Canada’s Nutrien (TSX, NYSE: NTR), the world’s top potash producer, is reviewing its phosphate business as part of a strategy to simplify operations and boost long-term value.
The review could lead to a reconfiguration of operations, new partnerships, or a potential sale, the company said on Thursday. The move follows efforts to streamline Nutrien’s portfolio and strengthen free cash flow.
The phosphate division, valued at about $2.4 billion according to RBC Capital Markets, is the smallest of Nutrien’s four business units. It generated $384 million in adjusted earnings before interest, taxes, depreciation and amortization in 2024, compared with more than $1.8 billion each from nitrogen and potash, and $1.7 billion from agricultural retail.
“We continue to progress our strategic initiatives and take actions to simplify our portfolio,” President and CEO Ken Seitz said in a statement. He added that the changes aim to “enhance earnings quality, improve cash conversion and support growth in free cash flow per share over the long term.”
Potential buyers could include industry rivals Mosaic (NYSE: MOS), Israel’s ICL Group (NYSE: ICL), Germany’s K+S (ETR: SDF), or private equity investors. Global phosphate supply has been tight this year due to Chinese export restrictions, while weaker affordability has weighed on demand.
Higher returns
The review marks another step in Nutrien’s plan to focus on higher-return assets. In September, the company announced the $600-million sale of its 50% stake in Argentina-based nitrogen producer Profertil.
A strong planting season and lower fertilizer prices drove higher demand for potash across North America, lifting Nutrien’s third-quarter sales to $6.01 billion from $5.35 billion a year earlier.
Potash sales surged 27% to $1.12 billion, while phosphate revenue climbed 20% to $495 million during the July–September period. Adjusted earnings reached 97¢ per share, topping analysts’ average estimate of 95¢, according to London Stock Exchange Group data.
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