Nufarm Ltd (ASX: NUF) has reported a statutory net loss after tax of $165.3 million for the year ended 30 September 2025, weighed down by $142.4 million in predominantly non-cash items linked to a review of its Seed Technologies business and associated restructuring.
Despite the bottom-line loss, group operating performance largely matched the company’s August guidance update, with underlying EBITDA (uEBITDA) coming in at $302.5 million, down 3% on the prior year. Excluding contributions from the emerging Omega-3 and Bioenergy platforms, uEBITDA rose 10%, underpinned by a strong rebound in the Crop Protection division.
The company also made significant balance sheet progress, booking a $538 million seasonal unwind in net debt from the first half and closing the year with leverage at 2.7x. Working capital efficiency improved, reflected in a 4.4-percentage-point reduction in average net working capital to sales and a 16-day cut in inventory days. Nufarm reported $50 millionin run-rate cost savings for the year.
Shares were almost 8% higher to $2.31 at midday.
Crop Protection drives group performance
Crop Protection delivered the bulk of earnings, posting uEBITDA of $370.0 million, an 18% year-on-year increase. All regions recorded growth, supported by improved pricing conditions and a stronger sales mix.
In APAC, uEBITDA rose 10% to $97.8 million as commercial initiatives lifted margins. Asia reported another record year for revenue and profitability, helped by new product uptake, while Australia and New Zealand also posted year-on-year gains.
Europe contributed $161.3 million, up 22%, reflecting the benefits of the company’s performance improvement plan and better agronomic conditions. Margin gains were supported by mix improvements, particularly from the Acetamiprid product acquired in 2018, although MCPA pricing remained challenging.
North America lifted uEBITDA 19% to $110.9 million, with momentum accelerating through the year. Second-half uEBITDA grew 30%, despite regulatory approval delays and market uncertainty driven by tariffs. The region’s Turf & Ornamentals business recorded its strongest year to date for both sales and gross margin.
Seed Technologies hit by Omega-3 losses
The Seed Technologies division reported uEBITDA of $13.9 million, down sharply from $62.6 million in FY24. The fall was driven primarily by the Omega-3 platform, which was affected by a sharp decline in global fish oil prices. Hybrid seeds delivered increased revenue and profit in South America, while dry seasonal conditions in Australia reduced canola seed sales.
Following its strategic review, Nufarm will reduce costs and capital deployment across Seed Technologies, prioritise growth in hybrid seeds, expand Bioenergy through a capital-light model supported by its bp offtake agreement, and reposition Omega-3 to achieve a near-term cash-neutral outcome.
FY26 outlook
Assuming normal seasonal conditions, Nufarm expects strong uEBITDA growth in FY26, including continued but moderating gains in Crop Protection.
Seed Technologies is targeting a $30 million uplift from Omega-3 and Bioenergy.
Net debt is forecast to fall below the prior year, with year-end leverage expected to improve to around 2.0x. Capital expenditure is planned to remain below $200 million.
CEO transition
Nufarm has appointed Rico Christensen, currently group executive, portfolio solutions, as its next CEO and managing director, succeeding Greg Hunt.
Christensen will join the board as an executive director on December 1, 2025, and formally take over as CEO and MD on January 1, 2026. He brings 30 years’ global agchem experience, including senior roles at UPL, Arysta LifeScience and Cheminova, with a track record in operational excellence, capital discipline and portfolio development.
Chair John Gillam described him as a high-calibre global executive with strong commercial and strategic skills who was the standout candidate. Hunt will step down as CEO and MD on January 1, 2026, but remain with Nufarm until June 30, 2026, in an advisory role to support the transition, with the board paying tribute to his long-standing leadership and role in building Nufarm into a global business.