Bunge Global S.A. (BG) Earnings

Management highlights

- **Strategic Resilience and Diversification** * Bungie's diversified integrated global platform across crops and geographies delivered strong results in a dynamic, volatile operating environment marked by geopolitical tension, shifting trade flows, and changing weather patterns * The business is structured to perform through market cycles, with disciplined risk management and operational excellence that enable it to serve customers amid changing conditions * Long-term demand drivers remain strong: population and income growth support sustained grain and oilseed demand, and palm supply growth slowdown is expected to make soy and soft seed oils account for half of global vegetable oil production growth over the next decade - **VITERA Integration Progress** * VITERA cost synergies are running ahead of plan, with the target increased from $250 million to $350 million * Network and commercial synergies are progressing as the combined team optimizes the global footprint, expands direct farmer origination and customer distribution, and leverages the full product portfolio to deepen customer relationships * The $2 billion share repurchase program tied to the VITERA transaction has been completed - **Capital Allocation and Balance Sheet Health** * Year-to-date adjusted funds from operation totaled $1.3 billion, with $238 million allocated to sustaining CapEx, leaving $1.1 billion in discretionary cash flow. The company paid $275 million in dividends, invested $541 million in growth/ productivity CapEx, acquired IFF's Soybean Processing Concentrate Business for $105 million, and repurchased $250 million in shares * At quarter-end, the adjusted leverage ratio was 1.9x, with ample liquidity: $8.8 billion of unused committed credit facilities and $2.4 billion of available commercial paper capacity * Trailing 12-month adjusted ROIC was 8.4%, exceeding the cost of capital, and trailing 12-month cash return on equity was 10.8% (above the 7.2% cost of equity) - **Operational and Strategic Projects** * The Destrehan, Louisiana multi-seed processing plant and new barge unloader are in final commissioning and expected to be operational in Q3 2026; the plant is designed to process cover crops for renewable fuel feedstock * The Morristown SPC plant is now operational (still ramping to full capacity), and the Avondale, Louisiana tropical oils refinery expansion will come online in Q3 2026 * The Weston, Netherlands specialty and refined oil plant remains on track for startup in Q1 2027 * New strategic supply agreements for renewable fuel feedstock have been signed in Brazil with Acelin, Petrobras, and Vibra, expanding Bungie's participation in the growing sustainable aviation fuel (SAF) and renewable diesel value chain

Guidance

- Full year 2026 adjusted EPS guidance is raised to $9.25–$9.75, up from the prior guidance range of $9.00–$9.50 - Full year segment forecast revisions: Soybean processing and refining results are expected to be higher than previously forecast, soft seed processing and refining results are expected to be slightly higher, tropical oils and specialty ingredients results are expected to be unchanged, and grain merchandising and milling results are expected to be lower than prior forecast; corporate and other results are expected to be unchanged - The adjusted annual effective tax rate is forecast to remain 22–26%, interest expense is expected to remain $620–$660 million, full year CapEx is expected to remain $1.5–$1.7 billion, and depreciation and amortization is expected to remain approximately $975 million, all unchanged from prior guidance - Capital expenditures are currently tracking closer to the higher end of the $1.5–$1.7 billion range due to project timing and contracting - The expected Q3/Q4 2026 earnings split is a small shift to ~low 40% for Q3 and ~high 50% for Q4, from the prior 45%/55% split

Segment performance

Reported Q2 2026 EPS was $3.47 ($2.61 in Q2 2025), and adjusted EPS was $2.00 ($1.31 in Q2 2025). Adjusted segment EBIT for the quarter was $796 million, up from $373 million in the prior year. 1. **Soybean Processing and Refining**: Results rose year-over-year, driven by stronger performance across North and South American value chains (U.S. processing improvement, strong Argentine/Brazilian processing, stronger Asian processing that offset weaker European processing and distribution). Processing volumes increased across North America, South America, and Europe, with the largest gain from expanded Argentine production capacity. Global soybean oil merchandising results were lower year-over-year. 2. **Soft Seed Processing and Refining**: Results increased across all regions, driven by a favorable market environment and strong execution. North America and Argentina led the improvement, with stronger European processing offsetting lower refining and biodiesel performance. Higher processing volumes reflected expanded capacity in Argentina, Canada, and Europe, with higher merchandising volumes from an expanded origination footprint. Global soft seed oil merchandising results were slightly higher year-over-year. 3. **Tropical Oils and Specialty Ingredients**: Higher results in Europe and Asia were partially offset by lower results in North America. Global tropical oils merchandising results were slightly higher year-over-year. 4. **Grain Merchising and Milling**: Higher results from ocean freight, commercial services, global cotton, and wheat milling were partially offset by lower global grain merchandising and sugar results. Higher volumes reflect an expanded grain handling footprint; 2025 results included divested corn milling operations. Corporate expenses increased year-over-year primarily due to the addition of ITERA and timing of performance-based compensation.

Risks & headwinds

- Geopolitical tensions and ongoing conflict in the Black Sea have created significant uncertainty for global grain supply and demand, with ~25% of global wheat exports originating from the region, creating near-term volatility that can suppress volumes and margins - Limited fertilizer access (especially for phosphates) in South America could negatively impact crop yields for the upcoming 2026/2027 Safrina season in Brazil; persistent access issues in Argentina could also reduce farmer investment and lower long-term yields - Elevated macroeconomic and geopolitical uncertainty creates limited forward visibility, particularly for the second half of 2026, especially Q4 - A projected strong El Niño weather event could disrupt global crop production: it may harm Australian wheat production, delay Brazilian Safrina planting, and reduce palm output in Malaysia/Indonesia, while Bungie's balanced footprint is positioned to benefit from solving supply disruptions - There is market speculation over potential RVO (Renewable Volume Obligation) waivers for U.S. biofuel policy, which could reduce demand for oilseed feedstock

Analyst Q&A

• Q: How have VITERA assets benefited Bungie's performance in the current volatile environment? /

  A: The combined global footprint adds balance across all key origins and destinations, with expanded direct farmer origination, an improved information network for decision-making, and greater internal liquidity and optionality to solve supply chain challenges. VITERA added Argentine soy crushing to balance Bungie's existing soy platform and Argentine sunflower crushing to balance European soft seed operations, and doubled the ocean freight fleet to improve reliability during disruptions. The combined company also has tighter credit spreads for borrowing, giving it a competitive edge in the current market.

• Q: What is the outlook for VITera synergy upside and the status of Bungie's major capital projects? /

  A: Cost synergy targets have already been raised from $250 million to $350 million, and progress remains on track to hit this target ahead of schedule. Upside commercial synergies come from optimizing the combined network over time, expanding direct customer and farmer relationships, and leveraging the full product portfolio (grains, oilseeds, wheat, soft seeds) to serve larger customer accounts and grow market share. Most major projects are on track to come online over the next three quarters: the Morristown SPC plant is operational and ramping, Avondale's tropical oils expansion will launch in Q3 2026, and the Netherlands Weston specialty plant will launch in Q1 2027.

• Q: Is the current elevated U.S. crush margin structure supported by underlying fundamentals, even excluding higher energy prices? /

  A: Yes, current margins are supported by strong fundamentals. The U.S. RVO policy provides clear demand visibility, and new crush capacity has been added to meet this growing renewable fuel feedstock demand. Global meal demand and corn demand remain strong, indicating solid underlying feed demand for animal protein production, with North America currently leading global crush growth.

• Q: What is the sustainability of strong soft seed segment performance, and what is the outlook for Argentine performance going forward? /

  A: Improved soft seed performance is durable: VITERA created a much more geographically balanced global soft seed footprint, allowing Bungie offset supply disruptions (such as the current tight sunseed supply from the Black Sea) with Argentine production. Palm supply tightening and U.S. RVO demand also provide durable support for soft oil prices. Argentine farmer selling has normalized with a more stable economy, and the segment will continue to run the low-cost Argentine capacity at high utilization to balance global demand, with meal demand remaining consistently stronger than expected.