How Is Nufarm Turning Seed Challenges Into Growth Amid $538m Debt Cut?

Robust Crop Protection Drives FY25 Performance

Nufarm Limited has delivered a solid financial performance for the year ended 30 September 2025, with underlying EBITDA (uEBITDA) reaching $302.5 million. While this marks a slight 3% decline on the prior year, the figure improves to a 10% increase when excluding the emerging Omega-3 and Bioenergy platforms, highlighting the strength of its core operations.

The standout contributor remains the Crop Protection segment, which posted an 18% rise in uEBITDA to $370 million. Growth was broad-based, with Asia achieving record revenue and profitability, Europe benefiting from performance improvement initiatives and favourable agronomic conditions, and North America showing a 19% increase despite market uncertainties. Notably, the Turf and Ornamental business in North America hit record sales and margins, underscoring its steady growth trajectory.

Seed Technologies Faces Headwinds, Strategy Refocused

In contrast, Seed Technologies reported a significant drop in uEBITDA to $13.9 million from $62.6 million the previous year, primarily due to a decline in fish oil prices impacting the Omega-3 business. This segment’s challenges have prompted Nufarm to reprioritise its strategy, focusing on reducing cash costs and capital intensity, growing hybrid seeds in key geographies such as Australia, South America, and North America, and expanding its Bioenergy platform through a capital-light model supported by a partnership with bp.

For Omega-3, the company is managing to a cash flow neutral position in the near term by selling existing inventory and repositioning production over the medium term, reaffirming its commitment to this sustainable nutrition source despite current market pressures.

Balance Sheet Strength and Outlook

Nufarm’s balance sheet showed marked improvement, with net debt reduced by $538 million from the first half of FY25, bringing leverage down to 2.7 times. The company aims to further reduce leverage to around 2.0 times by the end of FY26, supported by expected earnings growth and positive free cash flow. Capital expenditure is targeted to remain below $200 million, reflecting disciplined investment aligned with strategic priorities.

Looking ahead, Nufarm anticipates continued momentum in Crop Protection, albeit with moderated growth compared to FY25’s strong 18% increase. Seed Technologies is expected to rebound with growth in hybrid seeds and a $30 million uplift from Omega-3 and Bioenergy platforms combined. The company’s outlook assumes normal seasonal and market conditions, positioning it well for a year of earnings growth and deleveraging.

CEO Greg Hunt highlighted the company’s progress in cost savings, working capital improvements, and strategic clarity, emphasizing Nufarm’s agility in navigating market challenges while investing in future growth areas.