Nufarm’s underlying net profit after tax jumped 35% to $52 million for the half year ended 31 March 2026, marking a significant operational turnaround that comes alongside a meaningful reduction in the company’s debt burden. This combination of earnings growth and deleveraging addresses the two concerns that have most weighed on investor sentiment around the stock historically.
The financial metrics reveal a company gaining genuine traction on its operational priorities. Free cash flow improved by $193 million year-on-year, demonstrating that the profit growth is translating into real cash generation rather than accounting improvements. With net debt falling $135 million to $1.23 billion and the net debt to EBITDA ratio declining 20% to 3.6x, Nufarm is making tangible progress toward balance sheet normalisation, a key milestone for a company that carried elevated leverage through the commodity downturn.
Underlying EBITDA grew 18% to $243 million, with crop protection delivering margin expansion through better product mix and cost discipline despite headwinds from currency and weather. Europe was the standout performer, with EBITDA up 19%, as the performance improvement program delivered structural cost reductions. North America also performed well with 11% growth, though the APAC region contracted 15% due to Australian drought conditions and currency headwinds, particularly in Asia.
The seeds technologies division delivered a particularly impressive result, with EBITDA nearly doubling from $27 million to $58 million, driven by hybrid seed growth and material improvements in emerging platforms. This represents a meaningful shift in the group’s earnings profile and validates the company’s refocused strategy, suggesting seeds is transitioning from a drag on results to a genuine contributor to group earnings.
Management has reaffirmed its full year outlook for underlying EBITDA and leverage while announcing an additional $50 million in cost savings, building on prior initiatives. The critical question for investors is whether these operational improvements can sustain through the second half, particularly if commodity prices soften or agricultural end-markets weaken, and whether the deleveraging momentum can continue toward management’s medium-term targets.
The trajectory of execution against these targets, particularly the sustained performance of the seeds division and the realisation of additional cost savings, will be key metrics to track over coming months. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Nufarm Limited (ASX: NUF)
Nufarm Limited is a global crop-protection and seed technology company that develops, manufactures, and sells herbicides, insecticides, fungicides, and seed technologies. The company operates through two main segments: Crop Protection and Seed Technologies, serving agricultural markets across Europe, the Middle East, Africa, North America, and the Asia Pacific regions. Founded in 1916 and headquartered in Laverton North, Australia, Nufarm operates in the off-patent segment of the crop-protection market.
If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.
