Nufarm Faces $165M Loss as Seed Tech Restructuring Clouds FY25 Gains
Nufarm Limited reported a 3% revenue increase to $3.4 billion in FY2025, driven by strong crop protection growth, while restructuring in Seed Technologies led to a statutory loss of $165 million. The company forecasts earnings growth and leverage reduction in FY2026.
- Revenue up 3% to $3.4 billion
- Underlying EBITDA $302 million, down 3% but +10% excluding Emerging platforms
- Statutory net loss of $165 million due to non-cash Seed Technologies impairments
- Crop Protection EBITDA up 18% with regional profitability gains
- Seed Technologies strategy reprioritized focusing on hybrid seeds and cost discipline
Strong Crop Protection Performance
Nufarm Limited closed FY2025 with a solid 3% increase in revenue to $3.4 billion, underpinned by a robust 18% rise in underlying EBITDA within its Crop Protection segment. This growth was broad-based across all regions, including record profitability in North American Turf & Ornamental and Asia, as well as a 22% EBITDA increase in Europe. The company benefited from improved pricing, favourable product mix, and operational efficiencies, despite some volume softness in APAC and North America.
Seed Technologies Restructuring and Strategic Shift
In contrast, the Seed Technologies division faced challenges, reporting a 4% revenue decline and a significant statutory loss largely driven by a $142 million non-cash charge related to asset impairments and restructuring. Nufarm has reprioritized this segment’s strategy, focusing on growing hybrid seeds in key regions such as Australia and South America, streamlining European and North American operations, and adopting a capital-light approach for emerging platforms like Bioenergy and Omega-3. The company remains committed to Omega-3 but is managing it towards cash flow neutrality in the near term.
Financial Discipline and Debt Reduction
Financially, Nufarm demonstrated disciplined cost management, achieving $50 million in run-rate cost savings and reducing average inventory days by 16, which contributed to a $538 million net debt reduction in the second half of FY25. However, leverage increased to 2.7 times underlying EBITDA, reflecting the impact of restructuring and inventory funding. The company maintains a diversified and flexible debt profile, with $345 million in undrawn facilities and $475 million in cash at balance date.
Outlook and Strategic Priorities for FY26
Looking ahead, Nufarm expects continued earnings growth in FY26, driven by momentum in crop protection and hybrid seeds, targeting a leverage reduction to approximately 2.0 times and positive free cash flow. Capital expenditure is forecast to be below $200 million, supporting a disciplined capital allocation approach. The company’s priorities include embedding cost and capital discipline, leveraging leading market positions in crop protection, and executing the Seed Technologies reprioritized strategy to unlock shareholder value.
Balancing Growth and Restructuring
Nufarm’s FY25 results reflect a company navigating the complexities of restructuring while capitalizing on its core strengths in crop protection. The statutory loss masks underlying operational improvements and strategic repositioning that could set the stage for a stronger financial profile in the coming year. Investors will be watching closely how the company manages its emerging platforms and delivers on its cost-saving initiatives amid evolving market conditions.
Bottom Line?
Nufarm’s FY25 marks a pivotal transition with crop protection strength offsetting seed restructuring pains, setting the stage for a critical FY26 turnaround.
Questions in the middle?
- How will Nufarm’s reprioritized Seed Technologies strategy impact long-term profitability?
- What are the risks and opportunities in repositioning the Omega-3 platform?
- Can Nufarm sustain crop protection growth amid pricing pressures and global market volatility?
