Nufarm shares rally after positive half-year earnings
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More news: Shares in Nufarm surged in afternoon trade after the agricultural chemical and seed technology company posted a 28% increase in half-year net profit and reaffirmed its FY26 guidance.
Shares have risen 12.9% to $2.89% at 1:37pm AEST.
RBC Capital Markets analyst Owen Birrell maintains a “sector perform” rating on the stock with a $3.40 price target, noting that the first-half earnings were broadly in line with consensus.
Birrell added that while Nufarm continues to navigate elevated costs of active ingredients, freight and energy stemming from Middle East instability, he views the company’s proactive approach as a positive sign for margins.
Nufarm posts 28% rise in half-year profit, reaffirms FY26 guidance
The news: Nufarm has reaffirmed its FY26 outlook for underlying EBITDA and leverage, with its emerging platforms segment now expected to deliver a $40 million earnings improvement, up from previous guidance of $30 million, driven by a recovery in its omega-3 and bioenergy platforms.
The numbers: For the half year ended 31 March 2026, statutory net profit after tax rose 28% year on year, while underlying EBITDA climbed 18% to $243 million. Revenue fell 5% to $1.7 billion compared to the year prior.
The company reported a $193 million year-on-year improvement in free cashflow, alongside a $135 million reduction in net debt to $1.23 billion.
The context: Nufarm said that its crop protection division delivered gross margin expansion, with stronger performance generating earnings growth in the European market.
The half-year net profit lift was also driven by its Emerging Platforms segment which achieved growth in hybrid seeds, alongside an expanded carinata oil off-take agreement with BP to support the scale-up of the carinata program.
It had also highlighted that its $50 million cost-savings strategy, announced in April, has driven a greater focus on capital efficiency.
What they said: “The benefit of our increased strategic focus is visible in the margin improvement in Crop Protection and significant uplift in earnings from our Seed Technologies business,” CEO Rico Christensen said.
“Our strategy refresh is focused on higher-value markets and products and capital efficiency, supporting stronger cash generation, lower capital intensity and continued deleveraging,” he added.
