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    Earnings call· Jun 2026(Q2 FY26)

    Bunge Global SA Q2 FY26 earnings call BG

    Jul 29, 2026 Source

    Executive summary

    Bunge Global Q2 FY26 — Strong Diversified Performance and Raised EPS Guidance

    Bunge delivered a strong Q2 FY26, benefiting from its diversified global platform and the early integration of Viterra assets, which helped navigate a complex operating environment. The company raised its full-year adjusted EPS guidance, reflecting confidence in its ability to execute through market volatility and capture opportunities. Strategic capital projects are progressing, and new partnerships are strengthening its position in renewable fuels, aligning with long-term demand drivers for grain and oilseed products.

    Highlights

    5

    • Adjusted EPS increased to $2.00 in Q2 FY26 from $1.31 in Q2 FY25.

    • Adjusted segment EBIT rose to $796 million in Q2 FY26 from $373 million in Q2 FY25.

    • Full-year 2026 adjusted EPS guidance was raised to $9.25-$9.75 from $9.00-$9.50.

    • Viterra cost synergies are running ahead of plan, contributing to improved performance.

    • Completed the $2 billion share repurchase program related to the Viterra transaction.

    Concerns

    4

    • Grain Merchandising and Milling segment results are forecasted to be lower for the full year 2026.

    • Net debt exceeded readily marketable inventory (RMI) by $1 billion at quarter end.

    • The merchandising environment remains challenging due to ample grain supplies and a balanced supply and demand outlook.

    • Geopolitical tensions, particularly in the Black Sea and Middle East, are creating uncertainty and leading to short-bought customers.

    Guidance & targets

    11
    CategoryTargetConfidence
    Full-year 2026 Adjusted EPS
    $9.25 to $9.75
    high materiality
    High
    Soybean Processing and Refining segment results
    higher
    medium materiality
    High
    Softseed Processing and Refining segment results
    slightly higher
    medium materiality
    High
    Tropical Oils and Specialty Ingredients results
    unchanged
    medium materiality
    High
    Grain Merchandising and Milling segment results
    lower
    medium materiality
    High
    Corporate and other results
    unchanged
    low materiality
    High
    Adjusted annual effective tax rate
    22% to 26%
    medium materiality
    High
    Interest expense
    $620 million to $660 million
    medium materiality
    High
    Capital expenditures
    $1.5 billion to $1.7 billion
    high materiality
    High
    Depreciation and amortization
    approximately $975 million
    medium materiality
    High
    Second half EPS split
    low 40s in Q3, high 50s in Q4
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Soybean Processing and Refining
    Higher results primarily driven by North and South American value chains. In North America, stronger processing performance in the U.S. was partially offset by lower refining results. In South America, high results reflect improvements in Argentina processing/refining and Brazil processing. Stronger processing results in Asia more than offset lower processing in Europe and lower distribution performance. Global soybean oil merchandising activities were lower. Processing volumes increased in South and North America, and Europe, with the largest increase from greater production capacity in Argentina. Higher merchandise volumes reflected the combined company's expanded soybean origination footprint.
    		———Higher results
    Softseed Processing and Refining
    Results increased across all regions, reflecting a more favorable market environment and strong execution. In North America and Argentina, stronger processing results were the primary drivers, while refining results were modestly higher. In Europe, stronger processing results more than offset lower refining and biodiesel performance. Global softseed oils merchandising activities were slightly higher. Higher softseed process volumes primarily reflected increased production capacity in Argentina, Canada, and Europe. Higher merchandise volumes were driven by the expanded global softseed origination footprint.
    		———Increased results
    Tropical Oils and Specialty Ingredients
    Higher results in Europe and Asia were partially offset by lower results in North America. Results from global tropical oils merchandising activities were slightly higher than last year.
    		———Higher results

    Operational metrics

    26
    Reported EPS
    $3.47vs $2.61 in Q2 FY25
    Q2 FY26

    Includes favorable mark-to-market timing difference and unfavorable Viterra transaction costs.

    Mark-to-market timing difference
    $1.67
    Q2 FY26

    Impact on reported EPS.

    Viterra transaction and integration costs
    $0.20
    Q2 FY26

    Impact on reported EPS.

    Adjusted segment EBIT
    $796 millionvs $373 million last year
    Q2 FY26

    Segment earnings before interest and taxes.

    Net interest expense
    $154 millionup compared to last year
    Q2 FY26

    Reflecting expanded footprint and merchandising activities with Viterra, partially offset by lower average net interest rates.

    Adjusted funds from operations
    $1.3 billion
    YTD FY26

    Year-to-date generation.

    Sustaining CapEx
    $238 million
    YTD FY26

    Year-to-date allocation.

    Discretionary cash flow available
    $1.1 billion
    YTD FY26

    After allocating sustaining CapEx.

    Dividends paid to shareholders
    $275 million
    YTD FY26

    Year-to-date.

    Growth and productivity related CapEx
    $541 million
    YTD FY26

    Year-to-date investment.

    Share repurchases
    $250 million
    YTD FY26

    Year-to-date, completing the $2 billion commitment related to the Viterra transaction.

    Net use of cash
    $117 million
    YTD FY26

    Resulting from capital allocation activities.

    Net debt to RMI
    $1 billion
    Q2 FY26 end

    Net debt exceeded readily marketable inventory.

    Adjusted leverage ratio
    1.9x
    Q2 FY26 end

    At the end of the second quarter.

    Committed credit facilities
    $9.7 billion
    Q2 FY26 end

    Total committed credit facilities.

    Commercial paper program available
    $2.4 billion
    Q2 FY26 end

    Providing ample liquidity.

    Adjusted ROIC
    8.4%
    TTM

    Exceeding cost of capital.

    ROIC
    6.8%
    TTM

    Exceeding cost of capital.

    Adjusted ROIC (adjusted)
    9.3%
    TTM

    Adjusted for specific items.

    ROIC (adjusted)
    7.2%
    TTM

    Adjusted for specific items.

    Discretionary cash flow
    $1.7 billion
    TTM

    Trailing 12 months.

    Cash return on equity
    10.8%vs cost of equity of 7.2%
    TTM

    Trailing 12 months.

    Viterra cost synergy target
    $350 millionup from $250 million
    Annual

    Increased target, running ahead of plan.

    Share repurchase program
    $2 billion
    Total

    Related to the Viterra transaction.

    Second half EPS split
    low 40s
    Q3 FY26

    Expected percentage of full-year EPS in Q3.

    Second half EPS split
    high 50s
    Q4 FY26

    Expected percentage of full-year EPS in Q4.

    Industry KPIs

    2
    MetricValueDetails
    Adjusted EPS operating income$2.00USD/share
    Elasticity consumer response commentarymore short bought; switching to some lower-value products; moving back to innovation

    Deals & partnerships

    3
    [ sell-in Mabel's ] renewable energy companySupply agreement for certified soybean oil feedstock

    To provide certified soybean oil feedstock for production of SAF (Sustainable Aviation Fuel) and renewable diesel in Brazil.

    Petrobras and VibraPartnership to supply certified Low-LUC CORSIA Brazil feedstock

    To supply certified Low-LUC CORSIA Brazil feedstock for the production and commercialization of SAF.

    IFFAcquisition of IFF's soybean processing concentrate business$105 million

    Investment made in Q1 FY26 to acquire the business.

    Capital programs

    5
    Destrehan, Louisiana Crush Plantin final stages
    Funding: JV with Chevron

    Benefit: new multi-seed processing plant

    Expected to be operational in the coming months. Has the ability to process softseeds and other cover crops.

    Destrehan, Louisiana Barge Unloaderin final stages

    Benefit: new barge unloader and load out capability, doubled size of terminal

    Expected to be operational in the coming months.

    Morristown SPC Plantrunning

    Benefit: protein plant

    Now running, but not yet up to full scale; takes time for commissioning and customer qualification.

    Avondale Refining Expansionunderway

    Benefit: expanded refined tropical oils platform

    Expected to be up and running soon. The facility was at 100% capacity immediately after acquisition, and this expansion will allow it to run at 100% again.

    Weston Specialty and Refined Plant (Netherlands)underway

    Still slated for end of Q1 2027. Will start running at a meaningful rate in 2027. Already running some oil through the pipes.

    Risks & headwinds

    6
    Geopolitical tensions and market volatilityQ4 FY26 and beyond

    Limited forward visibility

    Mitigation: Diversified global platform, disciplined risk management, operational excellence, integrated value chains.

    Challenging merchandising environment

    Ample grain supplies, balanced S&D

    Mitigation: Leveraging expanded global footprint and capabilities to capture opportunities when available; expecting sequential improvement in Q3 and Q4.

    Black Sea conflict escalationshort term

    25% of global exports from Black Sea area

    Mitigation: Monitoring global wheat S&Ds; ability to service demand from other origins if Black Sea supply is limited.

    Lack of fertilizer access in South Americanext year (safrinha)

    Potential impact on safrinha yields

    Mitigation: Watching closely, especially for phosphates; monitoring farmer investment decisions in Argentina.

    El Nino weather patternmedium term (2027)

    Super El Nino probability growing

    Mitigation: Balanced footprint to solve market problems; potential for supply shock in palm production (Malaysia/Indonesia) to be filled by soft oils; Argentina expected to be a winner with good crops.

    Elevated energy costs

    Exacerbating crush margins

    Mitigation: Not explicitly stated, but implied by diversified operations and ability to pass on costs through pricing.

    What to watch in Q3 FY26

    5

    Destrehan Crush Plant operational status

    next quarter
    CurrentIn final stages of bringing online
    TargetOperational by end of Q3 FY26

    Why it matters

    This new multi-seed processing plant is a meaningful investment expected to contribute to processing capacity and diversification.

    At our Destrehan, Louisiana facility, we're in the final stages of bringing 2 meaningful investments online, a new barge unloader and a new multi-seed processing plant, both of which we expect to be operational in the coming months⏳.

    Q&A highlights

    7

    How are Viterra assets benefiting Bunge in the current environment, and can you provide examples?

    The expanded footprint across key origins and destinations, combined with the talented team, provides an enhanced information network and internal liquidity. Examples include balancing soy crushing with Argentina, increased softseed origination, and a doubled ocean freight fleet. Stronger credit profile post-merger also allows for cheaper borrowing.

    “the fact that we have the balance in all of the key origins and all of the key destinations and to touch more farmers directly than anyone else for origination is just key.”

    asked by Andrew Strelzik · answered by Gregory Heckman

    2 min read6 chapters

    Detailed Narrative

    01

    Viterra Integration & Diversification Benefits

    The expanded global platform, particularly with Viterra assets, is performing as designed, providing balance across key origins and destinations. This integration enhances Bunge's information network, decision-making capabilities, and internal liquidity, allowing it to better navigate market volatility🌐 and serve customers. The addition of Argentina significantly balanced the soy crushing operations, while increased origination and merchandising in softseeds, along with a doubled ocean freight fleet, provide greater optionality in physical flows.

    02

    Market Volatility & Customer Reliance

    The operating environment remains highly dynamic, shaped by geopolitical tensions, shifting trade flows, and changing weather patterns. This complexity is increasing customer reliance on Bunge to navigate risks and ensure supply chain continuity. The company emphasizes its integrated global platform, disciplined risk management, and operational excellence as key strengths for performing through the cycle, regardless of market conditions.

    03

    Strategic Capital Projects Update

    Bunge is advancing several key capital projects. At Destrehan, Louisiana, a new crush plant (JV with Chevron) is expected online by the end of Q3 2026, and a new barge unloader/load-out facility in August. The Morristown SPC plant is now running, undergoing commissioning. The Avondale refining expansion in the Gulf is expected to be operational within the next month. The large specialty and refined plant in Weston, Netherlands, is slated for completion by the end of Q1 2027.

    04

    Renewable Fuels & Sustainable Feedstocks

    The company is strengthening its position in the growing renewable fuels value chain through strategic partnerships. In Brazil, Bunge signed a supply agreement to provide certified soybean oil feedstock for SAF and renewable diesel production. Additionally, a partnership with Petrobras and Vibra will supply certified Low-LUC CORSIA Brazil feedstock for SAF commercialization, reinforcing Bunge's role as a trusted supplier of sustainable feedstocks.

    05

    Crush Margins & Underlying Fundamentals

    Management believes current U.S. crush margins are justified by strong underlying fundamentals, including clarity around the Renewable Volume Obligation (RVO) and robust global demand for meal and corn. While elevated energy markets contribute to volatility, the added crush capacity is seen as necessary to meet demand, supported by healthy animal protein economics. North America is currently leading global crush performance.

    06

    Merchandising Segment Challenges & Outlook

    The merchandising environment remains challenging due to ample grain supplies and a balanced supply and demand picture. Geopolitical risks, particularly the escalation of the Black Sea conflict, introduce significant uncertainty regarding global wheat supply and demand, potentially tightening wheat markets. Management anticipates sequential improvement in merchandising results in Q3 and a good increase in Q4, which is typically a strong quarter for the business.

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