CapEx.

    Dividends Paid
    $136M
    Q1 FY26

    Paid in the first quarter.

    Growth and Productivity CapEx
    $240M
    Q1 FY26

    Invested in growth and productivity related capital expenditures.

    Net Use of Cash
    $47M
    Q1 FY26

    Resulted from capital allocation activities.

    Readily Marketable Inventories (RMI) vs Net Debt
    $400M
    Q1 FY26

    At quarter end, RMI exceeded net debt.

    Adjusted Leverage Ratio
    1.6xvs 1.9x end of 2025
    Q1 FY26

    Leverage ratio at the end of the first quarter.

    Committed Credit Facilities
    $9.7B
    Q1 FY26

    Liquidity position at quarter end.

    Commercial Paper Program
    $3B
    Q1 FY26

    Providing ample liquidity.

    Adjusted ROIC
    8%
    TTM

    Adjusted Return on Invested Capital for the trailing 12 months.

    ROIC
    6.7%
    TTM

    Return on Invested Capital for the trailing 12 months.

    Discretionary Cash Flow
    $1.35B
    TTM

    Produced for the trailing 12 months.

    Cash Return on Equity
    9.1%vs cost of equity 7.2%
    TTM

    For the trailing 12 months, compared to cost of equity.

    Viterra Cost Synergies
    running ahead of plan
    Q1 FY26

    Cost synergies from Viterra integration are progressing better than expected.

    Ocean Freight Impact
    —
    Q1 FY26

    Impacted results in the Grain Merchandising and Milling segment.

    Tax Rate
    unusually low
    Q1 FY26

    Q1 tax rate was lower than expected due to timing, expected to normalize.

    Interest Costs
    higher
    Q2 FY26 onwards

    Expected to increase from Q2 due to anticipated working capital needs.

    Soybean Processed Volumes
    higher
    Q1 FY26

    Increased volumes in key regions.

    Soybean Origination Footprint
    expanded
    Q1 FY26

    Reflected in higher merchandise volumes.

    Softseed Processed Volumes
    higher
    Q1 FY26

    Increased volumes in key regions.

    Softseed Origination Footprint
    expanded
    Q1 FY26

    Reflected in higher merchandise volumes.

    Meal Demand
    surprised to the upsidemonth after month
    ongoing

    Global meal demand continues to be strong.

    Oilseed Merchandising Results
    strong
    Q1 FY26

    Contributed to strong performance in processing segments.

    Cocoa Prices
    come off
    recent

    Impacted cocoa butter equivalent business margins.

    Cocoa Butter Equivalent Business Margins
    down
    Q1 FY26

    Despite volumes still being okay, margins are lower.

    Food Customer Volumes
    lower
    Q1 FY26

    Contributed to lower results in the Tropical Oils segment.

    Soy Oil Inventories
    start to draw down
    Q3 FY26 and Q4 FY26

    Expected to decrease after building up due to delayed RVO.

    Industry KPIs

    2
    MetricValueDetails
    Adjusted EPS operating income$1.83USD/share
    Elasticity consumer response commentaryconsumer favoring a lot of animal protein

    Deals & partnerships

    1
    IFFAcquisition 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

    12
    Middle East Conflict Impactongoing

    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 Conflictnext growing season

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

    Inverted Forward Curvesbalance of the year

    heavily inverted

    Lower Volumes in Tropical Oils and Specialty IngredientsQ1 FY26, expected to continue into Q2 FY26

    lower volumes overall

    Cocoa Price Impact on CBE MarginsQ1 FY26

    margins definitely down

    Geopolitical and Tariff Uncertaintyongoing

    shorter bought customers

    Ocean Freight CostsQ1 FY26

    significant spike in bunker fuel costs

    Higher Interest CostsQ2 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 Developmentlater in the year

    increasing concern about El Nino developing

    China-U.S. Trade Uncertaintyongoing

    yet to play out

    Softseed Crops in Europeprior 2 years

    2 tough softseed crops the last 2 years

    Mitigation: waiting for new crop improvement

    What to watch in Q2 FY26

    5

    Soy Oil Inventory Drawdown

    Q3 FY26 and Q4 FY26
    Currentstocks built up
    Targetstart 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.