
Green Acres Mowers Broadens Inventory to Over 10,000 Parts, Enhancing Access to Affordable Mower Maintenance
Since its founding at the beginning of the year 2009, Green Acres Mowers has earned a reputation for its reliability and professionalism with over 40 years of expertise in the field. Green Acres Mowers' latest expansion will ensure that both professionals and homeowners will find the exact part they need, without having to endure long lines or high costs.
Simplifying the Search for Spare Parts
Navigating through broken or worn-out mower parts can be frustrating, but Green Acres Mowers makes it easier with a user-friendly online platform. Customers can quickly search for parts using their equipment's make and model, with detailed descriptions to ensure the right fit.
"We understand how annoying it is when your mower breaks down, especially right when you need it most," says the CEO of Green Acres Mowers. "Our goal has always been to take the stress out of repairs by offering a massive selection at prices that won't break the bank. With over 10,000 parts now available, we're confident we can help just about anyone get their equipment back up and running."
For those unsure about which part they need, Green Acres Mowers' expert team is just a call or email away. The company prides itself on personalized customer service, helping track down even the hardest-to-find components.
Price Guarantee & Hassle-Free Returns
In a market where spare parts are typically sold at a substantial cost, Green Acres Mowers stands out by offering a Best Price Guarantee of 5. If customers discover the same merchandise at a lower cost elsewhere, the company will beat the price in 5% increments, making sure customers always get the best price.
Returns are also simple due to a partnership in partnership with Australia Post. If an item isn't correct, buyers can return it to the manufacturer without hassle.
"We don't just sell parts--we solve problems," says the head of marketing. "Whether it's helping someone find an obscure belt or making returns effortless, we want every interaction with Green Acres Mowers to be simple and stress-free."
Looking Ahead
With this expansion of inventory, Green Acres Mowers continues to consolidate its position as the most trusted supplier of parts for outdoor power equipment in Australia. The company is committed to affordability, ease of use, and exceptional customer service.
For more details, visit their website or reach out to them directly.
About Green Acres Mowers
Established in 2009, Green Acres Mowers is a family-owned Australian business specialising in outdoor power equipment parts and accessories. With over 10,000 stocked items, the company provides affordable, high-quality parts for most makes and models. Their 5% Best Price Guarantee and easy returns policy make them a trusted choice for homeowners and professionals alike.
Media Contact
Company Name: Green Acres Mowers
Contact Person: David Smith
Email: Send Email
Address: PO Box 2516
City: Burleigh, BC
State: QLD 4220
Country: Australia
Website: https://www.greenacresmowers.com.au
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National Post
6 hours ago
- National Post
Nutrien Reports Second Quarter 2025 Results
Article content First half results supported by strong operational performance and favorable fertilizer market fundamentals. Increasing 2025 full-year Potash sales volume guidance range, maintaining capital allocation priorities and continuing to show progress on 2026 performance targets. Article content SASKATOON, Saskatchewan — Nutrien Ltd. (TSX and NYSE: NTR) announced today its second quarter 2025 results, with net earnings of $1.2 billion ($2.50 diluted net earnings per share). Second quarter 2025 adjusted EBITDA 1 was $2.5 billion and adjusted net earnings per share 1 was $2.65. Article content 'Nutrien delivered growth in earnings and cash flow in the first half of 2025, demonstrating strong operational performance and execution on our strategic priorities. We sold record Potash sales volumes, increased Nitrogen operating rates and lowered expenses, while further optimizing capital expenditures and consistently returning cash to shareholders,' commented Ken Seitz, Nutrien's President and CEO. 'Fertilizer market fundamentals are supported by strong global demand, persistent supply disruptions and project delays. We have seen healthy fertilizer customer engagement and field activity in North America to start the third quarter as farmers focus on maximizing crop yield potential,' added Mr. Seitz. Article content Highlights 2: Article content Generated net earnings of $1.2 billion and adjusted EBITDA of $3.3 billion in the first half of 2025. Adjusted EBITDA increased from the same period in 2024 due to higher fertilizer sales volumes and net selling prices. Article content Retail adjusted EBITDA was $1.2 billion in the first half of 2025. Dry weather in Australia and wet conditions in the southern US impacted crop input sales and margins, offsetting the favorable impact of lower expenses and higher crop nutrient volumes in North America. Article content Potash adjusted EBITDA increased to $1.1 billion in the first half of 2025 due to higher net selling prices and record sales volumes, supported by strong demand in North America and key offshore markets. Article content Nitrogen adjusted EBITDA increased to $1.1 billion in the first half of 2025 due to higher net selling prices and sales volumes. Our operations delivered a record ammonia operating rate 3 of 98 percent in the first half of 2025, achieved through improved reliability at our sites. Article content Returned $0.8 billion to shareholders in the first half of 2025 through dividends and share repurchases. We repurchased 5.7 million shares in 2025 for a total of $316 million, as of August 5, 2025. Article content Raising 2025 full-year Potash sales volume guidance to 13.9 to 14.5 million tonnes. All other full-year operational guidance ranges remain unchanged. Article content 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. All references to per share amounts pertain to diluted net earnings per share, unless otherwise noted. 2 Our discussion of highlights set out on this page is a comparison of the results for the six months ended June 30, 2025 to the results for the six months ended June 30, 2024, unless otherwise noted. 3 Excludes Trinidad and Joffre. Article content Management's Discussion and Analysis Article content The following management's discussion and analysis ('MD&A') is the responsibility of management and is dated as of August 6, 2025. The Board of Directors ('Board') of Nutrien carries out its responsibility for review of this disclosure principally through its Audit Committee, composed entirely of independent directors. The Audit Committee reviews and, prior to its publication, approves this disclosure pursuant to the authority delegated to it by the Board. The term 'Nutrien' refers to Nutrien Ltd. and the terms 'we', 'us', 'our', 'Nutrien' and 'the Company' refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our annual report dated February 20, 2025 ('2024 Annual Report'), which includes our annual audited consolidated financial statements ('annual financial statements') and MD&A, and our annual information form dated February 20, 2025, each for the year ended December 31, 2024, can be found on SEDAR+ at and on EDGAR at No update is provided to the disclosure in our 2024 annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission (the 'SEC'). Article content This MD&A is based on, and should be read in conjunction with, the Company's unaudited interim condensed consolidated financial statements as at and for the three and six months ended June 30, 2025 ('interim financial statements') based on International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board and prepared in accordance with International Accounting Standard ('IAS') 34 'Interim Financial Reporting', unless otherwise noted. This MD&A contains certain non-GAAP financial measures and ratios and forward-looking statements, which are described in the 'Non-GAAP Financial Measures' and the 'Forward-Looking Statements' sections, respectively. 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The settlement of contracts with India and China in June and favorable economics for key crops grown in Southeast Asia is expected to support demand in standard grade markets in the second half of 2025. Solid uptake on our potash summer fill program in North America and stable demand in Brazil are expected to support third quarter shipments. As a result, we have raised our 2025 full-year global potash shipment forecast to 73 to 75 million tonnes. Article content Global urea supply and demand has remained tight, driven by strong seasonal demand from markets including India, combined with unplanned outages in key producing regions. US urea and UAN prices have been supported by low domestic inventories and trade flow shifts which we anticipate continuing in the second half of 2025. Article content Global ammonia prices have strengthened in the third quarter of 2025 due to plant outages, project delays and improved demand from phosphate producers. Article content Phosphate markets continue to be tight due to limited supply, including from Chinese export restrictions. We anticipate that global shipments in 2025 will be constrained by supply availability and weaker grower affordability for phosphate fertilizer could impact demand. Article content Retail adjusted EBITDA guidance of $1.65 to $1.85 billion assumes higher North American crop nutrient and crop protection sales in the second half of 2025 compared to 2024, improved moisture conditions in Australia and continued recovery in Brazil. Article content Potash sales volume guidance was increased to 13.9 to 14.5 million tonnes due to expectations for higher global demand in 2025. The range is consistent with our historical share of global shipments. Article content Nitrogen sales volume guidance of 10.7 to 11.2 million tonnes assumes lower ammonia operating rates in the second half of 2025 compared to the record achieved in the first half of 2025 due to planned turnaround activity at our North American plants. Article content Phosphate sales volume guidance of 2.35 to 2.55 million tonnes assumes improved operating rates and sales volumes in the second half of 2025 compared to the prior year with the completion of planned turnarounds in the first half of 2025. Article content Total capital expenditures of $2.0 to $2.1 billion are expected to be below the prior year. This total includes approximately $400 to $500 million in investing capital expenditures focused on proprietary products, network optimization and digital capabilities in Retail, low-cost brownfield expansions in Nitrogen and mine automation projects in Potash. Article content Effective tax rate on adjusted net earnings guidance was increased to 24.0% to 26.0% due to a change to our expected geographic mix of earnings. Article content All guidance numbers, including those noted above, are outlined in the table below. Refer to page 58 of our 2024 Annual Report for anticipated fertilizer pricing and natural gas price sensitivities relating to adjusted EBITDA (consolidated) and adjusted net earnings per share. Article content 2025 Guidance Ranges 1 as of August 6, 2025 May 7, 2025 ($ billions, except as otherwise noted) Low High Low High Retail adjusted EBITDA 1.65 1.85 1.65 1.85 Potash sales volumes (million tonnes) 2 13.9 14.5 13.6 14.4 Nitrogen sales volumes (million tonnes) 2 10.7 11.2 10.7 11.2 Phosphate sales volumes (million tonnes) 2 2.35 2.55 2.35 2.55 Depreciation and amortization 2.35 2.45 2.35 2.45 Finance costs 0.65 0.75 0.65 0.75 Effective tax rate on adjusted net earnings (%) 3 24.0 26.0 22.0 25.0 Capital expenditures 4 2.0 2.1 2.0 2.1 1 See the 'Forward-Looking Statements' section. 2 Manufactured product only. 3 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. 4 Comprised of sustaining capital expenditures, investing capital expenditures and mine development and pre-stripping capital expenditures, which are supplementary financial measures. See the 'Other Financial Measures' section. Article content Three Months Ended June 30 Six Months Ended June 30 ($ millions, except as otherwise noted) 2025 2024 % Change 2025 2024 % Change Sales 10,438 10,156 3 15,538 15,545 ‐ Gross margin 3,175 2,912 9 4,495 4,449 1 Expenses 1,393 2,068 (33) 2,487 3,186 (22) Net earnings 1,229 392 214 1,248 557 124 Adjusted EBITDA 1 2,486 2,235 11 3,338 3,290 1 Diluted net earnings per share (dollars) 2 2.50 0.78 221 2.52 1.10 129 Adjusted net earnings per share (dollars) 1, 2 2.65 2.34 13 2.75 2.81 (2) 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. 2 All references to per share amounts pertain to diluted net earnings per share, unless otherwise noted. Article content Net earnings and adjusted EBITDA increased in the second quarter and first half of 2025 compared to the same periods in 2024, primarily due to higher fertilizer sales volumes and net selling prices. Net earnings in the second quarter of 2024 were impacted by non-cash impairments of assets and a loss on foreign currency derivatives in Brazil. Article content Segment Results Article content Our discussion of segment results set out on the following pages is a comparison of the results for the three and six months ended June 30, 2025 to the results for the three and six months ended June 30, 2024, unless otherwise noted. Article content Retail adjusted EBITDA increased in the second quarter of 2025 due to higher gross margin for crop nutrients and lower expenses, partially offset by lower seed margins. Dry weather in Australia and wet conditions in the southern US impacted crop input sales and margins in the first half of 2025, offsetting a six percent reduction in selling and general and administrative expenses and higher crop nutrient volumes in North America. Article content Three Months Ended June 30 Six Months Ended June 30 Sales Gross Margin Sales Gross Margin ($ millions) 2025 2024 2025 2024 2025 2024 2025 2024 Crop nutrients 3,391 3,281 697 686 4,585 4,590 916 940 Crop protection products 2,666 2,733 676 677 3,638 3,847 867 911 Seed 1,278 1,434 266 296 1,810 1,919 336 355 Services and other 286 292 235 239 432 448 353 364 Merchandise 238 245 44 42 427 445 75 73 Nutrien Financial 135 133 135 133 205 199 205 199 Nutrien Financial elimination 1 (35) (44) (35) (44) (48) (66) (48) (66) Total 7,959 8,074 2,018 2,029 11,049 11,382 2,704 2,776 1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches. Article content Crop nutrients sales and gross margin increased in the second quarter of 2025 due to higher sales volumes and selling prices in North America, partially offset by lower sales volumes in Australia due to hot and dry conditions. First half of 2025 sales and gross margin were impacted by lower sales volumes due to strategic actions related to our margin improvement plan in Brazil. Article content Crop protection products sales and gross margin were lower in the second quarter and first half of 2025 due to hot and dry conditions in Australia and product mix shifts in North America. Article content Seed sales and gross margin decreased in the second quarter and first half of 2025 due to weather related impacts in the southern US leading to fewer planted acres which impacted proprietary products gross margin. Article content Supplemental Data Three Months Ended June 30 Six Months Ended June 30 Gross Margin % of Product Line 1 Gross Margin % of Product Line 1 ($ millions, except as otherwise noted) 2025 2024 2025 2024 2025 2024 2025 2024 Proprietary products Crop nutrients 228 220 33 32 297 290 32 31 Crop protection products 246 227 37 34 299 310 34 34 Seed 87 127 37 44 115 144 34 41 Merchandise 3 4 6 9 6 7 7 9 Total 564 578 29 29 717 751 27 27 1 Represents percentage of proprietary product margins over total product line gross margin. Article content Three Months Ended June 30 Six Months Ended June 30 Sales Volumes (tonnes – thousands) Gross Margin / Tonne (dollars) Sales Volumes (tonnes – thousands) Gross Margin / Tonne (dollars) 2025 2024 2025 2024 2025 2024 2025 2024 Crop nutrients North America 4,419 4,298 146 146 5,883 5,762 142 144 International 1,072 1,125 48 53 1,898 2,043 42 54 Total 5,491 5,423 127 127 7,781 7,805 118 120 Article content (percentages) June 30, 2025 December 31, 2024 Financial performance measures 1, 2 Cash operating coverage ratio 63 63 Adjusted average working capital to sales 21 20 Adjusted average working capital to sales excluding Nutrien Financial 1 – Nutrien Financial adjusted net interest margin 5.3 5.3 1 Rolling four quarters. 2 These are non-GAAP financial measures. See the 'Non-GAAP Financial Measures' section. Article content Three Months Ended June 30 Six Months Ended June 30 ($ millions, except as otherwise noted) 2025 2024 % Change 2025 2024 % Change Net sales 991 756 31 1,735 1,569 11 Cost of goods sold 440 359 23 820 717 14 Gross margin 551 397 39 915 852 7 Adjusted EBITDA 1 630 472 33 1,076 1,002 7 1 See Note 2 to the interim financial statements. Article content Potash adjusted EBITDA increased in the second quarter and first half of 2025 due to higher net selling prices and record sales volumes, partially offset by higher provincial mining taxes. Article content Manufactured Product Three Months Ended June 30 Six Months Ended June 30 ($ per tonne, except as otherwise noted) 2025 2024 2025 2024 Sales volumes (tonnes – thousands) North America 1,038 914 2,350 2,221 Offshore 2,951 2,649 5,041 4,755 Total sales volumes 3,989 3,563 7,391 6,976 Net selling price North America 279 301 259 306 Offshore 237 182 224 187 Average net selling price 248 212 235 225 Cost of goods sold 110 101 112 103 Gross margin 138 111 123 122 Depreciation and amortization 47 42 47 43 Gross margin excluding depreciation and amortization 1 185 153 170 165 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. Article content Sales volumes in the second quarter and first half of 2025 were the highest on record, supported by healthy potash affordability and strong underlying consumption in North America and key offshore markets. Article content Net selling price per tonne increased in the second quarter and first half of 2025 driven by higher benchmark prices in Brazil and Southeast Asia, partially offset by lower benchmark prices in North America compared to the same periods last year. Article content Cost of goods sold per tonne increased in the second quarter and first half of 2025 primarily due to higher depreciation. Controllable cash cost of product manufactured per tonne increased in the first half of 2025 driven by lower planned potash production and higher turnaround costs. Article content Supplemental Data Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Production volumes (tonnes – thousands) 3,531 3,575 6,820 7,140 Potash controllable cash cost of product manufactured per tonne 1 55 50 57 53 Canpotex sales by market (percentage of sales volumes) 2 Latin America 42 44 37 38 Other Asian markets 3 34 27 33 30 China 8 7 12 13 India ‐ 8 2 6 Other markets 16 14 16 13 Total 100 100 100 100 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. 2 See Note 8 to the interim financial statements. 3 All Asian markets except China and India. Article content Nitrogen adjusted EBITDA increased in the second quarter and first half of 2025 due to higher net selling prices and higher sales volumes, which more than offset higher natural gas costs and lower equity earnings from Profertil S.A. Second quarter of 2024 adjusted EBITDA benefited from insurance recoveries included in other income. Our operations delivered a record ammonia operating rate of 98 percent in the first half of 2025, achieved through improved reliability at our sites. Article content Manufactured Product Three Months Ended June 30 Six Months Ended June 30 ($ per tonne, except as otherwise noted) 2025 2024 2025 2024 Sales volumes (tonnes – thousands) Ammonia 734 698 1,230 1,215 Urea and ESN ® 961 864 1,756 1,639 Solutions, nitrates and sulfates 1,322 1,256 2,500 2,471 Total sales volumes 3,017 2,818 5,486 5,325 Net selling price Ammonia 408 405 412 404 Urea and ESN ® 509 445 477 438 Solutions, nitrates and sulfates 287 238 263 232 Average net selling price 387 343 365 335 Cost of goods sold 219 211 222 209 Gross margin 168 132 143 126 Depreciation and amortization 55 54 56 54 Gross margin excluding depreciation and amortization 1 223 186 199 180 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. Article content Sales volumes increased in the second quarter and first half of 2025 due to strong demand and increased production of ammonia and upgraded nitrogen products. Article content Net selling price per tonne was higher in the second quarter and first half of 2025 for all major upgraded nitrogen products due to stronger benchmark prices. Ammonia net selling price per tonne was higher in the second quarter of 2025 despite lower global benchmark prices, reflecting the favorable mix of fertilizer sales in the quarter. Article content Cost of goods sold per tonne increased in the second quarter and first half of 2025 due to higher natural gas costs. Article content Supplemental Data Three Months Ended June 30 Six Months Ended June 30 2025 2024 2025 2024 Sales volumes (tonnes – thousands) Fertilizer 1,845 1,716 3,234 3,139 Industrial and feed 1,172 1,102 2,252 2,186 Production volumes (tonnes – thousands) Ammonia production – total 1 1,535 1,383 3,078 2,835 Ammonia production – adjusted 1, 2 1,088 999 2,164 2,017 Ammonia operating rate (%) 2 98 89 98 91 Natural gas costs (dollars per MMBtu) Overall natural gas cost excluding realized derivative impact 3.31 2.65 3.61 2.91 Realized derivative impact 3 ‐ 0.10 ‐ 0.07 Overall natural gas cost 3.31 2.75 3.61 2.98 1 All figures are provided on a gross production basis in thousands of product tonnes. 2 Excludes Trinidad and Joffre. 3 Includes realized derivative impacts recorded as part of cost of goods sold or other income and expenses. Refer to Note 3 to the interim financial statements. Article content Phosphate adjusted EBITDA was higher in the second quarter due to higher net selling prices, partially offset by lower sales volumes and higher sulfur input costs. Adjusted EBITDA for the first half of 2025 decreased due to the impact of lower production volumes and higher sulfur input costs, which more than offset higher net selling prices. Article content Manufactured Product Three Months Ended June 30 Six Months Ended June 30 ($ per tonne, except as otherwise noted) 2025 2024 2025 2024 Sales volumes (tonnes – thousands) Fertilizer 374 415 706 862 Industrial and feed 169 169 337 342 Total sales volumes 543 584 1,043 1,204 Net selling price Fertilizer 666 601 661 614 Industrial and feed 821 830 819 839 Average net selling price 714 667 712 678 Cost of goods sold 646 602 672 590 Gross margin 68 65 40 88 Depreciation and amortization 125 116 134 115 Gross margin excluding depreciation and amortization 1 193 181 174 203 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. Article content Sales volumes were lower in the second quarter and first half of 2025 due to the impact of lower production volumes in the first quarter. Article content Net selling price per tonne increased in the second quarter and first half of 2025 due to strong phosphate fertilizer fundamentals and optimization of product mix, partially offset by lower industrial net selling prices which reflect the typical lag in price realizations relative to benchmark prices. Article content Cost of goods sold per tonne increased in the second quarter and first half of 2025 due to increased sulfur input costs, higher depreciation and the impact of lower production volumes in the first quarter. Article content Corporate and Others and Eliminations Article content Three Months Ended June 30 Six Months Ended June 30 ($ millions, except as otherwise noted) 2025 2024 % Change 2025 2024 % Change Corporate and Others Gross margin 1 1 ‐ n/m 11 ‐ n/m Selling expenses (2) (3) (33) (5) (5) ‐ General and administrative expenses 95 98 (3) 193 187 3 Share-based compensation expense 49 10 390 91 16 469 Foreign exchange loss, net of related derivatives 22 285 (92) 29 328 (91) Other expenses 46 26 77 64 80 (20) Adjusted EBITDA 1 (104) (121) (14) (185) (222) (17) Eliminations Gross margin 56 75 (25) 26 38 (32) Adjusted EBITDA 1 52 74 (30) 24 38 (37) 1 See Note 2 to the interim financial statements. Article content Share-based compensation expense was higher in the second quarter and first half of 2025 due to an increase in the fair value of our share-based awards. The fair value of our share-based awards takes into consideration several factors such as our share price movement, our performance relative to our peer group and our return on invested capital. Article content Foreign exchange loss, net of related derivatives was lower in the second quarter and first half of 2025 due to a lower loss on foreign currency derivatives in Brazil. Article content Three Months Ended June 30 Six Months Ended June 30 ($ millions, except as otherwise noted) 2025 2024 % Change 2025 2024 % Change Finance costs 155 162 (4) 334 341 (2) Income taxes Income tax expense 398 290 37 426 365 17 Actual effective tax rate including discrete items (%) 24 43 (44) 25 40 (38) Other comprehensive income (loss) 184 44 318 209 (58) n/m Article content Income tax expense was higher in the second quarter and first half of 2025 mainly due to higher earnings. The decrease in the effective tax rate on ordinary earnings in the second quarter and first half of 2025 was mainly due to lower losses in South America. Article content Other comprehensive income (loss) is primarily driven by changes in the currency translation of our foreign operations. In the second quarter and first half of 2025, the gain was higher mainly due to the appreciation of the Brazilian, Australian and Canadian currencies, relative to the US dollar, compared to a depreciation of Brazilian and Canadian currencies relative to the US dollar for the same periods in 2024. Article content Liquidity and Capital Resources Sources and uses of liquidity We continued to manage our capital in accordance with our capital allocation strategy. We believe that our internally generated cash flow, supplemented by available borrowings under new or existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development activities, and other cash requirements for the foreseeable future. Refer to the 'Capital Structure and Management' section for details on our existing long-term debt and credit facilities. Article content Cash provided by operating activities Cash provided by operating activities in the second quarter was higher compared to the same period in 2024 due to higher fertilizer sales volumes and net selling prices. Cash provided by operating activities in the first half of 2025 was higher due to lower cash income taxes paid. Cash used in investing activities Cash used in investing activities was lower in the second quarter and first half of 2025 due to lower capital expenditures. The first half of 2025 also included proceeds from the sale of our investment in Sinofert Holdings Limited ('Sinofert'). Cash used in financing activities Cash used in financing activities was higher in the second quarter of 2025 as $1.0 billion in senior notes were issued in the second quarter of 2024 with no comparable issuance in the second quarter of 2025. There was also a higher repayment of senior notes maturing in the second quarter of 2025 partially offset by increased commercial paper issuances. The first half of 2025 was higher compared to 2024, primarily from higher share repurchases. Cash used for dividends and share repurchases Cash used for dividends and share repurchases was higher in the second quarter and first half of 2025 as a result of share repurchases in 2025 that did not occur in the same periods in 2024. Article content Financial Condition Review Article content The following is a comparison of balance sheet categories that are considered material: Article content As at ($ millions, except as otherwise noted) June 30, 2025 December 31, 2024 $ Change % Change Assets Cash and cash equivalents 1,387 853 534 63 Receivables 8,086 5,390 2,696 50 Inventories 5,576 6,148 (572) (9) Prepaid expenses and other current assets 566 1,401 (835) (60) Property, plant and equipment 22,496 22,604 (108) ‐ Investments 407 698 (291) (42) Liabilities and Shareholders' Equity Short-term debt 1,882 1,534 348 23 Payables and accrued charges 8,991 9,118 (127) (1) Long-term debt, including current portion 10,405 9,918 487 5 Retained earnings 11,719 11,106 613 6 Article content Explanations for changes in Cash and cash equivalents are in the 'Liquidity and Capital Resources – Sources and uses of cash' section. Article content Receivables increased primarily due to the seasonality of Retail sales and higher Potash sales volumes. Article content Inventories decreased due to the seasonality of our Retail segment. Our North American inventory levels typically build up at year end in preparation for the following year's planting and application season and are drawn on in the succeeding quarters. Article content Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventories during the planting and application season in North America. Article content Property, plant and equipment decreased due to depreciation more than offsetting capital expenditures. Article content Investments decreased due to the disposal of our remaining investment in Sinofert in the first half of 2025 and dividends received from Profertil S.A. Article content Payables and accrued charges decreased due to lower customer prepayments in North America as Retail customers took delivery of prepaid sales, partially offset by higher income tax payable from strong earnings in the second quarter of 2025. Article content Long-term debt, including current portion, increased due to the issuance of $1,000 million of senior notes in the first quarter of 2025, partially offset by the repayment of $500 million of senior notes in the second quarter of 2025. Article content Retained earnings increased as net earnings exceeded dividends declared and share repurchases in the first half of 2025. Article content Capital Structure and Management Principal debt instruments As part of the normal course of business, we closely monitor our liquidity position. We use a combination of cash generated from operations and short-term and long-term debt to finance our operations. We continually evaluate various financing arrangements and may seek to engage in transactions from time to time when market and other conditions are favorable. We were in compliance with our debt covenants and did not have any changes to our credit ratings for the six months ended June 30, 2025. Article content Capital structure (debt and equity) Article content Commercial paper, credit facilities and other debt Article content We have a total facility limit of approximately $8,030 million comprised of several credit facilities available in the jurisdictions where we operate. In North America, we have a commercial paper program, which is limited to the undrawn amount under our $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities. Article content As at June 30, 2025, we utilized $1,934 million of our total facility limit, which includes $1,654 million of commercial paper outstanding. Article content As at June 30, 2025, $214 million in letters of credit were outstanding and committed, with $452 million of remaining credit available under our letter of credit facilities. Our long-term debt consists primarily of notes and debentures. See the 'Capital Structure and Management' section of our 2024 Annual Report for information on balances, rates and maturities for our notes and debentures. During the first half of 2025, we issued $400 million of 4.500 percent senior notes due March 12, 2027 and $600 million of 5.250 percent senior notes due March 12, 2032, and repaid our $500 million 3.000 percent senior notes upon maturity on April 1, 2025. See note 6 to the interim financial statements. Article content Quarterly Results ($ millions, except as otherwise noted) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Sales 10,438 5,100 5,079 5,348 10,156 5,389 5,664 5,631 Net earnings 1,229 19 118 25 392 165 176 82 Net earnings attributable to equity holders of Nutrien 1,221 11 113 18 385 158 172 75 Net earnings per share attributable to equity holders of Nutrien Basic 2.51 0.02 0.23 0.04 0.78 0.32 0.35 0.15 Diluted 2.50 0.02 0.23 0.04 0.78 0.32 0.35 0.15 Our quarterly earnings are significantly affected by the seasonality of our business, fertilizer benchmark prices, which have been volatile over the last two years and are affected by demand-supply conditions, grower affordability and weather. See Note 2 to the interim financial statements. Article content The following table describes certain items that impacted our quarterly earnings: Article content Quarter Transaction or Event Q2 2024 $530 million non-cash impairment of assets comprised of a $335 million non-cash impairment of our Retail – Brazil intangible assets and property plant and equipment due to the ongoing market instability and more moderate margin expectations, and a $195 million non-cash impairment of our Geismar Clean Ammonia project property, plant and equipment as we are no longer pursuing the project. Net earnings also included a foreign exchange loss of $220 million on foreign currency derivatives in Brazil. Article content Critical Accounting Estimates Article content Our significant accounting policies are disclosed in our 2024 Annual Report. We have discussed the development, selection and application of our key accounting policies, and the critical accounting estimates and assumptions they involve, with the Audit Committee of the Board. Our critical accounting estimates are discussed on pages 65 to 66 of our 2024 Annual Report. There were no material changes to our critical accounting estimates for the three or six months ended June 30, 2025. Article content Controls and Procedures Management is responsible for establishing and maintaining adequate internal control over financial reporting ('ICFR'), as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings. ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of ICFR, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Article content There has been no change in our ICFR during the three months ended June 30, 2025, that has materially affected, or is reasonably likely to materially affect, our ICFR. Article content Forward-Looking Statements Certain statements and other information included in this document, including within the 'Market Outlook and Guidance' section, constitute 'forward-looking information' or 'forward-looking statements' (collectively, 'forward-looking statements') under applicable securities laws (such statements are often accompanied by words such as 'anticipate', 'forecast', 'expect', 'believe', 'may', 'will', 'should', 'estimate', 'project', 'intend' or other similar words). All statements in this document, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to: Article content Nutrien's business strategies, plans, prospects and opportunities; Nutrien's revised 2025 full-year guidance, including expectations regarding Retail adjusted EBITDA, Potash sales volumes, Nitrogen sales volumes, Phosphate sales volumes, depreciation and amortization, finance costs, effective tax rate on adjusted net earnings and capital expenditures, including the assumptions and expectations stated therein; expectations regarding our capital allocation intentions and strategies; our ability to advance strategic priorities that strengthen our core business and deliver structural improvements to our earnings and free cash flow; capital spending expectations for 2025 and beyond; expectations regarding performance of our operating segments in 2025 and beyond; the expectation that internally generated cash flow, supplemented by available borrowings, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development activities, and other cash requirements; expectations regarding payment of dividends and share repurchases; our operating segment market outlooks and our expectations for market conditions and fundamentals, and the anticipated supply and demand for our products and services, including the expected impact of supply availability on global shipments of phosphate fertilizer and the expected impact of affordability on demand, expected market, industry and growing conditions with respect to crop nutrient application rates, planted acres, farmer crop investment, crop mix, including the need to replenish soil nutrient levels, production volumes and expenses, shipments, natural gas costs and availability, consumption, prices, operating rates and the impact of seasonality, import and export volumes, tariffs, trade or export restrictions, economic sanctions and restrictions, operating rates, inventories, crop development and natural gas curtailments; expectations regarding demand in standard grade markets for the second half of 2025; the expected impact of uptake on Nutrien's summer fill program on third quarter shipments; expectations regarding the demand for crop inputs in North America and Australia; the anticipated inventory levels and trade flow shifts in the second half of 2025 and into 2026 and the expected impact on US urea and UAN prices; the negotiation of sales contracts; acquisitions and divestitures and the anticipated benefits thereof; and expectations in connection with our ability to deliver long-term returns to shareholders. Article content These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements. Article content All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. Article content The additional key assumptions that have been made in relation to the operation of our business as currently planned and our ability to achieve our business objectives include, among other things, assumptions with respect to: our ability to successfully implement our business strategies, growth and capital allocation investments and initiatives that we will conduct our operations and achieve results of operations as anticipated; growth in crop nutrient sales volumes; our ability to successfully complete, integrate and realize the anticipated benefits of our already completed and future acquisitions and divestitures; increased proprietary products gross margin; continued Retail recovery in Brazil; a return to historical average crop protection product margin percentages; continued reliability improvements; higher operating rates in Phosphate and Nitrogen; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, weather conditions, supplier agreements, product distribution agreements, inventory levels, exports, tariffs, including general or retaliatory tariffs, trade restrictions, international trade arrangements, crop development and cost of labor and interest, exchange and effective tax rates; potash demand growth in offshore markets and normalization of Canpotex port operations; global economic conditions and the accuracy of our market outlook expectations for 2025 and in the future; assumptions related to our assessment of recoverable amount estimates of our assets; our intention to complete share repurchases under our normal course issuer bid programs, the funding of such share repurchases, existing and future market conditions, including with respect to the price of our common shares, capital allocation priorities and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies and assumptions related to our ability to fund our dividends at the current level; our expectations regarding the impacts, direct and indirect, of certain geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East on, among other things, global supply and demand, including for crop nutrients, energy and commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable terms; availability of investment opportunities that align with our strategic priorities and growth strategy; our ability to maintain investment grade ratings and achieve our performance targets; and our ability to successfully negotiate sales and other contracts and our ability to successfully implement new initiatives and programs. Article content Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general global economic, market and business conditions; failure to achieve expected results of our business strategy, capital allocation initiatives, results of operations or targets, such as our targeted $200 million in annual consolidated cost savings, expected capital expenditures in 2025, delivering upstream fertilizer sales volume growth and advancing high-return downstream Retail growth opportunities; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; seasonality; climate change and weather conditions, including impacts from regional flooding and/or drought conditions; crop planted acreage, yield and prices; the supply and demand and price levels for our products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy (including general or retaliatory tariffs, trade restrictions, or other changes to international trade arrangements; the effects of current and future multinational trade agreements or other developments affecting the level of trade or export restrictions and climate change initiatives), government ownership requirements, changes in environmental, tax, antitrust and other laws or regulations and the interpretation thereof; political or military risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism and industrial espionage; our ability to access sufficient, cost-effective and timely transportation, distribution and storage of products (including potential rail transportation and port disruptions due to labor strikes and/or work stoppages or other similar actions); the occurrence of a major environmental or safety incident or becoming subject to legal or regulatory proceedings; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities or challenges related to our major facilities that are out of our control; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; the risk that rising interest rates and/or deteriorated business operating results may result in the further impairment of assets or goodwill attributed to certain of our cash generating units; risks related to reputational loss; certain complications that may arise in our mining processes; the ability to attract, engage and retain skilled employees and strikes or other forms of work stoppages; geopolitical conflicts, including the war in Eastern Europe and the conflict in the Middle East, and their potential impact on, among other things, global market conditions and supply and demand, including for crop nutrients, energy and commodity prices, interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to environmental, social and governance matters, and achieve related expectations, targets and commitments, including risks associated with disclosure thereof; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the SEC. Article content The purpose of our Retail adjusted EBITDA, depreciation and amortization, finance costs, effective tax rate and capital expenditures guidance ranges are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes. Article content The forward-looking statements in this document are made as of the date hereof and Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this document as a result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable US federal securities laws. Article content Terms and Definitions For the definitions of certain financial and non-financial terms used in this document, as well as a list of abbreviated company names and sources, see the 'Terms and definitions' section of our 2024 Annual Report. All references to per share amounts pertain to diluted net earnings (loss) per share, 'n/m' indicates information that is not meaningful, and all financial amounts are stated in millions of US dollars, unless otherwise noted. Article content About Nutrien Nutrien is a leading global provider of crop inputs and services. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of farmers. We focus on creating long-term value by prioritizing investments that strengthen the advantages of our business across the ag value chain and by maintaining access to the resources and the relationships with stakeholders needed to achieve our goals. Article content Selected financial data for download can be found in our data tool at Such data is not incorporated by reference herein. Article content Nutrien will host a Conference Call on Thursday, August 7, 2025 at 10:00 a.m. Eastern Time. Article content Telephone conference dial-in numbers: Article content From Canada and the US: 1 (800) 206-4400 International: 1 (289) 514-5005 No access code required. Please dial in 15 minutes prior to ensure you are placed on the call in a timely manner. Article content Live Audio Webcast: Visit Non-GAAP Financial Measures We use both IFRS measures and certain non-GAAP financial measures to assess performance. Non-GAAP financial measures are financial measures disclosed by the Company that: (a) depict historical or expected future financial performance, financial position or cash flow of the Company; (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the Company; (c) are not disclosed in the financial statements of the Company; and (d) are not a ratio, fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by the Company that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components, and that are not disclosed in the financial statements of the Company. Article content These non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-GAAP financial measures and non-GAAP ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-GAAP financial measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. Article content The following section outlines our non-GAAP financial measures and non-GAAP ratios, their compositions, and why management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-GAAP financial measures and non-GAAP ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations. Article content Most directly comparable IFRS financial measure: Article content Net earnings (loss). Article content Definition: Article content Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, asset retirement obligations ('ARO') and accrued environmental costs ('ERL') related to our non-operating sites, and loss related to financial instruments in Argentina. Article content Why we use the measure and why it is useful to investors: Article content It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations and as a component of employee remuneration calculations. Article content Three Months Ended June 30 Six Months Ended June 30 ($ millions) 2025 2024 2025 2024 Net earnings 1,229 392 1,248 557 Finance costs 155 162 334 341 Income tax expense 398 290 426 365 Depreciation and amortization 614 586 1,185 1,151 EBITDA 1 2,396 1,430 3,193 2,414 Adjustments: Share-based compensation expense 49 10 91 16 Foreign exchange loss, net of related derivatives 22 285 29 328 ARO/ERL related (income) expenses for non-operating sites (2) (35) 3 (32) Loss related to financial instruments in Argentina ‐ 15 ‐ 34 Restructuring costs 21 ‐ 22 ‐ Impairment of assets ‐ 530 ‐ 530 Adjusted EBITDA 2,486 2,235 3,338 3,290 1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization. Article content Adjusted Net Earnings and Adjusted Net Earnings Per Share Article content Net earnings (loss) and diluted net earnings (loss) per share. Article content Definition: Article content Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, gain or loss on disposal of certain businesses and investments, gain or loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting, asset retirement obligations and accrued environmental costs related to our non-operating sites, loss related to financial instruments in Argentina, change in recognition of tax losses and deductible temporary differences related to impairments and certain changes to tax declarations. We generally apply the annual forecasted effective tax rate to specific adjustments during the year, and at year-end, we apply the actual effective tax rate. Article content Effective Tax Rate on Adjusted Net Earnings Guidance Article content Effective tax rate on adjusted net earnings guidance is a forward-looking non-GAAP financial measure as it includes adjusted net earnings, which is a non-GAAP financial measure. It is provided to assist readers in understanding our expected financial results. Effective tax rate on adjusted net earnings guidance excludes certain items that management is aware of that permit management to focus on the performance of our operations (see the Adjusted Net Earnings and Adjusted Net Earnings Per Share section for items generally adjusted). We do not provide a reconciliation of this forward-looking measure to the most directly comparable financial measures calculated and presented in accordance with IFRS because a meaningful or accurate calculation of reconciling items and the information is not available without unreasonable effort due to unknown variables, including the timing and amount of certain reconciling items, and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine without unreasonable efforts. The probable significance of such unavailable information, which could be material to future results, cannot be addressed. Article content Most directly comparable IFRS financial measure: Article content Gross margin. Article content Definition: Article content Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the 'Segment Results' section. Article content Why we use the measure and why it is useful to investors: Article content Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions. Article content Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes. Article content Why we use the measure and why it is useful to investors: Article content To assess operational performance. Potash controllable cash COPM excludes the effects of production from other periods and the impacts of our long-term investment decisions, supporting a focus on the performance of our day-to-day operations. Potash controllable cash COPM also excludes royalties and natural gas costs and carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions. Article content Three Months Ended June 30 Six Months Ended June 30 ($ millions, except as otherwise noted) 2025 2024 2025 2024 Total COGS – Potash 440 359 820 717 Change in inventory (58) (7) (51) 21 Other adjustments 1 (8) (6) (21) (9) COPM 374 346 748 729 Depreciation and amortization in COPM (147) (141) (292) (294) Royalties in COPM (23) (20) (42) (39) Natural gas costs and carbon taxes in COPM (10) (8) (22) (20) Controllable cash COPM 194 177 392 376 Production volumes (tonnes – thousands) 3,531 3,575 6,820 7,140 Potash controllable cash COPM per tonne 55 50 57 53 1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances. Article content Nutrien Financial Adjusted Net Interest Margin Article content Definition: Article content Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial net receivables outstanding for the last four rolling quarters. Article content Why we use the measure and why it is useful to investors: Article content Used by credit rating agencies and others to evaluate the financial performance of Nutrien Financial. Article content Rolling Four Quarters Ended June 30, 2025 ($ millions, except as otherwise noted) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total/Average Nutrien Financial revenue 85 77 70 135 Deemed interest expense 1 (52) (45) (29) (49) Net interest 33 32 41 86 192 Average Nutrien Financial net receivables 4,318 2,877 2,569 4,645 3,602 Nutrien Financial adjusted net interest margin (%) 5.3 Rolling Four Quarters Ended December 31, 2024 ($ millions, except as otherwise noted) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Total/Average Nutrien Financial revenue 66 133 85 77 Deemed interest expense 1 (27) (50) (52) (45) Net interest 39 83 33 32 187 Average Nutrien Financial net receivables 2,489 4,560 4,318 2,877 3,561 Nutrien Financial adjusted net interest margin (%) 5.3 1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial. Article content Retail Cash Operating Coverage Ratio Article content Definition: Article content Retail selling, general and administrative, and other expenses (income), excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters. Article content Why we use the measure and why it is useful to investors: Article content To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate cash flow. Article content Rolling Four Quarters Ended June 30, 2025 ($ millions, except as otherwise noted) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total Selling expenses 815 808 755 948 3,326 General and administrative expenses 51 37 44 44 176 Other expenses (income) 32 (8) 25 54 103 Operating expenses 898 837 824 1,046 3,605 Depreciation and amortization in operating expenses (182) (186) (179) (172) (719) Operating expenses excluding depreciation and amortization 716 651 645 874 2,886 Gross margin 859 986 686 2,018 4,549 Depreciation and amortization in cost of goods sold 8 5 5 5 23 Gross margin excluding depreciation and amortization 867 991 691 2,023 4,572 Cash operating coverage ratio (%) 63 Rolling Four Quarters Ended December 31, 2024 ($ millions, except as otherwise noted) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Total Selling expenses 790 1,005 815 808 3,418 General and administrative expenses 52 51 51 37 191 Other expenses (income) 22 41 32 (8) 87 Operating expenses 864 1,097 898 837 3,696 Depreciation and amortization in operating expenses (190) (193) (182) (186) (751) Operating expenses excluding depreciation and amortization 674 904 716 651 2,945 Gross margin 747 2,029 859 986 4,621 Depreciation and amortization in cost of goods sold 4 3 8 5 20 Gross margin excluding depreciation and amortization 751 2,032 867 991 4,641 Cash operating coverage ratio (%) 63 Article content Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Article content Capital to Sales Excluding Nutrien Financial Article content Definition: Article content Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the sales and working capital of certain acquisitions during the first year following the acquisition. We also look at this metric excluding Nutrien Financial revenue and working capital. Article content Why we use the measure and why it is useful to investors: Article content To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio. Article content Rolling Four Quarters Ended June 30, 2025 ($ millions, except as otherwise noted) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Average/Total Current assets 10,559 10,360 11,510 11,442 Current liabilities (5,263) (8,028) (7,561) (8,051) Working capital 5,296 2,332 3,949 3,391 3,742 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 5,296 2,332 3,949 3,391 3,742 Nutrien Financial working capital (4,318) (2,877) (2,569) (4,645) Adjusted working capital excluding Nutrien Financial 978 (545) 1,380 (1,254) 140 Sales 3,271 3,179 3,090 7,959 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 3,271 3,179 3,090 7,959 17,499 Nutrien Financial revenue (85) (77) (70) (135) Adjusted sales excluding Nutrien Financial 3,186 3,102 3,020 7,824 17,132 Adjusted average working capital to sales (%) 21 Adjusted average working capital to sales excluding Nutrien Financial (%) 1 Rolling Four Quarters Ended December 31, 2024 ($ millions, except as otherwise noted) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Average/Total Current assets 11,821 11,181 10,559 10,360 Current liabilities (8,401) (8,002) (5,263) (8,028) Working capital 3,420 3,179 5,296 2,332 3,557 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 3,420 3,179 5,296 2,332 3,557 Nutrien Financial working capital (2,489) (4,560) (4,318) (2,877) Adjusted working capital excluding Nutrien Financial 931 (1,381) 978 (545) (4) Sales 3,308 8,074 3,271 3,179 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 3,308 8,074 3,271 3,179 17,832 Nutrien Financial revenue (66) (133) (85) (77) Adjusted sales excluding Nutrien Financial 3,242 7,941 3,186 3,102 17,471 Adjusted average working capital to sales (%) 20 Adjusted average working capital to sales excluding Nutrien Financial (%) ‐ Article content Other Financial Measures Article content Selected Additional Financial Data Article content Nutrien Financial As at June 30, 2025 As at December 31, 2024 ($ millions) Current <31 Days Past Due 31–90 Days Past Due >90 Days Past Due Gross Receivables Allowance 1 Net Receivables 2 Net Receivables North America 3,384 192 62 257 3,895 (76) 3,819 2,178 International 724 55 17 43 839 (13) 826 699 Nutrien Financial receivables 4,108 247 79 300 4,734 (89) 4,645 2,877 1 Bad debt expense on the above receivables for the six months ended June 30, 2025 were $38 million, in the Retail segment. 2 In 2025, we assume a debt-to-equity ratio of 9:1 (2024 – 7:1) in funding Nutrien Financial receivables, based on the underlying credit quality of the assets. Article content Supplementary Financial Measures Article content Supplementary financial measures are financial measures disclosed by the Company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company, (b) are not disclosed in the financial statements of the Company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios. Article content The following section provides an explanation of the composition of those supplementary financial measures, if not previously provided. Article content Sustaining capital expenditures: Article content Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds. Article content Investing capital expenditures: Article content Represents capital expenditures related to significant expansions of current operations or to create cost savings (synergies). Investing capital expenditures exclude capital outlays for business acquisitions and equity-accounted investees. Article content Mine development and pre-stripping capital expenditures: Article content Represents capital expenditures that are required for activities to open new areas underground and/or develop a mine or ore body to allow for future production mining and activities required to prepare and/or access the ore, i.e., removal of an overburden that allows access to the ore. Article content Cash used for dividends and share repurchases: Article content Calculated as dividends paid to Nutrien's shareholders plus repurchase of common shares as reflected in the unaudited condensed consolidated statements of cash flows. This measure is useful as it represents return of capital to shareholders. Article content Condensed Consolidated Financial Statements Article content Unaudited Condensed Consolidated Statements of Earnings Three Months Ended Six Months Ended June 30 June 30 ($ millions, except as otherwise noted) Note 2025 2024 2025 2024 Sales 2, 8 10,438 10,156 15,538 15,545 Freight, transportation and distribution 240 240 466 478 Cost of goods sold 7,023 7,004 10,577 10,618 Gross Margin 3,175 2,912 4,495 4,449 Selling expenses 951 1,008 1,708 1,802 General and administrative expenses 148 158 300 312 Provincial mining taxes 97 68 165 136 Share-based compensation expense 49 10 91 16 Impairment of assets ‐ 530 ‐ 530 Foreign exchange loss, net of related derivatives 5 22 285 29 328 Other expenses 3 126 9 194 62 Earnings Before Finance Costs and Income Taxes 1,782 844 2,008 1,263 Finance costs 155 162 334 341 Earnings Before Income Taxes 1,627 682 1,674 922 Income tax expense 4 398 290 426 365 Net Earnings 1,229 392 1,248 557 Attributable to Equity holders of Nutrien 1,221 385 1,232 543 Non-controlling interest 8 7 16 14 Net Earnings 1,229 392 1,248 557 Net Earnings Per Share Attributable to Equity Holders of Nutrien ('EPS') Basic 2.51 0.78 2.52 1.10 Diluted 2.50 0.78 2.52 1.10 Weighted average shares outstanding for basic EPS 487,396,000 494,646,000 488,391,000 494,608,000 Weighted average shares outstanding for diluted EPS 487,598,000 494,915,000 488,563,000 494,851,000 (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Comprehensive Income Three Months Ended Six Months Ended June 30 June 30 ($ millions, net of related income taxes) 2025 2024 2025 2024 Net Earnings 1,229 392 1,248 557 Other comprehensive income (loss) Item that will not be reclassified to net earnings: Net fair value gain (loss) on investments ‐ 36 (18) 18 Items that have been or may be subsequently reclassified to net earnings: Gain (loss) on currency translation of foreign operations 162 9 201 (57) Other 22 (1) 26 (19) Other Comprehensive Income (Loss) 184 44 209 (58) Comprehensive Income 1,413 436 1,457 499 Attributable to Equity holders of Nutrien 1,404 429 1,440 486 Non-controlling interest 9 7 17 13 Comprehensive Income 1,413 436 1,457 499 (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Cash Flows Three Months Ended Six Months Ended June 30 June 30 ($ millions) Note 2025 2024 2025 2024 Operating Activities Net earnings 1,229 392 1,248 557 Adjustments for: Depreciation and amortization 614 586 1,185 1,151 Share-based compensation expense 49 10 91 16 Impairment of assets ‐ 530 ‐ 530 (Recovery of) provision for deferred income tax (48) 23 32 51 Net distributed earnings of equity-accounted investees 90 88 85 38 Fair value adjustment to derivatives 5 2 187 8 186 Loss related to financial instruments in Argentina 3 ‐ 15 ‐ 34 Long-term income tax receivables and payables 54 (35) 16 8 Other long-term assets, liabilities and miscellaneous (39) 5 (40) 70 Cash from operations before working capital changes 1,951 1,801 2,625 2,641 Changes in non-cash operating working capital: Receivables (2,462) (2,555) (2,605) (2,812) Inventories and prepaid expenses and other current assets 2,894 3,222 1,620 1,892 Payables and accrued charges 155 (661) (184) (401) Cash Provided by Operating Activities 2,538 1,807 1,456 1,320 Investing Activities Capital expenditures 1 (424) (526) (724) (879) Business acquisitions, net of cash acquired ‐ (4) (11) (4) (Purchase of) proceeds from investments, held within three months, net (53) 3 (69) (15) Purchase of investments (91) (107) (93) (111) Proceeds from sale of investments 5 93 18 276 18 Net changes in non-cash working capital 10 5 (78) (85) Other (30) (3) (39) (32) Cash Used in Investing Activities (495) (614) (738) (1,108) Financing Activities (Repayment of) proceeds from debt, maturing within three months, net (578) (1,215) 334 (289) Proceeds from debt 6 ‐ 998 998 998 Repayment of debt 6 (531) (75) (535) (89) Repayment of principal portion of lease liabilities (106) (106) (216) (202) Dividends paid to Nutrien's shareholders 7 (268) (266) (533) (527) Repurchase of common shares, inclusive of related tax 7 (105) ‐ (253) ‐ Issuance of common shares 26 8 29 9 Other (10) (28) (31) (36) Cash Used in Financing Activities (1,572) (684) (207) (136) Effect of Exchange Rate Changes on Cash and Cash Equivalents 21 (1) 23 (13) Increase in Cash and Cash Equivalents 492 508 534 63 Cash and Cash Equivalents – Beginning of Period 895 496 853 941 Cash and Cash Equivalents – End of Period 1,387 1,004 1,387 1,004 Cash and cash equivalents is composed of: Cash 1,228 953 1,228 953 Short-term investments 159 51 159 51 1,387 1,004 1,387 1,004 Supplemental Cash Flows Information Interest paid 220 216 352 348 Income taxes (received) paid (19) 83 (12) 133 Total cash outflow for leases 139 153 289 284 1 Includes additions to property, plant and equipment, and intangible assets for the three months ended June 30, 2025 of $398 million and $26 million (2024 – $491 million and $35 million), respectively, and for the six months ended June 30, 2025 of $677 million and $47 million (2024 – $815 million and $64 million), respectively. (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Statements of Changes in Shareholders' Equity Accumulated Other Comprehensive (Loss) Income ('AOCI') ($ millions, inclusive of related tax, except as otherwise noted) Number of Common Shares Share Capital Contributed Surplus (Loss) Gain on Currency Translation of Foreign Operations Other Total AOCI Retained Earnings Equity Holders of Nutrien Non- Controlling Interest Total Equity Balance – December 31, 2023 494,551,730 13,838 83 (286) (10) (296) 11,531 25,156 45 25,201 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 543 543 14 557 Other comprehensive loss ‐ ‐ ‐ (56) (1) (57) ‐ (57) (1) (58) Dividends declared 1 ‐ ‐ ‐ ‐ ‐ ‐ (532) (532) ‐ (532) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (26) (26) Effect of share-based compensation including issuance of common shares 153,808 8 3 ‐ ‐ ‐ ‐ 11 ‐ 11 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 8 8 ‐ 8 ‐ 8 Other ‐ ‐ ‐ (2) ‐ (2) ‐ (2) ‐ (2) Balance – June 30, 2024 494,705,538 13,846 86 (344) (3) (347) 11,542 25,127 32 25,159 Balance – December 31, 2024 491,025,446 13,748 68 (537) 22 (515) 11,106 24,407 35 24,442 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 1,232 1,232 16 1,248 Other comprehensive income ‐ ‐ ‐ 200 8 208 ‐ 208 1 209 Shares repurchased for cancellation (Note 7) (4,741,786) (133) (10) ‐ ‐ ‐ (114) (257) ‐ (257) Dividends declared 1 ‐ ‐ ‐ ‐ ‐ ‐ (533) (533) ‐ (533) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (21) (21) Effect of share-based compensation including issuance of common shares 581,799 35 (3) ‐ ‐ ‐ ‐ 32 ‐ 32 Transfer of net gain on sale of investment ‐ ‐ ‐ ‐ (27) (27) 27 ‐ ‐ ‐ Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 1 1 ‐ 1 ‐ 1 Other ‐ ‐ ‐ (2) ‐ (2) 1 (1) ‐ (1) Balance – June 30, 2025 486,865,459 13,650 55 (339) 4 (335) 11,719 25,089 31 25,120 1 During the six months ended June 30, 2025, we declared dividends of $1.09 per share (2024 – $1.08 per share). (See Notes to the Condensed Consolidated Financial Statements) Condensed Consolidated Balance Sheets As at As at June 30 December 31, ($ millions) Note 2025 2024 2024 Assets Current assets Cash and cash equivalents 1,387 1,004 853 Receivables 8 8,086 8,123 5,390 Inventories 5,576 5,298 6,148 Prepaid expenses and other current assets 566 663 1,401 15,615 15,088 13,792 Non-current assets Property, plant and equipment 22,496 22,198 22,604 Goodwill 12,121 12,094 12,043 Intangible assets 1,745 1,912 1,819 Investments 5 407 703 698 Other assets 871 996 884 Total Assets 53,255 52,991 51,840 Liabilities Current liabilities Short-term debt 1,882 1,571 1,534 Current portion of long-term debt 6 538 1,012 1,037 Current portion of lease liabilities 363 364 356 Payables and accrued charges 8,991 9,024 9,118 11,774 11,971 12,045 Non-current liabilities Long-term debt 6 9,867 9,399 8,881 Lease liabilities 988 1,024 999 Deferred income tax liabilities 3,512 3,615 3,539 Pension and other post-retirement benefit liabilities 232 245 227 Asset retirement obligations and accrued environmental costs 1,536 1,406 1,543 Other non-current liabilities 226 172 164 Total Liabilities 28,135 27,832 27,398 Shareholders' Equity Share capital 7 13,650 13,846 13,748 Contributed surplus 55 86 68 Accumulated other comprehensive loss (335) (347) (515) Retained earnings 11,719 11,542 11,106 Equity holders of Nutrien 25,089 25,127 24,407 Non-controlling interest 31 32 35 Total Shareholders' Equity 25,120 25,159 24,442 Total Liabilities and Shareholders' Equity 53,255 52,991 51,840 (See Notes to the Condensed Consolidated Financial Statements) Notes to the Condensed Consolidated Financial Statements As at and for the Three and Six Months Ended June 30, 2025 Note 1 Basis of presentation Article content Nutrien Ltd. (collectively with its subsidiaries, 'Nutrien', 'we', 'us', 'our' or 'the Company') is a leading global provider of crop inputs and services. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of farmers. Article content These unaudited interim condensed consolidated financial statements ('interim financial statements') are based on International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board and have been prepared in accordance with IAS 34, 'Interim Financial Reporting'. The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2024 annual audited consolidated financial statements. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with our 2024 annual audited consolidated financial statements. These interim financial statements are presented in millions of US dollars, unless otherwise indicated, which is the functional currency of Nutrien and the majority of its subsidiaries. Article content Certain immaterial 2024 figures have been reclassified in the condensed consolidated statements of cash flows. Article content In management's opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects. Interim results are not necessarily indicative of the results expected for any other interim period or the fiscal year. These interim financial statements were authorized for issue by the Audit Committee of the Board of Directors on August 6, 2025. Article content Note 2 Article content Segment information Article content We have four reportable operating segments: Nutrien Ag Solutions ('Retail'), Potash, Nitrogen and Phosphate. Our downstream Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and provides agronomic application services and solutions, including the services offered through Nutrien Financial. Retail also manufactures and distributes proprietary products and provides services directly to farmers through a network of retail locations in North America, South America and Australia. Our upstream Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each segment produces and are supported by midstream activities, which include the global sales, freight, transportation and distribution of our products, which are reported within these segments, respectively. Potash freight, transportation and distribution costs only apply to our North American potash sales volumes. Sales reported under our Corporate and Others segment relates to our non-core business. EBITDA presented in the succeeding tables is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization. Article content Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in the spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete, while customer prepayments received are typically concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year. Article content Downstream Upstream and Midstream Corporate ($ millions) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Assets – as at June 30, 2025 23,241 14,110 11,651 2,501 2,683 (931) 53,255 Assets – as at December 31, 2024 22,149 13,792 11,603 2,453 2,571 (728) 51,840 Article content Three Months Ended June 30, 2025 Downstream Upstream and Midstream Corporate ($ millions) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Sales – third party 7,959 992 1,104 382 1 ‐ 10,438 – intersegment ‐ 93 309 67 ‐ (469) ‐ Sales – total 7,959 1,085 1,413 449 1 (469) 10,438 Freight, transportation and distribution ‐ 94 153 53 ‐ (60) 240 Net sales 7,959 991 1,260 396 1 (409) 10,198 Cost of goods sold 5,941 440 744 363 ‐ (465) 7,023 Gross margin 2,018 551 516 33 1 56 3,175 Selling expenses (recovery) 948 2 8 1 (2) (6) 951 General and administrative expenses 44 2 6 1 95 ‐ 148 Provincial mining taxes ‐ 97 ‐ ‐ ‐ ‐ 97 Share-based compensation expense ‐ ‐ ‐ ‐ 49 ‐ 49 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 22 ‐ 22 Other expenses 54 8 1 7 46 10 126 Earnings (loss) before finance costs and income taxes 972 442 501 24 (209) 52 1,782 Depreciation and amortization 177 188 166 68 15 ‐ 614 EBITDA 1,149 630 667 92 (194) 52 2,396 Restructuring costs ‐ ‐ ‐ ‐ 21 ‐ 21 Share-based compensation expense ‐ ‐ ‐ ‐ 49 ‐ 49 ARO/ERL related expenses for non-operating sites ‐ ‐ ‐ ‐ (2) ‐ (2) Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 22 ‐ 22 Adjusted EBITDA 1,149 630 667 92 (104) 52 2,486 Article content Three Months Ended June 30, 2024 Downstream Upstream and Midstream Corporate ($ millions) Retail Potash Nitrogen Phosphate and Others Eliminations Consolidated Sales – third party 8,074 750 948 384 ‐ ‐ 10,156 – intersegment ‐ 86 239 67 ‐ (392) ‐ Sales – total 8,074 836 1,187 451 ‐ (392) 10,156 Freight, transportation and distribution ‐ 80 159 57 ‐ (56) 240 Net sales 8,074 756 1,028 394 ‐ (336) 9,916 Cost of goods sold 6,045 359 650 361 ‐ (411) 7,004 Gross margin 2,029 397 378 33 ‐ 75 2,912 Selling expenses (recovery) 1,005 3 8 2 (3) (7) 1,008 General and administrative expenses 51 1 5 3 98 ‐ 158 Provincial mining taxes ‐ 68 ‐ ‐ ‐ ‐ 68 Share-based compensation expense ‐ ‐ ‐ ‐ 10 ‐ 10 Impairment of assets 335 ‐ 195 ‐ ‐ ‐ 530 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 285 ‐ 285 Other expenses (income) 41 4 (78) 8 26 8 9 Earnings (loss) before finance costs and income taxes 597 321 248 20 (416) 74 844 Depreciation and amortization 196 151 151 68 20 ‐ 586 EBITDA 793 472 399 88 (396) 74 1,430 Share-based compensation expense ‐ ‐ ‐ ‐ 10 ‐ 10 Impairment of assets 335 ‐ 195 ‐ ‐ ‐ 530 Loss related to financial instruments in Argentina ‐ ‐ ‐ ‐ 15 ‐ 15 ARO/ERL related income for non-operating sites ‐ ‐ ‐ ‐ (35) ‐ (35) Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 285 ‐ 285 Adjusted EBITDA 1,128 472 594 88 (121) 74 2,235 Article content Article content This Post contains more content. For the full press release please view source version on Article content Article content Article content Contacts Article content Jeff Holzman Senior Vice President, Investor Relations and FP&A (306) 933-8545 Investors@ Article content Article content


Globe and Mail
6 hours ago
- Globe and Mail
Why Lucid Group Stock Is Plummeting Today
Key Points Lucid reported a larger-than-expected loss on smaller-than-expected sales. The company's launch of its Gravity SUV is lagging behind expectations. 10 stocks we like better than Lucid Group › Shares of Lucid Group (NASDAQ: LCID) are falling on Wednesday. The luxury electric vehicle (EV) maker's stock had dropped 9.3% as of 3:04 p.m. ET. The fall comes as the S&P 500 and Nasdaq Composite were up by 0.7% and 1.1%, respectively. The stock is seeing a retreat after the company released its latest earnings report, underwhelming investors. Lucid's Gravity SUV sales aren't where they need to be The company's quarterly report revealed soft sales of its new Gravity SUV, a critical product for Lucid's turnaround efforts. The less-than-hoped-for SUV sales meant the company missed Wall Street's targets on its top and bottom lines. Lucid reported a loss of $0.24 per share on $259 million in sales when a loss of $0.21 per share on $280 million was expected. CEO Marc Winterhoff addressed his frustrations with the performance, telling Yahoo! Finance: "This is something I've said before, and I say it again, we're not where we want to be with the Gravity at this time of the year. We actually wanted to be ahead, making significant ... progress every day," He said that the company's SUV sales would ramp up "drastically" in the second half of the year and help improve the lackluster numbers. Challenges remain Expectations for Lucid's early sales of Gravity weren't out of reach by any means. The fact that the company wasn't able to hit them speaks to the difficulty of selling high-priced EVs in this market. Demand for EVs and luxury goods isn't particularly strong at the moment, and competition continues to heat up from Chinese operators. I have serious doubts Lucid can execute a turnaround. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $619,036!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,092,648!* Now, it's worth noting Stock Advisor's total average return is 1,026% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Globe and Mail
15 hours ago
- Globe and Mail
Intel's Making a Strategic Shift That's Great News for 1 Semiconductor Stock and Bad for Another Industry Giant
Key Points Intel's foundry is one of three chip manufacturers with leading-edge capabilities. Maintaining that leading edge requires major investments in equipment and capacity. If Intel bows out, it hurts one of its biggest suppliers but creates opportunities for a competitor. 10 stocks we like better than Intel › Intel 's (NASDAQ: INTC) new CEO isn't wasting any time in making the changes he thinks are necessary to turn things around at the one-time leader in semiconductor technology. Intel reported its second-quarter earnings results in late July, but Lip-Bu Tan's public memo, published at the same time as the release, drew most of the attention of investors. The CEO, who took over the position in March, laid out several strategic initiatives designed to turn around Intel's financial position. And considering Intel's importance in the semiconductor industry, they have the potential to reverberate across multiple companies. In fact, it's great news for one of the most dominant forces in the industry, while another major player could see even greater uncertainty in its future. Here's why. The most important announcement in Intel's news release While Intel beat revenue expectations for the second quarter, that was completely overshadowed by Tan's plans to make Intel "a more financially disciplined foundry." The foundry business (that's the business of actually making the physical chips) generated $4.4 billion in revenue last quarter, up 3% year over year. But the vast majority of that $4.4 billion in revenue stems from intersegment services (i.e., printing and packaging Intel's own chips for sale). Just a minuscule $22 million came from making chips for other semiconductor companies, and that's down from $39 million in the same quarter a year ago. Over the past decade, Intel's foundry capabilities have fallen behind those of its biggest competitor, Taiwan Semiconductor Manufacturing (NYSE: TSM). As a result, in the risks section of its 10-Q, the company says, "We have been unsuccessful to date in attracting significant customers to our external foundry business." That's why Tan says Intel needs a big change. "There are no more blank checks," he wrote regarding investing in foundry equipment. Instead, the focus is on ramping up Intel's newest node exclusively for in-house chips. A node shrinks the size of the transistors printed on the chip, enabling faster and more power-efficient chips by packing more transistors per square millimeter of silicon. Intel's newest node is called 18A, denoting a node size of 18 angstrom (1/10,000 of a millimeter). Note that the size has mostly become marketing for incremental node shrinkage. Then there's Intel's next-generation node, 14A, which will only move forward if Intel receives customer commitments first. That represents a huge shift in strategy for Intel as it could withdraw altogether from leading-edge semiconductor manufacturing in the not-too-distant future. That would cede the most profitable segment of the market to its competitors, and Intel would become one of their customers for its most advanced chips. That could have some serious repercussions throughout the industry. Bad news for one of Intel's suppliers Tan's decision to pull back on spending for the foundry means equipment manufacturers may be losing a big customer. One of the companies that would be hit hardest is ASML Holding (NASDAQ: ASML). It makes cutting-edge lithography machines required for the most advanced chipmaking processes. When ASML released its second-quarter earnings, management tempered growth expectations for 2026. "We continue to see increasing uncertainty driven by macro-economic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage," management wrote. With Intel's earnings release, we now have more details on why ASML isn't so confident in its future. Intel's 14A process is heavily reliant on the capabilities of ASML's tools. Its latest high numerical aperture (NA) extreme ultraviolet (EUV) lithography machine reportedly costs $400 million. Intel represented a significant buyer for ASML, but that's now a much more questionable source of revenue. Losing business from one of its biggest customers is certainly bad news for the stock. But there are no viable substitutes for ASML's machines. Losing Intel as a customer would sting, but other foundries may pick up the slack over time as demand for leading-edge chips doesn't appear to be slowing down anytime soon. At a price of around 25 times forward earnings, the market may be giving investors an opportunity to buy ASML stock at a fair value on the setback. The biggest winner from Intel's shift As Intel pulls back on capital spending for its foundry and focuses on finding a significant customer for its 14A node, one of its biggest competitors stands to expand its lead. Taiwan Semiconductor Manufacturing (NYSE: TSM), or TSMC, is planning to increase its capital expenditures (capex) by about 34% this year to reach $40 billion at the midpoint of its guidance. TSMC continues to invest with expectations for future growth. It's not waiting around to ensure demand before it spends, but management is still fairly disciplined when it comes to forecasting demand. It's seen strong early results from its N2 process, and it already has customers lined up. Its A16 process is progressing quickly as well. Management expects fast adoption from artificial intelligence (AI) customers for its A16 process due to the power-efficiency improvements it offers over the current nodes. With Intel pulling back on its foundry spending, TSMC's lead in both technology and capacity may grow even wider. And if Intel fails to attract a significant customer for its 14A process, it plans to discontinue investing in it entirely. That opens the door for TSMC to start printing Intel's chips next decade. Intel's management even said it would become dependent on TSMC for foundry services for nodes beyond 18A if it fails to advance 14A in its 10-Q. For now, Intel is ceding the market for leading-edge chips to TSMC. That should support very strong revenue growth for the Taiwanese company over the next few years, as it ramps up its 2-nanometer process and finalizes the 16-angstrom process. Considering the stock currently trades around 25 times earnings expectations, and many analysts could revise those expectations higher with the potential for it to add more of Intel's business, it looks like a great opportunity for investors right now. Should you invest $1,000 in Intel right now? Before you buy stock in Intel, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $631,505!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,103,313!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025