Yara International (YAR) Q2 2026 earnings summary

Executive summary

• EBITDA excluding special items rose 39% year-over-year to $906 million in Q2 2026, driven by higher nitrogen margins, cost discipline, and a $153 million gain from surplus EUA quota sales, despite a 17% drop in deliveries due to deferred demand and volatile prices.

• Return on invested capital increased to 14.3%, supported by strong margins and EUA sales.

• Net income rose to $545 million in Q2 2026 from $413 million in Q2 2025; basic EPS was $2.13, up from $1.62.

• Acquisition of Gulf Coast Ammonia plant for $1.3 billion in July 2026 strengthens ammonia and energy strategy, diversifies energy exposure, and enhances competitiveness.

• Safety performance improved, with Total Recordable Injuries per million hours dropping from 5 in 2Q16 to 1.2 in 2Q26.

Financial highlights

• Revenue and other income reached $4,428 million in Q2 2026, up from $3,947 million year-over-year.

• EBITDA (reported) was $1,058 million in Q2 2026, up from $645 million in Q2 2025.

• Earnings per share increased by 84% year-over-year; adjusted EPS (excluding FX and special items) was $1.67 in Q2 2026, up from $0.91.

• Free cash flow for the quarter was $583 million; free cash flow before financing activities was $777 million in Q2 2026.

• Net investments down to $100 million, reflecting EUA divestment; net interest-bearing debt at quarter-end was $3,067 million.

Outlook and guidance

• Demand is rebounding with increased buying activity and rising prices in key markets, especially in July after a delayed off-season.

• Market uncertainty remains due to unresolved Middle East tensions, supply risks, and volatile nitrogen prices.

• Urea balance expected to remain tight in the medium term with limited new projects and uncertain completion dates.

• No major turnarounds scheduled for Q3 except Pilbara, which will be offline for about a month.

• Targeting over $350 million EBITDA improvement and $600 million sustainable cash flow expansion by 2030.