Bunge (BG) Q2 EPS Beats by 20%

Key Points

• Non-GAAP earnings per share of $1.31 in Q2 2025 beat estimates by $0.22 and GAAP revenue of $12,769 million in Q2 2025 exceeded expectations by $530 million.

• Year-over-year, adjusted EPS (non-GAAP) declined 24.3%, and adjusted total EBIT fell 27.8%.

• The company reaffirmed its full-year 2025 adjusted EPS guidance at $7.75, excluding impacts from the Viterra merger, which closed after quarter-end.

• These 10 stocks could mint the next wave of millionaires ›

Bunge Global (NYSE:BG), a global agribusiness and food company with its registered office in Geneva, Switzerland, and corporate headquarters in St. Louis, Missouri, reported its second quarter 2025 earnings on July 30, 2025. The key news from the release was that Non-GAAP earnings per share of $1.31 surpassed analyst expectations of $1.09, and GAAP revenue reached $12,769 million versus the expected $12,239 million. While Bunge outperformed Wall Street targets for both profit (non-GAAP EPS) and sales (GAAP revenue), adjusted (non-GAAP) results declined from the prior year’s levels, reflecting margin pressures and shifts across key business lines. The quarter included significant strategic moves such as the completion of the Viterra acquisition and the sale of the U.S. corn milling business, which marked continued portfolio realignment for the company.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Bunge Global’s Business Profile and Strategic Focus

Bunge Global operates as an integrated player in the farm-to-consumer value chain. Its core business includes the purchase, storage, processing, transport, and sale of agricultural commodities like oilseeds and grains. The company has well-balanced operations across North America, South America, Europe, and Asia-Pacific. Agribusiness activities supply its own downstream segments, such as Refined & Specialty Oils (edible and industrial oils used in food, feed, and fuels) and Milling (processing wheat and other grains into flour and baking products). Portfolio optimization remains a core focus, highlighted by the sale of its U.S. corn milling business and the transformative acquisition of Viterra.

Strategic priorities for the company include enhancing its global reach, expanding supply chain integration, and executing on sustainability commitments. Key factors to the company’s performance are efficient risk management in commodity flows, cost control, and adapting to evolving regulatory requirements, especially as market and policy conditions shift. Bunge’s ability to maintain flexibility across regions and crops is intended to support earnings consistency despite volatility in commodity markets.

Quarter Highlights: Financial and Operational Developments

The quarter saw Bunge Global complete its business combination with Viterra, adding significant global grain and oilseed storage, trading, and supply chain assets. The integration is in early stages, and management expects to provide combined guidance before the next earnings release. For this period, financial results exclude any contribution from Viterra, which closed after the quarter ended. In parallel, Bunge finalized the sale of its U.S. corn milling business, simplifying its structure to focus on core value chains—a transaction that delivered a notable one-time gain within Milling results.

Earnings for the quarter surpassed expectations, but Adjusted performance declined in several areas compared to the same quarter last year. GAAP revenue was $12,769 million—down 3.6% year-over-year—with volumes and profitability under pressure. Adjusted earnings per share dropped 24.3%, and Adjusted total earnings before interest and taxes (EBIT) fell 27.8% year-over-year as industry margins softened. Net income (GAAP) rose to $354 million from $70 million a year ago, boosted by non-operational items including gains from divestitures. Adjusted funds from operations (non-GAAP) for the first half of 2025 decreased to $693 million, compared to $895 million in the prior year.

Agribusiness remained the company’s largest segment but showed a reduction in volumes and profitability. Segment volumes fell 6.3% to 19,274 thousand metric tons, and Adjusted segment EBIT dropped 27.6% year-over-year. Performance was mixed by region—strength in South America and Asia was more than offset by drops in Europe and North America, and overall results declined despite processing outpacing initial forecasts.

The Refined & Specialty Oils segment, which produces and markets products for food, feed, and fuel—including edible oils and biofuel feedstocks—experienced lower results across all regions. Segment volumes for Refined & Specialty Oils fell 5.4% compared to Q2 2024. and Adjusted segment EBIT for Refined & Specialty Oils dropped 39.9%. Uncertainty in U.S. biofuels policy was cited as a key factor dampening customer activity and demand for biofuel-related products.

The Milling segment, now focused mainly on wheat milling in Brazil, saw volumes decrease 11.8% compared to Q2 2024, while Adjusted EBIT was steady versus last year’s quarter. Results benefited from a $155 million gain on the sale of the U.S. corn milling business. The removal of corn milling creates a smaller and more focused segment but reduces the operational diversification within the company’s overall milling portfolio.

However, working capital needs and increased capital spending caused substantial cash usage—GAAP cash from operations dropped to negative $1.36 billion for the first six months of 2025. Total debt climbed to roughly $11.3 billion by June 30, 2025, from $6.2 billion at the end of the prior year.

Sustainability initiatives remain a strategic priority, although this quarter’s release provided limited detail. Previously, the company achieved 100 % traceability in its Brazilian soy supply chains. It is investing in partnerships, such as a joint venture with Repsol for lower-carbon fuels, and is preparing for new European sustainability regulations. Compliance with global environmental and supply chain requirements is expected to remain a significant investment and operational focus.

Despite ongoing efforts to streamline operations, the company continues to face fierce competition from peers such as ADM, Cargill, and Wilmar.

Looking Forward: Guidance and Critical Areas to Watch

For fiscal 2025, company leadership reaffirmed its adjusted earnings per share outlook at approximately $7.75 for full-year 2025, with the forecast excluding both Viterra’s performance and the now-completed U.S. corn milling business divestiture. Management stated that full-year results for the Agribusiness segment are expected to be higher than previously forecast but still lower than last year due to tight margins, based on management's outlook for full-year 2025 as of Q2 2025. In Refined & Specialty Oils, full-year 2025 guidance has been revised downward versus previous outlooks, reflecting a weaker than expected Q2; in Milling, full-year results are expected to be in line with last year. Leadership did not update combined company guidance; an updated forecast including Viterra is expected before the next earnings report.

Investors are expected to monitor several factors in the coming quarters: safe and efficient integration of Viterra assets; progress against sustainability targets and regulatory compliance, particularly related to the European Union Deforestation Regulation and emissions standards; and improvements or stabilization in margins, especially in oils and biofuels. Ongoing portfolio reshaping and working capital management will be essential as the company seeks to balance short-term cash flow pressure with its growth and integration priorities.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,039%* — a market-crushing outperformance compared to 182% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of July 29, 2025

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.