Yara International ASA

Latest Results (13.05.2026):

Yara International ASA — First quarter 2026: Strong results with EBITDA excluding special items of USD 896 million, revenue and other income of USD 4,259 million, and net income of USD 327 million. The quarter was driven by higher nitrogen margins, increased deliveries and disciplined cost control, while geopolitical supply shocks (notably blockage of the Strait of Hormuz) amplified market volatility. Yara reports improved returns and a stronger balance sheet but recorded a currency exchange loss in the quarter.

Headline financials

1Q 2026 revenue and other income USD 4,259M; operating income USD 610M; EBITDA USD 908M (EBITDA excl. special items USD 896M). Net income USD 327M; basic EPS USD 1.28; adjusted EPS (excl. FX) USD 1.66; operating cash flow USD 524M.

Drivers of the beat

EBITDA excl. special items up 41% vs 1Q 2025 (+USD 259M ex special items) driven mainly by margin improvement (USD 245M) and higher volumes/mix (+USD 35M), supported by lower fixed costs and improvement initiatives.

Segment performance

Europe EBITDA excl. special items USD 246M (+54% YoY); Americas USD 229M (+48%); Africa & Asia USD 44M (-33%) due to margin pressure in key Asian markets; Global Production USD 173M (+51%); Clean Ammonia USD 49M (+20%); Industrial Solutions USD 137M (+43%).

Volumes, deliveries and production

Total deliveries 7,924 kt (+2% YoY). Crop Nutrition deliveries 5,965 kt (up from 5,771 kt). Yara ammonia production 1,605 kt (down from 1,717 kt) and total finished products 4,890 kt (slightly below prior year). Some production was affected by unplanned ammonia outages and regional gas curtailments (Babrala, India).

Balance sheet and leverage

Net debt/EBITDA (LTM, excl. special items) improved to 1.00 (from 1.67 a year ago); net debt/equity 0.33 (down from 0.50). Cash and cash equivalents at quarter end USD 1,218M; operating cash flow strengthened vs prior year.

Working capital and cash flow detail

Operating cash flow rose to USD 524M (from USD 329M) reflecting higher operating income, partly offset by higher accounts receivable from increased prices and deliveries. Investing cash outflow roughly flat at USD (239)M.

Financial items and FX impact

Net financial expense includes a foreign currency exchange loss of USD 122M this quarter (vs a USD 127M gain in 1Q 2025), driven by NOK appreciation on internal euro funding positions; interest expense modestly lower YoY.

Energy costs and short-term gas outlook

Based on forward markets (as of 16 Apr 2026), Yara estimates higher gas costs vs prior year: ~USD 150M higher for Q2 2026 and ~USD 120M higher for Q3 2026, subject to spot price movements and local terms.

Market context & strategic actions

Geopolitical supply shocks (Strait of Hormuz blockade, attacks on Russian plants) have tightened global fertilizer markets. Yara emphasizes its global, flexible model and an improvement program targeting incremental USD 200M EBITDA by end-2027 and a further USD 150M by end-2030; potential FID for ammonia projects with Air Products targeted mid-2026.

Capital allocation & shareholder returns

Strong liquidity and capital structure support a proposed annual dividend of NOK 22 per share (subject to AGM approval), payable 28 May 2026. Yara continues to target a mid‑investment grade credit rating and a net debt/EBITDA target of 1.5–2.0 over the medium term.