Top potash producer Nutrien misses first-quarter profit estimates on lower prices

By 
Reading Time: 2 minutes

Published: May 8, 2025

,

Nutrien’s Patience Lake potash facility, about 15 km east of Saskatoon. (Nutrien.com)

Nutrien fell short of Wall Street expectations for first-quarter profit on Wednesday, as the top potash producer was impacted by lower prices and higher energy costs.

Why it matters: Trade tensions between the United States and China following U.S. President Donald Trump’s tariffs have led to volatility in crop prices, prompting farmers to cut costs, which in turn has hit demand for fertilizers.

Its quarterly net selling price for potash in North America fell 21.6 per cent from a year earlier to $243 per tonne (C$338), while adjusted core profit for the segment was down about 16 per cent at $446 million (C$619.9 million).

Read Also

Top potash producer Nutrien misses first-quarter profit estimates on lower prices

Canada seeks pact with Southeast Asian countries to diversify trade

Canada is seeking to finalize a free trade deal with Southeast Asian nations as part of a push to expand into new markets, its top diplomat said, responding to the hefty tariffs imposed on it by the United States, its neighbour and largest trade partner.

Higher energy costs in its nitrogen segment further pressured earnings in the quarter, which raised its cost of goods sold by about 10 per cent at $663 million (C$921.4 million).

Adjusted core profit fell about 12 per cent to $408 million (C$567.0 million).

Average natural gas prices NGc1 have risen over the past few quarters and hit a two-year high on March 10, supported by strong demand from LNG export facilities and supply concerns in the run up to the summer season.

Nutrien’s quarterly earnings were also impacted by delayed field activity due to wet weather conditions in North America and strategic actions in South America.

The company’s quarterly sales for crop nutrients was down 8.7 per cent at $1.19 billion (C$1.65 billion), while sales for crop protection products was down 12.7 per cent at $972 million (C$1.35 billion).

Earlier this year, Nutrien’s Brazilian unit said it would sell its fertilizer blending plants in the country amid a shift in focus to reselling farm inputs through local retailers after its acquisitions and investments failed to yield the expected returns.

The Saskatoon, Canada-based firm posted an adjusted profit of 11 cents per share for the quarter ended March 31, compared with the analysts’ average estimate of 31 cents per share, according to data compiled by LSEG.

— Reporting by Tanay Dhumal in Bengaluru

explore

Stories from our other publications