Bunge Global (BG)

Business Overview

Bunge earns most of its profit from crushing oilseeds, and carries a large stock of exchange-traded grain to do it. It is one of the four ABCD merchants, with ADM, Cargill and Louis Dreyfus, and FY2025 includes Viterra, the grain merchant it bought, from 2 July 2025.

Bunge reports four segments cut by commodity. FY2025 segment EBIT was $2,329M:

• Soybean Processing & Refining: $1,225M (52.6%)
• Softseed Processing & Refining (rapeseed, sunflower and similar seeds): $521M (22.4%)
• Other Oilseeds Processing & Refining: $118M (5.1%)
• Grain Merchandising & Milling: $465M (20.0%)

Grouped by hand, which Bunge does not do, the three processing segments earned $1,864M, 80% of the total. Grain's $465M includes a one-off $155M gain on selling Bunge's North American corn milling business. The ABCD guide sets Bunge beside the other three merchants.

Volume multiplies a thin margin. Bunge processed 51.8 million tonnes of oilseeds (41.0 million soybeans, 10.8 million softseeds), more than ADM, and sold 67.2 million tonnes of grain.

How the Numbers Read

Consolidated EBIT was $1,533M after $(796)M of corporate and other costs. Adding $703M of depreciation and amortisation gives EBITDA of $2,236M.

Bunge's leverage reads 5.8× or 1.9×, depending on the definition. Debt less cash was $12,916M, 5.8× that EBITDA. Bunge's own net debt, $12,055M, also deducts $861M of marketable securities. Bunge's own adjusted leverage ratio, 1.9×, gives credit for most of its readily marketable inventories (RMI), grain and oilseeds that trade on exchanges and can be sold at a quoted price. RMI was $11,361M, 86% of $13,198M of inventories. The working capital guide walks through both ratios.

The inventory shows in cash flow too: operating cash flow fell to $844M from $1,900M, mainly on working-capital changes, Bunge says. Trade receivables were $3,870M.

Returns come in two versions for the same reason. ROIC was 6.9% over the trailing four quarters. Adjusted ROIC (AROIC) takes the RMI used in merchandising out of the capital and the interest that funds it out of the return, and was 8.1%. On the basis Bunge adopted on 1 July 2025, with earlier years recast, the FY2024 figures were 10.1% and 12.6%.

How You Would Value a Business Like This

Last year's EBITDA values a crusher at one point in the crush cycle. The method rebuilds EBITDA at a long-run crush margin, checks a DCF against a through-cycle multiple, and funds working capital in the cash flows, because in a year like FY2025 earnings and cash flow move apart.

Compare balance sheets on one definition: ADM reports operating working capital rather than RMI, and Ingredion carries no trading book.

What to Watch in the Financials

Soybean processing. The line that swings group profit.

Operating cash flow against EBIT. Operating cash flow of $844M against $1,533M of EBIT shows working capital absorbing cash. Read it beside RMI and both leverage ratios each quarter.

AROIC against ROIC. Management leans on AROIC for capital decisions. It runs above ROIC only while ROIC beats the after-tax cost of the debt funding the inventory, as it did in FY2025, so a falling ROIC narrows the gap.

Key Risks

Crush margins. Processing earns most of the profit, so a narrower crush moves group earnings most.

Segment changes. Bunge redrew its segments around Viterra, so compare periods only on the four current segments.