Nufarm Limited posted a $165.3 million statutory loss for FY25, driven by significant restructuring charges and omega-3 price declines, while announcing a CEO transition effective January 2026.
- Statutory net loss of $165.3 million for FY25
- 3% revenue growth to $3.44 billion driven by Crop Protection sales mix
- Significant non-cash charges from Seed Technologies restructuring
- No dividends declared for FY25 amid capital management focus
- CEO Greg Hunt to step down, succeeded by Rico Christensen in 2026
Financial Results Overview
Nufarm Limited has released its audited financial results for the year ended 30 September 2025, revealing a challenging year marked by a statutory net loss of $165.3 million. This compares to a loss of $5.6 million in the prior year and was heavily influenced by material non-cash charges related to asset rationalisation and restructuring, particularly within the Seed Technologies segment.
Despite the loss, the company reported a 3% increase in revenue to $3.44 billion, largely driven by an improved sales mix in its Crop Protection business. Underlying earnings before interest and tax (EBIT) and earnings before interest, tax, depreciation, and amortisation (EBITDA) declined due to omega-3 price pressures and restructuring costs, with underlying EBIT falling 24% to $82 million and underlying EBITDA down 3% to $302.5 million.
Segment Performance and Operational Highlights
The Crop Protection segment showed resilience, with underlying EBITDA rising 18% to $370 million. Growth was broad-based across major regions including APAC, Europe, and North America, supported by improved product mix and cost efficiencies. Conversely, the Seed Technologies segment faced significant headwinds, reporting a steep decline in profitability due to falling fish oil prices impacting the omega-3 platform and lower license revenues.
During the year, Nufarm undertook a comprehensive review of its Seed Technologies business, resulting in restructuring actions including staff redundancies, write-downs of intangible assets, and inventory impairments totaling over $118 million pre-tax. The company also invested in upgrading its North American ERP system, incurring $9 million in related costs.
Capital Management and Cash Flow
Operating cash flow decreased significantly to $162.8 million from $472.4 million in FY24, impacted by restructuring outflows, higher interest and tax payments, and working capital build in Seed Technologies. Investing cash flows were $245.6 million, including capital expenditure and research and development investments. Net debt increased to $824.2 million, reflecting cash outflows and foreign exchange movements, with leverage rising to 2.7 times underlying EBITDA.
In line with its capital management strategy, Nufarm did not declare any interim or final dividends for FY25. The company refinanced its short-term omega-3 loan facility into a two-year amortising loan secured against tangible assets across multiple countries, enhancing financial flexibility.
Leadership Transition and Remuneration
Nufarm announced a planned CEO transition, with Greg Hunt stepping down effective 1 January 2026. Rico Christensen, currently Group Executive, Portfolio Solutions, will assume the role and join the board in December 2025. Christensen brings nearly 30 years of global agribusiness experience and will receive a base salary of AUD 1.35 million plus incentives, subject to shareholder approval.
The FY25 executive incentive outcomes reflected the company’s financial performance, with no cash payments awarded due to not meeting profit gates. The CEO voluntarily forfeited his FY25 incentive award. The remuneration report details a balanced approach linking pay to performance, with a mix of cash and performance rights designed to align executive interests with shareholder value.
Outlook and Risks
Looking ahead to FY26, Nufarm expects strong growth in underlying EBITDA, assuming normal seasonal conditions, with continued momentum in Crop Protection and targeted improvements in Seed Technologies. The company aims to reduce net debt and leverage, targeting capital expenditure below $200 million.
Key risks remain, including regulatory uncertainty, particularly in Europe and China, market volatility affecting commodity and fish oil prices, supply chain challenges, and operational risks such as cyber security and workforce retention. Nufarm continues to monitor these risks closely and has governance frameworks in place to manage them.
Bottom Line?
Nufarm’s FY25 results underscore a pivotal restructuring phase and leadership change, setting the stage for a critical turnaround in FY26.
Questions in the middle?
- How will the new CEO’s strategy address the challenges in Seed Technologies and omega-3 pricing?
- What is the timeline and expected impact of the ongoing restructuring and cost-saving initiatives?
- How might evolving regulatory landscapes in key markets affect Nufarm’s product portfolio and growth prospects?