Q2 FY2026
Filed Aug 5, 2026Nutrien Reports Second Quarter 2026 Results
Second-quarter sales and gross margin increased, but net earnings and adjusted EBITDA declined as lower fertilizer volumes and increased sulfur costs more than offset higher global fertilizer benchmarks. First-half earnings, adjusted EBITDA and operating cash flow increased, and the company raised Potash sales volume guidance while lowering capital expenditures guidance.
Actuals vs. the company’s prior outlook
from its previous release| Metric | Guided | Reported | Verdict |
|---|---|---|---|
| Retail adjusted EBITDA | $1.75 billion to $1.95 billion | $1,239 million for the six months ended June 30, 2026 | n/a |
| Potash sales volumes | 14.1 million tonnes to 14.8 million tonnes | 7,453 tonnes – thousands for the six months ended June 30, 2026 | n/a |
| Nitrogen sales volumes | 9.2 million tonnes to 9.7 million tonnes | 4,594 tonnes – thousands for the six months ended June 30, 2026 | n/a |
| Phosphate sales volumes | 2.4 million tonnes to 2.6 million tonnes | 1,248 tonnes – thousands for the six months ended June 30, 2026 | n/a |
| Depreciation and amortization | $2.4 billion to $2.5 billion | $1,210 million for the six months ended June 30, 2026 | n/a |
| Finance costs | $0.65 billion to $0.75 billion | $349 million for the six months ended June 30, 2026 | n/a |
| Effective tax rate on adjusted net earnings | 24.0% to 26.0% | n/a | |
| Capital expenditures | $2.0 billion to $2.1 billion | $(816) million for the six months ended June 30, 2026 | n/a |
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Salesother | $10,812 million | – | 4% |
| Gross marginother | $3,251 million | – | 2% |
| Expensesother | $1,474 million | – | 6% |
| Earnings Before Finance Costs and Income Taxesother | $1,777 million | – | – |
| Net earningsother | $1,222 million | – | (1%) |
| Net earnings attributable to equity holders of Nutrienother | $1,214 million | – | – |
| Diluted net earnings per shareother | $2.53 | – | 1% |
| Adjusted EBITDAnon-GAAP | $2,430 million | – | (2%) |
| Adjusted net earningsnon-GAAP | $1,251 million | – | – |
| Adjusted net earnings per sharenon-GAAP | $2.61 | – | (2%) |
| Depreciation and amortizationother | $604 million | – | – |
| Finance costsother | $173 million | – | 12% |
| Income tax expenseother | $382 million | – | (4%) |
| Actual effective tax rate including discrete itemsother | 24% | – | - |
| Cash provided by operating activitiesother | $2,484 million | – | (2%) |
| Capital expendituresother | $(491) million | – | – |
| Cash used in investing activitiesother | $(505) million | – | 2% |
| Cash used in financing activitiesother | $(1,822) million | – | 16% |
| Cash used for dividends and share repurchasesother | $(439) million | – | 18% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| RetailSales increased due to higher selling prices in crop nutrients, higher sales of proprietary crop protection products, and increased services and other sales supported by a strong livestock market in Australia. Adjusted EBITDA decreased mainly due to lower crop nutrient sales volumes and higher fuel costs. | $8,270 million | – | 4% |
| PotashAdjusted EBITDA increased due to higher global benchmarks and strong operational and supply chain execution, partially offset by higher provincial mining taxes. | $1,053 million | – | 6% |
| NitrogenAdjusted EBITDA decreased due to lower sales volumes, partially offset by higher global benchmarks. Volumes reflected no production from Trinidad and New Madrid, planned maintenance at Carseland and deferred customer purchases. | $1,154 million | – | (3%) |
| PhosphateAdjusted EBITDA decreased due to higher sulfur input costs, partially offset by higher global benchmarks and sales volumes. | $468 million | – | 18% |
2026 Guidance Ranges as of August 5, 2026 outlook
- Tax rate24.0% to 26.0% effective tax rate on adjusted net earnings
- NoteRetail adjusted EBITDA: $1.75 billion to $1.95 billion
- NotePotash sales volumes: 14.2 million tonnes to 14.8 million tonnes
- NoteNitrogen sales volumes: 9.2 million tonnes to 9.7 million tonnes
- NotePhosphate sales volumes: 2.4 million tonnes to 2.6 million tonnes
- NoteDepreciation and amortization: $2.4 billion to $2.5 billion
- NoteFinance costs: $0.65 billion to $0.75 billion
- NoteCapital expenditures: $1.95 billion to $2.05 billion
- NoteGlobal potash shipments: 74 to 77 million tonnes in 2026
Capital returns
- $848 million returned to shareholders in the first half of 2026 through dividends and share repurchases
- Dividends paid to Nutrien’s shareholders were $(528) million in the six months ended June 30, 2026
- Repurchase of common shares was $(320) million in the six months ended June 30, 2026
- 4,576,390 common shares were repurchased for cancellation in the six months ended June 30, 2026 at an average price per share of $70.08 and total cost, inclusive of tax, of $327 million
- An additional 1,238,033 common shares were repurchased for cancellation as of August 4, 2026 at a cost of $82 million and an average price per share of $66.98
- A dividend per share of $0.55 was declared during the three months ended June 30, 2026, payable on July 17, 2026 to shareholders of record on June 30, 2026
What drove it
- First-half sales were supported by increased global fertilizer benchmarks, higher Retail earnings and record Potash sales volumes.
- Retail first-half adjusted EBITDA increased to $1.24 billion due to higher proprietary products gross margins and a strong livestock market in Australia.
- Potash first-half adjusted EBITDA increased to $1.24 billion, supported by higher global benchmarks and record first-half sales volumes.
- Nitrogen first-half adjusted EBITDA increased to $1.12 billion due to higher global nitrogen benchmarks and lower natural gas costs.
- Potash production volumes were 3,996 tonnes – thousands in the second quarter and 7,656 tonnes – thousands in the first half of 2026.
- Potash controllable cash cost of product manufactured per tonne was $55 in the second quarter and $57 in the first half of 2026.
- Nitrogen overall natural gas cost was $2.10 per MMBtu in the second quarter and $2.72 per MMBtu in the first half of 2026.
- The company entered into agreements since June 2026 to sell non-core assets for expected gross proceeds of approximately $90 million.
Concerns
- Second-quarter net earnings decreased to $1,222 million from $1,229 million and adjusted EBITDA decreased to $2,430 million from $2,486 million.
- Second-quarter fertilizer volumes were lower and sulfur costs increased.
- Phosphate reported gross margin of $(25) million and adjusted EBITDA of $23 million in the second quarter, as higher sulfur input costs exceeded the benefits of higher global benchmarks and volumes.
- Nitrogen total manufactured-product sales volumes declined to 2,253 tonnes – thousands from 3,017 tonnes – thousands, reflecting no production from the Trinidad and New Madrid facilities, planned maintenance at Carseland and deferred customer purchases.
- Other expenses increased to $222 million from $126 million, including restructuring costs of $66 million compared with $21 million.
- Receivables increased to $8,687 million from $5,675 million, primarily due to the seasonality of Retail sales and a strategic extension of credit terms to Retail customers.
What to watch
- Potash execution against increased sales volume guidance of 14.2 million tonnes to 14.8 million tonnes and the maintained forecast for global potash shipments of 74 to 77 million tonnes in 2026.
- Completion of planned Nitrogen turnarounds in the third quarter of 2026 and higher ammonia operating rates in the fourth quarter compared to the prior year.
- Phosphate margins as global phosphate market fundamentals remain affected by trade flow disruptions, constrained sulfur feedstock availability and elevated costs.
- Retail demand in North America during the third quarter and the start of the fall fertilizer application season.
- Progress toward the optimal path for the Phosphate business, Trinidad Nitrogen facility and Brazilian Retail business in 2026.
- Execution of the lowered capital expenditures guidance range of $1.95 billion to $2.05 billion and continued share repurchases.
Balance sheet and cash flow
- Cash and cash equivalents: $921 million as at June 30, 2026, compared with $701 million as at December 31, 2025
- Receivables: $8,687 million as at June 30, 2026, compared with $5,675 million as at December 31, 2025
- Inventories: $6,164 million as at June 30, 2026, compared with $6,977 million as at December 31, 2025
- Short-term debt: $527 million as at June 30, 2026, compared with $873 million as at December 31, 2025
- Long-term debt, including current portion: $10,861 million as at June 30, 2026, compared with $9,863 million as at December 31, 2025
- Cash provided by operating activities: $1,633 million in the six months ended June 30, 2026, compared with $1,456 million in the six months ended June 30, 2025
- Capital expenditures: $(816) million in the six months ended June 30, 2026, compared with $(724) million in the six months ended June 30, 2025
- The company issued $1 billion of senior notes during the first half of 2026, comprising $500 million of 4.850 percent senior notes due May 29, 2031 and $500 million of 5.350 percent senior notes due May 29, 2036
Analysis
Nutrien reported second-quarter sales of $10,812 million, up 4% from $10,438 million, while gross margin rose 2% to $3,251 million. However, net earnings declined 1% to $1,222 million and adjusted EBITDA declined 2% to $2,430 million. Management attributed the second-quarter decline in net earnings and adjusted EBITDA to lower fertilizer volumes and increased sulfur costs that more than offset higher global fertilizer benchmarks.
The first half showed a stronger operating profile. Sales increased 8% to $16,858 million, net earnings increased 9% to $1,361 million and adjusted EBITDA increased 6% to $3,535 million. Retail adjusted EBITDA increased to $1,239 million from $1,195 million, Potash adjusted EBITDA increased to $1,236 million from $1,076 million and Nitrogen adjusted EBITDA increased to $1,117 million from $1,070 million. Phosphate was the material offset, with adjusted EBITDA declining to $80 million from $153 million and gross margin of $(29) million.
Potash was the most significant upstream contributor. First-half manufactured-product sales volumes reached 7,453 tonnes – thousands, compared with 7,391 tonnes – thousands, while average net selling price increased to $266 per tonne from $235 per tonne. Production volumes increased to 7,656 tonnes – thousands from 6,820 tonnes – thousands. Nitrogen pricing also improved, with first-half average net selling price of $416 per tonne compared with $365 per tonne, but total sales volumes fell to 4,594 tonnes – thousands from 5,486 tonnes – thousands because of Trinidad and New Madrid downtime, Carseland maintenance and deferred customer purchases.
Cash generation improved over the first half despite a seasonal working-capital build. Cash provided by operating activities rose 12% to $1,633 million. Capital expenditures increased to $(816) million from $(724) million, while cash used in financing activities was $(396) million after the issuance of $1 billion in senior notes. Nutrien returned $848 million to shareholders through dividends and share repurchases in the first half, including $(320) million of common share repurchases.
The company raised Potash sales volume guidance to 14.2 million tonnes to 14.8 million tonnes from 14.1 million tonnes to 14.8 million tonnes and lowered capital expenditures guidance to $1.95 billion to $2.05 billion from $2.0 billion to $2.1 billion. Other financial and volume guidance ranges were maintained. The central execution issues are sustaining Potash demand and production, completing Nitrogen turnarounds, containing sulfur-related pressure in Phosphate, and progressing strategic alternatives for Phosphate, Trinidad Nitrogen and Brazilian Retail.
Management, verbatim
In the first half of 2026, Nutrien delivered record potash sales volumes, strong growth in proprietary products margins and further enhanced the reliability and cost position of our nitrogen assets in a dynamic global operating environment.
Ken Seitz, President and CEO
Our focus on operational excellence, targeted growth investments and ongoing portfolio optimization initiatives is strengthening our business, supporting structural free cash flow growth and increasing cash returns to shareholders.
Ken Seitz, President and CEO
Not in the filing
stated, not guessed- Free cash flow was not reported.
- Forward revenue guidance was not provided.
- Forward gross margin guidance was not provided.
- Forward operating expenses guidance was not provided.
- An actual effective tax rate on adjusted net earnings for the six months ended June 30, 2026 was not reported.
- Prior-quarter comparisons were not reported for most key metrics and segment revenue.
- A full-year actual result is not available for comparison with 2026 full-year guidance.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.