Merger Marks Pivotal Achievement (Image Credits: Unsplash)
St. Louis – Bunge Global SA demonstrated resilience in fiscal 2025 through its recent merger with Viterra, with the chief executive noting tangible operational improvements shortly after the deal’s closure.[1][2]
Merger Marks Pivotal Achievement
The $8.2 billion combination with Viterra closed on July 2, 2025, creating a premier global agribusiness entity with enhanced scale across origination, processing, and distribution.[1] Gregory Heckman, Bunge’s CEO, described 2025 as a year of execution and integration despite challenging markets.
Teams aligned swiftly on a unified operating model. This effort unlocked efficiencies in supply chain flows, from farm elevators to end markets. Heckman emphasized how former Viterra assets now benefit from Bunge’s broader global view, balancing short-term agility with long-term strategy.[1]
Financial Snapshot Reveals Growth and Discipline
Net sales rose 32% to $70.33 billion for the full year, fueled by higher volumes post-merger. Adjusted total EBIT edged up to $2.03 billion from $2.02 billion the prior year, even as net income fell 29% to $816 million.[1][2]
In the fourth quarter, adjusted EBIT climbed to $622 million, surpassing the year-ago figure of $445 million. Adjusted diluted EPS reached $1.99, reflecting strong execution amid mark-to-market adjustments.
| Key Metric | FY 2025 | FY 2024 |
|---|---|---|
| Net Sales | $70.33B | $53.11B |
| Adjusted Total EBIT | $2.03B | $2.02B |
| Adjusted Diluted EPS | $7.57 | $9.19 |
Synergies Accelerate Beyond Expectations
Bunge anticipates $190 million in realized synergies for 2026, topping the initial $175 million projection from the merger announcement. Cost savings emerged ahead of schedule, with $70 million captured in 2025 alone.[1]
“This alignment is already delivering results,” Heckman stated during the earnings call. “We are unlocking synergies in origination, merchandising, processing and distribution.” Improved logistics and coordination enhanced margins for farmers and consumers alike.[1]
Segments Show Post-Merger Strength
Soybean processing and refining led gains, with adjusted EBIT rising 8% to $1.33 billion, driven by robust South American operations. Softseed processing saw a 2.6% EBIT increase to $580 million, bolstered by Viterra’s added assets.
- Grain merchandising and milling EBIT up 6% to $386 million, aided by wheat and barley strength.
- Other oilseeds EBIT dipped 5% to $168 million amid mixed regional results.
- Volumes expanded notably: soybean crush up to 41 million metric tons; grain sales to 67 million metric tons.[3]
Optimistic 2026 Outlook Emerges
Management guided full-year adjusted EPS to $7.50-$8.00, with capital expenditures between $1.5 billion and $1.7 billion. Net interest expense is projected at $575-$625 million.
Heckman underscored the merger’s role in building a more balanced footprint to weather geopolitical and market volatility. Integration costs totaled $218 million for the year, trending downward.
Key Takeaways
- Viterra merger expands Bunge’s global origination and processing reach.
- Synergies on pace to hit $190 million in 2026, surpassing forecasts.
- Sales volumes surged, positioning the firm for adaptable growth.
The Viterra integration fortifies Bunge’s ability to link farmers to worldwide demand for food, feed, and fuel. How might these efficiencies reshape the agribusiness landscape? Share your views in the comments.
