Yara Q2 EBITDA jumps 39% to $906 million as nitrogen margins widen

Yara reported second-quarter 2026 EBITDA excluding special items of $906 million, up 39% from the same period a year ago, as higher nitrogen margins more than offset a 17% drop in crop nutrition deliveries. The company achieved a return on invested capital of 14.3% for the quarter.

Nitrogen pricing drove the improvement. Global urea benchmarks remained elevated through much of Q2 amid ongoing Strait of Hormuz disruptions and Chinese export restrictions. Yara’s European deliveries were stable for the full season, and imports of urea to Europe fell, lifting the company’s relative market share in the region.

The delivery shortfall reflected a slow start to the new Northern Hemisphere buying season, with market uncertainty prompting buyers to defer purchases. Yara executives noted a pickup in European market activity in July and rising global nitrogen prices heading into Q3.

The results were bolstered by a $153 million gain from the sale of EU Allowance (EUA) quotas, which supported the company’s balance sheet. Yara maintained a strong financial position with a net debt-to-EBITDA ratio of 1.00 as of Q1 2026.

The quarter followed Yara’s announcement of a $1.3 billion acquisition of the Gulf Coast Ammonia plant in Texas City, adding 1.3 million tonnes of annual capacity. The plant is expected to reach stable operations by year-end, with long-term gas supply through Air Products. The deal raises Yara’s 2026 capex to $2.5 billion.

Renewed Middle East tensions cast further uncertainty over nitrogen and phosphate availability for Q3 and the upcoming Northern Hemisphere season, the company said.

Source: Yahoo Finance