Grain trader Bunge revises full-year profit forecast after closing Viterra deal (updated)

Bunge Global SA

15/10/2025 11:19

Stock up 11.6%

Bunge to not provide specific 2026 outlook until the first half of the year

Company changes segment and volume reporting to align with integrated operations

Updates shares and adds comments from conference call in paragraph 2, 8 and 10

By Pooja  Menon and Pranav  Mathur

Oct 15 (Reuters) - U.S. grain trader and processor Bunge BG.N on Wednesday lowered its 2025 earnings forecast following its merger with Viterra, and said it is overhauling segment and volume reporting to align with its integrated operations.

Shares of the company, however, rose 11.6% in early trading. UBS analyst Manav Gupta said investors had feared a worse outlook.

"Dilution is coming in much better than expected. This lifts the overhang on the stock and we expect a big relief rally in this name," Gupta said in a note.

Bunge completed its merger with Glencore-backed GLEN.L Viterra in July, two years after announcing the $34 billion mega-deal.

"We believe based on updated provided today, that Viterra might not cause any dilution in 2026, setting up for a potentially big beat and raise for 2026," Gupta added.

The merger with the Netherlands-based Viterra creates a global crop trading and processing giant that is poised to rival agribusiness giants Archer-Daniels-Midland ADM.N and Cargill.

Meanwhile, slumping grain prices, weak crop-processing margins and geopolitical tensions have eroded profitability in the sector.

Bunge does not plan to provide specific outlook for 2026 until the first half of the year as it is navigating biofuel policy uncertainties and trade issues, company executives told investors on a conference call.

From the third quarter, its results will include separate segments for soybean, softseed, other oilseeds, as well as another division for grain merchandising and milling.

Bunge projects softseeds to become more "meaningful" and the combined company to see a big increase in handling and processing of corn, wheat and barley.

The company now expects 2025 adjusted earnings per share between $7.30 and $7.60, compared with $7.75 per share forecast earlier. Analysts estimate the company's full-year adjusted profit per share at $7.47, according to data compiled by LSEG.

Bunge is scheduled to release its third-quarter results on November 5.

 (Reporting by Pooja Menon and Pranav Mathur in Bengaluru; Editing by Maju Samuel and Leroy Leo)

 ((Pooja.Menon@thomsonreuters.com;))