Yara International (YAR) Q1 2026 earnings summary

Executive summary

• EBITDA excluding special items rose 41% year-over-year to $896 million, driven by higher nitrogen margins, strong commercial execution, and increased deliveries amid significant supply shocks from geopolitical events disrupting global fertilizer markets.

• The business model's global reach and operational flexibility enabled effective management of market volatility, with continued high production and delivery volumes.

• Return on invested capital doubled to 12.2% on a rolling 12-month basis, exceeding the 10% through-the-cycle target.

• Revenue increased 17% year-over-year to $4,259 million, with net income up to $327 million and basic EPS at $1.28.

• The ongoing Middle East conflict and Strait of Hormuz disruptions have caused significant price increases and supply chain volatility in global fertilizer markets.

Financial highlights

• EBITDA excluding special items reached $896 million, up 41% year-over-year, with operating income nearly doubling to $610 million.

• Adjusted EPS excluding FX and special items rose from $1.01 to $1.64 year-over-year.

• Free cash flow (L12M) reached $1,184 million, with net investments flat and cash from operations up $195 million year-over-year.

• Net interest-bearing debt decreased to $3,053 million, and net debt/equity ratio improved to 0.33.

• Fixed cost reduction program delivered $180 million in savings in 2025, with additional savings in 2026.

Outlook and guidance

• Market outlook remains volatile due to ongoing geopolitical conflicts, with supply and demand imbalances expected to persist.

• Targets an incremental $200 million EBITDA improvement by end-2027 and $350 million by 2030 through asset utilization, logistics, and capital reallocation.

• Strategic focus remains on operational improvements, energy diversification, and disciplined capital allocation.

• Through-the-cycle ROIC target set above 10%, with a focus on increasing shareholder returns.

• Expects gas costs to be $150 million higher in Q2 and $120 million higher in Q3 2026 versus prior year, depending on spot prices.