Yara Delivers Strong Fourth Quarter and Full-Year 2025 Performance
Yara reported solid financial and operational performance for the fourth quarter of 2025, demonstrating significant year-over-year improvement in profitability, cost efficiency, and market positioning. The company’s EBITDA excluding special items reached USD 709 million, a notable increase from USD 519 million in the fourth quarter of 2024. Net income for the period also improved substantially, totaling USD 344 million, compared with a net loss of USD 290 million in the same quarter the previous year.
These results reflect stronger nitrogen margins, disciplined cost management, and robust delivery volumes, reinforcing Yara’s progress in executing its strategic priorities.
Key Highlights from the Fourth Quarter
Yara’s fourth-quarter performance was supported by several operational and financial achievements:
- EBITDA excluding special items of USD 709 million, driven by improved nitrogen margins, lower fixed costs, and strong sales volumes.
- More than USD 200 million in fixed-cost reductions delivered since the second quarter of 2024, demonstrating successful execution of efficiency initiatives.
- Proposed annual dividend of NOK 22 per share, reflecting confidence in the company’s financial strength and future cash-flow generation.
- Positive outlook for sustained cash-flow growth, supported by profitability initiatives and constructive market fundamentals.
Together, these factors underline Yara’s ability to translate strategic execution into measurable financial improvement.
Leadership Perspective on 2025 Results
Svein Tore Holsether, President and Chief Executive Officer of Yara, highlighted the company’s strong progress throughout the year:
Yara delivers a strong quarter and full year for 2025. We have worked diligently to deliver on our cost-reduction targets and sharpen our strategic focus to increase returns. I am pleased to say we have delivered on both, and we are well positioned to build on this momentum to further strengthen long-term value creation.
Holsether emphasized that disciplined execution and strategic clarity have been central to the company’s improved results, positioning Yara for continued performance gains.
Operational Progress and Strategic Execution
During 2025, Yara achieved higher production levels and increased deliveries, supported by strict adherence to the fixed-cost and capital-expenditure reduction targets announced in the second quarter of 2024. This disciplined approach enabled the company to improve profitability while maintaining operational reliability and market reach.
The company’s efforts demonstrate a clear focus on efficiency, productivity, and value creation—key drivers behind the year’s improved financial outcomes.
Next Phase of Improvement Program
At its Capital Markets Day in January 2026, Yara introduced the next phase of its long-term improvement strategy. The company outlined ambitious financial targets, including:
- An additional USD 200 million EBITDA improvement by the end of 2027
- A further USD 150 million EBITDA improvement by the end of 2030
These gains are expected to be achieved through several focused initiatives:
- Enhanced asset utilization to maximize production efficiency
- Logistical optimization to reduce costs and improve distribution performance
- Targeted capture of market opportunities across regions and product segments
- Disciplined capital reallocation toward higher-return investments
This structured roadmap reflects Yara’s commitment to sustainable profitability and long-term shareholder value.
Strengthening Resilience Through Energy Diversification and Carbon Management
A critical priority for Yara is diversifying energy exposure and optimizing operations to address rising carbon costs. These efforts are essential to improving long-term resilience, competitiveness, and returns in an increasingly regulated and environmentally focused global market.
As part of this strategy, Yara continues to evaluate the most effective pathway forward, including the development of ammonia projects in partnership with Air Products. A final investment decision is expected in mid-2026, marking an important milestone in the company’s transition toward lower-carbon solutions and sustainable growth.
Commitment to Cash Flow Growth and Shareholder Returns
Yara remains focused on delivering sustained cash-flow growth while maintaining strict capital prioritization. This disciplined financial framework supports:
- Strong through-the-cycle shareholder returns
- Continued investment in efficiency and sustainability initiatives
- Long-term financial resilience in volatile market conditions
The proposed dividend and improvement targets further reinforce the company’s confidence in its strategic direction and financial outlook.
Navigating Geopolitical and Regulatory Uncertainty
Holsether also emphasized Yara’s flexible business model as a key competitive advantage in an environment shaped by geopolitical tensions, regulatory changes, and market volatility.
One of Yara’s key strengths is our flexible business model, which positions us to navigate geopolitical and regulatory uncertainty. In a world where volatility has become the new normal, we continue to strengthen our resilience by focusing on what we can control.
This adaptability allows Yara to:
- Adjust production and distribution in response to shifting market conditions
- Optimize asset deployment to maximize value creation
- Maintain operational stability despite external disruptions
Such flexibility is increasingly important as global agriculture, energy markets, and environmental policies continue to evolve.
Building Long-Term Value Through Expertise and Adaptability
Holsether underscored that Yara’s people, expertise, and system-wide optimization capabilities remain central to the company’s long-term strength:
Our ability to adapt, optimize and deploy our system where it creates the most value, combined with the expertise and commitment of our people, ensures that Yara remains robust in any environment.
This combination of operational excellence and organizational capability enables Yara to manage diverse scenarios with confidence while sustaining strong performance over time.
SOURCE LINK: https://www.yara.com/
