Bunge raises 2026 outlook to $9.75 as Viterra synergies accelerate

Bunge Global SA reported second-quarter adjusted earnings that topped estimates and raised its full-year 2026 profit forecast, citing stronger soybean and softseed processing margins and early benefits from its Viterra combination.

"The results reflect the strength of our larger global platform," Chief Executive Officer Greg Heckman said. "Our integrated platform, disciplined risk management, and operational excellence are designed to keep supply moving to meet demand regardless of how conditions shift."

Adjusted earnings per share rose to $2.00 from $1.31 a year earlier, beating the $1.95 consensus estimate. Adjusted segment EBIT more than doubled to $796 million from $373 million, driven by improved soybean and softseed operations across the Americas and Europe. Revenue jumped 88% to $24.04 billion, powered by the completed Viterra acquisition, topping the $22.35 billion consensus.

The company now expects full-year 2026 adjusted EPS of $9.25 to $9.75, up from its prior range of $9.00 to $9.50. The guidance raise signals management expects processing margins to remain favorable as US soybean crush benefits from clearer Renewable Volume Obligation policy and steady demand for both meal and oil.

Viterra Integration Accelerates

Heckman said the Viterra combination has broadened Bunge's origination network, asset base, and ability to serve customers across major producing and consuming regions. The company raised its cost-synergy target to $350 million from $250 million and said the program is running ahead of plan.

Bunge completed the $2 billion share-repurchase commitment tied to the Viterra transaction. During the year to date, the company repurchased about $250 million of shares, paid $275 million in dividends, and spent $541 million on growth and productivity capital expenditures.

Chief Financial Officer John Neppl said the stronger combined credit profile has allowed Bunge to borrow at its tightest credit spreads in company history, which could provide an advantage in funding merchandising activity. Adjusted leverage stood at 1.9 times EBITDA, with about $8.8 billion available under committed credit facilities.

Segment Performance and Outlook

Soybean processing and refining results improved primarily because of stronger North and South American value chains. US processing performance improved, while Argentina and Brazil processing also strengthened. Softseed processing and refining results rose across all regions amid a more favorable market environment and higher production capacity in Argentina, Canada, and Europe.

For 2026, Bunge expects higher soybean processing and refining results than previously forecast, slightly higher softseed processing and refining results, and unchanged tropical oils and specialty ingredients performance. Grain merchandising and milling results are expected to be lower, with the business affected by ample global grain supplies and uncertainty surrounding Black Sea exports and Chinese import activity.

The company maintained its 2026 capital expenditure outlook of $1.5 billion to $1.7 billion, with spending trending toward the high end because of project-completion timing. A new barge unloader at Destrehan, Louisiana, is expected to begin operating in August, and a multi-seed processing plant at the same site should come online near the end of the third quarter. The Westhaven specialty and refined oils project in the Netherlands remains on track for completion by the end of the first quarter of 2027.

Heckman said Bunge is advancing renewable-fuel partnerships in Brazil, including agreements to supply certified soybean oil feedstock for sustainable aviation fuel and renewable diesel production. The company sees continued long-term demand support from population growth, rising incomes, and growing biodiesel blend rates.

The guidance raise signals that management expects processing margins to hold as Viterra integration benefits compound. Investors will watch the pace of cost-synergy realization and the ramp-up of Bunge's new processing capacity in the second half of 2026.

This article is for informational purposes only and does not constitute investment advice.