Bunge Global (BG) Q2 2026 earnings call transcript

Great. Thank you. And thank you all for joining us this morning for our second quarter 2026 earnings call. Before we get started, I want to let you know that we have slides to accompany our discussion. These can be found at the Investor Center on our website at bungie. com 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. I would like to direct you to slide two and remind you that today's presentation includes forward-looking statements that reflect Bunge's current view with respect to future events, financial performance, and industry conditions. 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 differ materially from those contained in this presentation, and we encourage you to review these factors. On the call this morning are Greg Heckman, Bunge's Chief Executive Officer, and John Neppel, Chief Financial Officer. I'll now turn the call over to Greg.

Thank you, Mark, and good morning, everyone. I want to start by thanking the team for their focus and disciplined execution in what continues to be a highly dynamic operating environment. Across the organization, our people are working together to navigate uncertainty and capture opportunities for our customers and for Bungie, and we delivered another strong quarter. We've talked about the diversification that our larger global platform provides us across crops and geographies.

We saw the benefit of that diversification this quarter, particularly in soy and soft seed processing. John will go into some more detail on our results in a moment. The broader operating environment continues to evolve. Geopolitical tensions, shifting trade flows, and changing weather patterns across key growing regions are reshaping farmer behavior, crop availability, and increasing volatility.

As a result, customers at both ends of the value chain are relying on us more than ever to help them navigate risk. This is not new territory for us. We have a long track record of managing market volatility and continuing to deliver for our stakeholders, all while growing our earnings.

We can say with confidence that Bunge's business is built for complexity and change. Our integrated global platform, disciplined risk management, and operational excellence are designed to keep supply moving to meet demand and serve our customers regardless of how conditions shift. This is what allows us to perform through the cycle.

Turning to our outlook, based on what we can see today, we now expect full year 2026 adjusted EPS in the range of $9.25 to $9.75, which is up from our previous range of $9 to $9.50 we provided on our first quarter call. While forward visibility remains limited given the current macroeconomic and geopolitical environment, the drivers of long-term demand remain strong. And with our global footprint and diversified value chains, we're confident in our ability to execute in any environment.

And with that, I'll turn it over to John for a deeper look at our financials and outlook.

Thanks, Greg, and good morning, everyone. Let's turn to the earnings highlights in slide five. Our reported second quarter earnings per share was $3.47 compared to $2.61 in the second quarter of 2025. Our reported results included a favorable mark-to-market timing difference of $1.67 per share and an unfavorable impact of $0.20 per share related to Viterra transaction and integration costs.

Adjusted EPS was $2 in the second quarter versus $1.31 in the prior year. However, adjusted segment earnings before interest in taxes, or EBIT, was $796 million in the quarter versus $373 million last year.

In the soybean processing and refining segment, higher results were primarily driven by the North and South American value chains. In North America, stronger processing performance in the U. S. was partially offset by lower refining results. In South America, high results reflected improvements in Argentina processing, refining, and Brazil processing. Within the destination value chain, stronger processing results in Asia, more than offset lower processing results in Europe, and a lower distribution performance.

Results from global soybean oil merchandising activities were lower than last year. Processing volumes increased in both South and North America, as well as in Europe, with the largest increase driven by the company's greater production capacity in Argentina.

Higher merchandise volumes reflected the combined company's expanded soybean origination footprint. In soft seed processing and refining segment, the results increased across all regions, reflecting a more favorable market environment and strong execution. In North America and Argentina, stronger processing results were the primary drivers of improved performance, while refining results were modestly higher in both regions. In Europe, stronger processing results more than offset lower refining and biodiesel performance.

Results from global soft seed oils merchandising activities were slightly higher than last year. Higher soft seed process volumes primarily reflected the combined company's increased production capacity in Argentina, Canada, and Europe. And higher merchandise volumes were driven by the company's expanding global soft seed's origination footprint. For the tropical oils and specialty ingredients segment, higher results in Europe and Asia were partially offset by lower results in North America. Results from global tropical oils merchandising activities were slightly higher than last year.

In the grain merchandising and milling segment, higher results in ocean freight, commercial services, global cotton, and wheat milling were partially offset by lower results in global grain merchandising and sugar.

Higher volumes primarily reflected the company's expanded grain handling footprint and capabilities. Prior results included corn milling, which was divested in 2025.

The increase in corporate expenses was primarily driven by the addition of ITERA. The year-over-year comparison was also impacted by timing of performance-based compensation.

Prior other results were largely related to our captive insurance program and Bungie Ventures. Net interest expense of $154 million was up in the quarter compared to last year, reflecting our expanded footprint in merchandising activities with the addition of ITERA, partially offset by lower average net interest rates.

Let's turn to slide six, which shows our adjusted EPS and EBIT trends over the past four years in the trailing 12 months. After a challenging 2025, the trend is beginning to reverse, reflecting improved market conditions and the early benefits of synergy capture from our combination with Viterra.

Slide 7 details our capital allocation. Year-to-date, we generated approximately $1.3 billion of adjusted funds from operations. After allocating $238 million to sustaining CapEx, which includes maintenance, environmental health, and safety, we had approximately $1.1 billion of discretionary cash flow available. We paid $275 million in dividends to shareholders, invested $541 million in growth and productivity-related CapEx, invested $105 million in the first quarter to acquire IFF's soybean processing concentrate business, and repurchased approximately $250 million in Bungie shares, completing the $2 billion commitment related to the Viterra transaction.

This resulted in net use of $117 million. Moving to slide eight, at quarter end, net debt exceeded readily marketable inventory, or RMI, by $1 billion. Our adjusted leverage ratio, which reflects our adjusted net debt to adjusted EBITDA, was 1.9 times at the end of the second quarter.

Slide nine highlights our liquidity position, which remains strong. At the end of the second quarter, we had committed credit facilities of approximately $9.7 billion, of which approximately $8.8 billion was unused and available. We also had approximately $2.4 billion of our $3 billion commercial paper program available, providing ample liquidity to manage our ongoing needs.

Please turn to slide 10. For the trailing 12 months, adjusted ROIC was 8.4% and ROIC was 6.8%, both exceeding their respective costs of capital. Adjusted for construction and progress in our large multi-year projects and excess cash on our balance sheet, our adjusted ROIC would increase to 9.3% and ROIC to 7.2%.

Moving to slide 11, for the trailing 12 months, we produced discretionary cash flow of approximately $1.7 billion and a cash return on equity of 10.8% compared to our cost of equity of 7.2%. Please turn to slide 12 on our 2026 outlook. Taking into account Q2 results, the current margin of macro environment and forward curves, we now expect full year 2026 adjusted EPS in a range of $9.25 to $9.75, which is up from our previous range of $9 to $9.50.

As Greg mentioned in his remarks, the environment remains complex with significant uncertainty in certain regions, particularly in the fourth quarter. For the full year, compared to our previous outlook, soybean processing and refining segment results are forecasted to be higher.

Soft seed processing and refining segment results are forecasted to be slightly higher. Tropical oils and specialty ingredients results are forecasted to be unchanged. Grain merchandising and milling segment results are forecasted to be lower, and corporate and other results are expected to be unchanged. Additionally, we continue to expect for 2026 an adjusted annual effective tax rate in the range of 22 to 26 percent, an interest expense in the range of $620 to $660 million, capital expenditures in the range of $1.5 to $1.7 billion, and depreciation and amortization of approximately $975 million, all in change from our previous outlook.

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. The strategy and priorities we outlined earlier this year at Investor Day hold true today, and our second quarter results are another proof point that we're delivering on our commitments. I spoke earlier about the benefits of our diversification. That breadth provides greater balance and resilience across a range of market environments and gives us the capabilities to perform through the cycle. At the same time, we're advancing our key initiatives. Viterra cost synergies continue to run ahead of plan, and we're making tangible progress on the network and commercial opportunities we identified.

As John mentioned, we completed our $2 billion share repurchase program related to the Viterra transaction. Our in-flight capital projects remain on track. At our Destrehen, Louisiana facility, we're in the final stages of bringing two meaningful investments online, a new barge unloader and a new multi-seed processing plant, both of which we expect to be operational in the coming months.

We're also advancing strategic partnerships to expand our relationships in renewable fuels. In Brazil, we recently signed a supply agreement with Acelin, Mudabula's renewable energy company, to provide certified soybean oil feedstock for production of SAF and renewable diesel. We also entered into a partnership with Petrobras and Vibra to supply certified low Corsia Brazil feedstock for the production and commercialization of SAF These agreements strengthen our position as a trusted supplier of sustainable feedstocks and further deepen our participation in the growing renewable fuels value chain Zooming out, the long-term demand drivers for our business remain strong.

Population growth and rising incomes are driving sustained demand for grain and oilseed products. Speed stock demand across our global processing network is also benefiting from the constructive RBO in the U. S. , along with growing biodiesel blend rates in other countries.

Soy and soft seed oils are expected to contribute approximately one-half of global vegetable oil production growth over the next decade, and that's a meaningful shift as palm supply growth slows. These are durable multi-year tailwinds that reinforce our confidence in the earnings power of this business and our trajectory.

The in-flight projects we're bringing online, the integration work underway, and the network and commercial synergies we continue to identify are all additive to a business that already has strong structural demand pulling through it. Our fundamentals are strong. Our strategy continues to deliver, and we have the most talented people in the industry. As we look ahead, we remain focused on what matters, serving our customers and delivering value for our stakeholders across food, feed, and fuel. And with that, we'll turn to Q&A.

Okay. Thanks, Andrew. Yeah, I'd say, you know, it starts with the footprint. I mean, the fact to have the balance in all of the key origins and all of the key destinations and to touch more farmers directly than anyone else for origination is just key. And, of course, it's the talented team that we've got that we've brought together that is operating that footprint and dealing directly with our customers. If you think about the information network we have now assembled to be able to make decisions as well as to execute the purchase and the sales, whether we're helping our farmers get to market or we're helping our consumers get to market or solving the physical supply challenges in the value chain, we've just got more internal liquidity and more optionality to solve those problems than we had before.

And that's whether that's originating for, you know, ourselves and to our processing, or whether it's originating for our distribution business and distributing to others, whether that's domestically or export. And then if you think about soy, adding Argentina to that really gave us the global balance that we were missing before in our soy crushing operations. And then if you take a quick look at soft, you think about, again, we've added the balance of having Argentine sun crushing to balance Europe. And with some of the challenges you've seen in Europe in the last year, we've really seen the benefit of that, as well as the increased origination and merchandising that we have around the soft seeds now.

And then, of course, the ocean freight fleet, we basically doubled on our flows. And so in times of disruption, as we've seen, the ability to react and continue to get the origination to the right demand. And, you know, the other example, you know, when you look forward, again, you know, when you think about the footprint, if you look at, you know, China and Australia continue to improve their relationship. So you may start to see more Australian canola move into China. And then we now have the capability then to make sure that the Canadian canola that was going there, that then that works through our processing. So, again, we're balancing and able to continue to serve our customers and benefit different parts of our platform.

Maybe, Andrew, I'd just add there quickly, you know, the other benefit, obviously, is with a stronger credit profile as a combined company, we're borrowing money now at the tightest credit spreads we have in, you know, the history of Bungie, which gives us a little bit of an edge, you know, in terms of in the marketplace, just given the market generally trades on average interest costs. So to the extent we can borrow money cheaper and access that liquidity gives us a chance to stay in there and do more business than maybe some of our competitors.

Thanks. Yeah, we – yes, would be the answer. We definitely do. And we've got clarity around the RBO. We're now seeing that the crush that's been added is here to meet that demand. And we continue to see, you know, strong meal demand globally and strong corn demand, which tells us that underlying feed demand is there for the economics on the animal protein. So, yeah, we feel they're justified, and definitely, you know, U. S. and North America is leading the global crush.

Yeah, I would just add, Andrew, I think, you know, the elevated U. S. crush margin, certainly the energy phenomenon, increased energy costs is kind of a global thing. And with the higher crush rates in North America, crush margins in North America are exacerbated a bit by the volatility in energy. But ultimately, when you look at the demand, as Greg pointed out, you know, we have very strong underlying fundamentals.

Yeah, I can start, Greg. I mean, we use as current of information as we get. I mean, obviously, this morning we couldn't do it, but it's fairly current. So the outlook that we have today would reflect largely what the curves are today. You know, we start looking at it, you know, a few weeks ahead of time. I mean, we're constantly looking at our forecast, but we take a hard look, obviously, heading into the call here and try to get as, you know, current of information as we can. So we feel like it largely reflects still today how we feel versus when we put the forecast in internally.

And I just add, right, where you can see board crushing in some of the markets, we still have to have some judgment in the physical crush in the cash. And so it does take some judgment, but we are as current as we can be, and it feels like it's in the right place right now.

Yeah, look, Blancor has been a great partner, and you might remember that the one thing that they liked about getting equity in this deal is, you know, with their business, they understand the commercial synergies of the combination, and they know that it takes a while to mine all those and get those, and they wanted to be part of that value creation. And, you know, John and I talk to them, you know, often on a number of issues, and they're, you know, they're in, you know, to quote them, they're in no hurry, and they won't surprise us. And so they're great partners.

Yeah, I'll start with the project. So, of course, in Destrehan, we have two projects underway. One is the crush plant that sits in the JV with Chevron, and we expect, you know, right here at the end of Q3 for that to be up online, you know, give or take a few weeks. Then the other one is our barge unloader and loadout capability in the terminal that we've expanded or doubled the size of. That one should be up and running in August, sometime in August, hopefully. That's the plan. And the other big U. S. , a couple other big U. S. projects, one is our Morristown SPC plant, which is now running.

Certainly not up to full scale yet. It takes time for that to happen, but we are now producing product in Morristown, so we're happy with that and excited about to see how that thing goes. But, again, it takes a little bit of time from a commissioning standpoint, you know, customer qualification, everything else, but we like the momentum there.

And then down in Avondale, which is in the Gulf as well, we expanded our refined tropical oils platform down there, and that's going to be up and running in the next month or so.

Then our other big project is Weston, the big specialty and refined plant in Netherlands. That one's still slated for end of Q1 of 2027. So things are really coming online right now. I think, you know, over the next few quarters, we'll start to see the benefits of that, certainly. And then Wesson, of course, will be into 2027 before we start seeing that running at a meaningful rate, but we're pretty excited about it.

From a cost synergy standpoint, I'll focus on the cost side, and Greg can comment on the commercial side, but on the cost synergies, we're happy with progress there. As you may recall, we increased our cost target from $250 million to $350 million, and we're continuing to push hard on areas of opportunity. And, you know, we're going to try to get it done sooner if possible, but we feel good about the timing and progress there as we move forward, and we'll certainly keep you updated.

And when you think about the upside synergies, some of what we were referring to there, some of it is just about the time for the teams to get some repetition of running the system together through a season As we bring the footprint optimization together on how we're running the combined network and that we're running the right assets at the right times.

And then how we growing with customers strategically and how we growing you know our direct origination with our farmer customers and how we growing our direct distribution with our consuming customers And I will just tell you you know being able to you know bring corn to some of the customers that we had you know the majority of their meal business but we didn have the same corn footprint before an origination And we're able to just have different conversations because we've got a complete portfolio, you know, grains, oil, seeds, and oils, and wheat, barley, you know, durum, soft seeds, you know, to serve these different customers' needs. We're just having different conversations with the customers, much more strategic conversations, and really able to grow those relationships.

And I think long-term, we see the benefit of that.

Yeah, I'll take that, and Greg can jump in. Look, I think for us, we've been working with a lot of producers in this area hoping that climate smart ag practices become part of 45Z on a permanent basis. So we've been, as you know, we focused on winter canola as a cover crop. We've been testing a number of other novel seeds. We've been working very closely with farmers, you know, primarily on the seed side and with, you know, overall farming practices.

As we believe, you know, long term, that's going to make sense economically for the farmer and also, you know, incent the right sort of behavior in terms of, you know, ag practices. So we're working on it under the assumption that it becomes a part of 45Z. If it doesn't, I think it still makes sense, a lot of what we're doing, especially providing farmers alternatives for another cash crop.

We're pretty excited about the feedback we've gotten. We continue to increase acres and have gotten very positive feedback so far on how things are progressing.

I would just add, and remember, we believe in that strong enough that the crush plant we're adding in Destrahan has the ability to do soft seed. It's a switch plant, which would also allow it to do other cover crops. As well, we announced the two projects in Brazil, so it's not just a U. S. issue, I will now turn the call over to management for the future, as well as the conversations we're having with energy companies in Europe that are definitely interested in some of these cover crops and things and what they can mean, especially around SAF for the long term.

You know, a little, but I think the coming season is going to be the key one to watch here on the Brazilian farmer. You know, they've had good application rates in the past, but it could maybe have some impact this next year on safrinha. We'll want to watch that close. Australia, you saw them switching some from wheat to canola already, but the concern overall now isn't nitrogen, which has kind of corrected itself on price. It's a little bit more around phosphates, so that's the one we'll be watching closely. In Argentina, if it persists that long term, they may not make the investment, so you'd want to watch yields closely there.

Yeah, I can maybe start with the mix, and then I'll turn over to Greg for an outlook on the crush curves globally. But right now, we've shifted a little bit. I think we look at low 40s and high 50s in terms of breakdown between Q3 and Q4. So not a significant shift, but a small shift. So again, low 40s, high 50s is kind of how we're looking at Q3, Q4 breakout.

And then if you look, you know, kind of by the, you know, soy and soft, if you look across soy, you know, since the Q1 forecast, the second half margins are definitely up in the U. S. That's the big driver. Argentina is up slightly, but we're dealing with a little bit higher energy costs there. Europe and Asia are really unchanged, and then Brazil is a little lower, and some of that has been on strong bean exports. The B16 has been delayed, and then the farmer was a big seller early, and the selling slowed down.

If you look at demand, still very good overall, but very spot, and that's the uncertainty with both the conflicts going on. So, you know, the U. S. refined oil demand continues to be improved, and in a second, we, you know, the RBO clarity has really helped that. But again, with the conflict, people are remaining very spot. So, you know, the balance of 26, it's above baseline margins, but again, driven primarily by the U. S. And then in soft seed, you know, our second half margin assumptions are, you know, roughly the same. You've seen the nearby spots rallying around the geopolitical risk, but some of that capacity we already had committed. That happened awfully late. The average curves for 26 will end up well above the baseline, and that's driven by Canada, which is supported by RVO, and then we've had good seed supply.

And then Argentina, where there's been tight sunseed supply in Europe and the Black Sea, Argentina's had good seed supply, and that's supported. And then the other watch in soft seed, you know, I mentioned earlier, we'll watch the canola exports, and we could see, you know, that shift things moving from Australia and changing, you know, what the crush economics look like in Canada. So those are the big drivers here in the second half.

Yeah, the merchandising environment has definitely remained challenging, and there's still been ample grain supplies. You've got a pretty balanced S&D. We do expect some of the, you know, improvement in Q4. Of course, we've got the Australia and the Northern Hemisphere harvest coming off. And then right now, the key that we're watching is you've got the Black Sea. The escalation in the conflict there has added a lot of uncertainty on what's going on with global wheat S&Ds. So if you end up limiting probably 25% of global exports come out of the Black Sea area, we've probably seen the worst conflict there since the beginning of the war.

That could really tighten wheat up, especially in the short term where it'd have to be served for some other origins. That could change things. And then the other we're watching, of course, is China. Would they possibly import corn as part of the $17 billion Board of Trade commitments? It's not clear what commodities are going to be there. So those will be kind of the key flags, I think, on the merch business.

Yeah, and Tom, I'd just add there that we do expect to see sequential improvement in Q3, and then again, a pretty good increase in terms of performance expectations in Q4, just given that's a big quarter for us in that business. And as Greg pointed out, I mean, there's a lot of global volatility, so that's a segment that could benefit from some of that, depending on what happens. But we do expect things to get better, and global demand remains good. So we just got to be prepared, as we always are, to jump on it when it's there.

Yeah, that's an area where Viterra, you know, brought us a lot in the origination as well in the processing and gave us a lot more balance. So our soft seed footprint now is much more balanced globally, like our soy was prior, except for the Argentina, you know, hole which we were able to fill with Viterra. So, you know, I think the way those value chains, you know, are working, you know, together all the way through the origination, through the processing, you know, has been great. And then when we've seen challenges, you know, like the tight sunseed crop in the Black Sea, we're able to answer for customers, you know, out of Argentina and balance that.

So, you know, going forward right now, the challenge is as the Black Sea tightens up again, you know, we'll have to serve that with soy or sun oil out of Argentina to customers.

And, you know, as well as, you know, just continuing to watch how things develop, you know, with the customers. You've got palm, you know, tightening up somewhat. That's been supportive to the soft oils. And then the RBL, of course, has been supportive for the soft oil. So the oil dimension has been a big driver of soft seeds, and that will be durable.

Yeah, you're right. I mean, the farmer selling has been good, and part of that is just a more stable economy overall. I'd say the farmer behavior in Argentina is starting to look a lot more like the rest of the world. They had a large harvest and performed as expected. We don't expect the 27 export tariff reduction to influence, you know, the 26 selling beyond what we're going to see from a normal seasonal slowdown.

So we expect 27 to continue to, you know, kind of normalize on how Argentina operates. And then how we run Argentina, of course, will balance with the rest of our system. And you know we kind of let the market call with the good demand that we seeing continue Meal continues to really surprise kind of quarter after quarter the meal demand But having Renova, having the largest and lowest cost operating plant globally, we'll run in Argentina hard and balanced with the rest of our global system.

Yeah, Heather, our best margins in soy processing over, let's say, the last six quarters has been this quarter in Q2. So not 100% sure. Maybe we can circle back with you on what you're looking at, but it is actually globally, you know, overall, soy processing margins were very strong in Q2 and the best we've seen in a while.

Yeah, part of it could be a volume thing. You know, part of the volume that we include in that segment is driven by merchandising of soybeans that we originate in Brazil that can fluctuate dramatically quarter to quarter. Sure. And in fact, in Q2 here, we saw a significant increase in volume, not only sequentially from Q1, but versus a year ago on the merchandising side. And we originated a significant amount of soybeans out of Brazil this quarter that will ultimately either be crushed or sold to third parties. You know, and that volume is included in our overall volume number. So that's possible that could be impacting your analysis.

Yeah. I'll start, John, if you want. But, you know, I would say overall with the balanced footprint we've got now, kind of having to solve problems, you know, for the marketplace, a disruption that is a supply shock or sustained demand growth, that's where really the optionality that exists in our physical flows and in our asset base, you would really see the benefits of that. Versus what we see in the conflicts that are happening in the Black Sea and the Middle East, those are much more episodic volatility, and it comes with a lot of speculative volatility.

That actually has been negative to volumes, it's been negative to margins, and is challenging for our customers, especially the end users who become much more short bots. So that creates a challenge. So this would be actually a situation where we're able to use our system to solve problems. And, you know, if I did a bit of a walk on how you think about, you know, Australia would be, you know, near term, the most exposed. But we've already seen some shifting of farmers from wheat to canola and barley. And again, we handle all of those. So we'll be there for our farmer customers. You know, Brazil would be watching the planting timing. If you end up, you know, getting delayed planting on the could impact safrinha.

And then where are fertilizer prices at that point? And does that affect the investment that the farmers are making? Does that affect yields, right? If you think about medium term, you know, 27, that starts creating the risk in Malaysia and Indonesia palm production, which then will have to fill, you know, that gap with soft oils. That would be good for us.

We're seeing maybe India is already feeling some of the impact of that where we've seen increased veg oil imports. And then really in all scenarios, it looked like Argentina continues to be a winner. And we've, you know, got a great footprint there, not only in the processing, but, you know, the origination and marketing business there. So we should benefit from good crops.

Thanks, Heather.

Yeah, I would say we don't have any special insights that there's going to be anything that dramatic. Certainly the thing we're watching right now are SREs expected to come out, some definition and some rulings around SREs in potentially the coming days, weeks. It's probably the first watch out for us. And then, of course, the SET III biofuel policy for 28-29 is just beginning to be in the works, and we're expecting maybe a first look at that sometime after the elections in the fall with plans to finalize that mid-year next year. But in terms of any sort of waivers at this point, nothing that we're aware of.

Yeah, I mean, we'll take a look at that. I mean, our first priority is going to be, you know, in this market with the dynamics that we're seeing. You know, we do expect a good chance we're going to deploy more money into working capital as we go through the back half of the year, just given prices and the global dynamics. And we want to make sure our credit rating and our leverage ratio are where we want them. And I'm not concerned about the credit rating itself, but make sure our leverage ratio is in target. So that will be an important aspect.

And then as we look forward, you know, we'll see. We remain committed to our long-term new framework that we talked about where we're going to allocate 50% of our discretionary cash flow to shareholders, whether that's through dividends or repurchases. And we plan to stick with that framework, and then timing will just be, you know, hard to predict right now, but it's possible.

Yeah, on the refined oil side, the majority of that oil still goes to the food customers. They've definitely seen this to be a challenging environment, so they're more short bought. We've seen a little bit of switching to some lower value products from part of that customer group responding to consumers. But it's been interesting because we've seen some of them also moving back to innovation and trying to bring some of those customers back. And our ability to provide those solutions has been appreciated, and we think that that will pay off long term. The other thing we've seen is some of our cocoa butter equivalent business looks like those prices for cocoa moving higher again.

So, yeah, look, that later in the year, that could be an opportunity for the tropicals business as well. And then we're just at the front edge of bringing up our protein plant there in Morristown. So I think – did I hit the question there?

Yeah, maybe, Ben, I would just add that, you know, as I mentioned earlier, we've got our Avondale facility up and coming, and that's – when we bought that facility from Fuji, I guess it's been a couple years ago already, we were at 100% capacity immediately, and we're basically – we expect to be running at 100% as soon as that addition comes online. So that's going to provide some additional momentum. And then, of course, longer term, the West Zahn, you know, we're starting to run some oil through the pipes there. So we're getting excited there and obviously working with customers in Europe, you know, socializing the site with them, having them do visits and getting ready to ship demand, you know, from others.

We continue to operate in Rotterdam in the facility we sold a few years ago, but as we ship that business over, we're going to have a lot more capability in Europe than we do today. So we like the momentum in the business. I think the team's excited about where we're headed, and it's going to take a little time to put all the pieces together.

Yeah, it's really probably more around timing of when we're going to get projects completed and contracting invoiced. I'd say today we're probably closer to the high end of that range. That would be my guess. And, you know, we'll see as we get through the balance of the year. It's always timing on when work gets completed and we get billed and get paid. But right now, I would venture to guess we're going to look closer to the higher end of the range and midpoint.

I'd like to thank everyone for joining us today, for your interest in Bungie. I'd like to thank our team again for doing a fantastic job to manage through the complexity that we have using our global footprint and our capabilities and the optionality that exists there to serve our customers and continue to meet what continues to be very strong demand. So thank you all for joining. Have a great week.