Finance
Fertiliser Maker Yara Reports Quarterly Profit Above Expectations
Published by Global Banking & Finance Review®
Posted on April 24, 2026
3 min readLast updated: April 24, 2026
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Yara’s Q1 2026 EBITDA (ex‑special items) of $896 million beats the $825 million consensus, fueled by strong nitrogen margins, robust deliveries and operational gains amid supply disruptions linked to the Iran war.
Yara shares rise as quarterly profit beats view on strong nitrogen margins
Yara's Strong Quarterly Performance and Market Impact
By Jesus Calero and Tristan Veyet
Quarterly Earnings and Market Reaction
April 24 (Reuters) - Norwegian fertiliser maker Yara logged a bigger-than-expected rise in first-quarter core earnings on Friday, citing higher nitrogen margins, strong deliveries and operational improvements, sending its shares 4% higher in early trade.
Global Nitrogen Market Dynamics
The Iran war has tightened nitrogen markets by disrupting shipments through the Strait of Hormuz and shutting Middle East plants, lifting urea prices and improving the pricing power of producers despite rising risks of demand destruction.
Comparison with Industry Peers
Yara's results echo the ones of German potash and salt miner K+S, which also posted quarterly core earnings above expectations as higher agricultural prices boosted the Hessian-based firm's performance.
CEO Commentary on Market Conditions
"Developments in the Middle East put significant pressure on the global food system, with knock-on effects across the value chain and growing challenges for farmer affordability," Yara CEO Svein Tore Holsether said in a statement.
Financial Highlights
Earnings before interest, taxes, depreciation, and amortisation, excluding special items, came in at $896 million for the March quarter, above the $638 million logged a year earlier and $825 million expected by analysts in a company-provided poll.
Shares of Yara, which had gained 29.4% this year by Thursday's close, were trading 4% higher at 0702 GMT.
Analyst Perspectives
"Further developments in the Middle East/Strait of Hormuz will remain the key driver of the shares in the near term, as it dictates the development of nitrogen fertiliser prices," analysts at J.P. Morgan said in a note following the results.
Strategic Initiatives and Outlook
The company said it had made a strong start towards its 2027 targets, after delivering $180 million in fixed-cost reductions in 2025 and a further $46 million in savings this year.
Cost and Production Factors
Yara said natural gas costs were expected to be $150 million and $120 million higher in the second and third quarters, respectively, compared with a year earlier.
Natural gas is a key input in fertiliser production, meaning swings in gas prices can have a significant impact on costs for producers and prices paid by farmers.
Low-Carbon Ammonia Projects
Yara said it was advancing low-carbon ammonia projects with Air Products, targeting a mid-2026 investment decision on a Louisiana project that would produce 2.8 million tons of low-carbon ammonia a year.
(Reporting by Jesus Calero and Tristan Veyet; Editing by Subhranshu Sahu)
Key Takeaways
- •Q1 EBITDA (excluding special items) reached $896 million, well above the $825 million analysts expected and up from $638 million a year earlier — driven by tighter nitrogen markets, improved margins and delivery performance (yara.com).
- •Geopolitical tensions from the Iran conflict have disrupted shipments through the Strait of Hormuz, constricting supply of urea and ammonia and supporting higher prices and pricing power for producers like Yara (bloomberg.com).
- •Yara’s recent performance builds on a broader trend: in Q4 2025, EBITDA ex‑special items surged to $709 million, bolstered by nitrogen margin strength, cost reductions and solid volumes, reflecting its effective cost‑control and commercial execution (bcinsight.crugroup.com).
References
- Yara International ASA Consensus estimates 1Q 26 Average target price 517 BUY April 20, 2026 Contributors 13 HOLD Next report - April 24, 2026 (08.00 - CEST) SELL | 3 --- | --- Yara International ASA
- Iran War Snarls Key Global Hub for Fertilizer Supplies - Bloomberg
- Yara’s 2025 earnings up 46% to $2.75bn - BC Insight
Frequently Asked Questions about Fertiliser maker Yara reports quarterly profit above expectations
1What were Yara's first-quarter EBITDA earnings?
Yara reported Q1 EBITDA of $896 million, above analyst expectations and last year's $638 million.
2What factors contributed to Yara's higher profits?
Higher nitrogen margins, strong deliveries, and operational improvements boosted profits.
3How has the Iran war affected the fertiliser market?
The Iran war disrupted shipments and plant operations, tightening nitrogen markets and increasing urea prices.
4What was the analyst expectation for Yara's EBITDA?
Analysts expected Yara's EBITDA to be $825 million for the quarter.
