Nufarm’s FY25 results reveal robust growth in crop protection and a strategic reset in seed technologies, with a significant reduction in net debt setting the stage for a stronger FY26.
- Underlying EBITDA of $302.5 million, down 3% but +10% excluding Omega-3 and Bioenergy
- Crop Protection uEBITDA up 18%, driven by all regions and record performances
- Seed Technologies faces challenges from Omega-3 losses, but hybrid seeds and bioenergy grow
- Net debt reduced by $538 million from 1H25, leverage down to 2.7, targeting 2.0 by FY26
- Reprioritized Seed Technologies strategy focusing on cost reduction and capital-light bioenergy
Strong Crop Protection Performance
Nufarm Limited’s FY25 financial results, announced on 19 November 2025, underscore the company’s resilience and strategic agility in a complex agricultural market. The standout performer was the Crop Protection segment, which delivered an 18% increase in underlying EBITDA to $370 million. This growth was broad-based, spanning all regions, with Asia achieving record revenue and profitability, Europe benefiting from improved agronomic conditions and operational efficiencies, and North America showing a 19% uplift despite regulatory headwinds.
Particularly notable was the North American Turf & Ornamental business, which posted record sales and gross margins, highlighting Nufarm’s ability to capitalize on niche markets with steady demand.
Seed Technologies – A Strategic Reset
While the Crop Protection division thrived, Seed Technologies faced headwinds, primarily due to losses in the Omega-3 segment caused by declining fish oil prices. Underlying EBITDA for Seed Technologies fell sharply to $13.9 million from $62.6 million the previous year. However, growth in hybrid seeds, particularly in South America and Australia, alongside expansion in bioenergy crops like carinata, provided some offset.
In response, Nufarm has reprioritized its Seed Technologies strategy. The company plans to reduce cash costs and capital intensity, focus hybrid seed growth on key geographies including Australia, South America, and North America, and pursue a capital-light model for bioenergy development supported by its partnership with bp. Omega-3 operations will be managed to achieve cash flow neutrality in the near term, with a medium-term repositioning of production.
Balance Sheet Strength and Outlook
Nufarm’s balance sheet showed marked improvement, with net debt falling by $538 million from the first half of FY25, bringing leverage down to 2.7 times underlying EBITDA. The company targets further deleveraging to a leverage ratio of approximately 2.0 by the end of FY26, supported by expected earnings growth and positive free cash flow. Capital expenditure is planned to remain below $200 million, reflecting disciplined investment aligned with strategic priorities.
Looking ahead, Nufarm anticipates strong underlying EBITDA growth in FY26, driven by continued momentum in Crop Protection and a rebound in Seed Technologies, particularly from hybrid seeds and emerging Omega-3 and Bioenergy platforms. The company’s CEO, Greg Hunt, emphasized the clear direction and opportunities ahead, underscoring confidence in delivering earnings growth and further debt reduction.
Overall, Nufarm’s FY25 results paint a picture of a company successfully navigating sector challenges through focused execution, strategic recalibration, and financial discipline.
Bottom Line?
Nufarm’s FY25 momentum and strategic shifts set the stage for a pivotal FY26 focused on growth and leverage reduction.
Questions in the middle?
- How will Nufarm’s repositioning of Omega-3 production impact medium-term profitability?
- Can the company sustain Crop Protection’s strong growth amid evolving market and regulatory pressures?
- What are the risks and opportunities in expanding bioenergy crops under a capital-light model?