Yara International Asa Stock Earnings Reports

Yara reported a strong Q2 with EBITDA (ex special items) of $906 million, up 39% year-on-year, and EPS up 84%. Return on invested capital improved to 14.3% (partly supported by a $153 million special-item gain from sale of surplus EUA quotas). Free cash flow for the quarter was $583 million. Crop nutrition deliveries were down ~17% year-on-year due to demand deferral in off‑season markets and production impacts (Pilbara outage and scheduled turnarounds including Belle Plaine and Babrala). Market volatility was driven by supply shocks (closure of the Strait of Hormuz) and a large India urea purchase, which pushed prices sharply higher and deferred buying in other regions; demand began to resurface in July with prices rebounding. Yara announced the acquisition of the Gulf Coast Ammonia (GCA) plant in Texas for $1.3 billion (1.3 Mtpa nameplate) to improve its position on the ammonia cost curve, increase flexibility and lower energy exposure per ton. The company reiterated capital discipline, a focus on its EBITDA/improvement program (about $560 million of the 2027 target realized so far), priority on high‑return investments, and commitment to maintaining a strong balance sheet and shareholder distributions. Management characterized the EUA sale as a financial / risk‑management decision and highlighted continued attention to safety after a regrettable uptick in incidents earlier in the year.