Yara Posts Adjusted Operating Profit of $675 Million as Gas Costs Bite and Demand Lags
Key Facts
Yara International reported third-quarter 2026 earnings before interest, taxes, depreciation and amortization, excluding special items, of $675 million, down from $804 million in the same period last year. The result fell short of the average analyst estimate of $752 million, while sales reached $4,478 million, above expectations of $4,247 million. Net income was $199 million, compared with $320 million a year earlier. The company said, "Higher gas prices and continued delayed demand weighed on margins and deliveries during the quarter." Its YARIY depositary receipt closed at $21.51 on October 23, after $21.35 the previous day.
The year-on-year comparison shows revenue growth alongside a decline in profit: revenue rose from $4,108 million in the third quarter of 2025 to $4,478 million, while adjusted operating profit fell from $804 million to $675 million. The company attributed margin pressure to higher gas prices, alongside continued delayed demand, and said deliveries were also affected. Against market expectations, sales beat consensus, but adjusted profit missed it. Prices provided partial support to the year-on-year comparison for operating profit, but did not fully offset the effects of energy, volume and mix. Yara described its commercial performance as strong and said it helped counter accelerating European gas costs, while reliability issues at some plants affected production volumes.
Total deliveries fell 4% year on year in the third quarter, with fertilizer volumes down 4%, industrial products down 5% and clean ammonia down 2%. By contrast, the company saw a rebound in European nitrate volumes during the quarter. But global buying for the 2027 season remained clearly behind levels in previous years, Yara said. This places weak seasonal demand alongside energy costs in explaining performance, as delayed buying coincided with pressure on deliveries and margins. The recovery in European nitrate volumes also did not prevent total deliveries across the company's businesses from declining.
Yara cut third-quarter production by 150,000 metric tons of ammonia and 115,000 tons of finished products, Reuters reported. Production cuts in the fourth quarter were higher than in the third quarter at the time of publication, according to the chief executive, who said, "Cuts are currently at a higher level than in the third quarter, reflecting the escalation in gas price increases in the fourth quarter." The production cuts reflect the company's response to rising gas costs, while its comments show that the pressure extended beyond the quarter for which it reported results. Yara forecast gas costs to be $450 million higher in the fourth quarter of 2026 than in the same period a year earlier. It also forecast an increase of $445 million in the first quarter of 2027 compared with the corresponding period of 2026.
In a move related to the company's exposure to energy costs, Yara said its acquisition of Gulf Coast Ammonia would reduce its exposure to European energy costs after the deal closes. Completion of the acquisition remains subject to customary regulatory approvals, according to the company statement. The available information did not specify a completion date, while Yara tied the reduction in exposure to European energy costs to the period after closing. The company is scheduled to report fourth-quarter 2026 results on February 12, 2027. Those results are the next announced milestone for tracking the effect of expected gas costs on performance, alongside developments in 2027-season purchases and deliveries.