BG earnings analysis
What we found in BG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Bunge delivered a substantially stronger Q2, with revenue up 88% to $24.041B, gross margin expanding to 7.0%, and diluted EPS increasing to $3.47 from $2.61 a year earlier. The earnings improvement was led by soybean and softseed processing, while the Viterra acquisition contributed significantly to reported growth. The principal offset is balance-sheet and cash-flow pressure: inventories reached $15.461B, total debt rose to $15.214B, and first-half operating cash flow was a $1.126B outflow.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and gross margin accelerated
- Q2 net sales rose 88% year over year to $24.041B, while gross profit increased 128% to $1.681B. Gross margin expanded to 7.0% from 5.8% a year earlier.
- Profitability rose sharply
- Diluted EPS increased $0.86 year over year to $3.47, and net income attributable to Bunge shareholders rose $324M to $678M. Total EBIT nearly doubled, rising $522M to $1.060B.
- Soybean processing was the largest driver
- Soybean Processing and Refining EBIT increased 75% to $804M on $12.071B of sales, supported by favorable processing conditions, mark-to-market results, Viterra contributions, and stronger South American farmer selling.
- Softseed earnings inflected strongly
- Softseed Processing and Refining EBIT rose from $19M to $273M, with sales up 167% to $4.095B. Management cited biofuel-driven demand, elevated energy prices, constrained Black Sea/European crop availability, and favorable mark-to-market results.
- Inventory-funded working-capital build
- Working capital increased $217M from year-end to $9.481B, despite cash declining $542M to $593M, as inventories increased $2.263B to $15.461B during the South American harvest period.
- Liquidity capacity and capital returns remain
- Bunge had $8.835B of unused committed revolving borrowing capacity at June 30, 2026, while its board authorized a new $3.0B share-repurchase program after completing $2.7B under the prior program.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating cash flow remained negative
- Cash used in operations was $1.126B for the first six months of 2026, although this improved by $231M from a $1.357B outflow a year earlier. Rising commodity prices and inventory funding requirements can continue to consume operating cash.
- Higher leverage and rate sensitivity
- Total debt increased $1.163B from year-end to $15.214B, and quarterly interest expense increased 86% to $197M following acquisition financing. A hypothetical 100-basis-point reference-rate change would alter annualized interest expense by about $102M.
- Not all segments converted sales into profit
- Grain Merchandising and Milling EBIT declined 7% to $173M despite 183% sales growth, principally because the prior year included a $155M gain on the North America corn-milling sale. Tropical Oils also recorded a $24M EBIT loss versus a $10M loss a year earlier.
- No formal risk-factor update; commodity risk persists
- The filing reports no newly added or revised Item 1A risk factors versus the 2025 10-K, but market-risk exposure remains material: a hypothetical 10% adverse commodity-price change on the highest daily aggregate position would imply a $265M market-risk loss.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.47
- Gross margin
- 7%
- Operating margin
- 4.4%
- Segment
- Soybean Processing and Refining: net sales $12.071B, up 56% year over year; segment EBIT $804M, up 75%.
- Segment
- Softseed Processing and Refining: net sales $4.095B, up 167%; segment EBIT $273M, up 1,337%.
- Segment
- Tropical Oils and Specialty Ingredients: net sales $1.259B, up 9%; segment EBIT loss of $24M versus a $10M loss.
- Segment
- Grain Merchandising and Milling: net sales $6.614B, up 183%; segment EBIT $173M, down 7%.
What they said about what is next.
The 10-Q does not provide a quantitative earnings or revenue outlook; outlook is deferred to the earnings release/call.
The filing reads better than the one before it.
What came before.
- 10-Q · April 29, 2026
- Bunge Global SA reported weak Q1 2026 results with a diluted EPS of $0.35, missing analyst consensus of $0.89, and revenue of $21.86 billion. This reflects an 88% increase compared to the previous year, primarily driven…
- 10-K · February 19, 2026
- Bunge positions itself as a leading global agribusiness—a top oilseed processor, grain merchandiser and packaged oils seller—highlighting integrated operations and a global footprint. The business materially expanded…
- 10-Q · August 5, 2025
- Bunge reported Q2 net sales of $12,769,000,000 and diluted EPS of $2.61, with gross profit of $738 million (≈5.78% gross margin) and operating income of $320 million (≈2.51% operating margin). Profitability improved…
- 10-Q · May 7, 2025
- Bunge reported quarterly revenue of $11,643 million and diluted EPS of $1.48 for the three months ended March 31, 2025. Revenue and EPS declined versus the prior-year quarter while operating cash flow swung negative;…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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