Agricultural chemicals giant Nufarm (ASX:NUF) announced a strong performance for the first half of the 2026 financial year, underpinned by a strategy refresh and disciplined capital management.
The company revealed that its underlying EBITDA for H1 FY26 is expected to land between $239 million and $244 million.
At the mid-point, this represents a notable 17% increase compared to the prior corresponding period, a boost driven by improved margins in crop protection, expansion in hybrid seeds, and solid gains within the emerging omega-3 and bioenergy platforms.
Beyond earnings growth, Nufarm has made substantial strides in fortifying its balance sheet. Net debt as of March 31 stood at approximately $1.23 billion, reflecting a reduction of $130 million year-on-year.
The deleveraging has brought the net debt to LTM uEBITDA ratio down to 3.6x, a 20% improvement on the pcp.
Management attributed this progress to enhanced cash generation resulting from lower capital expenditure and a rigorous approach to working capital.
Looking ahead, the company is accelerating its efficiency drive, targeting an additional $50 million in cost savings through the first stage of its strategy refresh.
With positive trading momentum reportedly continuing into April, Nufarm remains focused on sustaining this trajectory.