Bunge Limited (NYSE:BG) stock slipped in premarket trading after the agribusiness posted a strong quarter but issued a softer profit outlook for the year ahead.
Improved segment performance and disciplined execution lifted operating results, though investors focused on guidance and a tougher earnings setup.
The company reported fourth-quarter adjusted earnings per share of $1.99, beating the analyst consensus estimate of $1.81.
Quarterly sales of $23.762 billion outpaced the Street view of $22.684 billion.
Segment Performance
Soybean Processing and Refining: Quarterly net sales totaled $11.045 billion, higher than $8.374 billion a year ago. Slightly higher segment results were primarily driven by South America, reflecting higher processing and refining results in Argentina and Brazil.
Softseed Processing and Refining: Net sales totaled $4.545 billion, higher than $1.808 billion a year ago. Higher segment results were primarily driven by higher average processing margins and the addition of Viterra’s softseed assets and capabilities.
Other Oilseeds Processing and Refining: Net sales remained relatively flat year over year to $1.191 billion.
Grain Merchandising and Milling: Net sales increased to $6.982 billion from $2.242 billion a year ago.
Quarterly Metrics
Bunge’s gross profit in the quarter under review was $1.011 billion, compared with $1.081 billion a year ago.
Adjusted Total EBIT soared to $622 million from $445 million a year ago. Adjusted EBIT increased across all segments in the fourth quarter, driven by disciplined execution and the company’s expanded footprint and capabilities.
Bunge exited the quarter with cash and equivalents worth $1.135 billion, lower than $3.311 billion a year ago.
Cash provided by operations during the year was $844 million compared to $1,900 million in the prior year. The reduction of cash provided by operating activities was primarily driven by lower reported net income and net changes in working capital.
Outlook
Bunge Global said it expects fiscal 2026 adjusted earnings of $7.50 to $8.00 per share, below analysts’ estimate of $8.71.
“While forward visibility remains limited amid dynamic market conditions, our expanded capabilities, more balanced global footprint and diversified value chains give us the tools to better adapt, manage risk, and continue connecting farmers to global demand for food, feed and fuel in any environment,” said CEO Greg Heckman.
For 2026, the company expects an adjusted effective tax rate of 23%-27% and net interest expense of $575 million-$625 million.
It also forecasts capex of $1.5 billion-$1.7 billion and about $975 million in depreciation and amortization.
BG Price Action: Bunge Global shares were down 2.89% at $113.50 during premarket trading on Wednesday, according to Benzinga Pro data.
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