Nufarm (NUF) investor relations material

Strategic and financial performance

• Underlying EBITDA rose 18% and underlying NPAT increased 35% year-on-year for H1 FY 2026, despite lower revenue due to a shift toward higher-margin products.

• Gross profit grew 7%, gross margin expanded, and free cash flow improved by AUD 193 million, with leverage reduced by 20%.

• Operating expenses were held flat, CapEx is on track to be below AUD 200 million for FY 2026, and further cost savings of AUD 50 million are targeted by FY 2028.

• Crop protection earnings grew 6% in constant currency, and hybrid seeds delivered underlying EBITDA of AUD 62 million, up 7%.

• The company aims to sustain CapEx at FY 2026 levels into FY 2027, maintain positive free cash flow, and operate within a leverage range of 1.5–2x.

Strategic priorities and business model evolution

• Focus is on capital discipline, profitable growth in crop protection, and delivering a reprioritized seeds strategy.

• Portfolio is being narrowed to prioritize higher-margin products and markets with strong returns, with asset and portfolio rationalization underway.

• Partnerships are leveraged to access innovation and expand the portfolio while managing capital intensity and risk.

• Hybrid seeds are prioritized as a core growth platform, especially in Southern Hemisphere markets, with new product launches and licensing models in Europe.

• Emerging platforms like Carinata and omega-3 are managed with disciplined investment and staged growth, supported by strategic partners such as bp.

Operational actions and future outlook

• Asset rationalization includes closure and sale of specific facilities and portfolio streamlining in North America to focus on higher-margin products.

• Hybrid seeds business is expanding in South America and streamlining in Europe, while emerging platforms are progressing through partnerships and staged investment.

• Additional AUD 50 million cost savings program is underway, with run rate savings targeted by end of FY 2027 and full benefit in FY 2028.

• In the U.S., a plan is in place to improve crop protection returns, with early execution underway; Europe is focused on sustaining margin improvements.

• Free cash flow generation and capital allocation to higher-return segments remain key, with ongoing focus on cost management and operational efficiency.