Nufarm targets an additional $50m of cost savings

Nufarm is growing through stronger biofuels partnerships, improved financial results, cost savings actions and steady progress in FY26.

Nufarm Limited (ASX: NUF)

on 26 March 2026 shared that it has strengthened its long term collaboration with bp to support growth in biofuels. The updated agreement extends the Carinata offtake term through to 2050. It creates a structured path to scale supply of Carinata oil as a non food feedstock. The model links funding to progress milestones which supports continued investment in seed technology and better crop performance. The arrangement also ensures ongoing purchase access for bp. Carinata is grown on existing farmland within crop rotations and is certified under sustainability standards. Since 2022 the program has expanded beyond Argentina into Brazil Paraguay and Uruguay along with an Australian pilot. This arrangement allows farmers to benefit from new income streams whereas supporting lower emissions fuel production.

FY26 priorities 

For FY26 the company is focusing on improving cost control and capital use. The aim is to deliver positive free cash flow and reduce debt levels. This effort includes better processes stronger accountability and changes to internal structure and incentives. The crop protection business showed improved results in FY25 and the company plans to build on its position across markets and products. Certain segments such as Turf and Ornamental and ANZ are seen as having strong potential. A partnership with KingAgroot is progressing development of a new herbicide for Australia and New Zealand with a target launch in 2028. In Seed Technologies actions have been taken to lower spending and improve returns. Hybrid seeds remain a key area with valuable intellectual property and future growth opportunities.

Outlook and growth expectations

The company reported a positive start to the financial year with improvement in the first quarter. It reaffirmed its earlier guidance for FY26. The outlook points to strong growth in profitability supported by better execution across the business. A main focus remains on producing free cash flow and lowering leverage by year end. Teams across regions are aligned on delivering stronger earnings and improving the balance sheet. The overall direction shows confidence in both operational progress and financial discipline.

Half year performance 

NUF on 15 April 2026 updated the market with a strong first half performance for FY26. Underlying EBITDA is expected between 239 million and 244 million which represents a 17% increase at the midpoint compared to the prior period. Net debt at the end of March 2026 is about 1.23 billion which is 130 million lower than a year earlier. The ratio of net debt to EBITDA has improved to around 3.6 times showing a 20% reduction. Growth came from stronger margins in Crop Protection along with gains in Hybrid Seeds and emerging bioenergy and omega 3 platforms. The company also announced a new plan targeting an extra 50 million in cost savings as part of a strategy refresh. Implementation costs are expected later and savings will build over time. Trading in April has remained positive despite higher input and energy costs.

(Source: Company Report)