Nutrien Ltd. (NTR): Financial results for Q3 2026

Nutrien reported third-quarter sales of $6,064 million, up 1% from $6,007 million, but profitability declined. Gross margin fell 5% to $1,860 million, adjusted EBITDA declined 8% to $1,310 million and net earnings declined 39% to $288 million. Diluted net earnings per share was $0.60, compared with $0.96, while adjusted net earnings per share was $0.61, compared with $0.97. The company attributed the third-quarter declines in net earnings and adjusted EBITDA primarily to lower Phosphate and Nitrogen earnings.

The first nine months showed a more favorable operating picture. Sales increased 6% to $22,922 million, gross margin increased 5% to $6,757 million and adjusted EBITDA increased 2% to $4,845 million. Potash was the principal upstream contributor, with adjusted EBITDA up 9% to $1,966 million, supported by higher global benchmarks and record sales volumes. Retail adjusted EBITDA increased 1% to $1,442 million, as higher proprietary products gross margins and strong livestock economics in Australia offset lower crop nutrient volumes and higher fuel costs. Net earnings nevertheless declined 4% to $1,649 million, reflecting the same factors affecting adjusted EBITDA as well as higher finance costs and income taxes.

Phosphate was the principal pressure point. Third-quarter Phosphate gross margin was $(50) million and adjusted EBITDA was $8 million, compared with $59 million and $122 million, respectively, in the prior-year quarter. Higher sulfur input costs outweighed improved pricing. Nutrien has completed its strategic review of Phosphate and will retain Aurora and integrated upgrade facilities while shutting down White Springs in the second quarter of 2027. White Springs is expected to account for approximately 20 percent of 2026 Phosphate sales and 28 percent of operating segment cost of goods sold. The company expects lower operating costs and reduced capital requirements to more than offset lower sales and shutdown-related costs.

Cash generation improved over the first nine months, with cash provided by operating activities increasing 17% to $1,208 million. Nutrien returned $1.3 billion to shareholders through dividends and share repurchases, including $(1,338) million of cash used for dividends and share repurchases. Liquidity was supported by $919 million of cash and cash equivalents, although short-term debt increased to $1,972 million and long-term debt, including current portion, increased to $10,834 million. The increase in short-term debt reflected higher commercial paper issuances supporting seasonal working-capital requirements.

Management raised Potash sales-volume guidance to 14.3 to 14.8 million tonnes and Nitrogen sales-volume guidance to 9.3 to 9.7 million tonnes. It lowered Retail adjusted EBITDA guidance to $1.72 to $1.85 billion, reduced Phosphate sales-volume guidance to 2.40 to 2.55 million tonnes and lowered total capital-expenditures guidance to $1.95 to $2.00 billion. The effective tax rate on adjusted net earnings guidance increased to 25.5 to 27.0 percent. Fourth-quarter results will also include expected expenses related to the White Springs and Trinidad actions, including non-cash asset impairments and, for Trinidad, expected non-cash goodwill impairments.