Why did Bunge's adjusted earnings fall so sharply in the first quarter of 2025?

Adjusted diluted EPS fell to $1.81 from $3.04. Agribusiness was the main driver, with adjusted Processing EBIT falling to $207 million from $411 million on weaker North American, Argentine and European softseeds results. Refined and Specialty Oils also declined as supply and demand became more balanced, particularly in the U.S., and lower Merchandising results in ocean freight added to the pressure.

Is Bunge still on track to meet its 2025 earnings guidance?

Management reaffirmed its full-year adjusted EPS outlook of approximately $7.75, excluding announced acquisitions and divestitures expected to close during the year. Agribusiness guidance was trimmed slightly, while Corporate and Other was guided more favorably. Because first-quarter results were well below the prior year, achieving the full-year target will require stronger results in the remaining quarters.

What caused the negative operating cash flow, and is it a concern?

Operating cash flow was negative $285 million, primarily due to working capital changes, including a $1,245 million increase in inventories and a $136 million increase in receivables, partly offset by higher payables. Much of the inventory build reflects readily marketable inventories, which are generally hedged and expected to convert to cash over time. Investors should monitor whether this working capital reverses in the coming quarters.

What is the status of the Viterra transaction?

Bunge stated that the Viterra combination is in the final stage of the regulatory approval process and that it is prepared to close quickly once approval is received. The guidance of $7.75 adjusted EPS excludes the expected impact of this and other announced transactions. The filing notes that completion depends on regulatory outcomes and other risks described in the forward-looking statements.

What do the announced divestitures mean for Bunge?

Bunge agreed to sell its European margarine business and its U.S. corn milling business. These moves are described as further alignment of assets with its global integrated value chains. The filing does not disclose transaction values or expected financial impact, so investors should look for those details in subsequent filings or management commentary.

BG 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.

Bunge Global SA (NYSE: BG) reported first quarter 2025 results on May 7, 2025, with earnings down sharply year over year.

GAAP diluted EPS was $1.48^a versus $1.68 a year earlier, and adjusted diluted EPS (excluding mark-to-market timing differences and certain charges) was $1.81 versus $3.04. Total EBIT fell to $328 million from $433 million, and adjusted Total EBIT fell to $362 million from $676 million. The decline was driven mainly by lower Agribusiness results, particularly in Processing (adjusted Processing EBIT of $207 million versus $411 million), and by a more balanced supply and demand environment in Refined and Specialty Oils, where adjusted Segment EBIT was $123 million versus $204 million a year earlier.

Milling and Corporate results were comparatively steadier, and lower corporate expenses partly offset the weakness. Cash flow was a notable weak point. Cash used in operating activities was $285 million^b, compared with $994 million of cash provided a year earlier, mainly because of working capital build.

Inventories rose to $7.8 billion^c, including $6.5 billion of readily marketable inventories, and adjusted funds from operations fell to $392 million from $514 million. Net debt-related items also shifted, with short-term debt rising to $1.33 billion. Management attributed part of the first-quarter strength to tariff-related timing shifts in demand and farmer activity.

Management maintained its full-year 2025 adjusted EPS outlook of approximately $7.75^d, although the Agribusiness outlook was trimmed slightly. Interest expense guidance was lowered to $220 to $250 million, and the company is in the final regulatory stage of its pending Viterra combination, which it says it is prepared to close quickly.

The company also agreed to divest its European margarine and U.S. corn milling businesses. Investors will want to watch the Viterra closing timeline, the reversal of the working capital build, and whether the full-year EPS target holds given the weaker first-quarter run rate.

02—Key points

Key Highlights

GAAP diluted EPS of $1.48 versus $1.68 a year earlier; adjusted diluted EPS of $1.81 versus $3.04, a roughly 40% decline on an adjusted basis.
Total EBIT of $328 million versus $433 million, and adjusted Total EBIT of $362 million versus $676 million, reflecting weaker Agribusiness (especially Processing) and Refined and Specialty Oils results.
Operating cash flow was negative $285 million versus positive $994 million a year earlier, driven by working capital changes; adjusted FFO was $392 million versus $514 million.
Inventories rose to $7,817 million from $6,491 million at year-end 2024, including readily marketable inventories of $6,499 million, which increases exposure to commodity price movements.
Full-year 2025 adjusted EPS outlook maintained at approximately $7.75, with Agribusiness guided slightly lower and net interest expense guidance lowered to $220 to $250 million.
Viterra combination is in the final stage of regulatory approval, with management prepared to close quickly once approval is received.
Agreements announced to divest the European margarine and U.S. corn milling businesses, continuing portfolio alignment with global value chains.

03—Questions

Frequently Asked Questions

Why did Bunge's adjusted earnings fall so sharply in the first quarter of 2025?
Adjusted diluted EPS fell to $1.81 from $3.04. Agribusiness was the main driver, with adjusted Processing EBIT falling to $207 million from $411 million on weaker North American, Argentine and European softseeds results. Refined and Specialty Oils also declined as supply and demand became more balanced, particularly in the U.S., and lower Merchandising results in ocean freight added to the pressure.
Is Bunge still on track to meet its 2025 earnings guidance?
Management reaffirmed its full-year adjusted EPS outlook of approximately $7.75, excluding announced acquisitions and divestitures expected to close during the year. Agribusiness guidance was trimmed slightly, while Corporate and Other was guided more favorably. Because first-quarter results were well below the prior year, achieving the full-year target will require stronger results in the remaining quarters.
What caused the negative operating cash flow, and is it a concern?
Operating cash flow was negative $285 million, primarily due to working capital changes, including a $1,245 million increase in inventories and a $136 million increase in receivables, partly offset by higher payables. Much of the inventory build reflects readily marketable inventories, which are generally hedged and expected to convert to cash over time. Investors should monitor whether this working capital reverses in the coming quarters.
What is the status of the Viterra transaction?
Bunge stated that the Viterra combination is in the final stage of the regulatory approval process and that it is prepared to close quickly once approval is received. The guidance of $7.75 adjusted EPS excludes the expected impact of this and other announced transactions. The filing notes that completion depends on regulatory outcomes and other risks described in the forward-looking statements.
What do the announced divestitures mean for Bunge?
Bunge agreed to sell its European margarine business and its U.S. corn milling business. These moves are described as further alignment of assets with its global integrated value chains. The filing does not disclose transaction values or expected financial impact, so investors should look for those details in subsequent filings or management commentary.

04—Continue

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