The head office of Nutrien in Saskatoon in April, 2025.Todd Korol/Reuters
Nutrien NTR-T missed analysts’ estimates for second-quarter profit on Wednesday as lower potash and nitrogen sales volumes offset the benefit of higher fertilizer prices at the world’s largest potash producer.
Fertilizer producers have benefited from firmer nutrient prices this year, but earnings remain sensitive to shipment volumes, which reflect farmer demand and application activity.
Nutrien said global nitrogen markets are expected to remain tight in the second half of 2026, pressured by trade disruptions, production outages, elevated energy prices and strong import demand from India and Brazil.
Global phosphate market continues to be affected by trade flow disruptions, constrained sulphur feedstock availability and elevated costs, straining phosphate producer margins and reducing global operating rates, it said.
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Nutrien raised the lower end of its annual potash sales volume forecast to 14.2 million tonnes from 14.1 million tonnes, while keeping the upper end unchanged at 14.8 million tonnes.
Quarterly nitrogen sales volumes fell 25.3 per cent to 2.253 million tonnes, while potash sales volumes slipped 1.2 per cent to 3.943 million tonnes.
Net sales in the nitrogen segment declined 3 per cent on lower volumes, while higher costs related to a controlled shutdown at its Trinidad operations weighed on profitability.
The Saskatoon, Canada-based company reported adjusted earnings of US$2.61 per share for the second quarter, missing analysts’ estimate of US$2.71, according to LSEG data.
U.S.-listed shares of the company were down 1 per cent after the bell.
Urea and ammonia, key nitrogen fertilizers, have surged in price since the outbreak of the U.S.-Iran conflict.
Net sales in the potash segment rose 6 per cent to US$1.05-billion, while phosphate revenue increased 18 per cent to US$468-million. Total net sales rose 4 per cent to US$10.81-billion, aided by firm potash demand and nitrogen and phosphate prices that remained above year-ago levels.