Bunge Q3 2025 Analysis: Viterra Acquisition Fuels Sales, Drains Margins

Bunge Global SA (BG), a titan in the global agribusiness and food ingredient industry, recently released its financial results for the third quarter of 2025. This filing offers the first detailed look at the company's performance following its transformative acquisition of Viterra, which closed in July. Let's dive into the numbers from their latest 10-Q report to see how this massive deal is shaping the company's finances.

For the quarter ending September 30, 2025, Bunge reported a staggering $22.2 billion in total revenue, a massive 72% increase from the $12.9 billion recorded in the same period last year. However, this top-line surge didn't translate into higher profits. Net income for the quarter actually fell to $181 million from $233 million a year ago. This squeezed the company's net margin down to a slim 0.8% from 1.8% in Q3 2024.

The following flow diagram illustrates how Bunge's revenue for the quarter was allocated across its costs and expenses to arrive at its net income.

The "Unallocated" category in the diagram above represents corporate activities and other business lines not assigned to a specific division, which for this quarter included $2 million in revenue and $13 million in associated costs.

A Tale of Two Businesses: Oilseeds vs. Grains

The story behind Bunge's quarter lies in the divergent performance of its business segments, largely influenced by the Viterra acquisition.

The legacy strength of Bunge, its oilseed processing divisions, showed robust health.

• Soybean Processing and Refining, the largest segment, saw revenue climb 38% to $10.9 billion, with gross profit jumping an impressive 69% to $498 million.
• Softseed Processing and Refining (which includes products like canola and sunflower oil) also delivered strong results, with revenue more than doubling to $3.7 billion and gross profit rising 72% to $289 million.

However, the Grain Merchandising and Milling segment, significantly expanded by the Viterra deal, tells a different story. Revenue in this division exploded by 168% to $6.4 billion. Despite this, its gross profit grew by a much smaller 17% to $143 million. With selling, general, and administrative (SG&A) expenses more than doubling to $145 million, the segment's operating income all but vanished, collapsing from a positive $79 million last year to a loss of $2 million this quarter. This indicates that the newly acquired grain business, while massive in scale, operates on much thinner margins and brings significant overhead costs.

Navigating the Post-Merger Landscape

The Viterra acquisition has undeniably reshaped Bunge, making it a much larger and more diversified player. The immediate effect is a dramatic increase in revenue and market presence, particularly in grain merchandising.

However, the third-quarter results highlight the central challenge ahead: integrating this vast, lower-margin grain business without sacrificing overall profitability. Higher costs across the board, including a 55% increase in SG&A expenses to $678 million and a 59% jump in interest expense to $202 million, reflect the financial weight of the acquisition.

Bunge's path forward will depend on its ability to extract synergies from the merger and improve the operational efficiency of its expanded grain network. While the company's core oilseed processing business remains a powerful profit engine, investors will be closely watching whether Bunge can successfully balance its newfound scale with sustainable profitability.