Q3 2025 Bunge Global Earnings Call

Speaker #3: Good morning , and welcome to the Bunge global third Quarter 2025 Earnings Release and Conference call . All participants will be in listen only mode .

Speaker #3: Should you need assistance , please signal a conference specialist by pressing star . Then zero on your telephone keypad . After today's presentation , there will be an opportunity to ask questions , to ask a question .

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Speaker #3: I would now like to turn the conference over to Mark Haden , Vice President of Investor Relations . Please go ahead .

Speaker #4: Thank you . Drew , and thank you for joining us this morning for our third quarter earnings call . Before we get started , I want to let you know that we have slides to accompany our discussion .

Speaker #4: These can be found at Investor Center on our website at Bunge . Under events and Presentations . Reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measure are posted on our website , as well .

Speaker #4: I'd like to direct you to slide two and remind you that today's presentation includes forward looking statements that reflect current view and respect of future events , financial performance , and industry conditions .

Speaker #4: These forward looking statements are subject to various risks and uncertainties . Bunge has provided additional information in its reports on file with the SEC concerning factors that could cause actual results to materially from those contained in this presentation , and we encourage you to review these factors on the call this morning , our Greg Heckman , Bunge Chief Executive Officer and John Neppl Chief Financial Officer I'll now turn the call over to Greg .

Speaker #5: Thank you , Mark , and good morning , everyone . Before diving into the quarter , I want to thank our team for their continued focus , discipline and execution in what remains a highly complex operating environment across the company .

Speaker #5: Our people are working together , navigating uncertainty , capturing opportunities and delivering value for all stakeholders . With the Vitara transaction closing behind us .

Speaker #5: This was our first quarter operating as a combined company and I'm very pleased with the way our teams have embraced integration and the one Bunge culture we are already seeing tangible benefits from bringing these two highly complementary businesses together , benefits that go well beyond cost savings .

Speaker #5: We have aligned the combined company along our proven end to end value chain operating model . This structure enables us to run with greater agility , transparency and collaboration across origination , merchandising , processing and refining .

Speaker #5: What's different and powerful about our combined company is the increased granularity in information we have at both origin and destination . We've connected more local and regional networks into our global platform , giving us insights and optionality .

Speaker #5: We didn't have before . These competitive advantages are allowing us to respond faster to market signals and execute more efficiently across the value chain .

Speaker #5: Identifying opportunities to optimize our footprint , better coordinate flows between origination and destination , and capture margin through improved logistics . These efficiencies are lasting and will benefit the entire value chain over time from farmer to end consumer .

Speaker #5: They're being unlocked because our teams not only have the same information at the same time , but are also working toward a single set of objectives for our global company .

Speaker #5: This knowledge sharing , along with collaborative planning , is happening throughout the organization from the elevator operator to the commercial desk to the end customer and it's already driving better outcomes .

Speaker #5: Shifting to our operating performance , our third quarter results reflected strong performance in our soybean and soft seed processing and refining segments , where we saw the benefits of a more balanced global footprint and the initial impact of our teams work to capture commercial synergies .

Speaker #5: John will go into more detail in a moment . As we shared on our business update call last month , we've recast our full year 2025 outlook to include Viterra .

Speaker #5: Looking ahead to the fourth quarter , farmers and consumers remain largely spot reflecting continued macro trade and biofuel policy uncertainty . Based on what we can see today , we continue to expect full year 2025 adjusted EPs in the range of $7.30 to $7.60 .

Speaker #5: This reflects an expected second half adjusted EPs in the range of $4 to $4.25 . So with that , I'll turn it over to John for a deeper look at our financials and outlook .

Speaker #5: John . Thanks , Greg , and good morning , everyone . On our October 15th business update call , we announced that starting with this quarter , we will change our reportable segment structure from agribusiness and specialty oils and milling to four reportable segments soybean Processing and Refining , soft Seed Processing and refining , other oilseeds processing and refining , and grain merchandising and milling .

Speaker #5: The changes in segment reporting reflect the realignment of oilseeds operations into processing and refining by commodity type, and combining grain merchandising and milling operations into one reportable segment.

Speaker #5: These changes reflect the tight interconnection of our upstream and downstream operations , and aligns our segment reporting with our end to end value chain operating structure .

Speaker #5: Now let's turn to the earnings highlights on slide five . As Greg mentioned , the newly combined team executed well , delivering a strong third quarter .

Speaker #5: Our reported third quarter earnings per share was $0.86 , compared to $1.56 in the third quarter of 2020 . For our reported results included unfavorable mark to market timing difference of $0.87 per share and an unfavorable impact of $0.54 per share from notable items related to Viterra transaction and integration costs .

Speaker #5: Adjusted EPs was $2.27 in the third quarter , versus $2.29 in the prior year . Adjusted segment earnings before interest and taxes , or Ebit , was $924 million in the quarter , versus $559 million last year .

Speaker #5: Soybean processing and refining results improved in all regions , reflecting a combination of higher margins , strong execution , and the addition of South American assets .

Speaker #5: Destination value chain . Higher results were primarily driven by processing in Europe and Asia , and origination from South America . In North America , higher processing results were more than offset by lower results in refining .

Speaker #5: In South America , results were higher in processing and refining , and in global oils , higher results reflected strong execution . Higher processed volumes , primarily reflected the combined company's increased production capacity in Argentina .

Speaker #5: Higher merchandise volumes reflected the combined company's expanded soybean origination footprint , as well as a strong South American soybean exports . Higher soft seed processing and refining results were driven by higher average margins and the addition of viterra soft seed assets and capabilities in Argentina , results were higher in both processing and refining in Europe , results were higher in processing and biodiesel , while refining results were slightly down .

Speaker #5: In North America , results were lower in both processing and refining . Results from global soft seeds merchandising activities were higher , reflecting strong execution .

Speaker #5: Higher self seed processed volumes primarily reflected the combined company's increased production capacity in Argentina , Canada and Europe . Higher merchandise volumes reflected the combined company's expanded global soft seeds origination footprint .

Speaker #5: For other oilseeds processing and refining , higher results in North America , specialty oils were more than offset by lower results in Asia and Europe , the addition of Viterra has minimal , minimal impact on this segment , which primarily consists of our tropical specialty oils and soy protein concentrate businesses .

Speaker #5: In grain merchandising and milling , higher results in wheat milling and ocean freight , plus the addition of the sugar business , were partially offset by lower results in global wheat and corn merchandising .

Speaker #5: Higher volumes reflected the combined company's larger grain handling footprint and capabilities . Prior year results included corn milling , which we divested earlier this year .

We also updated our return calculations to align with the change in our combined company, profile.

The change includes an expansion of merchandising RMI reflecting, our greater volume of soft seeds and Grains and removing the cumulative translation loss adjustment. No longer considered material, as a result of our more geographically, balanced footprint,

Moving to slide 11.

This is a trailering 12 months, reproduced, discretionary cash flow approximately 1.1 billion dollars in a cash flow yield or cash return on Equity of 9.7% compared to our cost of equity of 7.2%.

For this calculation, we also removed the cumulative translation of losses, adjustment due to our expanded footprint, and our converting, to a 4 quarter average to re calculate adjusted book Equity, that better reflects the average Capital base employed to generate cash over the period.

Is Greg mentioned in his remarks, taking into account, third quarter results. The current margin of macro environment and 4 curves. We continue to forecast full year, 2025 adjusted, EPS in the range of 7.30 cents to 7.60 cents.

This estimate reflects an expected, second, half, adjusted EPS in the range of 4 dollars to 4.25.

The difference in EPS ranges of 30 cents for the full year and 25 cents. For the second half is due to different weight of the average share counts used in the respective calculations.

Additionally, we expect the following for 2025.

And adjusted annual effective tax rate in the range of 23 to 25%.

Net, interest expense in the range of 380 to 400 million.

Capital expenditures in the range of 1.6 to 1.7 billion dollars.

And depreciation amortization of approximately 710 million.

With that, I'll turn things back over to Greg for some closing comments.

Thanks John.

Before turning to Q&A, I want to offer a few closing thoughts.

We had a strong third quarter.

We are capturing value from the combined platform. Operating is 1 company and demonstrating the benefits of our expanded Global Network.

Externally. We continue to navigate a high degree of complexity in the marketplace.

And as mentioned farmers and in consumers remain largely spot.

Global grain stocks-to-use ratios are elevated, dampening volatility and putting pressure on certain margins.

And policy decisions, including biofuels and trade, remain in flux as we look ahead to 2026.

Our platform is built to perform and to win regardless of the environment.

We have the flexibility to adapt to shifting trade flows and keep products moving.

That's The Power of our combined company.

the scale scope and resilience of a Global Network backed by the discipline to manage risk and deliver solutions that create value for all our customers farmers and in consumers,

So in short, we have the people assets and processes to manage their own uncertainty and the rigor to stay focused on what we can control running efficiently, serving customers, and creating value for farmers and consumers of food Feed and Fuel.

So with that, we'll turn to Q&A.

We will now begin the question and answer session to ask a question. You may press star then 1 on your telephone keypad. If you're using a speaker-phone please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question please press star then 2

At this time, we will pause momentarily to assemble our roster.

The first question comes from puran. Sharma with Stevens Inc, please go ahead.

Uh, good morning and appreciate the question. Uh, just wanted to start off by saying, uh, congrats on on reporting a strong quarter. I think, uh, really demonstrates solid execution and on your guys's part. I think the first, uh, question I wanted to ask about is just around bio fuel policy Clarity. I know there's a, a lot of moving pieces to get to that point of clarity. But as it stands right now, are you able to give us a sense of when you think the soybean oil side of the crush margin formula should start to see a notable Improvement?

Yeah, this is this was complex enough. Let me, let me start and uh, and I'll let John follow up but look on on the rvo. Um, you know, we're hearing I think that the the same that the market is the final proposal. You know, we expect to be at the end of the year or early next

Uh you know we all hope uh, in the marketplace I think that sooner is better so we prefer to have that by year end. We we know the volume is going to be significantly higher uh but we want to we want to have that certainty and get that locked in

Globally. Um, so then that that starts to be probably um, you know, early 26, we would like to think that we would start to see that Improvement and then that would continue as the as the year moved on.

Great, great. Appreciate that uh, Clarity there. Um, I guess on my follow-up.

Just wanted to ask about grain um, under under the new combined platform. Uh, I had always thought that storage income is is more stable, but maybe has less upsides in in Grain, merchandising income.

Does the combined grain business offer more stability in earnings versus the Legacy Bungie grain business given uh just the amount of uh storage infrastructure, you, you have now versus what you all had before.

Yeah, there there's a a couple ways that you need to think about it. You know, from a baseline, it allows you uh, a number of of other ways, of course, to to earn money. Not only from the storage but of course drying uh from a handling and blending to certain specifics uh that that depending on what customers want. Um connecting it to remember, this is a a vertical merger connecting, the origination capabilities that Vikes her head, which are much stronger to the process and capabilities of Legacy Bungie had. Uh, so we're able to drive efficiencies through that value.

Pain around Transportation Logistics. So those are kind of, you know, Baseline and and depending on, you know, crop quality of crop and flows and then the other of course, is you not only earn the storage income. But then you also have the optionality by having the crop in place knowing what qualities you have. And so whether it's a weather problem or an increase in, you know, a weather problem which hurts supplies or an increase in demand somewhere in the world that then calls on that storage uh to those customers we have that optionality to then serve that Demand with the right qualities and the right quantities uh and the right price at the right time.

Great. Appreciate the caller.

You.

The next question comes from Salvatore Tano with Bank of America. Please go ahead.

Yes, thank you very much. Also, congratulations on closing the transaction. Um, firstly, I, you know, I wanted to now that we can talk explicitly about earnings and all the, the segments, there's segmenting

uh I want to see if you can clarify a little bit the impact on viterra uh to EPs and if it's so when we think about that 227 EPS for Q3 or your full year guide,

What was the impact that creative were diluted from Vera versus? Where would Bandy have been on a standalone basis? And uh, secondly can you also clarify on a new basis as we look at the operating income you made into 3, verse a year ago how much of that growth was due to buy Terra versus just Legacy Bank earnings, growth or contraction.

Yeah, let, let let me start to let John put a finer point on it. But the, the 1 thing to to understand is, we're very quickly bringing this together with 1 team and running this as 1 company, um, because that's how we're going to maximize profitability. So if you think about the 1 voice to the farmer, uh, to be able to get them to Market or the 1 voice, to the consuming customer, uh, to get them, you know what they need. So, um, you know, we were much bigger in soy Crush, but think about Vera brought, uh, a great footprint there in Argentina, which made us very balanced globally and soy Crush. We're running a global soy Crush business. So we're not thinking about it as Vera versus Bungie which is why we resment it along the lines around the business, you know soft. If you think about it on the on the soft Crush, you know by Tara brought a great origination in merchandising as well as some additional soft Crush which balanced out our Global Soft Crush uh franchise and so we're running

Is 1 Global franchise, uh, as well as where they were much stronger. Of course, in the origination storage handling, uh, on the on the grain merch size and supporting our Milling, but even where the origination then is supporting our Milling assets. So I I'll let John put a finer point, but you really have got to think about this as as 1 company here pretty quickly. And that's why we're kind of focused on the present and going forward.

Yeah I would I would just add that Salvatore that, you know, we had, we had a good third quarter across across both what I would say is the Legacy Bungie and Legacy by Tara footprints.

Totality I think, you know, they they both contributed well um you know if if vitera was you know, is you can tell by the overall numbers forecast for the year. Hvitur is mildly, you know, mildly dilutive, uh, to the year. And I think we saw a consistent results in Q3 that that would, that would support that, um, not where we eventually want to get to certainly with the business. And, and as we go after synergies and everything else, but, but I think, you know, early indications are very good as a, we're strong contributors on on both the, the soft and soy side. Um, you know, clearly on grain merchandising results weren't where we would expect on an annualized basis and and Q3, but, you know, Q3 is kind of a funny quarter because it's between between, you know, Global Harvest seasons in effect and we we've got, you know, Q4 here coming up North America Harvest, obviously European Harvest and and Australian Harvest. We're going to see. I think better results in Grain merchandising in Q4 that will show where the

Power of of what we've picked up on the merchandising side. So, you know, certainly looking forward to where we can go with this thing. I think, you know, early indications are very good, we're happy with with the contribution so far, but I think, you know, into 2026 as we continue to work together and we get after the Synergy capture which is still early. Uh, I think we'll, we'll see, we'll see more and more of the benefits.

Perfect. And I just want to know. I want to follow up on the Synergy, I capture, you mentioned. So uh, were there any synergies or uh, so far that you 3 or, uh, plan for Q4 material? As part of that, I think 341 million is that stated in your proxy and how should we think about the timing of uh uh, of this? Uh, Synergy Target, will a lot of it be realized, for example, in 2026 or is it going to take 2 or 3 years for that?

Yeah, I think we'll, you know, look here here in a few 3 and 4 this year. It's really more about taking the actions. It's going to take to see those results. Well, we'll see a little bit, probably by the end of the year, uh, but 2026. We'll see a, a bigger jump in in the benefit from synergies, for sure. Uh, and then I think we'll peek, probably 27 will be, you know, a big, big step change, uh, in Synergy capture. But I do expect, you know, we do expect to capture a meaningful amount in 26. And I think, even in fourth quarter, 25, you know, a number of actions will take on a run rate basis by the end of the year. We'll see good progress. We do expect to be at or ahead of what we scheduled in the proxy, uh, as we move along and, and, uh, we'll be of course. Be sure to keep everybody updated.

And then on the, on the commercial Synergy. Remember, we didn't call those out. We said those those will be to come because the teams because of regulatory or commercial teams couldn't work together. So as they're now able to work together as 1 team, you'll start to see that, uh, in the in the income line and you know, we're off to a good start, but we're just at the beginning of that. So that will build over time and and we'll have to prove that out with our earnings

Thank you very much, appreciate it.

The next question comes from Heather Jones from Heather Jones, research. Please go ahead.

Good morning, thanks for the questions. Um,

I guess I wanted to start with Vera and I know it's deeply embedded now within the Bungie operations, but was just wondering to the extent you're able.

um, thinking about Q3 and just

the numbers that the Terra reported a year ago,

Do you have like a really rough breakout of how much was just better execution by the team relative to a year ago, and how much was a better? IND industry backdrop for those operations, for what we saw in this quarter,

Parasite. And again, have a have a dissected line by line with a year ago their performance. Uh were really is Greg mentioned focused on getting this stuff. Integrated moving forward but feel very good about the contribution they made.

okay, thank you and then my follow-up is just

Assuming.

we get the rvo that I think everyone anticipates and so just

Setting aside the timing but sort of like, let's just think of run rate as um, in mid 26.

Um,

And I'm thinking about it relative to the 2223 time frame. I mean soybean meal is demand has been extremely robust and if we what's going on in Europe and Brazil. And then the rvo bean oil, veg oil demand should be very robust but yet

You don't have the dislocations, you had then, and you have more soy processing capacity. So as you're thinking about those considerations,

How are y'all thinking about what the margin structure would look like relative to what we witnessed in 2223?

Yeah. I mean I I think you started to frame the the setup, you know, very well that we we should have favorable you know us biofuel and and trade policy now timing will matter.

Uh, when that comes across, you know, we're expecting big crops uh, in South America and then probably a more balanced, uh, you know, China program uh, from from the origins than we saw here in 2025 and and being in all Origins that suits us, you know, we continue to see strong Global soybean and and veg oil demand.

Um, you know, as I said, outside of the US has been the the exception on on soybean oil demand. So seeing that pick up

Would be a, a positive.

Um, and then, as we said, look, we've got, you know, what I feel is the best Global machine and, and the best team. So while these big crops, you know, come off, that should help.

Um, you know, improve on the merch side, which has been the drag to the business now.

At, at the very least, it'll it should stabilize because, you know, stocks aren't burdensome globally. So while we'll have, you know, a heavier Supply demand, we'll have storage. Uh we'll utilize our system for that, but if there's really any problem in in whether uh you could see the the grain side of things get more interesting. So well probably don't see back to the 2023 levels, you know, we do. See. We're at that, that part of the cycle, where it feels like we're in a at the, at the bottom of the cycle. And it's kind of when things get better, uh, and how much better they get and, you know, as we start to get a view of that, of course, you know, in queue, when we do our Q4,

Earnings we've always then start to talk about 26 and and start to lay that out. So we'll be more prepared uh with more detail and hopefully a few of these things that are up in the air will land between now and then as well. Yeah. And I I just add to that Heather you know back in 2223 it was like the perfect storm of not only biofuel demand but but we also had some Global disruption Ukraine Russia, uh Canada crops. So there were some things that created a lot of additional volatility. Uh, certainly some of that could happen. Obviously, we're 1, big weather event away from, uh, markets that could get interesting. Uh, but uh, but nonetheless, is Greg pointed out. I think, where biofuel policy is headed, you know, certainly things are going to should improve from here, and, and the question is, how much? But I think we feel like we're well positioned to take advantage of of the market, as soon as it starts to turn

Thanks so much. I appreciate it.

The next question comes from, Thomas Palmer with JP Morgan. Please go ahead.

Morning, thanks for the uh, the question. Um,

I wanted to clarify maybe expectations, as we move from 3Q, into 4 q. Um, in terms of the the different reporting segments are there.

Kind of segments where we might see, just given the lower earnings Outlook and and 4 key. That's implied, more of a step down. Are there other segments that that could actually improve quarter over quarter? Thanks.

Tom, I'll take that and then Greg can jump in. Um, yeah, I I think as you look forward, you know, driven a lot by what we talked about around

This thing and refining may be up slightly. Um, but uh, you know, we do expect a meaningful Improvement in the grain merchandising and the link segment given timing of us European, I'll say North American in general Harvest, European Harvest and, and Australian, uh, wheat wheat and canola harvest season. We do expect a better Q4 there. So and then and then we had a, you know, we do expect in that corporate, another segment as well. The, the negative to be not quite as big in Q4, just given timing of some expenses and things. So, uh, overall, you know, uh, we knew it was going to be down in Q4 and that, as you can imply by the forecast for the year and where we finish Q3, but, uh, again, driven lower soy and soft and, and up a bit and Grain and Merchandising and Milling.

Okay, thanks for that. Um and look I'll I'll try here, I guess. Um I don't know how much reply I'll get, but

It's been a few years since you updated your view of mid-cycle earnings. I think the last update was was $11 with a dollar or more of upside if you opted for for larger m&a,

I I appreciate there might be more to come here in in the coming year but maybe at a high level. This Outlook. What are, you know, maybe big swings to think about because that larger scale, m&a did indeed happen.

Yeah. Tom we're our plan is to to uh, share that with you in March and our investor day. You know, we're working on that right now, looking at our strategic planning Capital, allocation plans. Uh, what we expect from the the newly combined company, what we think we're capable of, you know, where with the mega projects coming on, uh, line here, worst Town, actually this month up and running and then in in 2026, having our destan operations up and going by mid year. And then following early following year, our specialty oils. We're going to recast everything and take the hard look at that. And so our intent is to share that in March uh, with what we believe our go forward. Uh, you know, mid-cycle is and as well as what the upside might be.

Understood, thank you.

The next question comes from manav Gupta with UBS?

Please go ahead.

Um, so my first question is whenever you acquire something, like, for anybody, there are some positive surprises and then you will come across some areas where you expect to have to work. A little harder, to realize the synergies now that you have caught white era, help us understand. Where are the positive surprises, and where you think? Probably a little more work is needed? Then when you initially, uh, decided to buy a Terre,

Yeah, and I don't know if we're surprised. Um, I think we've had a lot of confirmation of what we thought. You know, we had a lot of time to do the work while we were, while we were waiting on regulatory. Um, the thing that's always more work, right? You know, John and I've had the benefit of being a public company, being a private company, uh, working together and being a public company again. So, you know, Vice chair was Private. Uh, and, uh, it was also not, you know, not gaap IFRS. So we knew that there was going to be, you know, a bit of a heavy lift to bring that into, uh, into private, uh, uh, company into a public company and, and, and switch over to Gap. That's always more work than you than you plan. It's going to be, and I can't say enough about the teams and, and what they've been doing, uh, to uh, to to get prepared and to give the teams the information they need to to run and serve our customers every day. So that's probably always the the the heaviest lift and and and of course around systems and processes and getting to fewer systems and fewer processes. And that's a

You know, that's off to a great start. The team has uh, has a good plan and and we're executing it, um, you know, per the plan and, and meeting our early Milestones, which is exactly where we wanted to be. And then on the commercial side, um, you know, I'd say, you know, we knew the cultures were were very similar. But again, we couldn't work together with the commercial teams, uh, you know, because of regulatory. And, and to avoid gun jumping.

So now we finally get to have those teams work together and you've had teams that were competing, you know, these are these are highly, you know, competitive aggressive people that have been competing with 1, another forever that are now on the same team and, you know, John John and I also have been working together a long time and we've, we've done a number of both on Acquisitions. We've done a merger of competitors before and, uh,

Moving forward. And that's, I think the surprise of how quickly that that has worked. Uh, has been great. And then both had a good risk management culture. I'd say we were probably more developed as a public company around our systems. Our processes, our rigor, you know, on our discipline and also very pleased, how, uh, the teams have come together and embraced the co the risk management culture and the information that we're able to put at people's fingertips and able to run the business and make decisions. And I think that's been, that's been very positive. So

I really can't say enough about our teams and, and how I feel about. We're off now. Look, it's very early. Uh, we've got a lot more to do. But uh, I really like the way that we've started and I can't, I can't say enough about the teams and thank our people enough because this is a real people business.

Perfect. My quick follow-up is, it was great to see the restart of share buyback. I think it was 545 million as the 2 companies come together. And you are going to generate a lot of cash, help us, understand a little bit, what would be the uses of that cash going forward?

Yes. So as we as we get through 20, you know, in 2026, we expect to wrap up.

You know, our Mega projects. So the the 4 large projects that we've had underway for a while. Uh, 1's wrapping up now and the, the rest will wrap up. Largely wrap up during 2026. We should see, you know, a considerable decline in the in the capex. At least that we have planned at this point and certainly We Believe with the strong cash generation. You know, share buyback is going to be a meaningful part of our Capital allocation going forward.

Thank you very much first of all. Well yeah we'll always balance that with you know opportunity. But at this point you know, no doubt it's going to be an important part.

Thank you.

The next question comes from Ben, toyer with Barkley's, please go ahead.

Yeah, good morning. Uh, Greg Johnson. Thanks for taking my question. Actually, following up on the BuyBacks. That would have been my follow-up question, where do we stand now, with that little over half billion that you've done in terms of what your initial consideration was for the BuyBacks when it came to the vitera deal? Because I remember, it was like 2 billion but maybe help us understand where do we stand? What's missing that? That would just a quick follow up and then I have my I have a question for you guys. Yeah.

Yeah, since the uh, since the announcement of itero, we've actually done a little over 2 billion in BuyBacks, but 500 million of that was related to our sugar.

Investment. So we've got about 255 million left on the actual vitare program and so we'll, we'll we'll get that. You know, we're well ahead of schedule and getting that executed and our plan is to get that done soon, you know? And and, uh, and then we'll go from there. But we we're not going to be uh, complete that and be done. I think it'll, it will continue to set that like we do with any Capital allocation going forward, and make sure we're making prudent decisions for our shareholders.

Okay perfect and then I just to understand a little bit. Obviously the Argentina uh thanks to VA uh is is going to play a very important role. And Argentina is known for its called in volatility and sometimes uncertainty just because of the the political environment so maybe help us understand a little bit better, how you think about the opportunities but also the risks of the larger footprint in Argentina over the course of the year, how to think about like the farmer selling Behavior, the crushing out of Argentina because clearly, this is something that that's going to be really large within the grand scheme of the, the new Bungie. Um, would be great to understand the risks and opportunities here. Thank you.

Sure. Um, there's no doubt, uh, with the outcome of the election. I think, you know, we all believe that's going to be supportive of kind of improved, macros going forward. Um, and I think the, the 1 key thing to remember about Argentina versus, you know, Bungie preva and and kind of the new Bungie is, we're much more balanced, uh globally, and especially on soy Crush. So we're Argentina in the past. Could be uh disruptive. We wouldn't have the, the opportunity to benefit as much from Argentina with our footprint. Now what? That does for our footprint.

On a on origination, uh, as well as on, especially on soy, crush and on soft Crush.

External uh, segments now with our Argentine footprint. So we're we're excited on how that kind of, you know, completed uh, the the global footprint there. Um and you know, look forward to uh, to Argentina, you know, continuing to improve

Perfect, thank you very much.

The next question comes from Stephen Haynes. With Morgan Stanley. Please go ahead.

Hey, good morning and uh, thanks for taking my question. May maybe just to ask maybe a similar question, uh, but on Australia um could you maybe walk through some of the

High level of supply and demand trade Dynamics there. Um, and just kind of how all that's flowing through, uh, you know, by terra's Legacy assets there. Thank you.

Okay. Um yeah, Australia. We've got uh a real big crop coming off there on wheat, barley, and rape seed which you know, are all really important Global crops for us uh, with our origination now, in every key, uh, producing region. Um,

So that's uh, you know, that that's setting up very well. Uh, the thing to watch there, of course, whether that can kind of depend whether some of that falls in Q4 or Falls in in q1.

Um, with some of the, the trade tensions, between Canada, and China around canola, we'll probably see some increased rape seed exports, uh, coming out of Australia that should probably be positive. Um, and then of course, uh, they'll be very competitive in the, in the global market on the on wheat and barley. So excited to have those those big crops and be able to put our origination storage handling export system to work there in Australia, got a got a great business down there. Yeah, Stephen. Maybe I just add that, you know, Legacy Bungie, we we had a small export business there, but not something we talked much about because it just wasn't really material but uh by Tara has a very good very strong position in Australia. So uh to Greg's point we're really pleased around around that opportunity and things are shaping up. You know, there with the crop size this year to be, to be to be a good uh, good beginning of the merger.

Okay, thank you.

The next question comes from, Derek Woodfield with Texas Capitol. Please go ahead.

Good morning, guys. And congrats on a solid quarter.

Thank you. Thank you.

Regarding capital projects. Well, I understand that you're winding down several multi-year, capital projects from a legacy bunny bunny perspective. Could you speak to any material projects that were underway at vitera? And if you're seeing new opportunities for growth investment from other vitera perspectives,

Yeah. Uh,

there, there was nothing.

Tara.

Had a few. They had a few smaller what I can call kind of D bottlenecking and and operational Improvement projects underway, um, that that were completing now. Um, so they bring a much more modest amount of capex pipeline, uh, to the combined company than what we had set up with our large projects, our growth. Um, you know, obviously, we're looking at, we're looking at the number of things that we always do going forward. Um, we don't on the horizon. See any big large capital projects. Like the ones we've had underway here for the last few years, but, you know, we'll continue to look at that. But as we've always said, we'd prefer to consolidate the industry than to add capacity where, where possible, uh, but you know, obviously with the broader footprint, more opportunity will make sure we take will always be taking a hard look at those. But again we do expect at this point to see a pretty meaningful decline in capex commitment you know post 2026 absence something else coming along um you know so on

Going, I think our expectation was between you know, combined sustaining capex and and growth, we'd be at about a billion a year as a combined company. Post 2026.

About how we do that, but it's also been great for the teams to do that strategy work together as they get to know, 1 another to, to do some meaningful work. Uh, as we begin, executing the combined platform,

Thanks for that, great color, certainly. Um, and maybe as a follow-up on biofields policy, what are your thoughts on? Whether the administration will pursue a behalf. Ren concept for foreign feed stocks and products, I guess the more specifically to your business, we're hearing the feed stock provision. Could be difficult to administer. So, I'd love it if you have any thoughts, there, from a policy perspective.

Yeah, I I think it it's hard. It's hard to say right now. We've heard a lot of rumors about technical limitations around executing the the half. Ren. Um, we've heard mixed news on that. Whether it's really, it's really an issue. Maybe, it's not an issue. We don't really know yet. I think, you know, obviously, we, we are approaching hard as the industry is, um, or a full Ren benefit, uh, you know, for for if domestic feed stock, but half are in for foreign feed stock, obviously, that's good for the American Farmer. It's important to us, um, you know, in support of the farmers or C, or key customer and, uh, you know, we'll see where it goes. But, uh, you know, we're doing our best to to encourage that in in DC and and, uh, hoping that it gets implemented beginning in early 2026.

Okay. And was there a follow-up? Mr. Woodfield.

No, that's all. Thanks guys. Great teller. Appreciate it. Thank you, thank you.

The next question comes from. Andrew strasnick with BMO. Please. Go ahead.

Hey, good morning, thanks for taking the questions. Um, you guys have mentioned, strong execution and number of times it does look like you, you know how perform the market, how perform some of the competitors. Um, I I was just hoping maybe you could provide some color on where that strong execution was, you've talked about, still a lot of work to do to bring you know the organizations together and and and and make it more kind of holistic going forward. But you know where you already seeing some of that strength. I'm assuming uh that that would be relatively repeatable, but just any color around, that would be would be helpful.

Sure. I, I think it, it starts with where we've been able to connect the the 2 systems the the origination, uh, with the crushing. Uh, uh, and whether that's the soy processing or the soft seed processing and then where we filled in, um, you know, some of the areas where we weren't as strong, as I was talking about in Argentina, is a great example, on on soft, crush on sun Crush as well as um uh on soybean processing.

And that gives us that information. And in a, in a market that is a bit complicated. Like, we're operating in having the information to be able to react more quickly. And in this quarter, it was things like where we still had open legs on the crush. Uh, executing very well to get every bit of the of the crush margin that was possible as we, you know, maybe rolled off the financial Hedges and, and, you know, hedged out the physical to actually, you know, execute the programs. Um, and then, you know where we've we don't, we're a, a better partner on transportation and Logistics, right? So, working with our transportation providers and even some of the dots that we've been able to connect between our origination, uh, and processing, when you look at it as a combined system, you'll make different decisions and when you were running 2 different systems. Um and so that there's you know early wins falling out in the in the transportation Logistics as we're pairing the right Origins and destinations um and then the other is, you know, added liquidity.

Uh, in our own system, you can move faster and have the liquidity to get, uh, you know, in and out of the positions that you need to to execute for the farmer and for your consuming customer, uh, more quickly and, you know, you're working inside uh, your business with less friction internally and that allows us to be externally focused uh, and to move faster. And, you know, you that that have a whole bunch of times at a, at a lot of places globally. And then you see it, you know, start to fall out in the p&l.

So we'll be excited over time as we get to fewer systems and fewer processes. Uh, but you know, right off the bat, we had a big focus on, getting the commercial team, the same information at the same time about our combined, uh, information along the value chains. And I think we're seeing that pace Pace in real dividends.

in terms of seasonality, or

You know, uh, abnormal type things, as we as we start to build on that for next year. Thank you.

Yeah, I don't Andrew, I think, I think the uh, the Q3 Q4 combined results. I wouldn't say there are any any sort of an anomalies there, you know, obviously, um, you know, we're looking forward to, you know, the I think the bigger contribution we'll see next year, you know, obviously aside from the commercial Synergy captures, we move forward. You know, hopefully we'll we'll get rolling really rolling on some cost synergies. But, you know, again, there's still, there's still a lot of uncertainty in the market and, uh, you know, hence, our our call down for Q4 uh timing of policy, change, and trade, and all those things are creating a lot of uncertainty making and get a bit difficult to, to predict 2026 at this point. You know, our plan is to provide that at our Q4 call. Uh, and hopefully by then we should have hopefully a lot more clarity on bio fuel and around trade, things like that. But uh you know, at this point, I I would say not anything unusual in the back half of the Year here to to draw to other than you.

Just, you know, we we've done I think to Great is Greg discussed earlier teams are working really well together, you know, right out of the gate. And and with that we're, you know, we're pretty happy and and looking forward to seeing what we can do here in Q4 and and get the get our first 6 months closed out,

and is you know, when when we're talking, you know, next year and comparing it to this year, I think if you're kind of asking a question about timing,

Things, you know, the ones that we're watching and I think we, you know, we all should be watching. That'll be the timing around. The biofuel policies will be the the timing around the trade policies. You know, those will be different in in 26 and we saw in 25, I think, you know, we'll probably see a China program executed differently globally in in 26 than it has been in 25. That'll probably be better for, uh, the US farmer.

Uh, than it has been. You know, we've got big crops coming off everywhere. Uh, the only thing would be if uh, you know, we've got some lenina risk. And so if, if anything developed there, that could could be an issue, and then, of course, you know, we are dealing with, uh, these big crops. So everybody will be putting their storage to work. You know, we have a big crop here. Uh, in North America, big crops in South America big crop in Australia, um, and so, you know, that will have the, the storage assets working, uh, harder than, uh, than they did last year. So, you know, I think when, when you sum it up, we're, you know, we're we're really pleased. Uh, with the deal we did here bringing these 2, great companies. Together, we're really pleased with the way the teams have started.

It Off.

Uh, we’ve still got work to do, uh, but we like how we started. I think we talked all along this was about giving us.

The diversification and the capabilities to be really relevant, you know, with our customers at both ends of the value chain. And and to have the the resilience, uh, for whatever the external environment is, and what that'll ultimately be is us, you know, performing better than anyone else in, in the low part of the cycle. But the real key is we get everything in place and you'll really see this machine work as we get towards mid cycle or even some of those, you know, more robust parts of the commodity cycle is when I think you'll really see the benefit of this machine. So we're excited and uh,

you know, doing the work and and can't think the team enough.

Great, thank you very much.

Thank you.

This concludes our question and answer session, I would like to turn the conference back over to Greg Heckman for any closing remarks.

Uh, I just like to thank everyone for joining us today. We appreciate your interest in Bungie and look forward to speaking again, soon, have a great day.

The conference has now concluded, thank you for attending today's presentation. You may now disconnect