Nufarm Finance (NZ) Limited Analysis

Overview

Nufarm Limited is one of the world's leading crop protection and specialist seeds companies. Nufarm produces products to help farmers protect their crops against damage caused by weeds, pests and disease.

With manufacturing and marketing operations based in Australia, New Zealand, Asia, Europe and the Americas, Nufarm employs more than 3,400 people, all of whom make a vital contribution to the company's reputation for quality products, innovation and first class marketing and technical support.

Nufarm's head office is located at Laverton in Melbourne. Its preference shares, NFFHA are traded on the NZDX.

Performance

Strong 1H performance and an additional $50m of targeted cost savings from strategy refresh

Nufarm Limited (ASX: NUF) today updated the market on 1H FY26 performance1 and an additional cost savings program from the first stage of the company’s strategy refresh.

• 1H FY26 underlying EBITDA (uEBITDA) to be between $239m and $244m, an increase of 17% on the prior corresponding period (pcp) at the mid-point

• Net debt as of 31 March 2026 of approximately $1.23b1, down $130m on the pcp

• Net debt to uEBITDA for the last twelve months to 31 March 2026 (LTM uEBITDA) of approximately 3.6x1, a 20% reduction on pcp

• Strategy refresh targeting an additional $50m in cost savings

• Positive trading momentum continuing into April

1H FY26 performance

Nufarm has had a strong performance in 1H26. Based on preliminary unaudited results for the half year ended 31 March 2026 (1H26), uEBITDA is between $239m and $244m, subject to finalisation of half year review procedures. At the mid-point, this represents a 17% increase compared with the pcp.

The improvement in first-half uEBITDA was driven by higher margins in Crop Protection, growth in Hybrid Seeds, and a stronger performance in our emerging omega-3 and bioenergy platforms.

Net debt at 31 March 2026 was approximately $1.23 billion, a reduction of $130 million compared with 31 March 2025, with net debt to LTM uEBITDA of approximately 3.6x1, a 20% reduction on pcp.

The reduction in net debt is predominantly from improved cash generation from lower capital expenditure requirements and disciplined working capital management, consistent with the company’s ongoing focus on de-leveraging.