Fertiliser company Yara warns of slower sales in 2026 after Q4 loss
Yara, a Norwegian fertiliser manufacturer, reported earnings for the fourth quarter that were slightly below expectations. They also said that heavy buying in Europe late last year would impact early 2026 sales despite a strong demand.
"Strong sales in Europe and imports during Q4 led to a slower start in 2026, with most farmers covered for their first application," Yara stated in a press release.
Svein Holsether, CEO of Svein Tore, told analysts that simultaneous purchases from North America and Europe, as well as India, ahead of spring planting season, are increasing competition and keeping nitrogen prices stable.
The market for fertilisers?tightened in Europe, especially late last year. Prices rose due to a limited supply of nitrogen, but rising production and Chinese exports may pressure prices further. "China exports 4.6 mt more in 2025 than 'in 2024, and is the main supply risk for the future," Yara stated.
Analysts also warned that a possible increase in Chinese exports and an increasing supply of fertilisers in the second half 2026 could put pressure on prices.
Yara’s earnings?before taxes, depreciation, and amortization (EBITDA), excluding specific items, were $709 millions in the third quarter, compared to $519 million a yea earlier. This was just a little below the $729m expected by analysts according to a poll conducted by Yara.
Jefferies said the company missed forecasts due to weaker energy and pricing gains, which offset higher volumes. Limited guidance is likely to put pressure on its shares in the short term.
The largest contributor to the earnings growth was a higher upgrading margin, but increased deliveries and cost savings also contributed.
Yara stated that 'natural gas costs are expected to be $80 and $70 millions lower in the first and third quarters than a year ago.
In Oslo, shares of Yara had fallen by around 2% in the early afternoon. (Reporting from Gdansk by Jesus Calero, edited by Milla Nissi Prussak).
(source: Reuters)
