Nutrien Ltd.

Nutrien Ltd. Posts Record Potash Volumes in Q2 2026 Amid Mixed Results, as Farmer Demand Slumps for Nitrogen and Phosphate

2026-08-07

Nutrien Ltd. delivered a mixed performance in the second quarter of 2026, as record potash sales volumes and strong retail proprietary product margins were counterbalanced by a sharp pullback in farmer demand for nitrogen and phosphate, driven by high global prices and elevated input costs. The Saskatoon-based company reported net earnings of $1.22 billion, a slight dip from the prior year, with overall crop nutrient sales volumes falling 11% as growers deferred purchases amid price volatility and geopolitical disruptions, including the blockage of the Strait of Hormuz, which constrained feedstock availability and inflated sulfur and natural gas costs. Despite these headwinds, Nutrien achieved a 4% increase in retail adjusted EBITDA, underpinned by a 10% rise in proprietary crop nutrient margins, while its nitrogen segment benefited from North American feedstock advantages and the early, under-budget completion of a major facility turnaround. The company raised its potash sales volume guidance to 14.2–14.8 million tonnes, reflecting robust global demand and operational excellence from its low-cost mine network, where automation now covers 53% of ore tonnes. However, phosphate margins came under unsustainable pressure from elevated sulfur costs, prompting a strategic review of that business, along with its Trinidad nitrogen operations and Brazilian retail, with decisions expected by year-end. Nutrien also reduced its capital expenditure guidance to $1.95–$2.05 billion, having generated roughly $1 billion in gross proceeds from non-core asset divestitures since late 2024 to bolster debt reduction and shareholder returns, while maintaining a disciplined capital allocation framework targeting a mid-cycle net debt-to-EBITDA ratio of 1.5x, even as it navigates an uncertain outlook shaped by El Niño risks, trade flow disruptions, and elevated energy prices through the remainder of 2026.