Yara reports 2Q25 results with EBITDA in line with estimates

Investing.com -- Yara International ASA (OL:YAR) on Friday reported second-quarter adjusted EBITDA of $652 million, aligning with Jefferies estimates of $649 million but falling 2% below consensus expectations of $668 million.

The Norwegian fertilizer producer posted group sales of $3.947 billion, 2% above Jefferies estimates but 1% below consensus. Adjusted EBITDA margins improved by 200 basis points year-over-year.

In its outlook, Yara reduced its capital expenditure guidance from $1.2 billion to $1.1 billion and increased cost savings targets to $180 million from $150 million previously, with $144 million already achieved.

The company faces headwinds in gas costs, projecting a $60 million year-over-year negative impact for Q3 versus Jefferies’ estimate of $42 million, and a $10 million headwind in Q4 compared to Jefferies’ forecast of a $115 million tailwind.

By segment, Europe delivered EBITDA of $128 million, up 44% year-over-year despite a 4% decline in deliveries.

Americas posted EBITDA of $239 million, increasing 42% year-over-year with 9% higher deliveries. Africa and Asia reported EBITDA of $90 million, rising 15% year-over-year with deliveries up 2%.

Global Plants and Operational segment saw EBITDA increase 47% to $112 million, while Clean Ammonia EBITDA fell 76% to $6 million. Industrial Solutions EBITDA grew 52% to $70 million despite 7% lower deliveries.

Operating cash flow reached $878 million in the quarter compared to $822 million in the same period last year. Net interest-bearing debt stood at $3.33 billion, representing a net debt to EBITDA ratio of 1.39x on a trailing twelve-month basis.

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Regarding its Blue Ammonia project, Yara mentioned "renewing our ammonia portfolio through ammonia projects in the US" as a value-accretive growth opportunity, suggesting multiple projects remain under consideration.

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