Nutrien misses Q2 profit estimates as volume declines offset price gains
Lower nitrogen and potash shipment volumes weighed on second-quarter results, though the Saskatoon-based company raised its annual potash forecast amid tight global supply conditions.
Nutrien reported second-quarter adjusted earnings of $2.61 per share, missing analyst estimates of $2.71, as lower sales volumes for potash and nitrogen offset the benefit of higher fertilizer prices. The Saskatoon-based company, which is the world’s largest potash producer, saw total net sales rise 4% to $10.81 billion, driven by firm potash demand and elevated nitrogen and phosphate prices.
Quarterly nitrogen sales volumes fell 25.3% to 2.253 million tonnes, while potash volumes slipped 1.2% to 3.943 million tonnes. In the nitrogen segment, net sales declined 3% due to the lower volumes, with higher costs associated with a controlled shutdown at its Trinidad operations further weighing on profitability.
Despite the earnings miss, Nutrien raised the lower end of its annual potash sales volume forecast to 14.2 million tonnes from 14.1 million tonnes, while keeping the upper end unchanged at 14.8 million tonnes. The company cited tight global nitrogen markets in the second half of 2026, pressured by trade disruptions, production outages, elevated energy prices, and strong import demand from India and Brazil.
Urea and ammonia prices, key nitrogen fertilizers, have surged since the outbreak of the U.S.-Iran conflict. Meanwhile, global phosphate markets continue to face strain from trade flow disruptions, constrained sulfur feedstock availability, and elevated costs, which are reducing global operating rates and straining producer margins.
Net sales in the potash segment rose 6% to $1.05 billion, while phosphate revenue increased 18% to $468 million. U.S.-listed shares of Nutrien fell 1% after market close, reflecting investor disappointment over the volume-driven earnings shortfall.
