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Nutrien Gains on Healthy Fertilizer Demand, Acquisitions & Cost Cuts
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Key Takeaways
Nutrien is gaining from strong fertilizer demand aided by the strength in global agriculture markets.
NTR raised 2025 potash sales guidance to 14-14.5M tons on strong North American and offshore demand.
Cost-cutting initiatives target $200M in 2025 savings, but input cost volatility remains a risk.
Nutrien Ltd. (NTR - Free Report) is benefiting from healthy demand for crop nutrients, its actions to reduce costs and strategic acquisitions. Higher fertilizer prices are providing further support. However, exposure to volatile input costs and supply tightness could pressure margins.
The NTR stock has gained 28.6% over the past year, compared with the Zacks Fertilizers industry’s 1.7% rise.
Image Source: Zacks Investment Research
Nutrien is well-placed to benefit from higher demand for fertilizers, backed by the strength in global agriculture markets. It is seeing healthy fertilizer demand in its major markets. Tight inventories are expected to support crop commodity prices. Strong demand and supply tightness also led to an uptick in fertilizer prices in 2025.
Favorable farmer economics, improved affordability and low inventory levels are expected to drive potash demand globally. The phosphate market is also supported by low producer and channel inventories. Restricted exports from China have also led to supply tightness in this market. Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is driven by demand in North America, India and Brazil. A resurgence in industrial nitrogen demand also bodes well.
The company expects record crop production prospects in the United States and sees strong demand for crop inputs. NTR saw record potash sales volumes in the first nine months of 2025, driven by favorable potash affordability and robust consumption in North America and major offshore markets. Third-quarter volumes also rose due to strong demand in North America and offshore. NTR raised potash sales volume guidance for 2025 to 14-14.5 million tons, driven by anticipated higher global demand.
NTR should also gain from acquisitions and increased adoption of its digital platform. It continues to expand its footprint in Brazil through acquisitions. It is expected to continue pursuing targeted opportunities in its core markets. The company expects to utilize part of its free cash flow for incremental growth investments, including tuck-in acquisitions in the retail business.
Cost and operational efficiency initiatives are also expected to aid the company’s performance. NTR remains focused on lowering the cost of production in the potash business. It has announced several strategic actions to reduce its controllable costs and boost free cash flow. NTR has accelerated operational efficiency and cost savings initiatives, and anticipates achieving around $200 million of total savings for full-year 2025.
However, NTR remains exposed to a volatile input cost environment amid supply tightness. Nutrien uses sulfur and natural gas as key inputs. Supply disruptions from Russia amid the war with Ukraine contributed to the rise in natural gas prices. Plant shutdowns and maintenance also resulted in a tight supply of these inputs, which, coupled with strong demand, pushed up their prices. The company saw higher sulfur input costs and natural gas prices in the third quarter, leading to a higher cost of goods sold per ton in phosphate and nitrogen businesses, respectively.
The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.85 per share, indicating a rise of 85.6%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.6%. AEM’s shares have rallied 133.8% over the past year.
The Zacks Consensus Estimate for KGC’s 2025 earnings is pinned at $1.68 per share, indicating a 147.1% year-over-year increase. Its shares have surged 225.4% over the past year.
The Zacks Consensus Estimate for ASM’s 2025 earnings is pinned at 17 cents per share, indicating a 13.3% year-over-year increase. ASM’s shares have skyrocketed 491.2% over the past year.
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Nutrien Gains on Healthy Fertilizer Demand, Acquisitions & Cost Cuts
Key Takeaways
Nutrien Ltd. (NTR - Free Report) is benefiting from healthy demand for crop nutrients, its actions to reduce costs and strategic acquisitions. Higher fertilizer prices are providing further support. However, exposure to volatile input costs and supply tightness could pressure margins.
The NTR stock has gained 28.6% over the past year, compared with the Zacks Fertilizers industry’s 1.7% rise.
Nutrien is well-placed to benefit from higher demand for fertilizers, backed by the strength in global agriculture markets. It is seeing healthy fertilizer demand in its major markets. Tight inventories are expected to support crop commodity prices. Strong demand and supply tightness also led to an uptick in fertilizer prices in 2025.
Favorable farmer economics, improved affordability and low inventory levels are expected to drive potash demand globally. The phosphate market is also supported by low producer and channel inventories. Restricted exports from China have also led to supply tightness in this market. Demand for nitrogen fertilizer also remains healthy in major markets. Global nitrogen requirement is driven by demand in North America, India and Brazil. A resurgence in industrial nitrogen demand also bodes well.
The company expects record crop production prospects in the United States and sees strong demand for crop inputs. NTR saw record potash sales volumes in the first nine months of 2025, driven by favorable potash affordability and robust consumption in North America and major offshore markets. Third-quarter volumes also rose due to strong demand in North America and offshore. NTR raised potash sales volume guidance for 2025 to 14-14.5 million tons, driven by anticipated higher global demand.
NTR should also gain from acquisitions and increased adoption of its digital platform. It continues to expand its footprint in Brazil through acquisitions. It is expected to continue pursuing targeted opportunities in its core markets. The company expects to utilize part of its free cash flow for incremental growth investments, including tuck-in acquisitions in the retail business.
Cost and operational efficiency initiatives are also expected to aid the company’s performance. NTR remains focused on lowering the cost of production in the potash business. It has announced several strategic actions to reduce its controllable costs and boost free cash flow. NTR has accelerated operational efficiency and cost savings initiatives, and anticipates achieving around $200 million of total savings for full-year 2025.
However, NTR remains exposed to a volatile input cost environment amid supply tightness. Nutrien uses sulfur and natural gas as key inputs. Supply disruptions from Russia amid the war with Ukraine contributed to the rise in natural gas prices. Plant shutdowns and maintenance also resulted in a tight supply of these inputs, which, coupled with strong demand, pushed up their prices. The company saw higher sulfur input costs and natural gas prices in the third quarter, leading to a higher cost of goods sold per ton in phosphate and nitrogen businesses, respectively.
Nutrien Ltd. Price and Consensus
Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote
NTR’s Zacks Rank & Other Key Picks
NTR currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Basic Materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
At present, AEM and KGC sport a Zacks Rank #1 (Strong Buy) each, while ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.85 per share, indicating a rise of 85.6%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.6%. AEM’s shares have rallied 133.8% over the past year.
The Zacks Consensus Estimate for KGC’s 2025 earnings is pinned at $1.68 per share, indicating a 147.1% year-over-year increase. Its shares have surged 225.4% over the past year.
The Zacks Consensus Estimate for ASM’s 2025 earnings is pinned at 17 cents per share, indicating a 13.3% year-over-year increase. ASM’s shares have skyrocketed 491.2% over the past year.