Key Takeaways Bunge Global posted Q3 adjusted EPS of $2.27, topping estimates but down 1% year over year.Viterra acquisition drove 71.6% sales growth and stronger performance across processing segments.Adjusted operating profit rose 54% to $757M as soybean and softseed volumes surged on added capacity.Bunge Global SA (BG) reported third-quarter 2025 adjusted earnings of $2.27 per share, which beat the Zacks Consensus Estimate of $2.23. The bottom line, however, marked a 1% year-over-year dip.Including one-t ...

Archer-Daniels-Midland Company (NYSE:ADM) shares edged higher on Tuesday after a third-quarter earnings beat, mixed segment results, and a lowered 2025 profit outlook.The premier agricultural origination and processing company reported third-quarter adjusted earnings per share of 92 cents, beating the analyst consensus estimate of 85 cents.Quarterly sales totaled $20.372 billion, missing the Street view of $20.650 billion.Also Read: Shopify’s Growth Comes At The Costs Of Margins“We advanced our portfolio op ...

Core Viewpoint - Archer-Daniels-Midland (ADM) has lowered its full-year 2025 profit outlook due to weaker crush margins and delays in U.S. biofuel policy, resulting in a nearly 11% drop in its shares during pre-market trading [1]. Group 1: Financial Performance - ADM now anticipates adjusted earnings of $3.25 to $3.50 per share for 2025, a decrease from the previous forecast of around $4.00 and below analysts' estimate of $3.79 per share [4]. - The company reported an adjusted profit of 92 cents per share for the three months ending September 30, surpassing the average estimate of 85 cents [4]. Group 2: Market Challenges - The deferral of U.S. biofuel policy decisions, particularly regarding renewable fuel blending requirements, has led to reduced demand for soybean oil and other feedstocks, resulting in a 21% decline in operating profit to $379 million in the Ag Services and Oilseeds unit [2]. - Major agriculture processors, including ADM, are contending with volatile commodity cycles, soft crop prices, and uncertain energy policies [1]. Group 3: Future Outlook - Despite current challenges, the company anticipates that policy clarity and improving global trade flows will support growth in 2026, with expectations for biofuel policy clarity and trade policy evolution to provide demand signals for the industry [3].

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Financial Performance - Q2 2025 - Adjusted Earnings Per Share decreased by 10% compared to the prior year quarter, reaching $0.93[6] - Total Segment Operating Profit decreased by 10% compared to the prior year quarter, amounting to $830 million[6] - Adjusted Return on Invested Capital (ROIC) was 6.9%[6, 46] Financial Performance - 1H 2025 - Adjusted Earnings Per Share decreased by 35% compared to the prior year period, reaching $1.63[6] - Total Segment Operating Profit decreased by 26% compared to the prior year period, amounting to $1.2 billion[6] - Cash Flows From Operations Before Working Capital decreased by $459 million due to lower total segment operating profit, reaching $1.7 billion[7, 27] Segment Performance - Ag Services & Oilseeds segment operating profit declined 17% in Q2 2025 compared to Q2 2024[14] - Carbohydrate Solutions segment operating profit decreased 6% in Q2 2025 compared to Q2 2024[17] - Nutrition segment achieved approximately 5% increase in both revenue and operating profits in Q2 2025 compared to Q2 2024[24] Cash Flow and Capital Allocation - Invested $596 million in capital expenditures in 1H 2025[28] - Returned $495 million of excess cash to shareholders through dividends during 1H 2025[28] Full Year 2025 Outlook - The company expects Adjusted Earnings Per Share of approximately $4.00[31]

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]