Yara reports increase in revenue and profits in Q1 2025 (2025)

Yara, one of the world’s biggest fertiliser manufacturers, has reported that revenue and other income stood at over $3.6 billion in the first quarter (Q1) of 2025, up from €3.3 billion in the same period last year.

The Norwegian company’s earnings before interest, tax, depreciation, amortisation (EBITDA), excluding special items, was $634 million, up 47% on Q1 2024 ($435 million).

The increase was due to increased deliveries, better margins and reduced fixed costs.

Total deliveries were 7% higher than for the same quarter a year ago, mainly driven by Europe and Brazil.

Yara said that net income in Q1 2025 was $295 million compared with $16 million a year earlier.

Operating income rose from $166 million to $308 million for the first three months of 2025.

Yara

Yara first-quarter report 2025 published today (Friday, April 25) also shows that in Europe, EBITDA – excluding special items – was $159 million, up $131 million compared with the same period a year ago.

The result was mainly due to higher deliveries and margins, and lower fixed costs.

Total deliveries were 15% higher than for the same quarter a year ago with significant increase for fertiliser and nitrates.

In the Americas, EBITDA, excluding special items, was $155 million, 8% higher than for the same quarter a year ago, mainly driven by increased deliveries and lower fixed costs offsetting reduced commercial margins.

Total deliveries were 12% higher than for the same quarter a year ago with strong growth in fertilisers in Brazil compared to a slow quarter a year ago.

EBITDA excluding special items for the Africa and Asia regions was $87 million, 26% higher than for the same quarter a year ago, reflecting stronger commercial margins in Asia and lower fixed costs.

Tariffs

In the report, Yara noted that “the geopolitical landscape is shifting rapidly”.

“The US tariffs announced in April have had a limited impact on the global urea markets so far but could lead to altering trade flows.

“Yara’s imports into US are limited and represent less than 5% of consolidated revenues and delivered volumes.

“A global asset footprint and downstream presence is Yara’s key competitive edge and Yara has demonstrated its ability to successfully navigate through volatility over the recent years,” the company said.

While Yara said that it had “successfully navigated recent volatility by focusing on operational continuity, recent returns have been below satisfactory levels”.

The company said that it is “strictly focused on cash conversion by prioritising resources towards higher-return core assets and activities while scaling back non-core and lower-return activities”.

Yara is undertaking a cost and capex (capital expenditure) reduction programme, with the aim to reduce fixed costs by $150 million and capex with $150 million by the end of 2025.

In its outlook, Yara said that current indications for fertiliser show “a tightening global supply demand balance in the coming years, improving European production margins as gas prices are expected to be lower”.

However, it added that Chinese export policy remains a key uncertainty factor, especially for the short-term global supply/demand balance.

The company said that “maximising shareholder returns is the sole driver for Yara’s capital allocation”.

“With the combination of cost reduction, portfolio optimization and a tightening nitrogen market, Yara’s financial position is set to strengthen with increased free cash flow and sustainable profitability,” it said.

Based on current forward markets for natural gas (April 22) and assuming stable gas purchase volumes, Yara’s gas cost for the second and third quarter 2025 is estimated to be $140 million higher and $40 million higher than a year earlier.

“We are pleased with reporting an improved first quarter result, as a solid commercial and production performance has led to higher deliveries and improved margins,” Svein Tore Holsether, Yara president and chief executive, said.

“With increased earnings and continuous progress on our cost reduction program and portfolio optimisation, we are delivering on our commitment to increase returns in our ammonia and crop nutrition core.

“A global asset footprint and downstream presence is Yara’s key competitive edge, and as a globally diversified company we have the flexibility to optimise production and product flows.

“In recent years, Yara has demonstrated its ability to successfully navigate through volatility, and operational flexibility is at the core of how Yara continues to position itself in the face of volatile markets and geopolitical instability,” Holsether said.