Nutrien Q1 Earnings Call Highlights
Nutrien (NYSE:NTR) reported higher first-quarter adjusted EBITDA and record potash sales volumes, while management said its full-year guidance remains unchanged despite disruptions to global fertilizer and energy markets tied to the ongoing Middle East conflict.
President and CEO Ken Seitz said the conflict has disrupted fertilizer and energy trade, lifting global benchmark prices and input costs. However, he said Nutrien’s strategic priorities, capital allocation approach and 2026 guidance have not changed.
“We continue to focus on what we can control, including operating our assets safely and reliably and serving our customers efficiently,” Seitz said on the company’s earnings call.
CFO Mark Thompson said first-quarter adjusted EBITDA rose to $1.1 billion, reflecting strong customer demand, higher global benchmark prices and execution across the company’s upstream and downstream businesses.
Potash Volumes Hit Record Level
Nutrien reported record potash sales volumes of more than 3.5 million tons in the quarter. Seitz said the result was an indicator of continued strength in global demand, supported by increased production from the company’s six-mine network and ongoing automation investments.
Thompson said potash adjusted EBITDA totaled $578 million in the first quarter, driven by higher global benchmarks and record volumes. The company expects annual potash sales volumes of 14.1 million to 14.7 million tons, consistent with its historical average share of global shipments.
Management maintained its forecast for global potash shipments of 74 million to 77 million tons in 2026. Seitz said demand trends are expected to test global operating and supply chain capabilities through the year, while benchmark price increases have reflected strong fundamentals and higher freight costs.
During the question-and-answer portion of the call, Seitz said Nutrien remains constructive on potash, citing low inventories in key markets, strong demand in Southeast Asia and the relative affordability of potash compared with other crop nutrients. He said the company is seeing product move to the ground and expects shipments to be higher than last year, while noting that the upper end of the global demand range could test logistics and operating rates.
Nitrogen Benefits From North American Cost Position
Nutrien’s nitrogen segment generated adjusted EBITDA of $482 million in the first quarter, primarily due to higher global benchmarks. Seitz said the company achieved a 92% ammonia operating rate and increased sales volumes of upgraded nitrogen products to agricultural markets from North American plants, demonstrating the benefits of recent debottleneck projects.
Thompson said sales volumes reflected no production from Trinidad and New Madrid, consistent with the company’s annual guidance assumptions. Nutrien maintained its nitrogen sales volume guidance range of 9.2 million to 9.7 million tons, which includes planned turnarounds at three facilities in 2026.
Seitz said the company’s North American nitrogen footprint is an advantage, with production tied to low-cost regional natural gas. He also said nitrogen markets were relatively balanced before the Middle East conflict, and that the current disruption represents a significant supply shock.
Asked whether elevated nitrogen prices could persist into 2027, Seitz said it is “certainly one of the possibilities,” depending on the reopening of the Strait of Hormuz, the timing of production restarts and the extent of infrastructure damage in the region.
Retail Guidance Maintained Amid Strong Crop Input Demand
Nutrien’s retail adjusted EBITDA totaled $108 million in the first quarter, a seasonally slower period for the business. Thompson said demand increased across core geographies, with higher crop nutrient sales volumes and stronger proprietary products gross margins in the U.S. and Australia.
The company maintained its full-year retail adjusted EBITDA guidance range of $1.75 billion to $1.95 billion. Thompson said Nutrien continues to expect high single-digit growth in proprietary products gross margin in 2026, supported by new product launches, organic growth in core retail geographies and international expansion.
Seitz said grower engagement has been strong so far this year, supported by above-average planting progress and the need to replenish soil nutrients after large corn and soybean crops in 2025. Nutrien maintained its acreage assumptions of 94 million to 96 million acres of corn and 84 million to 86 million acres of soybeans.
Management said it has seen some demand pressure in phosphate but has not observed broad-based fertilizer “thrifting” in nitrogen or potash. Seitz said farmers are focused on maximizing yields in the current environment.
Middle East Conflict Pressures Fertilizer Supply Chains
Seitz said Middle East exports are critical to global fertilizer and energy trade, with the conflict most directly affecting nitrogen and phosphate supply as well as feedstock availability and costs. He said the conflict has directly impacted more than 30% of global urea trade and about 25% of ammonia and phosphate trade that relies on the Strait of Hormuz.
Elevated natural gas costs and reduced LNG availability have also affected nitrogen production and costs in Asia, Europe and other regions, Seitz said. In phosphate, higher sulfur and ammonia input costs have pressured margins and resulted in lower global operating rates.
Management said supply normalization is likely to be uneven. Seitz identified three key factors: reopening the Strait of Hormuz and key trade routes, restarting idled production assets and repairing damaged production or upstream infrastructure. Some damage, he said, could take months or years to resolve.
In phosphate, Nutrien generated adjusted EBITDA of $57 million in the first quarter. Thompson said higher sulfur input costs offset the benefit of higher benchmark prices and higher sales volumes versus the prior year. Production volumes increased 20% year over year, reflecting reliability improvements, but Nutrien expects further pressure on phosphate margins in the second quarter due to elevated sulfur and ammonia costs.
Portfolio Reviews and Capital Allocation Continue
Nutrien said it continues to review parts of its portfolio to enhance asset quality and focus investment on businesses with stronger returns, free cash flow contribution and competitive advantages.
- The company is reviewing strategic alternatives for its phosphate business and expects to determine the optimal path in 2026. Seitz said the company has received significant initial expressions of interest.
- Nutrien is evaluating all strategic options for its Trinidad nitrogen operations, including a potential sale. Seitz said gas availability, gas pricing and port-related fees remain challenges.
- The company has started a sales process for its Brazilian soybean seed business, expected to be completed in the second half of 2026.
Seitz said Brazil remains an important market for Nutrien, particularly for potash supply and proprietary products. However, he said the company is reviewing its retail operations in Brazil and expects to have conclusions on at least a plan by the end of the year.
Thompson said Nutrien’s 2026 capital expenditure guidance remains unchanged at $2 billion to $2.1 billion. He said the company completed about $550 million of share repurchases last year and reduced adjusted net debt by approximately $600 million. Nutrien intends to continue repurchasing shares at a ratable pace, with about $55 million per month so far in the second quarter, while looking for opportunities to further strengthen the balance sheet in 2026.
Seitz said Nutrien is positioned to generate value through its low-cost upstream assets, flexible midstream network and downstream retail platform, while continuing efforts to simplify the business and improve capital efficiency.
About Nutrien (NYSE:NTR)
Nutrien Ltd. is a global fertilizer and agricultural-services company headquartered in Saskatoon, Saskatchewan, Canada. The company is publicly traded and operates across the farm input value chain, combining upstream fertilizer production with a broad retail and services platform aimed at supporting crop production worldwide. Nutrien's business model integrates the manufacture and distribution of crop nutrients with on-the-ground agronomic support for growers and agricultural businesses.
Nutrien produces and supplies the three primary fertilizer nutrients—potash, nitrogen and phosphate—through its wholesale operations, and markets a wide range of crop inputs including seeds and crop protection products.
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