BG Q2 Earnings Beat, Revenues Down Y/Y on Weak Results Across Segments

Bunge Global SA BG reported second-quarter 2025 adjusted earnings of $1.31 per share, which beat the Zacks Consensus Estimate of $1.19 by a margin of 10.1%. The bottom line, however, marked a 24.3% year-over-year plunge due to weak results across its segments.

Including one-time items, the company posted earnings per share of $2.61 compared with 48 cents in the year-ago quarter.

Bunge Global recently completed the acquisition of Viterra. The merged entity boasts an enhanced global network with a diversified agriculture network covering all major crops. Integration is currently in progress. The company has also completed the sale of its U.S. corn milling business to simplify its portfolio. 

Bunge Global’s net sales were $12.8 billion, down 3.6% from the year-ago quarter. The top line, however, surpassed the Zacks Consensus Estimate of $11.36 billion.

Bunge Global’s Cost & Margin Performance in Q2

The cost of sales was $12 billion, down 4% from the prior-year quarter. Gross profit rose 11% year over year to $738 million. Selling and administrative expenses were $418 million, down 7% year over year.

Bunge Global reported an operating profit of $538 million, which marked a 191% surge from the year-ago quarter. 

Adjusted total segment operating profit was down 28% year over year to $293 million. Total segment operating margin contracted 80 basis points to 2.3% from the second quarter of 2024.

BG’s Segmental Performances in Q2

Agribusiness: The segment’s sales declined 5% year over year to $9.2 billion. Volumes were 19,274 thousand metric tons compared with 20,5792 thousand metric tons in the year-ago quarter. 

Adjusted operating profit for the segment declined 22% year over year to $233 million due to lower results in both merchandising and processing. 

The merchandising business’ adjusted operating profit was $27 million, marking an 18.2% decline from the year-ago quarter as improved performance in global grains and oils was offset by weaker performance of financial services and ocean freight businesses.

The processing business’ adjusted operating profit plunged 22% year over year to $206 million. Improved results in South America and Asia were more than offset by lower results in Europe and North America. 

Refined & Specialty Oils: The segment’s sales rose 2% year over year to $3.2 billion. Volumes were 2,175 thousand metric tons compared with 2,300 thousand metric tons in the year-ago quarter. 

The segment reported an adjusted operating profit of $116 million, a 40% drop from the year-ago quarter’s $193 million. This was attributed to lower results across all regions, dragged down by North America and Europe.  

Milling: The segment’s sales increased 2% year over year to $409 million. Volumes were down 11.7% year over year to 857 thousand metric tons. 
The segment reported an adjusted operating profit of $27 million, marking a 4% decline from the second quarter of 2024. Improved results in North America were offset by lower results in South America.

BG’s Cash & Balance Sheet Updates

Cash used in operating activities was $1.36 billion in the first half of 2025 against an outflow of $0.48 billion in the prior-year comparable period. The decline was due to net changes in working capital. Adjusted funds from operations were $693 million compared with $895 million in the prior year.

Cash and cash equivalents were $6.8 billion as of the end of the second quarter of 2025 compared with $3.3 billion as of the end of 2024. At the end of the second quarter of 2025, Bunge Global’s long-term debt was $7 billion, higher than the $4.7 billion as of 2024-end.  

BG Maintains 2025 Outlook

The company maintains its previously stated expectation of adjusted earnings per share of $7.75 for 2025, indicating a 15.7% year-over-year decline. This excludes the impact of the Viterra acquisition.

Bunge Global Stock’s Price Performance & Zacks Rank

Shares of Bunge Global have lost 33.4% over the past year compared with the industry's 20.9% decline.

Bunge Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Agriculture Stocks Awaiting Results

Archer Daniels Midland Company ADM is scheduled to report second-quarter 2025 results on Aug. 5. The Zacks Consensus Estimate for Archer Daniels’s top line is pegged at $21.11 billion, indicating a 5% decline from the prior-year figure.

The consensus mark for earnings is currently pegged at 88 cents per share, indicating a 14.6% year-over-year decline. Archer Daniels has a negative trailing four-quarter average earnings surprise of 5.44%.

Hydrofarm HYFM is expected to report second-quarter 2025 results next month. The consensus estimate for Hydrofarm’s top line is pegged at $46.5 million, indicating a 15% decline from the prior-year quarter’s figure. The company is expected to report a loss of $2.39 per share, implying an improvement from the loss of $2.80 per share reported in the year-ago quarter. Hydrofarm has a trailing four-quarter average earnings surprise of negative 23.82%.

GrowGeneration GRWG is also expected to report second-quarter 2025 results next month. The consensus estimate for GrowGeneration’s revenues is at $40.8 million, indicating a 23.8% decline from the prior-year quarter’s figure. The company is expected to report a loss of 11 cents per share compared with the loss of 10 cents per share reported in the year-ago quarter. GrowGeneration has a trailing four-quarter average earnings surprise of negative 40.51%.

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