Yara, one of the world's largest producers of fertilisers, beat third-quarter adjusted core profit expectations today, citing higher prices and cost cuts.
"The volume mix is virtually unchanged compared to the same quarter a year ago. But it's prices that are increasing," CEO Svein Tore Holsether said in an interview with Reuters.
Tight supply keeps fertiliser prices elevated, boosting profitability.
Yara's earnings before interest, taxes, depreciation and amortization, and excluding special items (adjusted EBITDA) were $804m, up 38% from a year earlier and 3% above analysts' forecast of $781m.
Still, its shares were down around 3% this morning, after gradually recovering from this year's lows seen in April. Up to yesterday's close, they were up 27% so far in 2025.
"My view is that I think the numbers were solid," Danske Bank analyst Elliott Jones said, adding that likely investors were taking profits.
Yara reiterated both its aim to reach fixed costs savings net of inflation of $180m this year, and its capital expenditure guidance of $1.1 billion, $250m lower than before.
The Oslo-based firm also said it expected lower gas costs for the fourth quarter of the year and first quarter of 2026, cutting estimates by $40m and $75m respectively.
Yara last year embarked on a $300m cost-cutting drive aimed at shielding its profits, as energy costs bite and trade tensions rise.
