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# Yara boosts Q2 2025 earnings on cost cuts and strenghtening business margins

Publication Date: 06.08.2025, 12:00

Fertilizer maker lifts full-year guidance as efficiency measures and favorable market conditions drive second quarter results.

Yara International [reported](https://www.yara.com/siteassets/investors/057-reports-and-presentations/quarterly-reports/2025/2q-2025/yara-2q-2025-presentation.pdf) a 27% increase in Q2 2025 EBITDA, reaching $652 million. The improvement was driven by operational efficiencies, margin expansion, and a cost and capital expenditure reduction program that is progressing ahead of schedule.

The Oslo-based fertilizer producer said adjusted earnings per share for Q1 2025 reached $1.92, up from $0.64 a year earlier. Return on invested capital (ROIC) rose to 7.0% from 5.6% in the prior-year period.

Yara’s cost-cutting program has eliminated over 1,400 full-time equivalent positions, and fixed costs are expected to fall below $2.35 billion by the end of 2025. Capital expenditure for the year has been revised down to $1.1 billion, with a focus on projects yielding double-digit returns.

The company cited strong commercial performance, record-high production levels, and supportive market fundamentals as key factors behind the quarterly results. Production efficiency gains and reduced greenhouse gas emissions contributed to higher margins, especially in European premium products.

Crop nutrition deliveries rose by 3% year-on-year in the quarter, led by a 9% increase in the Americas and a 2% gain in Europe. Industrial segment volumes fell due to portfolio adjustments.

Market fundamentals for nitrogen remain tight, with urea prices staying above historical averages despite reduced farmer affordability. Limited new nitrogen capacity additions, lagging Indian supply, and stable Chinese exports are expected to continue supporting prices.

Yara also reiterated its interest in potential upstream ammonia investments in the U.S., targeting value creation through low-carbon production backed by U.S. tax credits and European carbon pricing mechanisms.

The company emphasized continued strict capital discipline and a focus on high-return assets, premium product growth, and further cost optimization. ROIC remains a key performance metric, with the long-term target set above 10%.

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