Bunge Global SA 2026 Q3 Earnings Call

Please go ahead. Thank you, Keith, and thank you all for joining us this morning for our third quarter 2026 earnings call.

Before we get started, I want to let you know that we have slides to accompany our discussion. These can be found at the Investor Center on our website at bunge.com under Events and Presentations. Reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measure are posted on our website as well. I'd like to direct you to slide 2 and remind you that today's presentation includes forward-looking statements that reflect Bunge's current view with respect to future events, financial performance, and industry conditions. These forward-looking statements are subject to various risks and uncertainties.

Bunge has provided additional information in its reports on file with the SEC concerning factors that could cause actual results to differ materially from those contained in this presentation, and we encourage you to review these factors. On the call this morning are Greg Heckman, Bunge's Chief Executive Officer, and John Neppl, Chief Financial Officer. I'll now turn the call over to Greg.

Thank you, Mark, and good morning, everyone. I'd like to start by acknowledging the extraordinary work of our teams around the world in what remains a highly dynamic environment. Geopolitical tensions, evolving government policies, and global weather patterns continue to change agricultural flows, and our team navigated it successfully with discipline and focus. They stayed close to our customers, responding quickly to changing conditions, and delivered strong third quarter results. I want to spend a moment on what makes that possible. Our competitive advantage in this environment is not simply the scale of our physical network. It's the flexibility that scale gives us as we connect supply with demand, adapting as market conditions change.

When farmers need additional routes to market or customers at the other end of the value chain need alternative sources of supply, our expanded network gives us more options while our integrated operating model allows us to act on them quickly. We can redirect crop flows, work around physical constraints, and keep supply connected to demand across regions while taking a level of risk appropriate for the environment. That combination of scale, connectivity, and flexibility becomes more valuable the more complex the environment gets. This quarter was another good example of those capabilities at work. We also continued to make progress on the opportunities created by our combination with Viterra, where our work is increasingly shifting from integration to value creation.

We are successfully capturing the cost savings we targeted while embedding the commercial and network opportunities we identified into how we operate, supporting better decisions, improved asset utilization, and more coordinated customer coverage. These improvements are becoming part of how we run the business every day, and we expect their contributions to compound over time. Additionally, our investment cycle is reaching an important inflection point. To expand our capabilities and strengthen the products and services we provide to customers, we made the decision several years ago to invest across a number of large greenfield projects. The first to come online was our Morristown, Indiana soy protein plant. Earlier this month, our joint venture with Chevron commissioned its new multi-seed processing facility in Destrehan, Louisiana. We also started up our barge unloader located at the same complex.

That leaves just one major project yet to come online, our multi oil refinery in Westzaan, Netherlands, which we expect to start up in the first quarter of 2027. As these projects ramp up, the regular course commissioning and startup costs will increasingly give way to earnings growth from capital that has already been deployed. We also continued to sharpen our portfolio, reaching an agreement earlier this month to sell two non-core sugar mills in Brazil that became part of Bunge through the Viterra combination. Turning to our operating outlook. Based on what we can see today, including our results through the first nine months of the year, current market conditions, and the forward curves, we are maintaining our full-year adjusted EPS range of $9.25-$9.75. While the environment remains difficult to predict, we're confident in our ability to deliver as conditions evolve.

With that, I'll turn it over to John for a deeper look at our financial results and outlook.

Thanks, Greg, and good morning, everyone. Let's turn to the earnings highlights on slide 5. Our reported third quarter earnings per share was $1.64 compared to $0.86 in the third quarter of 2025. Our reported results included an unfavorable mark-to-market timing difference of $0.28 per share and an unfavorable impact of $0.64 from notable items consisting of $0.43 per share related to the announced sale of two sugarcane mills in Brazil, $0.11 per share related to charges resulting from the Ukraine-Russia conflict, and $0.10 per share related to Viterra integration costs. Adjusted EPS was $2.56 in the third quarter versus $2.27 in the prior year.

Adjusted segment earnings before interest and taxes, or EBIT, was $997 million in the quarter versus $924 million last year. In the soybean processing and refining segment, North America was the largest contributor to the improved performance, driven by stronger processing results, partially offset by lower refining. In South America, improved performance reflected stronger processing results in Argentina and Brazil, partially offset by lower fertilizer and refining results in both countries. Within the destination value chain, stronger processing results in Europe were partially offset by lower origination as well as lower processing results in Asia. Global soybean oil merchandising results were lower than last year. Lower processing volume in South America and Asia were partially offset by higher volumes in Europe. Processing volume in the U.S. was in line with last year.

In the softseed processing refining segment, all regions performed well, with North America processing and refining activities being the primary driver of improvement. In Europe, strong processing results were partially offset by lower refining and biodiesel results. In Argentina, processing and refining results were lower. Global distribution results declined, partially offset by stronger canola origination in Canada and Australia. Softseed oil merchandising improved compared to last year. Softseed processing volumes increased across all regions, supported by the more favorable margin environment. The tropical oils and specialty ingredients segment results were lower in North America, Europe, and Asia, primarily driven by near-term margin impacts associated with geopolitical trade disruptions, along with commissioning ramp-up and plant transition costs related to both our tropical oils and soy protein concentrate businesses. Results from global tropical oils merchandising activities were higher than last year.

In the grain merchandising and milling segment, higher results in global grain merchandising and commercial services were more than offset by lower results in ocean freight, sugar, and wheat milling. The decrease in corporate expenses was primarily driven by performance-based compensation and favorable foreign exchange impacts. Lower other results were largely related to our captive insurance program. Net interest expense of $188 million was up in the third quarter compared to last year, primarily due to higher net debt and lower interest income, partially offset by lower borrowing costs. Let's turn to slide 6, which shows our adjusted EPS and EBIT trends over the past four years and trailing 12 months. The improving trend reflects much improved market conditions in soy and softseed processing and benefits of synergy capture from our combination with Viterra. Slide 7 details our capital allocation.

Year to date, we generated just over $2 billion of adjusted funds from operations. After allocating $410 million to sustaining CapEx, which includes maintenance, environmental health, and safety, we had approximately $1.6 billion of discretionary cash flow available. We paid $414 million in dividends to shareholders, invested $753 million in growth and productivity-related CapEx, invested $105 million in the first quarter to acquire IFF soy protein concentrate and processing businesses, and repurchased approximately $250 million in Bunge shares. This resulted in $77 million of retained cash flow. Moving to slide 8. At quarter end, net debt exceeded readily marketable inventories, or RMI, by $1.2 billion. Our adjusted leverage ratio, which reflects our adjusted net debt to adjusted EBITDA, was 1.9 times at the end of the third quarter.