Image Source: Yara

Yara International has reported a robust financial performance for the second quarter of 2025, delivering EBITDA excluding special items of $ 652 million, marking a 27 per cent increase over the same period last year. Net income surged to $ 413 million, a dramatic improvement from $ 3 million in Q2 2024. The performance was underpinned by higher margins, record-high production levels, and ongoing commercial and operational efficiencies.

CEO Svein Tore Holsether attributed the performance to a confluence of factors, including effective commercial execution, cost discipline, and favorable market fundamentals. “We are pleased to report continued improvement in our results, driven by increased margins, strong commercial execution and another quarter of all-time high production performance. At the same time, we are ahead of plan in our cost and capex reduction program,” Holsether said.

The company’s strategic shift toward margin expansion, resource efficiency, and selective reinvestment appears to be gaining traction. First-half adjusted earnings per share rose to $ 1.92, up from $ 0.64 in the same period last year. Holsether emphasized that Yara’s strengthened financial position—bolstered by tightening nitrogen markets and disciplined capital allocation—positions the company to deliver greater value to shareholders, both through direct distributions and investments in long-term growth opportunities, such as ammonia production projects in the United States.

Regionally, Yara reported a strong upswing across most geographies. Europe delivered EBITDA of $ 128 million in Q2, a 45 per cent year-over-year increase, driven by better margins and cost containment despite a 4 per cent dip in deliveries. The Americas posted a 43 per cent jump in EBITDA to $ 239 million, fueled by higher production margins, improved volumes, and cost efficiencies—rebounding from lost sales in Brazil last year due to flooding. Africa and Asia registered 16 per cent growth in EBITDA, reaching $ 90 million, supported by improved commercial margins in Asia and opportunistic sales in Ghana and Kenya.

Yara’s Global Plants & Operational Excellence division recorded EBITDA of $112 million, a 47 per cent rise from Q2 2024, reflecting significant upgrading margins and stronger productivity after outages affected performance a year earlier. Industrial Solutions also saw a notable jump, with EBITDA increasing 52 per cent to $ 70 million on the back of enhanced margins and reduced fixed costs.

However, Clean Ammonia was a notable exception. The segment saw a steep 75 per cent decline in EBITDA to $ 6 million, impacted by lower ammonia prices and rising project costs. Despite this, external deliveries rose 5 per cent, driven by better availability from U.S. plants and increased third-party trading volumes.

For the first half of 2025, Yara’s EBITDA excluding special items totaled $1.29 billion, a 36 per cent year-over-year increase. Total deliveries were up 4 per cent, reflecting improved demand and execution in key markets. Europe saw a particularly strong H1 performance, with EBITDA more than doubling to $ 288 million on a 6 per cent increase in deliveries. The Americas posted a 26 per cent rise in EBITDA to $ 394 million, led by strong performance in NPK and CN product lines. Africa and Asia recorded EBITDA of $ 176 million, up 20 per cent, while Global Plants improved 5 per cent to $ 208 million. Industrial Solutions rose 57 per cent to $ 163 million, even as overall deliveries declined slightly.

Clean Ammonia’s H1 EBITDA slipped 7 per cent to $ 47 million as weak pricing continued to pressure margins, though fixed cost reductions and a 4 per cent rise in deliveries helped cushion the impact.

Looking ahead, Holsether signaled confidence in Yara’s trajectory. “Through disciplined capital allocation and a strong focus on resource efficiency, Yara continues to enhance returns. Going forward, we continue to take steps to expand margins by diversifying energy costs and leveraging scale and operational efficiencies across our global network.”

With structural tailwinds in nitrogen markets, productivity gains, and a streamlined investment pipeline, Yara appears poised to sustain momentum into the second half of 2025, reinforcing its position as a global leader in sustainable crop nutrition and clean ammonia innovation.