Nutrien Ltd. (TSX, NYSE: NTR), the world’s largest potash producer, announced it is conducting a strategic review of its phosphate business, which could include a restructuring, joint venture, or outright sale. The move is part of the company’s ongoing effort to streamline operations and enhance long-term value.
The market reacted positively to the news, with Nutrien’s shares rising 2.8% in early trading following the announcement. Year-to-date, the stock has gained approximately 22%.
Potential suitors for the phosphate division are seen likely among industry competitors, including The Mosaic Company, Israel’s ICL Group, Germany’s K+S AG, as well as private equity firms seeking investments in the sector. Phosphate is a key ingredient in fertilizers, animal feed, and industrial applications like soft drinks and food additives. Nutrien is a major phosphate producer in North America, operating two integrated production sites and four regional processing facilities.
Ken Seitz, Nutrien’s President and CEO, stated the review is a “key action to advance our strategic priorities and optimize our portfolio.” According to estimates from RBC Capital Markets, the phosphate unit is valued at approximately $2.4 billion, making it the smallest of Nutrien’s four main business segments. In 2024, the division reported adjusted EBITDA of $384 million, significantly lower than the over $1.8 billion each from its nitrogen and potash operations, and the $1.7 billion from its agricultural retail network.
This review continues Nutrien’s strategy of focusing on higher-return assets. In September, the company sold its 50% stake in Argentine nitrogen producer Profertil for $600 million. Additionally, Nutrien began a controlled shutdown of its nitrogen operations in Trinidad last month.
The strategic update coincided with the release of robust third-quarter results. Driven by a strong North American planting season and increased demand as fertilizer prices moderated, Nutrien’s quarterly sales rose 12% year-over-year to $6.01 billion.
Sales from its core potash business surged 27% to $1.12 billion. The phosphate unit also performed well, with revenue increasing 20% to $495 million. The company reported adjusted earnings per share of $0.97, slightly above the average analyst estimate of $0.95. Nutrien also narrowed its full-year 2025 adjusted EBITDA forecast to a range of $1.68 billion to $1.82 billion, from its previous guidance of $1.65 billion to $1.85 billion.
Nutrien expressed an optimistic outlook for the global fertilizer market. The company projects global potash shipments to reach 73-75 million metric tons in 2025, increasing to 74-77 million metric tons in 2026, fueled by demand growth and low inventory levels in key markets. Meanwhile, nitrogen demand is expected to grow by 2% in 2026 due to ongoing supply tightness. The phosphate market is also forecast to remain tight, partly due to supply constraints linked to export restrictions from China.
