Bunge Partners With GDM on Low-Carbon Seeds as Viterra Integration Drives Mixed Results
Bunge has launched a joint venture to develop biofuel crops while navigating higher debt, soft downstream segments, and ongoing integration of Viterra.
Bunge announced a joint venture named Enerseed with plant genetics firm GDM to develop non-traditional oilseed crops for renewable fuel feedstocks. The partnership merges GDM's breeding, research, and gene-editing capabilities with Bunge's processing and global market footprint. The venture plans to launch seed development projects in targeted markets to supply feedstocks that reduce carbon emissions while improving soil health and providing extra cropping options for growers.
The new biofuel venture comes as Bunge manages a large-scale operational transition following its combination with grain handler Viterra. Over the trailing four quarters ended September 30, 2026, Bunge generated $93.5 billion in revenue, up 55.5% compared with the prior twelve-month period. For fiscal third-quarter 2026 alone, sales reached $23.8 billion, a 7.4% rise year over year, while net income totaled $318 million.
Despite top-line gains, performance across segments remains uneven. Better conditions in soybean and softseed processing carried recent performance, lifting third-quarter operating margin to 3.1% from 1.7% a year earlier. In contrast, refined and specialty oils experienced softer demand and margins, while the grain merchandising and milling divisions underperformed. Third-quarter reported earnings per share stood at $1.64, while adjusted earnings reached $2.56 per share.
Cash flow and leverage remain key challenges for the agribusiness group. Total debt stood at $18.3 billion on September 30, 2026, climbing from $7.08 billion two years earlier. Net interest expense rose in the third quarter on higher net debt and reduced interest income. Meanwhile, free cash flow was negative $2.66 billion over the trailing twelve months, with operating cash flow negative in each of the first three quarters of 2026 due in part to higher working capital.
Management reaffirmed full-year 2026 adjusted earnings per share guidance of $9.25 to $9.75, aided by an estimated $200 million or more in Viterra-related cost savings this year. Moving into 2027, the company anticipates about $0.50 per share from three separate sources: newly operational capital projects, additional cost cuts, and commercial benefits. While three primary facilities are operating, a multi-oil refinery in Westzaan, Netherlands, is slated to start production in the first quarter of 2027.