Financial Data and Key Metrics Changes - The second quarter reported earnings per share (EPS) was $2.61 compared to $0.48 in the same quarter of 2024, reflecting a significant increase [13] - Adjusted EPS was $1.31 in the second quarter versus $1.73 in the prior year, indicating a decrease [14] - Adjusted segment earnings before interest and taxes (EBIT) was $376 million in the quarter compared to $519 million last year [14] - The company maintained its full-year adjusted EPS outlook of approximately $7.75 for the legacy standalone Bunge, excluding the second half earnings from the corn milling business due to its sale [12][22] Business Line Data and Key Metrics Changes - Processing results in South America, particularly Brazil and Argentina, were better than expected due to large soybean crops and farmer selling [11][15] - Fine and Specialty Oils were negatively impacted by uncertainty related to U.S. Biofuel policy, affecting performance across all regions [15] - Milling results improved in North America but were offset by lower results in South America [15] - Corporate expenses decreased primarily due to performance-based compensation [16] Market Data and Key Metrics Changes - Q2 margins in Brazil improved year over year, driven by a record bean crop, while margins in Argentina also showed improvement due to strong farmer selling [31] - In Europe, Q2 margins were good but down slightly from a strong prior year, with expectations of tougher conditions in the second half due to competing imports [33] - Q2 margins in China improved but were still slightly down from the prior year, with expectations for lower margins in the second half [33] Company Strategy and Development Direction - The completion of the combination with Viterra is seen as a pivotal moment, creating a premier agribusiness solutions company [5][10] - The company is focused on capturing cost savings and commercial opportunities post-merger, with a strong emphasis on integration planning [9][10] - The strategy includes ongoing portfolio optimization and leveraging synergies from the merger to enhance operational efficiencies [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong path ahead with the integration of Viterra and the potential for operational synergies [8][26] - The company is navigating a complex macro environment but believes its diversified asset base positions it well to capture value [24][25] - The outlook for 2025 includes expectations for improved processing results, particularly in Q4, driven by better crush margins [22][59] Other Important Information - The company generated $693 million of adjusted funds from operations year to date, with $560 million of discretionary cash flow available after capital expenditures [19] - The adjusted leverage ratio was 1.1 times at the end of the second quarter, indicating a strong liquidity position with $8.7 billion in committed credit facilities [20] - Following the merger with Viterra, S&P upgraded the company's credit rating to A minus, reflecting an improved business risk profile [20] Q&A Session Summary Question: Can you provide details on soy crush performance and outlook? - Management noted that Q2 outperformance was driven by rising vegetable oil values and lower bean costs, with expectations for improved margins in Q4 [30][31] Question: What is the outlook for the SREs and their impact? - Management expects a decision on SREs in August or September, with a belief that the administration understands their potential impact on RVO [35][36] Question: Can you clarify the combined company guidance including Viterra? - Management emphasized the strategic rationale for the merger and expressed confidence in the combined company's ability to navigate market challenges [42][45] Question: What is the outlook for the oil segment? - The oil segment was impacted by lower energy demand and uncertainty around biofuels policy, but management expects improvement in the second half [61] Question: How are the organic investments progressing? - Key projects like Morristown and Destrehan are on track, with commissioning expected in Q4 and early next year [64][66] Question: What is the outlook for the milling side in the U.S.? - Demand for soybean meal remains strong, supported by good economics in the animal protein segment, with North America enhancing export capabilities [70][71] Question: How does the company view the interplay between SBO and other seed oils? - Management sees opportunities in offering a full suite of seed oils to customers, adapting to market demands [86] Question: What are the implications of recent global trade developments? - Management noted that China's actions reflect a focus on food security and a shift towards new import options, indicating a dynamic global market [92][93]

Financial Data and Key Metrics Changes - The second quarter reported earnings per share (EPS) was $2.61 compared to $0.48 in the same quarter of 2024, reflecting a significant increase [13] - Adjusted EPS was $1.31 in the second quarter versus $1.73 in the prior year, indicating a decrease [14] - Adjusted segment earnings before interest and taxes (EBIT) was $376 million in the quarter compared to $519 million last year [14] - The company maintained its full-year adjusted EPS outlook of approximately $7.75 for the legacy standalone Bunge, excluding the second half earnings from the corn milling business due to its sale [12][23] Business Line Data and Key Metrics Changes - Processing results in South America, particularly Brazil and Argentina, were better than expected due to large soybean crops and farmer selling [11] - Fine and Specialty Oils were negatively impacted by uncertainty related to U.S. Biofuel policy [12] - In merchandising, improved performance in global grains and oils was offset by lower results in financial services and ocean freight businesses [15] - Milling results were higher in North America but lower in South America [15] Market Data and Key Metrics Changes - Q2 margins in Brazil improved year over year due to a record bean crop, while Argentina also saw better margins driven by strong farmer selling [32] - In Europe, Q2 margins were good but down slightly from a strong prior year, with expectations of tougher conditions in the second half due to competing imports [34] - In China, Q2 margins improved but were still slightly down from the prior year, with expectations for lower margins in the second half [34] Company Strategy and Development Direction - The completion of the combination with Viterra is seen as a pivotal moment, creating a premier agribusiness solutions company [5] - The company is focused on capturing cost savings and commercial opportunities post-merger, with a strong emphasis on integration planning [6][10] - The strategy includes ongoing portfolio optimization and leveraging a global approach to risk management [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential commercial synergies from the Viterra integration, highlighting the importance of a balanced global footprint [25][26] - The company is navigating a complex macro environment but believes it is well-positioned to serve customers across the value chain [25][26] - The outlook for the second half of the year includes expectations for improved processing margins, particularly in Q4, despite challenges in merchandising and specialty oils [58] Other Important Information - The company generated $693 million of adjusted funds from operations year to date, with $560 million of discretionary cash flow available after capital expenditures [17] - The adjusted leverage ratio was 1.1 times at the end of the second quarter, indicating a strong liquidity position [20] - Following the merger with Viterra, S&P upgraded the company's credit rating to A minus, reflecting an improved business risk profile [21] Q&A Session Summary Question: Soy crush performance and fundamentals outlook - Management noted that Q2 outperformance was driven by rising vegetable oil values and lower bean costs, with expectations for improved margins in Q4 [31][32] Question: Concerns about Viterra earnings base - Management acknowledged challenges during the transition but expressed confidence in the combined company's potential and the strategic rationale behind the merger [42][46] Question: Implications of U.S. crush margins on global markets - Management indicated that the combined company is well-positioned to adapt to changing market conditions and emphasized the importance of a balanced global footprint [52][53] Question: Shareholder returns and buyback plans - The company has $800 million remaining under its $2 billion buyback commitment and plans to execute on this soon [103][105] Question: Outlook for refining margins and competition - Management expects refining margins to moderate over time but believes domestic soybean oil will remain competitive due to supportive policies [76][82]

Core Viewpoint - Corteva (NYSE: CTVA) has been assigned a 'buy' rating due to its low commodity and raw material costs, leading to a stock price increase of over 30% since November 2024, significantly outperforming the S&P 500 Index [1] Group 1 - The stock price of Corteva has surged by more than 30% since the 'buy' rating was assigned [1] - The performance of Corteva has significantly outperformed the S&P 500 Index during the same period [1] - The positive outlook is attributed to the company's low commodity and raw material costs [1]