Bunge Q2 profit beats estimates after soy crush margin rebound
The world's largest oilseed processor benefited as soybean prices dropped and soyoil prices rallied on favorable biofuel policy moves in the United States and Brazil.
Better results in Bunge's grains and oils merchandising business also blunted the negative impact from ongoing global trade uncertainty as U.S. President Donald Trump's tariff threats upended global commodity flows.
Bunge shares were up 2.85% at $78.56 in early trading.
"We successfully navigated a highly complex period, both internally and externally, and delivered better-than-expected results for the quarter, especially given the market conditions," CEO Greg Heckman said.
The earnings beat came as Bunge secured final regulatory approvals for its long-delayed deal to acquire grain handler Viterra, a transaction that officially closed at the start of the third quarter on July 2. It also completed the sale of its U.S. corn milling business.
Bunge maintained its 2025 earnings guidance of $7.75 per share, which would be its lowest in six years, but said it would update it to include the Viterra merger prior to reporting third-quarter results.
Bunge and agribusiness peers including Archer-Daniels-Midland (ADM.N), opens new tab and Cargill have seen profits erode in recent quarters due to ample global crop supplies and thinning margins.
Trade tensions stoked by Trump's tariffs have further disrupted trade flows as importing nations bought hand to mouth amid the U.S. president's shifting deadlines for imposing duties.
Meanwhile, biofuel policy uncertainty dented demand for green energy feedstocks like soybean oil, although proposed increases for biofuel blending in the U.S. and Brazil was supportive in the longer term for Bunge.
"We expect challenging conditions to persist," said CFRA analyst Arun Sundaram, citing tariffs and inflation. "We anticipate more clarity on biofuel policy in coming quarters, which could provide some relief to the current soft macro environment."
Bunge posted an adjusted profit of $1.31 per share for the three months ended June 30, compared with analysts' average estimate of $1.14, according to data compiled by LSEG.
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