Palantir shares slip by 7% despite posting record revenue in third quarter
Introduction & Market Context
Bunge Limited (NYSE:BG) presented its second-quarter 2025 earnings results on July 30, 2025, reporting a significant year-over-year increase in reported earnings per share but a decline in adjusted figures. Despite the mixed results, Bunge maintained its full-year adjusted EPS guidance of $7.75, signaling confidence in its strategic direction amid challenging market conditions. Following the earnings announcement, Bunge’s stock experienced a slight decline, with a 0.57% drop in regular trading and a 0.47% decrease in aftermarket trading.
The global agribusiness giant highlighted the completion of its combination with Viterra on July 2, a transformative merger that creates a leading agribusiness solutions company with enhanced scale and market insights.
Quarterly Performance Highlights
Bunge reported Q2 2025 net income per share of $2.61, a substantial increase from $0.48 in the same period last year. However, adjusted net income per share declined to $1.31 from $1.73 in Q2 2024, reflecting challenging market conditions and a more balanced supply and demand environment.
As shown in the following comprehensive financial data table from the earnings presentation, adjusted segment EBIT decreased to $376 million from $519 million in the prior year:
The company’s adjusted total EBIT for the first six months of 2025 reached $655 million, significantly lower than the $1,081 million reported in the first half of 2024. This decline was evident across most business segments, with Agribusiness EBIT falling to $501 million from $785 million, and Refined and Specialty Oils dropping to $239 million from $397 million.
Bunge’s multi-year earnings trend illustrates a gradual decline from peak performance in 2023, reflecting the normalization of agricultural markets after several years of exceptional conditions:
The company’s operational volumes also showed declines across all segments compared to the previous year. As detailed in the segment volume highlights, Agribusiness volumes decreased to 19,274 thousand metric tons in Q2 2025 from 20,579 thousand metric tons in Q2 2024:
Strategic Initiatives
The completion of the Viterra combination represents a pivotal strategic move for Bunge, accelerating the company’s strategy to serve customers at both ends of the agricultural value chain. Management emphasized that this merger increases diversification, provides greater market insights, and strengthens impact through scale.
Additionally, Bunge completed the sale of its U.S. corn milling business during the quarter, further refining its portfolio to focus on core operations.
The company continues to strategically allocate its cash flow to drive shareholder value, as illustrated in the following chart:
For 2025 year-to-date, Bunge generated $693 million in adjusted funds from operations and $560 million in discretionary cash flow after accounting for sustaining capital expenditures. The company allocated $185 million to shareholder dividends and $583 million to growth and productivity capital expenditures, while portfolio actions contributed $776 million, resulting in retained cash flow of $568 million.
Financial Position
Despite earnings pressure, Bunge’s financial position remains solid. The company’s readily marketable inventory (RMI) continues to exceed its net debt, providing financial flexibility and strength:
At the Q2 2025 quarter-end, RMI exceeded net debt by $2.2 billion, with an adjusted leverage ratio of 1.1x. The company’s net debt increased to $4.5 billion from $3.5 billion in Q1 2025, while RMI slightly increased to $6.7 billion.
Bunge also maintains a strong liquidity position with substantial available credit facilities:
The company reported approximately $6.8 billion in cash at quarter-end, primarily in anticipation of the Viterra merger closing. This robust liquidity provides Bunge with significant financial flexibility to navigate market uncertainties and pursue strategic opportunities.
The company’s returns trend shows some pressure on profitability metrics, with ROIC at 7.4% for the trailing twelve months ended Q2 2025:
Outlook & Guidance
Despite the earnings pressure in the first half of the year, Bunge maintained its full-year 2025 adjusted EPS forecast of approximately $7.75, suggesting confidence in stronger second-half performance:
The company expects Agribusiness and Refined and Specialty Oils segments to perform below 2024 levels, while the Milling segment is anticipated to improve year-over-year. Corporate and Other expenses are projected to be favorable compared to 2024.
During the earnings call, management indicated a 30/70 earnings split for the second half of 2025, with stronger processing performance expected in Q4. The company also noted regional variations in soy crush margins, with Brazil performing particularly well, while soft seed margins declined across all regions.
Bunge’s adjusted effective income tax rate is expected to range between 21% and 25%, with net interest expense projected toward the lower end of the $220 million to $250 million range. Capital expenditures are forecasted between $1.5 billion and $1.7 billion, with depreciation and amortization of approximately $490 million.
As Bunge integrates Viterra and navigates challenging market conditions, investors will be watching closely to see if the company can deliver the significant second-half earnings improvement needed to achieve its full-year guidance.
Full presentation:
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