The Nufarm Ltd (ASX: NUF) share price has soared 14% in response to its FY26 first half update.
Nufarm describes itself as a global crop protection and seed technologies company that helps farmers and businesses meet the global challenges of food, feed, fibre and sustainable fuel production.
FY26 half-year update
The company updated the market about its HY26 performance and an additional cost savings program from the first stage of the company’s strategy refresh.
HY26 underlying EBITDA (EBITDA explained) is expected to be between $239 million and $244 million – the mid-point suggests a year-on-year increase of 17%.
Nufarm said that the improvement in profitability was driven by higher margins in crop protection, growth in hybrid seeds and a stronger performance in its emerging omega-3 and bioenergy platforms.
Net debt as at 31 March 2026 was approximately $1.23 billion, down $130 million from the prior corresponding period.
The net debt to underlying EBITDA for the 12 months to 31 March 2026 was approximately 3.6x, a 20% reduction year on year.
The improvement in net debt was predominantly because of improved cash generation from lower capital expenditure requirements and disciplined working capital management.
Cost savings
Nufarm said that it’s still feeling the benefits of the $50 million run-rate cost savings achieved in FY25, which is helping offset inflationary impacts during the first half.
The company said its current strategy refresh is “sharpening the focus on quality of earnings, the prioritisation of markets and portfolio activities, strengthening cash generation and reducing debt and leverage.”
It’s targeting an initial $50 million of gross cost savings, which relate to the optimisation of its assets, including footprint and products, manufacturing costs and more.
Cash implementation costs are expected to be approximately $15 million and weighted towards FY27 and are expected to reach the full $50 million run-rate by the end of FY27.
April trading
Nufarm said that it has continued to see positive trading momentum across all regions.
It said it’s managing increases in the cost of active ingredients, freight and energy arising from the Middle East conflict through “disciplined inventory management and pricing actions”.
Nufarm said supply chains are currently operating “largely normally” and its teams are seeing “growers continue with typical seasonal activity as they navigate higher fuel and fertiliser costs”.
Final thoughts on the Nufarm share price
The business is clearly navigating the current situation fairly well and it has an important part to play to help its customers during this period.
It’s certainly not as cheap not as it was before today, so investors can’t take advantage of it being undervalued. But what happens next? It’s hard to say – there are other ASX growth shares I’d rather buy.
