Latest news with #KenSeitz
Reuters
08-05-2025
- Business
- Reuters
Nutrien paints bullish fertilizer industry picture despite poor Q1 results
WINNIPEG, Manitoba, May 8 (Reuters) - Nutrien ( opens new tab offered a bullish outlook for the 2025 global fertilizer market in an analyst call on Thursday, despite issuing disappointing first-quarter results on Wednesday night. Strong global demand combined with supply constraints is driving up prices around the world, said Nutrien's president and CEO, Ken Seitz, who downplayed trade-war impacts. Weather-related delays in the United States and Australia slowed down fertilizer sales, and higher-than-expected natural gas prices pinched first-quarter earnings, but energy prices have declined and global sales have recovered. "Things are going strong," Seitz said. The Saskatoon, Canada-based firm posted an adjusted profit of 11 cents per share for the quarter ended March 31, compared with analysts' average estimates of 31 cents, according to data compiled by LSEG. Nutrien shares fell 2.8% to close at C$76.19 in Toronto on Thursday. Despite the earnings miss, Morningstar analyst Seth Goldstein did not find the company's explanation about weather hurting its fertilizer retail business far-fetched. "Look at the first half, not the first quarter," he said, referring to a likely upsurge in fertilizer use by U.S. farmers following a wet early spring. "In my mind the fundamentals are looking great for the fertilizer business." Nutrien expects the global potash business to be 71 million-75 million metric tons in 2025, with industry production capacity the limiting factor rather than demand. Overall fertilizer demand is growing in all markets and spot prices are rising, Seitz said. The increase in U.S. corn acres this year is positive for fertilizer consumption due to that crop's comparatively high nutrient needs. China and India are also expected to have strong demand. The present trade battles around the world, involving the U.S., Canada, China and many other countries, have "not impacted the outlook for our business," Seitz said. Nutrien's Canadian-made products cross the U.S. border without a tariff and its global supply chain has been navigating other tariff regimes. Chris Reynolds, Nutrien's executive vice president and chief commercial officer, said tariffs could affect how fertilizers and chemicals are sourced, but "generally the story is much more about demand." Nutrien executives said they see robust U.S. demand for fertilizers in the second half of 2025, but StoneX analyst Josh Linville sees low corn profitability as a threat, especially for phosphate. "I think there are going to be some struggles," Linville said. "I think we've got a really, really big danger that we're going to see demand slower and lower than what is typical." Farmers might put off fertilizer purchases and application if they face poor returns this fall, Linville said. Nutrien's Brazilian operations continue to be reorganized, with good signs in various areas of business, but agricultural chemicals earnings are "still seeing competition from generics and it's certainly stressing (chemicals) prices," said Reynolds in the call. Nutrien is focused on production improvements, small acquisitions, cost-cutting and noncore divestitures to improve financial performance, Seitz and other executives said.
National Post
07-05-2025
- Business
- National Post
Nutrien Reports First Quarter 2025 Results
Article content First quarter results supported by operational efficiency and cost savings initiatives. Maintaining 2025 full-year guidance ranges as operating performance and capital allocation priorities consistent with previous expectations. Article content Article content SASKATOON, Saskatchewan — Nutrien Ltd. (TSX and NYSE: NTR) announced today its first quarter 2025 results, with net earnings of $19 million ($0.02 diluted net earnings per share). First quarter 2025 adjusted EBITDA 1 was $0.9 billion and adjusted net earnings per share 1 was $0.11. Article content 'In the first quarter, Nutrien delivered strong potash sales volumes, increased ammonia operating rates and positioned our downstream retail network for a strong expected spring planting season in North America. Global fertilizer market fundamentals have strengthened supported by growing demand and tight supplies, providing a positive outlook for our business in 2025,' commented Ken Seitz, Nutrien's President and CEO. Article content 'Our world-class asset base and resilient business is built to generate free cash flow in a range of market conditions. We continue to focus on actions within our control and are taking a disciplined and intentional approach to capital allocation, prioritizing high-value investment opportunities, divesting non-core assets and returning cash to shareholders,' added Mr. Seitz. Article content Retail adjusted EBITDA decreased to $46 million in the first quarter of 2025 as weather-related delays impacted sales and margins in the US and Australia, which more than offset lower expenses and higher seed margins. Article content Potash adjusted EBITDA decreased to $446 million in the first quarter of 2025 due to lower net selling prices in North America. Sales volumes in the first quarter were similar to the record volumes delivered in the same period in 2024. Article content Nitrogen adjusted EBITDA decreased to $408 million in the first quarter of 2025 due to higher natural gas costs and lower equity earnings from Profertil S.A., partially offset by higher net selling prices. Our operations delivered a record ammonia operating rate 3 of 98 percent in the first quarter, achieved through less maintenance downtime and improved reliability at our sites. Article content Divested our remaining ownership position in Sinofert Holdings Limited for total proceeds of $223 million in the fourth quarter of 2024 and first quarter of 2025, providing incremental cash flow to allocate to high conviction capital allocation priorities that are core to our long-term strategy. Article content Repurchased 3.6 million shares in 2025 for a total of $188 million, as of May 6, 2025. Article content 2025 full-year guidance ranges have been maintained and reflect expectations for growth in upstream fertilizer volumes, higher downstream Retail earnings and lower capital expenditures. 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 three months ended March 31, 2025 to the results for the three months ended March 31, 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 May 7, 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 months ended March 31, 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. Article content We expect US crop input demand will be supported by acreage shifts in 2025, with corn planted area expected to increase to approximately 95 million acres and soybean plantings to decline to approximately 83 million acres. Fertilizer application rates in the second quarter have been strong as farmers focus on maximizing yield potential. Article content Brazilian soybean prices have been supported by strong international demand. Favorable prospective soybean margins and increased projected planted acreage are expected to support strong Brazilian crop input demand in the second half of 2025. Article content Low precipitation levels in the key cropping regions of Australia led to delayed crop input demand. Timely rains will be required to support winter crop planting and crop input demand. Article content Global potash demand has remained strong in 2025 and tight supply has supported potash price increases in all key spot markets. We have maintained our 2025 full-year potash shipment forecast of 71 to 75 million tonnes. The high end of the range captures the potential for strong underlying global consumption and the lower end captures the potential for reduced global supply availability. Article content Global urea supply and demand has tightened in 2025, driven by strong seasonal demand in North America and Europe, combined with Chinese urea export restrictions and unplanned outages in key producing regions. US urea and UAN prices have also been supported by low domestic inventories, trade flow shifts and constrained logistics. Article content Global ammonia prices have weakened in 2025 due to the expectations for new export capacity in the US and Russia and macroeconomic uncertainty that has impacted industrial demand. Article content Phosphate markets continue to be tight due to limited supply, including ongoing 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 growth in crop nutrient sales volumes, increased proprietary products gross margin and continued recovery in Brazil, partially offset by a return to historical average crop protection product margin percentages. Article content Potash sales volume guidance of 13.6 to 14.4 million tonnes is consistent with our historical share of global shipments. Article content Nitrogen sales volume guidance of 10.7 to 11.2 million tonnes assumes reliability improvements and higher operating rates at our North American plants compared to 2024. Article content Phosphate sales volume guidance of 2.35 to 2.55 million tonnes assumes lower production in the first half of 2025 and improved operating rates in the second half compared to the prior year. Article content Total capital expenditures of $2.0 to $2.1 billion are expected below the prior year. This total includes approximately $400 to $500 million in investing capital expenditures focused on proprietary products, network optimization and digital capabilities in Retail, low-cost brownfield expansions in Nitrogen and mine automation projects in Potash. Article content All guidance numbers, including those noted above, are outlined in the table below. Refer to page 58 of our 2024 Annual Report for anticipated fertilizer pricing and natural gas price sensitivities relating to adjusted EBITDA (consolidated) and adjusted net earnings per share. Article content 2025 Guidance Ranges 1 as of May 7, 2025 February 19, 2025 ($ 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 13.6 14.4 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 22.0 25.0 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 Net earnings and adjusted EBITDA decreased in the first quarter of 2025 compared to the same period in 2024, primarily due to lower Potash net selling prices in North America, higher Phosphate costs and lower Retail earnings. Article content Our discussion of segment results set out on the following pages is a comparison of the results for the three months ended March 31, 2025 to the results for the three months ended March 31, 2024, unless otherwise noted. Article content Retail adjusted EBITDA decreased in the first quarter of 2025 due to lower gross margin for crop protection products and crop nutrients, which more than offset lower expenses and higher seed margins. Article content Three Months Ended March 31 Sales Gross Margin ($ millions) 2025 2024 2025 2024 Crop nutrients 1,194 1,309 219 254 Crop protection products 972 1,114 191 234 Seed 532 485 70 59 Services and other 146 156 118 125 Merchandise 189 200 31 31 Nutrien Financial 70 66 70 66 Nutrien Financial elimination 1 (13) (22) (13) (22) Total 3,090 3,308 686 747 1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches. Article content Crop nutrients sales and gross margin decreased in the first quarter of 2025 due to lower sales volumes, which were impacted by strategic actions in South America and cold and wet weather that delayed field activity and sales of higher margin products in the US. Article content Crop protection products sales and gross margin were lower in the first quarter of 2025 mainly due to hot and dry conditions in Australia and weather-related delays in North America impacting the sales of higher margin proprietary products. Article content Supplemental Data Three Months Ended March 31 Gross Margin % of Product Line 1 ($ millions, except as otherwise noted) 2025 2024 2025 2024 Proprietary products Crop nutrients 69 70 31 28 Crop protection products 53 83 28 36 Seed 28 17 40 29 Merchandise 3 3 9 9 Total 153 173 22 23 1 Represents percentage of proprietary product margins over total product line gross margin. Article content (percentages) March 31, 2025 December 31, 2024 Financial performance measures 1, 2 Cash operating coverage ratio 64 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 Potash adjusted EBITDA decreased in the first quarter of 2025 due to lower net selling prices in North America. Article content Manufactured Product Three Months Ended March 31 ($ per tonne, except as otherwise noted) 2025 2024 Sales volumes (tonnes – thousands) North America 1,312 1,307 Offshore 2,090 2,106 Total sales volumes 3,402 3,413 Net selling price North America 243 310 Offshore 204 193 Average net selling price 219 238 Cost of goods sold 112 105 Gross margin 107 133 Depreciation and amortization 46 43 Gross margin excluding depreciation and amortization 1 153 176 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. Article content Sales volumes in the first quarter of 2025 were similar to the record first quarter volumes delivered in the same period in the prior year, supported by low channel inventories and strong potash affordability in North America and key offshore markets. Article content Net selling price per tonne decreased in the first quarter of 2025 primarily due to a decline in North American benchmark prices, partially offset by higher benchmark prices in Brazil and lower Offshore logistics costs. Article content Supplemental Data Three Months Ended March 31 2025 2024 Production volumes (tonnes – thousands) 3,289 3,565 Potash controllable cash cost of product manufactured per tonne 1 60 56 Canpotex sales by market (percentage of sales volumes) 2 Latin America 31 32 Other Asian markets 3 32 33 China 17 20 India 4 3 Other markets 16 12 Total 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 Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 % Change Net sales 954 911 5 Cost of goods sold 663 604 10 Gross margin 291 307 (5) Adjusted EBITDA 1 408 464 (12) 1 See Note 2 to the interim financial statements. Article content Nitrogen adjusted EBITDA decreased in the first quarter of 2025 primarily due to higher natural gas costs and lower equity earnings from Profertil S.A., partially offset by higher net selling prices. Our operations delivered a record ammonia operating rate of 98 percent in the first quarter, achieved through less maintenance downtime and improved reliability at our sites. Article content Manufactured Product Three Months Ended March 31 ($ per tonne, except as otherwise noted) 2025 2024 Sales volumes (tonnes – thousands) Ammonia 496 517 Urea and ESN ® 795 775 Solutions, nitrates and sulfates 1,178 1,215 Total sales volumes 2,469 2,507 Net selling price Ammonia 418 403 Urea and ESN ® 438 432 Solutions, nitrates and sulfates 236 226 Average net selling price 337 326 Cost of goods sold 224 207 Gross margin 113 119 Depreciation and amortization 58 54 Gross margin excluding depreciation and amortization 1 171 173 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. Article content Sales volumes decreased in the first quarter of 2025 primarily due to lower availability of nitrogen solutions products and the timing of demand for ammonia. Article content Net selling price per tonne was higher in the first quarter of 2025 for all major nitrogen products due to stronger benchmark prices. Article content Supplemental Data Three Months Ended March 31 2025 2024 Sales volumes (tonnes – thousands) Fertilizer 1,389 1,423 Industrial and feed 1,080 1,084 Production volumes (tonnes – thousands) Ammonia production – total 1 1,543 1,452 Ammonia production – adjusted 1, 2 1,076 1,018 Ammonia operating rate (%) 2 98 92 Natural gas costs (dollars per MMBtu) Overall natural gas cost excluding realized derivative impact 3.91 3.16 Realized derivative impact 3 ‐ 0.04 Overall natural gas cost 3.91 3.20 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 lower in the first quarter of 2025 due to the impact of lower production volumes and higher input costs, including sulfur. Article content Manufactured Product Three Months Ended March 31 ($ per tonne, except as otherwise noted) 2025 2024 Sales volumes (tonnes – thousands) Fertilizer 332 447 Industrial and feed 168 173 Total sales volumes 500 620 Net selling price Fertilizer 656 627 Industrial and feed 817 848 Average net selling price 710 689 Cost of goods sold 700 580 Gross margin 10 109 Depreciation and amortization 144 113 Gross margin excluding depreciation and amortization 1 154 222 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. Article content Sales volumes were lower in the first quarter of 2025 primarily due to planned and unplanned plant outages that impacted production volumes. Article content Net selling price per tonne increased in the first quarter of 2025 primarily due to strong phosphate fertilizer fundamentals and optimization of product mix, partially offset by lower industrial and feed net selling prices. Article content Corporate and Others and Eliminations Article content Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 % Change Corporate and Others Gross margin 1 10 ‐ n/m Selling expenses (3) (2) 50 General and administrative expenses 98 89 10 Share-based compensation expense 42 6 600 Foreign exchange loss, net of related derivatives 7 43 (84) Other expenses 18 54 (67) Adjusted EBITDA 1 (81) (101) (20) Eliminations Gross margin (30) (37) (19) Adjusted EBITDA 1 (28) (36) (22) 1 See Note 2 to the interim financial statements. Article content Share-based compensation expense was higher in the first quarter 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 first quarter of 2025 due to a lower foreign exchange loss from our South America operations. Article content Other expenses were lower in the first quarter of 2025 mainly due to a lower loss related to financial instruments in Argentina. See Note 3 to the interim financial statements. Article content Income tax expense was lower in the first quarter of 2025 mainly due to lower earnings. The actual effective tax rate including discrete items increased due to a change in proportion of earnings (loss) between tax jurisdictions. Article content Other comprehensive income in the first quarter of 2025 was mainly due to the appreciation of the Brazilian and Australian currencies, relative to the US dollar, compared to a loss for the same period in 2024 due to the depreciation of Australian, Canadian and Brazilian currencies relative to the US dollar. Article content Liquidity and Capital Resources Article content Sources and uses of liquidity Article content 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 used in operating activities Cash used in operating activities in the first quarter of 2025 was higher compared to the same period in 2024 primarily due to increased payments to our suppliers to take advantage of early payment discounts and higher input costs such as natural gas and sulfur costs. Cash used in investing activities Cash used in investing activities was lower in the first quarter of 2025 compared to the same period in 2024. We received proceeds from the disposal of our investment in Sinofert Holdings Limited ('Sinofert') that reduced our cash used in investing activities. We also had lower capital expenditures for the first quarter of 2025. Cash provided by financing activities Cash provided by financing activities increased in the first quarter of 2025 compared to the same period in 2024 due to proceeds from the issuance of $1.0 billion of senior notes in March 2025. Cash used for dividends and share repurchases Cash used for dividends and share repurchases was higher in the first quarter of 2025 as we repurchased shares in the first quarter of 2025 with no similar share repurchases in the same period in 2024. Article content As at ($ millions, except as otherwise noted) March 31, 2025 December 31, 2024 $ Change % Change Assets Cash and cash equivalents 895 853 42 5 Receivables 5,612 5,390 222 4 Inventories 7,992 6,148 1,844 30 Prepaid expenses and other current assets 863 1,401 (538) (38) Property, plant and equipment 22,488 22,604 (116) (1) Investments 495 698 (203) (29) Liabilities and Shareholders' Equity Short-term debt 2,437 1,534 903 59 Payables and accrued charges 8,752 9,118 (366) (4) Long-term debt, including current portion 10,908 9,918 990 10 Retained earnings 10,809 11,106 (297) (3) 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 due to higher Potash receivables from higher net selling prices compared to the fourth quarter of 2024. Article content Inventories increased due to the seasonality of our Retail segment and the larger portion of its operations in North America. Our inventory levels build up in the last quarter of the year and peak in the first quarter of the year, while inventories are drawn on in the succeeding quarters. Article content Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventories in preparation for the spring planting and applications 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 disposal of our remaining investment in Sinofert with a fair value of $211 million as of December 31, 2024. Article content Short-term debt increased due to higher drawdowns on our credit facilities based on our working capital requirements driven by the seasonality of our business. Article content Payables and accrued charges decreased due to the settlement in the first quarter of 2025 of our supplier financing arrangement obligations that were entered into in the fourth quarter of 2024. This was partially offset by higher customer prepayments received in the first quarter of the year in anticipation of crop input price increases and additional inventory purchases made in the first quarter of 2025. Article content Long-term debt, including current portion, increased due to the issuance of $1.0 billion of senior notes in the first quarter of 2025. Article content Principal debt instruments Article content 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 three months ended March 31, 2025. Article content Commercial paper, credit facilities and other debt Article content We have a total facility limit of approximately $8,050 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 March 31, 2025, we had utilized $2,488 million of our total facility limit, which includes $1,971 million of commercial paper outstanding. Article content As at March 31, 2025, $235 million in letters of credit were outstanding and committed, with $271 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. On March 13, 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. Subsequent to the three months ended March 31, 2025, we repaid our outstanding $500 million 3.000 percent senior notes that matured on April 1, 2025. Article content Quarterly Results Article content 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. We also recorded a foreign exchange loss of $220 million on foreign currency derivatives in Brazil for the second quarter of 2024. Q2 2023 $698 million non-cash impairment of assets comprised of a $233 million non-cash impairment of our Phosphate White Springs property, plant and equipment due to a decrease in our forecasted phosphate margins and a $465 million non-cash impairment of our Retail – South America assets primarily related to goodwill mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates, which lowered our forecasted earnings. 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 months ended March 31, 2025. Article content Controls and Procedures Article content 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 March 31, 2025, that has materially affected, or is reasonably likely to materially affect, our ICFR. Article content Forward-Looking Statements Article content 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 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; our operating segment market outlooks and our expectations for market conditions and fundamentals, and the anticipated supply and demand for our products and services, 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; the expected impact of our margin improvement plan in South America; 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 Article content 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 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 Nutrien will host a Conference Call on Thursday, May 8, 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 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: Net earnings (loss). Article content Definition: 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: 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: 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 March 31 ($ millions) 2025 2024 Net earnings 19 165 Finance costs 179 179 Income tax expense 28 75 Depreciation and amortization 571 565 EBITDA 1 797 984 Adjustments: Share-based compensation expense 42 6 Foreign exchange loss, net of related derivatives 7 43 ARO/ERL related expenses for non-operating sites 5 3 Loss related to financial instruments in Argentina ‐ 19 Restructuring costs 1 ‐ Adjusted EBITDA 852 1,055 1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization. Article content Most directly comparable IFRS financial measure: Net earnings (loss) and diluted net earnings (loss) per share. Article content Definition: 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 Three Months Ended March 31, 2024 Per Increases Diluted ($ millions, except as otherwise noted) (Decreases) Post-Tax Share Net earnings attributable to equity holders of Nutrien 158 0.32 Adjustments: Share-based compensation expense 6 5 0.01 Foreign exchange loss, net of related derivatives 43 46 0.09 ARO/ERL related expenses for non-operating sites 3 2 ‐ Loss related to financial instruments in Argentina 19 19 0.04 Sub-total adjustments 71 72 0.14 Adjusted net earnings 230 0.46 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 Definition: 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: 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 Definition: 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: 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 March 31 ($ millions, except as otherwise noted) 2025 2024 Total COGS – Potash 380 358 Change in inventory 7 28 Other adjustments 1 (13) (3) COPM 374 383 Depreciation and amortization in COPM (145) (153) Royalties in COPM (19) (19) Natural gas costs and carbon taxes in COPM (12) (12) Controllable cash COPM 198 199 Production tonnes (tonnes – thousands) 3,289 3,565 Potash controllable cash COPM per tonne 60 56 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: 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: Used by credit rating agencies and others to evaluate the financial performance of Nutrien Financial. Article content Rolling four quarters ended March 31, 2025 ($ millions, except as otherwise noted) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Total/Average Nutrien Financial revenue 133 85 77 70 Deemed interest expense 1 (50) (52) (45) (29) Net interest 83 33 32 41 189 Average Nutrien Financial net receivables 4,560 4,318 2,877 2,569 3,581 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: 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: 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 March 31, 2025 ($ millions, except as otherwise noted) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Total Selling expenses 1,005 815 808 755 3,383 General and administrative expenses 51 51 37 44 183 Other expenses 41 32 (8) 25 90 Operating expenses 1,097 898 837 824 3,656 Depreciation and amortization in operating expenses (193) (182) (186) (179) (740) Operating expenses excluding depreciation and amortization 904 716 651 645 2,916 Gross margin 2,029 859 986 686 4,560 Depreciation and amortization in cost of goods sold 3 8 5 5 21 Gross margin excluding depreciation and amortization 2,032 867 991 691 4,581 Cash operating coverage ratio (%) 64 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 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 Capital to Sales Excluding Nutrien Financial Article content Definition: 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: 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 March 31, 2025 ($ millions, except as otherwise noted) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Average/Total Current assets 11,181 10,559 10,360 11,510 Current liabilities (8,002) (5,263) (8,028) (7,561) Working capital 3,179 5,296 2,332 3,949 3,689 Working capital from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted working capital 3,179 5,296 2,332 3,949 3,689 Nutrien Financial working capital (4,560) (4,318) (2,877) (2,569) Adjusted working capital excluding Nutrien Financial (1,381) 978 (545) 1,380 108 Sales 8,074 3,271 3,179 3,090 Sales from certain recent acquisitions ‐ ‐ ‐ ‐ Adjusted sales 8,074 3,271 3,179 3,090 17,614 Nutrien Financial revenue (133) (85) (77) (70) Adjusted sales excluding Nutrien Financial 7,941 3,186 3,102 3,020 17,249 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 March 31, 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 1,290 88 251 211 1,840 (63) 1,777 2,178 International 672 40 54 38 804 (12) 792 699 Nutrien Financial receivables 1,962 128 305 249 2,644 (75) 2,569 2,877 1 Bad debt expense on the above receivables for the three months ended March 31, 2025 were $18 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: 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: Represents capital expenditures related to significant expansions of current operations or to create cost savings (synergies). Investing capital expenditures excludes capital outlays for business acquisitions and equity-accounted investees. Article content Mine development and pre-stripping capital expenditures: 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: 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 Article content Three Months Ended March 31 ($ millions, except as otherwise noted) Note 2025 2024 Sales 2, 8 5,100 5,389 Freight, transportation and distribution 226 238 Cost of goods sold 3,554 3,614 Gross Margin 1,320 1,537 Selling expenses 757 794 General and administrative expenses 152 154 Provincial mining taxes 68 68 Share-based compensation expense 42 6 Foreign exchange loss, net of related derivatives 7 43 Other expenses 3 68 53 Earnings Before Finance Costs and Income Taxes 226 419 Finance costs 179 179 Earnings Before Income Taxes 47 240 Income tax expense 4 28 75 Net Earnings 19 165 Attributable to Equity holders of Nutrien 11 158 Non-controlling interest 8 7 Net Earnings 19 165 Net Earnings Per Share Attributable to Equity Holders of Nutrien ('EPS') Basic 0.02 0.32 Diluted 0.02 0.32 Weighted average shares outstanding for basic EPS 489,397,000 494,570,000 Weighted average shares outstanding for diluted EPS 489,540,000 494,792,000 (See Notes to the Condensed Consolidated Financial Statements) Article content Condensed Consolidated Statements of Comprehensive Income Article content Three Months Ended March 31 ($ millions, net of related income taxes) 2025 2024 Net Earnings 19 165 Other comprehensive income (loss) Items that will not be reclassified to net earnings: Net fair value loss on investments (18) (18) Items that have been or may be subsequently reclassified to net earnings: Gain (loss) on currency translation of foreign operations 39 (66) Other 4 (18) Other Comprehensive Income (Loss) 25 (102) Comprehensive Income 44 63 Attributable to Equity holders of Nutrien 36 57 Non-controlling interest 8 6 Comprehensive Income 44 63 Article content Condensed Consolidated Statements of Cash Flows Article content Three Months Ended March 31 ($ millions) Note 2025 2024 Operating Activities Net earnings 19 165 Adjustments for: Depreciation and amortization 571 565 Share-based compensation expense 42 6 Provision for deferred income tax 80 28 Net undistributed earnings of equity-accounted investees (5) (50) Loss related to financial instruments in Argentina 3 ‐ 19 Long-term income tax receivables and payables (38) 43 Other long-term assets, liabilities and miscellaneous 5 64 Cash from operations before working capital changes 674 840 Changes in non-cash operating working capital: Receivables (143) (257) Inventories and prepaid expenses and other current assets (1,274) (1,330) Payables and accrued charges (339) 260 Cash Used in Operating Activities (1,082) (487) Investing Activities Capital expenditures 1 (300) (353) Business acquisitions, net of cash acquired (11) ‐ Purchase of investments, held within three months, net (16) (18) Purchase of investments (2) (4) Proceeds from sale of investments 5 183 ‐ Net changes in non-cash working capital (88) (90) Other (9) (29) Cash Used in Investing Activities (243) (494) Financing Activities Proceeds from debt, maturing within three months, net 912 926 Proceeds from debt 6 998 ‐ Repayment of debt 6 (4) (14) Repayment of principal portion of lease liabilities (110) (96) Dividends paid to Nutrien's shareholders 7 (265) (261) Repurchase of common shares, inclusive of related tax 7 (148) ‐ Issuance of common shares 3 1 Other (21) (8) Cash Provided by Financing Activities 1,365 548 Effect of Exchange Rate Changes on Cash and Cash Equivalents 2 (12) Increase (Decrease) in Cash and Cash Equivalents 42 (445) Cash and Cash Equivalents – Beginning of Period 853 941 Cash and Cash Equivalents – End of Period 895 496 Cash and cash equivalents is composed of: Cash 828 422 Short-term investments 67 74 895 496 Supplemental Cash Flows Information Interest paid 132 132 Income taxes paid 7 50 Total cash outflow for leases 150 131 1 Includes additions to property, plant and equipment, and intangible assets for the three months ended March 31, 2025 of $279 million and $21 million (2024 – $324 million and $29 million). (See Notes to the Condensed Consolidated Financial Statements) Article content Condensed Consolidated Statements of Changes in Shareholders' Equity Article content Accumulated Other Comprehensive (Loss) Income ('AOCI') ($ 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 ‐ ‐ ‐ ‐ ‐ ‐ 158 158 7 165 Other comprehensive loss ‐ ‐ ‐ (65) (36) (101) ‐ (101) (1) (102) Dividends declared 1 ‐ ‐ ‐ ‐ ‐ ‐ (266) (266) ‐ (266) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (8) (8) Effect of share-based compensation including issuance of common shares 37,199 2 2 ‐ ‐ ‐ ‐ 4 ‐ 4 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 2 2 ‐ 2 ‐ 2 Balance – March 31, 2024 494,588,929 13,840 85 (351) (44) (395) 11,423 24,953 43 24,996 Balance – December 31, 2024 491,025,446 13,748 68 (537) 22 (515) 11,106 24,407 35 24,442 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 11 11 8 19 Other comprehensive income (loss) ‐ ‐ ‐ 39 (14) 25 ‐ 25 ‐ 25 Shares repurchased for cancellation (Note 7) (2,862,814) (80) ‐ ‐ ‐ ‐ (69) (149) ‐ (149) Dividends declared 1 ‐ ‐ ‐ ‐ ‐ ‐ (266) (266) ‐ (266) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (11) (11) Effect of share-based compensation including issuance of common shares 59,751 3 1 ‐ ‐ ‐ ‐ 4 ‐ 4 Transfer of net gain on sale of investment ‐ ‐ ‐ ‐ (27) (27) 27 ‐ ‐ ‐ Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 6 6 ‐ 6 ‐ 6 Balance – March 31, 2025 488,222,383 13,671 69 (498) (13) (511) 10,809 24,038 32 24,070 1 During the three months ended March 31, 2025, we declared dividends of $0.545 per share (2024 – $0.54 per share). (See Notes to the Condensed Consolidated Financial Statements) Article content Condensed Consolidated Balance Sheets Article content As at As at March 31 December 31, ($ millions) Note 2025 2024 2024 Assets Current assets Cash and cash equivalents 895 496 853 Receivables 8 5,612 5,561 5,390 Inventories 7,992 8,188 6,148 Prepaid expenses and other current assets 863 905 1,401 15,362 15,150 13,792 Non-current assets Property, plant and equipment 22,488 22,410 22,604 Goodwill 12,058 12,083 12,043 Intangible assets 1,791 2,165 1,819 Investments 5 495 768 698 Other assets 875 999 884 Total Assets 53,069 53,575 51,840 Liabilities Current liabilities Short-term debt 2,437 2,835 1,534 Current portion of long-term debt 6 1,038 513 1,037 Current portion of lease liabilities 364 346 356 Payables and accrued charges 8,752 9,431 9,118 12,591 13,125 12,045 Non-current liabilities Long-term debt 6 9,870 8,910 8,881 Lease liabilities 998 1,034 999 Deferred income tax liabilities 3,591 3,601 3,539 Pension and other post-retirement benefit liabilities 225 246 227 Asset retirement obligations and accrued environmental costs 1,528 1,485 1,543 Other non-current liabilities 196 178 164 Total Liabilities 28,999 28,579 27,398 Shareholders' Equity Share capital 7 13,671 13,840 13,748 Contributed surplus 69 85 68 Accumulated other comprehensive loss (511) (395) (515) Retained earnings 10,809 11,423 11,106 Equity holders of Nutrien 24,038 24,953 24,407 Non-controlling interest 32 43 35 Total Shareholders' Equity 24,070 24,996 24,442 Total Liabilities and Shareholders' Equity 53,069 53,575 51,840 (See Notes to the Condensed Consolidated Financial Statements) Article content Notes to the Condensed Consolidated Financial Statements As at and for the Three Months Ended March 31, 2025 Article content 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 earnings, condensed consolidated statements of cash flows and Note 3 Other expenses (income). 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 for issue on May 7, 2025. Article content Note 2 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 March 31, 2025 23,253 13,890 11,581 2,443 2,442 (540) 53,069 Assets – as at December 31, 2024 22,149 13,792 11,603 2,453 2,571 (728) 51,840 Article content Three Months Ended March 31, 2025 Downstream Upstream and Midstream Corporate ($ millions) Retail Potash Nitrogen Phosphate and others Eliminations Consolidated Sales – third party 3,090 766 892 338 14 ‐ 5,100 – intersegment ‐ 95 182 67 ‐ (344) ‐ Sales – total 3,090 861 1,074 405 14 (344) 5,100 Freight, transportation and distribution ‐ 117 120 45 ‐ (56) 226 Net sales 3,090 744 954 360 14 (288) 4,874 Cost of goods sold 2,404 380 663 361 4 (258) 3,554 Gross margin 686 364 291 (1) 10 (30) 1,320 Selling expenses (recovery) 755 3 7 2 (3) (7) 757 General and administrative expenses 44 2 6 2 98 ‐ 152 Provincial mining taxes ‐ 68 ‐ ‐ ‐ ‐ 68 Share-based compensation expense ‐ ‐ ‐ ‐ 42 ‐ 42 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 7 ‐ 7 Other expenses (income) 25 2 12 6 18 5 68 Earnings (loss) before finance costs and income taxes (138) 289 266 (11) (152) (28) 226 Depreciation and amortization 184 157 142 72 16 ‐ 571 EBITDA 46 446 408 61 (136) (28) 797 Restructuring costs ‐ ‐ ‐ ‐ 1 ‐ 1 Share-based compensation expense ‐ ‐ ‐ ‐ 42 ‐ 42 ARO/ERL related expenses for non-operating sites ‐ ‐ ‐ ‐ 5 ‐ 5 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 7 ‐ 7 Adjusted EBITDA 46 446 408 61 (81) (28) 852 Article content Three Months Ended March 31, 2024 Downstream Upstream and Midstream Corporate ($ millions) Retail Potash Nitrogen Phosphate and others Eliminations Consolidated Sales – third party 3,308 821 846 414 ‐ ‐ 5,389 – intersegment ‐ 106 182 85 ‐ (373) ‐ Sales – total 3,308 927 1,028 499 ‐ (373) 5,389 Freight, transportation and distribution ‐ 114 117 62 ‐ (55) 238 Net sales 3,308 813 911 437 ‐ (318) 5,151 Cost of goods sold 2,561 358 604 372 ‐ (281) 3,614 Gross margin 747 455 307 65 ‐ (37) 1,537 Selling expenses (recovery) 790 3 7 2 (2) (6) 794 General and administrative expenses 52 4 5 4 89 ‐ 154 Provincial mining taxes ‐ 68 ‐ ‐ ‐ ‐ 68 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 43 ‐ 43 Other expenses (income) 22 (3) (33) 8 54 5 53 Earnings (loss) before finance costs and income taxes (117) 383 328 51 (190) (36) 419 Depreciation and amortization 194 147 136 70 18 ‐ 565 EBITDA 77 530 464 121 (172) (36) 984 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 Loss related to financial instruments in Argentina ‐ ‐ ‐ ‐ 19 ‐ 19 ARO/ERL related expenses for non-operating sites ‐ ‐ ‐ ‐ 3 ‐ 3 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 43 ‐ 43 Adjusted EBITDA 77 530 464 121 (101) (36) 1,055 Article content Three Months Ended March 31 ($ millions) 2025 2024 Retail sales by product line Crop nutrients 1,194 1,309 Crop protection products 972 1,114 Seed 532 485 Services and other 146 156 Merchandise 189 200 Nutrien Financial 70 66 Nutrien Financial elimination 1 (13) (22) 3,090 3,308 Potash sales by geography Manufactured product North America 434 520 Offshore 2 426 407 Other potash and purchased products 1 ‐ 861 927 Nitrogen sales by product line Manufactured product Ammonia 240 244 Urea and ESN ® 382 366 Solutions, nitrates and sulfates 321 319 Other nitrogen and purchased products 131 99 1,074 1,028 Phosphate sales by product line Manufactured product Fertilizer 249 321 Industrial and feed 151 167 Other phosphate and purchased products 5 11 405 499 1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches. 2 Relates to Canpotex Limited ('Canpotex') (see Note 8) and includes provisional pricing adjustments for the three months ended March 31, 2025 of $31 million (2024 – $12 million). Article content Note 3 Other expenses (income) Article content Three Months Ended March 31 ($ millions) 2025 2024 Restructuring costs 1 ‐ Earnings of equity-accounted investees (5) (51) Bad debt expense 19 13 Project feasibility costs 15 15 Customer prepayment costs 18 16 Legal expenses 5 8 Loss on natural gas derivatives not designated as hedge ‐ 3 Loss related to financial instruments in Argentina ‐ 19 ARO/ERL related expenses for non-operating sites ¹ 5 3 Other expenses 10 27 68 53 1 ARO/ERL refers to asset retirement obligations and accrued environmental costs. Article content Note 4 Income taxes Article content A separate estimated average annual effective income tax rate was determined and applied individually to the interim period pre-tax earnings for each taxing jurisdiction. Article content Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 Actual effective tax rate on earnings (%) 49 30 Actual effective tax rate including discrete items (%) 60 31 Discrete tax adjustments that impacted the tax rate 1 5 3 1 Discrete tax adjustments arise from specific, significant or unusual events that are recognized in the period in which the event occurs, rather than being allocated across the year through the annual effective tax rate. Article content Note 5 Financial instruments Article content During the three months ended March 31, 2025, we fully divested our remaining equity ownership interest in Sinofert Holdings Limited, which had been classified as a financial asset measured at fair value through other comprehensive income. Total proceeds from the sale were $193 million of which $28 million was collected subsequent to March 31, 2025. Total proceeds from the sale reflected the fair value of the investment at the date of derecognition. A loss of $18 million related to the investment during the period was recognized in other comprehensive income. Upon derecognition, the cumulative unrealized gain previously recognized in other comprehensive income of $27 million was reclassified to retained earnings. Article content Our financial instruments carrying amount are a reasonable approximation of their fair values, except for our long-term debt, including current portion, that has a carrying value of $10,908 million and fair value of $10,272 million as at March 31, 2025. There were no transfers between levels for financial instruments measured at fair value on a recurring basis. Article content Note 6 Debt Article content ($ millions, except as otherwise noted) Rate of interest (%) Maturity Amount Senior notes issued in 2025 4.500 March 12, 2027 400 Senior notes issued in 2025 5.250 March 12, 2032 600 1,000 Article content The senior notes issued in the three months ended March 31, 2025, are unsecured, rank equally with our existing unsecured debt, and have no sinking fund requirements prior to maturity. Each series of outstanding senior notes is redeemable and has various provisions for redemption prior to maturity, at our option, at specified prices. Article content Subsequent to the three months ended March 31, 2025, we repaid our outstanding $500 million 3.000 percent senior notes that matured April 1, 2025. Article content Note 7 Share capital Article content Share repurchase programs Article content The following table summarizes our share repurchase activities during the periods indicated below: Article content Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 Number of common shares repurchased for cancellation 2,862,814 ‐ Average price per share (US dollars) 51.08 ‐ Total cost, inclusive of tax 149 ‐ Article content Subsequent to March 31, 2025, as of May 6, 2025, an additional 749,958 common shares were repurchased for cancellation at a cost of $39 million and an average price per share of $52.15. Article content Dividends declared Article content We declared a dividend per share of $0.545 (2024 – $0.54) during the three months ended March 31, 2025, payable on April 10, 2025 to shareholders of record on March 31, 2025. Article content Note 8 Related party transactions Article content We sell potash outside Canada and the US exclusively through Canpotex. Our total revenue is recognized, at the time product is loaded for shipping, at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. The receivable outstanding from Canpotex arose from sale transactions described above. It is unsecured and bears no interest. Any credit losses held against this receivable are expected to be negligible. Canpotex sells potash to buyers, including Nutrien, in export markets pursuant to term and spot contracts at agreed-upon prices. Purchases from Canpotex for the three months ended March 31, 2025 were $57 million (2024 – $31 million). Article content As at As at ($ millions) March 31, 2025 December 31, 2024 Receivables from Canpotex 232 122 Payables to Canpotex 77 66 Article content Article content Article content Article content View source version on Article content Article content Contacts Article content Jeff Holzman Vice President, Investor Relations (306) 933-8545 Investors@ Article content Article content Article content
Business Wire
07-05-2025
- Business
- Business Wire
Nutrien Reports First Quarter 2025 Results
SASKATOON, Saskatchewan--(BUSINESS WIRE)--Nutrien Ltd. (TSX and NYSE: NTR) announced today its first quarter 2025 results, with net earnings of $19 million ($0.02 diluted net earnings per share). First quarter 2025 adjusted EBITDA 1 was $0.9 billion and adjusted net earnings per share 1 was $0.11. 'In the first quarter, Nutrien delivered strong potash sales volumes, increased ammonia operating rates and positioned our downstream retail network for a strong expected spring planting season in North America. Global fertilizer market fundamentals have strengthened supported by growing demand and tight supplies, providing a positive outlook for our business in 2025,' commented Ken Seitz, Nutrien's President and CEO. 'Our world-class asset base and resilient business is built to generate free cash flow in a range of market conditions. We continue to focus on actions within our control and are taking a disciplined and intentional approach to capital allocation, prioritizing high-value investment opportunities, divesting non-core assets and returning cash to shareholders,' added Mr. Seitz. Highlights 2: Retail adjusted EBITDA decreased to $46 million in the first quarter of 2025 as weather-related delays impacted sales and margins in the US and Australia, which more than offset lower expenses and higher seed margins. Potash adjusted EBITDA decreased to $446 million in the first quarter of 2025 due to lower net selling prices in North America. Sales volumes in the first quarter were similar to the record volumes delivered in the same period in 2024. Nitrogen adjusted EBITDA decreased to $408 million in the first quarter of 2025 due to higher natural gas costs and lower equity earnings from Profertil S.A., partially offset by higher net selling prices. Our operations delivered a record ammonia operating rate 3 of 98 percent in the first quarter, achieved through less maintenance downtime and improved reliability at our sites. Divested our remaining ownership position in Sinofert Holdings Limited for total proceeds of $223 million in the fourth quarter of 2024 and first quarter of 2025, providing incremental cash flow to allocate to high conviction capital allocation priorities that are core to our long-term strategy. Repurchased 3.6 million shares in 2025 for a total of $188 million, as of May 6, 2025. 2025 full-year guidance ranges have been maintained and reflect expectations for growth in upstream fertilizer volumes, higher downstream Retail earnings and lower capital expenditures. 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 three months ended March 31, 2025 to the results for the three months ended March 31, 2024, unless otherwise noted. 3. Excludes Trinidad and Joffre. Expand Management's Discussion and Analysis The following management's discussion and analysis ('MD&A') is the responsibility of management and is dated as of May 7, 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'). 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 months ended March 31, 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. Market Outlook and Guidance Agriculture and Retail Markets We expect US crop input demand will be supported by acreage shifts in 2025, with corn planted area expected to increase to approximately 95 million acres and soybean plantings to decline to approximately 83 million acres. Fertilizer application rates in the second quarter have been strong as farmers focus on maximizing yield potential. Brazilian soybean prices have been supported by strong international demand. Favorable prospective soybean margins and increased projected planted acreage are expected to support strong Brazilian crop input demand in the second half of 2025. Low precipitation levels in the key cropping regions of Australia led to delayed crop input demand. Timely rains will be required to support winter crop planting and crop input demand. Crop Nutrient Markets Global potash demand has remained strong in 2025 and tight supply has supported potash price increases in all key spot markets. We have maintained our 2025 full-year potash shipment forecast of 71 to 75 million tonnes. The high end of the range captures the potential for strong underlying global consumption and the lower end captures the potential for reduced global supply availability. Global urea supply and demand has tightened in 2025, driven by strong seasonal demand in North America and Europe, combined with Chinese urea export restrictions and unplanned outages in key producing regions. US urea and UAN prices have also been supported by low domestic inventories, trade flow shifts and constrained logistics. Global ammonia prices have weakened in 2025 due to the expectations for new export capacity in the US and Russia and macroeconomic uncertainty that has impacted industrial demand. Phosphate markets continue to be tight due to limited supply, including ongoing 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. Financial and Operational Guidance Retail adjusted EBITDA guidance of $1.65 to $1.85 billion assumes growth in crop nutrient sales volumes, increased proprietary products gross margin and continued recovery in Brazil, partially offset by a return to historical average crop protection product margin percentages. Potash sales volume guidance of 13.6 to 14.4 million tonnes is consistent with our historical share of global shipments. Nitrogen sales volume guidance of 10.7 to 11.2 million tonnes assumes reliability improvements and higher operating rates at our North American plants compared to 2024. Phosphate sales volume guidance of 2.35 to 2.55 million tonnes assumes lower production in the first half of 2025 and improved operating rates in the second half compared to the prior year. Total capital expenditures of $2.0 to $2.1 billion are expected below the prior year. This total includes approximately $400 to $500 million in investing capital expenditures focused on proprietary products, network optimization and digital capabilities in Retail, low-cost brownfield expansions in Nitrogen and mine automation projects in Potash. All guidance numbers, including those noted above, are outlined in the table below. Refer to page 58 of our 2024 Annual Report for anticipated fertilizer pricing and natural gas price sensitivities relating to adjusted EBITDA (consolidated) and adjusted net earnings per share. 2025 Guidance Ranges 1 as of May 7, 2025 February 19, 2025 ($ 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 13.6 14.4 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 22.0 25.0 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. Expand Consolidated Results Net earnings and adjusted EBITDA decreased in the first quarter of 2025 compared to the same period in 2024, primarily due to lower Potash net selling prices in North America, higher Phosphate costs and lower Retail earnings. Segment Results Our discussion of segment results set out on the following pages is a comparison of the results for the three months ended March 31, 2025 to the results for the three months ended March 31, 2024, unless otherwise noted. Nutrien Ag Solutions ('Retail') Retail adjusted EBITDA decreased in the first quarter of 2025 due to lower gross margin for crop protection products and crop nutrients, which more than offset lower expenses and higher seed margins. Crop nutrients sales and gross margin decreased in the first quarter of 2025 due to lower sales volumes, which were impacted by strategic actions in South America and cold and wet weather that delayed field activity and sales of higher margin products in the US. Crop protection products sales and gross margin were lower in the first quarter of 2025 mainly due to hot and dry conditions in Australia and weather-related delays in North America impacting the sales of higher margin proprietary products. Seed sales and gross margin increased in the first quarter of 2025 due to the shift from soybean seed to higher-value corn seed sales in North America. Gross margin for the first quarter was supported by higher proprietary products gross margin. Nutrien Financial sales and gross margin increased in the first quarter of 2025 due to higher financing rates offered. (percentages) March 31, 2025 December 31, 2024 Financial performance measures 1, 2 Cash operating coverage ratio 64 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. Expand Potash Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 % Change Net sales 744 813 (8) Cost of goods sold 380 358 6 Gross margin 364 455 (20) Adjusted EBITDA 1 446 530 (16) 1 See Note 2 to the interim financial statements. Expand Potash adjusted EBITDA decreased in the first quarter of 2025 due to lower net selling prices in North America. Sales volumes in the first quarter of 2025 were similar to the record first quarter volumes delivered in the same period in the prior year, supported by low channel inventories and strong potash affordability in North America and key offshore markets. Net selling price per tonne decreased in the first quarter of 2025 primarily due to a decline in North American benchmark prices, partially offset by higher benchmark prices in Brazil and lower Offshore logistics costs. Cost of goods sold per tonne increased in the first quarter of 2025 primarily due to higher depreciation. Controllable cash cost of product manufactured per tonne increased in the quarter primarily due to lower potash production. Nitrogen Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 % Change Net sales 954 911 5 Cost of goods sold 663 604 10 Gross margin 291 307 (5) Adjusted EBITDA 1 408 464 (12) 1 See Note 2 to the interim financial statements. Expand Nitrogen adjusted EBITDA decreased in the first quarter of 2025 primarily due to higher natural gas costs and lower equity earnings from Profertil S.A., partially offset by higher net selling prices. Our operations delivered a record ammonia operating rate of 98 percent in the first quarter, achieved through less maintenance downtime and improved reliability at our sites. Manufactured Product Three Months Ended March 31 ($ per tonne, except as otherwise noted) 2025 2024 Sales volumes (tonnes - thousands) Ammonia 496 517 Urea and ESN ® 795 775 Solutions, nitrates and sulfates 1,178 1,215 Total sales volumes 2,469 2,507 Net selling price Ammonia 418 403 Urea and ESN ® 438 432 Solutions, nitrates and sulfates 236 226 Average net selling price 337 326 Cost of goods sold 224 207 Gross margin 113 119 Depreciation and amortization 58 54 Gross margin excluding depreciation and amortization 1 171 173 1 This is a non-GAAP financial measure. See the 'Non-GAAP Financial Measures' section. Expand Sales volumes decreased in the first quarter of 2025 primarily due to lower availability of nitrogen solutions products and the timing of demand for ammonia. Net selling price per tonne was higher in the first quarter of 2025 for all major nitrogen products due to stronger benchmark prices. Cost of goods sold per tonne increased in the first quarter of 2025 due to higher natural gas costs. Phosphate Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 % Change Net sales 360 437 (18) Cost of goods sold 361 372 (3) Gross margin (1) 65 n/m Adjusted EBITDA 1 61 121 (50) 1 See Note 2 to the interim financial statements. Expand Phosphate adjusted EBITDA was lower in the first quarter of 2025 due to the impact of lower production volumes and higher input costs, including sulfur. Sales volumes were lower in the first quarter of 2025 primarily due to planned and unplanned plant outages that impacted production volumes. Net selling price per tonne increased in the first quarter of 2025 primarily due to strong phosphate fertilizer fundamentals and optimization of product mix, partially offset by lower industrial and feed net selling prices. Cost of goods sold per tonne increased in the first quarter of 2025 due to lower production volumes, higher depreciation and higher input costs, including sulfur. Corporate and Others and Eliminations Share-based compensation expense was higher in the first quarter 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. Foreign exchange loss, net of related derivatives was lower in the first quarter of 2025 due to a lower foreign exchange loss from our South America operations. Other expenses were lower in the first quarter of 2025 mainly due to a lower loss related to financial instruments in Argentina. See Note 3 to the interim financial statements. Finance Costs, Income Taxes and Other Comprehensive Income (Loss) Income tax expense was lower in the first quarter of 2025 mainly due to lower earnings. The actual effective tax rate including discrete items increased due to a change in proportion of earnings (loss) between tax jurisdictions. Other comprehensive income in the first quarter of 2025 was mainly due to the appreciation of the Brazilian and Australian currencies, relative to the US dollar, compared to a loss for the same period in 2024 due to the depreciation of Australian, Canadian and Brazilian currencies relative to the US dollar. 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. Sources and uses of cash Cash used in operating activities Cash used in operating activities in the first quarter of 2025 was higher compared to the same period in 2024 primarily due to increased payments to our suppliers to take advantage of early payment discounts and higher input costs such as natural gas and sulfur costs. Cash used in investing activities Cash used in investing activities was lower in the first quarter of 2025 compared to the same period in 2024. We received proceeds from the disposal of our investment in Sinofert Holdings Limited ('Sinofert') that reduced our cash used in investing activities. We also had lower capital expenditures for the first quarter of 2025. Cash provided by financing activities Cash provided by financing activities increased in the first quarter of 2025 compared to the same period in 2024 due to proceeds from the issuance of $1.0 billion of senior notes in March 2025. Cash used for dividends and share repurchases Cash used for dividends and share repurchases was higher in the first quarter of 2025 as we repurchased shares in the first quarter of 2025 with no similar share repurchases in the same period in 2024. Expand Financial Condition Review The following is a comparison of balance sheet categories that are considered material: Explanations for changes in Cash and cash equivalents are in the 'Liquidity and Capital Resources - Sources and Uses of Cash' section. Receivables increased due to higher Potash receivables from higher net selling prices compared to the fourth quarter of 2024. Inventories increased due to the seasonality of our Retail segment and the larger portion of its operations in North America. Our inventory levels build up in the last quarter of the year and peak in the first quarter of the year, while inventories are drawn on in the succeeding quarters. Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventories in preparation for the spring planting and applications season in North America. Property, plant and equipment decreased due to depreciation more than offsetting capital expenditures. Investments decreased due to disposal of our remaining investment in Sinofert with a fair value of $211 million as of December 31, 2024. Short-term debt increased due to higher drawdowns on our credit facilities based on our working capital requirements driven by the seasonality of our business. Payables and accrued charges decreased due to the settlement in the first quarter of 2025 of our supplier financing arrangement obligations that were entered into in the fourth quarter of 2024. This was partially offset by higher customer prepayments received in the first quarter of the year in anticipation of crop input price increases and additional inventory purchases made in the first quarter of 2025. Long-term debt, including current portion, increased due to the issuance of $1.0 billion of senior notes in the first quarter of 2025. Retained earnings decreased as dividends declared and share repurchases exceeded net earnings in the first quarter of 2025. 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 three months ended March 31, 2025. Capital structure (debt and equity) Commercial paper, credit facilities and other debt We have a total facility limit of approximately $8,050 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. As at March 31, 2025, we had utilized $2,488 million of our total facility limit, which includes $1,971 million of commercial paper outstanding. As at March 31, 2025, $235 million in letters of credit were outstanding and committed, with $271 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. On March 13, 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. Subsequent to the three months ended March 31, 2025, we repaid our outstanding $500 million 3.000 percent senior notes that matured on April 1, 2025. Outstanding share data For more information on our capital structure and management, see Note 4 to the annual financial statements in our 2024 Annual Report. Quarterly Results 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. The following table describes certain items that impacted our quarterly earnings: 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. We also recorded a foreign exchange loss of $220 million on foreign currency derivatives in Brazil for the second quarter of 2024. Q2 2023 $698 million non-cash impairment of assets comprised of a $233 million non-cash impairment of our Phosphate White Springs property, plant and equipment due to a decrease in our forecasted phosphate margins and a $465 million non-cash impairment of our Retail – South America assets primarily related to goodwill mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates, which lowered our forecasted earnings. Expand Critical Accounting Estimates 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 months ended March 31, 2025. 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. There has been no change in our ICFR during the three months ended March 31, 2025, that has materially affected, or is reasonably likely to materially affect, our ICFR. 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: Nutrien's business strategies, plans, prospects and opportunities; Nutrien's 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; our operating segment market outlooks and our expectations for market conditions and fundamentals, and the anticipated supply and demand for our products and services, 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; the expected impact of our margin improvement plan in South America; 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. 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. 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. 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. 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. 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. 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. 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. 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. More information about Nutrien can be found at Selected financial data for download can be found in our data tool at Such data is not incorporated by reference herein. Nutrien will host a Conference Call on Thursday, May 8, 2025 at 10:00 a.m. Eastern Time. Telephone conference dial-in numbers: 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. 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. 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. 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. Adjusted EBITDA (Consolidated) Most directly comparable IFRS financial measure: Net earnings (loss). Definition: 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: 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. Why we use the measure and why it is useful to investors: 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. Adjusted Net Earnings and Adjusted Net Earnings Per Share Most directly comparable IFRS financial measure: Net earnings (loss) and diluted net earnings (loss) per share. Definition: 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. Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations. Three Months Ended March 31, 2024 Per Increases Diluted ($ millions, except as otherwise noted) (Decreases) Post-Tax Share Net earnings attributable to equity holders of Nutrien 158 0.32 Adjustments: Share-based compensation expense 6 5 0.01 Foreign exchange loss, net of related derivatives 43 46 0.09 ARO/ERL related expenses for non-operating sites 3 2 ‐ Loss related to financial instruments in Argentina 19 19 0.04 Sub-total adjustments 71 72 0.14 Adjusted net earnings 230 0.46 Expand Effective Tax Rate on Adjusted Net Earnings Guidance 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. Gross Margin Excluding Depreciation and Amortization Per Tonne – Manufactured Product Most directly comparable IFRS financial measure: Gross margin. Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the 'Segment Results' section. Why we use the measure and why it is useful to investors: 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. Potash Controllable Cash Cost of Product Manufactured ('COPM') Per Tonne Most directly comparable IFRS financial measure: Cost of goods sold ('COGS') for the Potash segment. Definition: 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. Why we use the measure and why it is useful to investors: 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. Nutrien Financial Adjusted Net Interest Margin Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial net receivables outstanding for the last four rolling quarters. Why we use the measure and why it is useful to investors: Used by credit rating agencies and others to evaluate the financial performance of Nutrien Financial. Retail Cash Operating Coverage Ratio Definition: 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. Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate cash flow. Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial Definition: 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. Why we use the measure and why it is useful to investors: 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. Other Financial Measures Selected Additional Financial Data Nutrien Financial As at March 31, 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 1,290 88 251 211 1,840 (63) 1,777 2,178 International 672 40 54 38 804 (12) 792 699 Nutrien Financial receivables 1,962 128 305 249 2,644 (75) 2,569 2,877 1 Bad debt expense on the above receivables for the three months ended March 31, 2025 were $18 million, in the Retail segment. 2 In 2025, we assume a debt-to-equity ratio of 9:1 (2024 – 7:1) in funding Nutrien Financial receivables, based on the underlying credit quality of the assets. Expand Supplementary Financial Measures Supplementary financial measures are financial measures disclosed by the Company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company, (b) are not disclosed in the financial statements of the Company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios. The following section provides an explanation of the composition of those supplementary financial measures, if not previously provided. Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds. Investing capital expenditures: Represents capital expenditures related to significant expansions of current operations or to create cost savings (synergies). Investing capital expenditures excludes capital outlays for business acquisitions and equity-accounted investees. Mine development and pre-stripping capital expenditures: Represents capital expenditures that are required for activities to open new areas underground and/or develop a mine or ore body to allow for future production mining and activities required to prepare and/or access the ore, i.e., removal of an overburden that allows access to the ore. Cash used for dividends and share repurchases: Calculated as dividends paid to Nutrien's shareholders plus repurchase of common shares as reflected in the unaudited condensed consolidated statements of cash flows. This measure is useful as it represents return of capital to shareholders. Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Statements of Earnings Three Months Ended March 31 ($ millions, except as otherwise noted) Note 2025 2024 Sales 2, 8 5,100 5,389 Freight, transportation and distribution 226 238 Cost of goods sold 3,554 3,614 Gross Margin 1,320 1,537 Selling expenses 757 794 General and administrative expenses 152 154 Provincial mining taxes 68 68 Share-based compensation expense 42 6 Foreign exchange loss, net of related derivatives 7 43 Other expenses 3 68 53 Earnings Before Finance Costs and Income Taxes 226 419 Finance costs 179 179 Earnings Before Income Taxes 47 240 Income tax expense 4 28 75 Net Earnings 19 165 Attributable to Equity holders of Nutrien 11 158 Non-controlling interest 8 7 Net Earnings 19 165 Net Earnings Per Share Attributable to Equity Holders of Nutrien ("EPS") Basic 0.02 0.32 Diluted 0.02 0.32 Weighted average shares outstanding for basic EPS 489,397,000 494,570,000 Weighted average shares outstanding for diluted EPS 489,540,000 494,792,000 (See Notes to the Condensed Consolidated Financial Statements) Expand Condensed Consolidated Statements of Comprehensive Income Three Months Ended March 31 ($ millions, net of related income taxes) 2025 2024 Net Earnings 19 165 Other comprehensive income (loss) Items that will not be reclassified to net earnings: Net fair value loss on investments (18) (18) Items that have been or may be subsequently reclassified to net earnings: Gain (loss) on currency translation of foreign operations 39 (66) Other 4 (18) Other Comprehensive Income (Loss) 25 (102) Comprehensive Income 44 63 Attributable to Equity holders of Nutrien 36 57 Non-controlling interest 8 6 Comprehensive Income 44 63 Expand Condensed Consolidated Statements of Cash Flows Three Months Ended March 31 ($ millions) Note 2025 2024 Operating Activities Net earnings 19 165 Adjustments for: Depreciation and amortization 571 565 Share-based compensation expense 42 6 Provision for deferred income tax 80 28 Net undistributed earnings of equity-accounted investees (5) (50) Loss related to financial instruments in Argentina 3 ‐ 19 Long-term income tax receivables and payables (38) 43 Other long-term assets, liabilities and miscellaneous 5 64 Cash from operations before working capital changes 674 840 Changes in non-cash operating working capital: Receivables (143) (257) Inventories and prepaid expenses and other current assets (1,274) (1,330) Payables and accrued charges (339) 260 Cash Used in Operating Activities (1,082) (487) Investing Activities Capital expenditures 1 (300) (353) Business acquisitions, net of cash acquired (11) ‐ Purchase of investments, held within three months, net (16) (18) Purchase of investments (2) (4) Proceeds from sale of investments 5 183 ‐ Net changes in non-cash working capital (88) (90) Other (9) (29) Cash Used in Investing Activities (243) (494) Financing Activities Proceeds from debt, maturing within three months, net 912 926 Proceeds from debt 6 998 ‐ Repayment of debt 6 (4) (14) Repayment of principal portion of lease liabilities (110) (96) Dividends paid to Nutrien's shareholders 7 (265) (261) Repurchase of common shares, inclusive of related tax 7 (148) ‐ Issuance of common shares 3 1 Other (21) (8) Cash Provided by Financing Activities 1,365 548 Effect of Exchange Rate Changes on Cash and Cash Equivalents 2 (12) Increase (Decrease) in Cash and Cash Equivalents 42 (445) Cash and Cash Equivalents – Beginning of Period 853 941 Cash and Cash Equivalents – End of Period 895 496 Cash and cash equivalents is composed of: Cash 828 422 Short-term investments 67 74 895 496 Supplemental Cash Flows Information Interest paid 132 132 Income taxes paid 7 50 Total cash outflow for leases 150 131 1 Includes additions to property, plant and equipment, and intangible assets for the three months ended March 31, 2025 of $279 million and $21 million (2024 – $324 million and $29 million). (See Notes to the Condensed Consolidated Financial Statements) Expand Condensed Consolidated Statements of Changes in Shareholders' Equity Accumulated Other Comprehensive (Loss) Income ("AOCI") ($ 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 ‐ ‐ ‐ ‐ ‐ ‐ 158 158 7 165 Other comprehensive loss ‐ ‐ ‐ (65) (36) (101) ‐ (101) (1) (102) Dividends declared 1 ‐ ‐ ‐ ‐ ‐ ‐ (266) (266) ‐ (266) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (8) (8) Effect of share-based compensation including issuance of common shares 37,199 2 2 ‐ ‐ ‐ ‐ 4 ‐ 4 Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 2 2 ‐ 2 ‐ 2 Balance – March 31, 2024 494,588,929 13,840 85 (351) (44) (395) 11,423 24,953 43 24,996 Balance – December 31, 2024 491,025,446 13,748 68 (537) 22 (515) 11,106 24,407 35 24,442 Net earnings ‐ ‐ ‐ ‐ ‐ ‐ 11 11 8 19 Other comprehensive income (loss) ‐ ‐ ‐ 39 (14) 25 ‐ 25 ‐ 25 Shares repurchased for cancellation (Note 7) (2,862,814) (80) ‐ ‐ ‐ ‐ (69) (149) ‐ (149) Dividends declared 1 ‐ ‐ ‐ ‐ ‐ ‐ (266) (266) ‐ (266) Non-controlling interest transactions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (11) (11) Effect of share-based compensation including issuance of common shares 59,751 3 1 ‐ ‐ ‐ ‐ 4 ‐ 4 Transfer of net gain on sale of investment ‐ ‐ ‐ ‐ (27) (27) 27 ‐ ‐ ‐ Transfer of net loss on cash flow hedges ‐ ‐ ‐ ‐ 6 6 ‐ 6 ‐ 6 Balance – March 31, 2025 488,222,383 13,671 69 (498) (13) (511) 10,809 24,038 32 24,070 1 During the three months ended March 31, 2025, we declared dividends of $0.545 per share (2024 - $0.54 per share). (See Notes to the Condensed Consolidated Financial Statements) Expand Condensed Consolidated Balance Sheets As at As at March 31 December 31, ($ millions) Note 2025 2024 2024 Assets Current assets Cash and cash equivalents 895 496 853 Receivables 8 5,612 5,561 5,390 Inventories 7,992 8,188 6,148 Prepaid expenses and other current assets 863 905 1,401 15,362 15,150 13,792 Non-current assets Property, plant and equipment 22,488 22,410 22,604 Goodwill 12,058 12,083 12,043 Intangible assets 1,791 2,165 1,819 Investments 5 495 768 698 Other assets 875 999 884 Total Assets 53,069 53,575 51,840 Liabilities Current liabilities Short-term debt 2,437 2,835 1,534 Current portion of long-term debt 6 1,038 513 1,037 Current portion of lease liabilities 364 346 356 Payables and accrued charges 8,752 9,431 9,118 12,591 13,125 12,045 Non-current liabilities Long-term debt 6 9,870 8,910 8,881 Lease liabilities 998 1,034 999 Deferred income tax liabilities 3,591 3,601 3,539 Pension and other post-retirement benefit liabilities 225 246 227 Asset retirement obligations and accrued environmental costs 1,528 1,485 1,543 Other non-current liabilities 196 178 164 Total Liabilities 28,999 28,579 27,398 Shareholders' Equity Share capital 7 13,671 13,840 13,748 Contributed surplus 69 85 68 Accumulated other comprehensive loss (511) (395) (515) Retained earnings 10,809 11,423 11,106 Equity holders of Nutrien 24,038 24,953 24,407 Non-controlling interest 32 43 35 Total Shareholders' Equity 24,070 24,996 24,442 Total Liabilities and Shareholders' Equity 53,069 53,575 51,840 (See Notes to the Condensed Consolidated Financial Statements) Expand Notes to the Condensed Consolidated Financial Statements As at and for the Three Months Ended March 31, 2025 Note 1 Basis of presentation 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. 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. Certain immaterial 2024 figures have been reclassified in the condensed consolidated statements of earnings, condensed consolidated statements of cash flows and Note 3 Other expenses (income). 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 for issue on May 7, 2025. Note 2 Segment information 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. 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. Downstream Upstream and Midstream Corporate ($ millions) Retail Potash Nitrogen Phosphate and others Eliminations Consolidated Assets – as at March 31, 2025 23,253 13,890 11,581 2,443 2,442 (540) 53,069 Assets – as at December 31, 2024 22,149 13,792 11,603 2,453 2,571 (728) 51,840 Expand Three Months Ended March 31, 2025 Downstream Upstream and Midstream Corporate ($ millions) Retail Potash Nitrogen Phosphate and others Eliminations Consolidated Sales – third party 3,090 766 892 338 14 ‐ 5,100 – intersegment ‐ 95 182 67 ‐ (344) ‐ Sales – total 3,090 861 1,074 405 14 (344) 5,100 Freight, transportation and distribution ‐ 117 120 45 ‐ (56) 226 Net sales 3,090 744 954 360 14 (288) 4,874 Cost of goods sold 2,404 380 663 361 4 (258) 3,554 Gross margin 686 364 291 (1) 10 (30) 1,320 Selling expenses (recovery) 755 3 7 2 (3) (7) 757 General and administrative expenses 44 2 6 2 98 ‐ 152 Provincial mining taxes ‐ 68 ‐ ‐ ‐ ‐ 68 Share-based compensation expense ‐ ‐ ‐ ‐ 42 ‐ 42 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 7 ‐ 7 Other expenses (income) 25 2 12 6 18 5 68 Earnings (loss) before finance costs and income taxes (138) 289 266 (11) (152) (28) 226 Depreciation and amortization 184 157 142 72 16 ‐ 571 EBITDA 46 446 408 61 (136) (28) 797 Restructuring costs ‐ ‐ ‐ ‐ 1 ‐ 1 Share-based compensation expense ‐ ‐ ‐ ‐ 42 ‐ 42 ARO/ERL related expenses for non-operating sites ‐ ‐ ‐ ‐ 5 ‐ 5 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 7 ‐ 7 Adjusted EBITDA 46 446 408 61 (81) (28) 852 Expand Three Months Ended March 31, 2024 Downstream Upstream and Midstream Corporate ($ millions) Retail Potash Nitrogen Phosphate and others Eliminations Consolidated Sales – third party 3,308 821 846 414 ‐ ‐ 5,389 – intersegment ‐ 106 182 85 ‐ (373) ‐ Sales – total 3,308 927 1,028 499 ‐ (373) 5,389 Freight, transportation and distribution ‐ 114 117 62 ‐ (55) 238 Net sales 3,308 813 911 437 ‐ (318) 5,151 Cost of goods sold 2,561 358 604 372 ‐ (281) 3,614 Gross margin 747 455 307 65 ‐ (37) 1,537 Selling expenses (recovery) 790 3 7 2 (2) (6) 794 General and administrative expenses 52 4 5 4 89 ‐ 154 Provincial mining taxes ‐ 68 ‐ ‐ ‐ ‐ 68 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 43 ‐ 43 Other expenses (income) 22 (3) (33) 8 54 5 53 Earnings (loss) before finance costs and income taxes (117) 383 328 51 (190) (36) 419 Depreciation and amortization 194 147 136 70 18 ‐ 565 EBITDA 77 530 464 121 (172) (36) 984 Share-based compensation expense ‐ ‐ ‐ ‐ 6 ‐ 6 Loss related to financial instruments in Argentina ‐ ‐ ‐ ‐ 19 ‐ 19 ARO/ERL related expenses for non-operating sites ‐ ‐ ‐ ‐ 3 ‐ 3 Foreign exchange loss, net of related derivatives ‐ ‐ ‐ ‐ 43 ‐ 43 Adjusted EBITDA 77 530 464 121 (101) (36) 1,055 Expand Three Months Ended March 31 ($ millions) 2025 2024 Retail sales by product line Crop nutrients 1,194 1,309 Crop protection products 972 1,114 Seed 532 485 Services and other 146 156 Merchandise 189 200 Nutrien Financial 70 66 Nutrien Financial elimination 1 (13) (22) 3,090 3,308 Potash sales by geography Manufactured product North America 434 520 Offshore 2 426 407 Other potash and purchased products 1 ‐ 861 927 Nitrogen sales by product line Manufactured product Ammonia 240 244 Urea and ESN ® 382 366 Solutions, nitrates and sulfates 321 319 Other nitrogen and purchased products 131 99 1,074 1,028 Phosphate sales by product line Manufactured product Fertilizer 249 321 Industrial and feed 151 167 Other phosphate and purchased products 5 11 405 499 1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches. 2 Relates to Canpotex Limited ('Canpotex') (see Note 8) and includes provisional pricing adjustments for the three months ended March 31, 2025 of $31 million (2024 – $12 million). Expand Note 3 Other expenses (income) Three Months Ended March 31 ($ millions) 2025 2024 Restructuring costs 1 ‐ Earnings of equity-accounted investees (5) (51) Bad debt expense 19 13 Project feasibility costs 15 15 Customer prepayment costs 18 16 Legal expenses 5 8 Loss on natural gas derivatives not designated as hedge ‐ 3 Loss related to financial instruments in Argentina ‐ 19 ARO/ERL related expenses for non-operating sites ¹ 5 3 Other expenses 10 27 68 53 1 ARO/ERL refers to asset retirement obligations and accrued environmental costs. Expand Note 4 Income taxes A separate estimated average annual effective income tax rate was determined and applied individually to the interim period pre-tax earnings for each taxing jurisdiction. Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 Actual effective tax rate on earnings (%) 49 30 Actual effective tax rate including discrete items (%) 60 31 Discrete tax adjustments that impacted the tax rate 1 5 3 1 Discrete tax adjustments arise from specific, significant or unusual events that are recognized in the period in which the event occurs, rather than being allocated across the year through the annual effective tax rate. Expand Note 5 Financial instruments During the three months ended March 31, 2025, we fully divested our remaining equity ownership interest in Sinofert Holdings Limited, which had been classified as a financial asset measured at fair value through other comprehensive income. Total proceeds from the sale were $193 million of which $28 million was collected subsequent to March 31, 2025. Total proceeds from the sale reflected the fair value of the investment at the date of derecognition. A loss of $18 million related to the investment during the period was recognized in other comprehensive income. Upon derecognition, the cumulative unrealized gain previously recognized in other comprehensive income of $27 million was reclassified to retained earnings. Our financial instruments carrying amount are a reasonable approximation of their fair values, except for our long-term debt, including current portion, that has a carrying value of $10,908 million and fair value of $10,272 million as at March 31, 2025. There were no transfers between levels for financial instruments measured at fair value on a recurring basis. Note 6 Debt ($ millions, except as otherwise noted) Rate of interest (%) Maturity Amount Senior notes issued in 2025 4.500 March 12, 2027 400 Senior notes issued in 2025 5.250 March 12, 2032 600 1,000 Expand The senior notes issued in the three months ended March 31, 2025, are unsecured, rank equally with our existing unsecured debt, and have no sinking fund requirements prior to maturity. Each series of outstanding senior notes is redeemable and has various provisions for redemption prior to maturity, at our option, at specified prices. Subsequent to the three months ended March 31, 2025, we repaid our outstanding $500 million 3.000 percent senior notes that matured April 1, 2025. Note 7 Share capital Share repurchase programs The following table summarizes our share repurchase activities during the periods indicated below: Three Months Ended March 31 ($ millions, except as otherwise noted) 2025 2024 Number of common shares repurchased for cancellation 2,862,814 ‐ Average price per share (US dollars) 51.08 ‐ Total cost, inclusive of tax 149 ‐ Expand Subsequent to March 31, 2025, as of May 6, 2025, an additional 749,958 common shares were repurchased for cancellation at a cost of $39 million and an average price per share of $52.15. Dividends declared We declared a dividend per share of $0.545 (2024 – $0.54) during the three months ended March 31, 2025, payable on April 10, 2025 to shareholders of record on March 31, 2025. Note 8 Related party transactions We sell potash outside Canada and the US exclusively through Canpotex. Our total revenue is recognized, at the time product is loaded for shipping, at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. The receivable outstanding from Canpotex arose from sale transactions described above. It is unsecured and bears no interest. Any credit losses held against this receivable are expected to be negligible. Canpotex sells potash to buyers, including Nutrien, in export markets pursuant to term and spot contracts at agreed-upon prices. Purchases from Canpotex for the three months ended March 31, 2025 were $57 million (2024 – $31 million). As at As at ($ millions) March 31, 2025 December 31, 2024 Receivables from Canpotex 232 122 Payables to Canpotex 77 66 Expand
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20-02-2025
- Business
- Yahoo
Nutrien warns tariffs will hurt U.S. farmers who rely on Canadian potash
If the U.S. implements widespread tariffs on Canadian goods, American farmers will be hard-hit as they rely heavily on Canada for inputs like potash, said Nutrien Ltd. CEO Ken Seitz. Seitz says Canada supplies more than 80 per cent of the potash used on U.S. farms, and as the company looks at what tariffs could do to its business, "by far the biggest discussion is about potash." "The cost of this would be borne by the U.S. farmer," he told analysts on a conference call discussing Nutrien's fourth-quarter earnings. "We've had these dialogues, a lot of them, with governments on both sides of the border." Potash is a key component in fertilizers, and Canada produced about a third of the world's supply in 2023, according to Natural Resources Canada. It was followed by Russia and Belarus, which together produced roughly another third. After the tariffs were initially announced, U.S. association The Fertilizer Institute urged the Trump administration to exempt Canadian potash and other fertilizers from the duties, especially as the industry approached the critical spring planting time. "U.S. agriculture is benefited by a strong trade relationship with Canada that provides farmers with reliable access to essential crop nutrients," the organization said in a press release at the time. In addition to being the source for the vast majority of potash used in the U.S., Canada supplies U.S. growers with more than eight per cent of their nitrogen fertilizer needs, the institute said. In the fourth quarter, Nutrien sold US$536 million in potash, US$1.01 billion in nitrogen, and US$414 million in phosphate. Sales in its retail business were US$3.18 billion. If the U.S. implements the sweeping tariffs it announced earlier this month, farmers south of the border would be paying 25 per cent extra on imports from Canada. Nutrien said it has attempted to account for the uncertainty of tariffs in its potash sales forecast range for the coming year. Its sales volume guidance for potash is 13.6 million to 14.4 million tonnes. However, it also expects to see fundamentals improve for the potash market in 2025. Last year saw global potash shipments rebound, driven by better supply and demand, Nutrien said. The company earned US$118 million in its fourth quarter, down from US$176 million a year earlier. The company said the lower earnings were mainly due to lower prices and sales volumes of potash. Sales for the Saskatoon-based company were lower too, totalling US$5.1 billion. Diluted earnings per share were 23 cents US, down from 35 cents US a year earlier. Earnings for the full financial year were down 45 per cent to US$700 million, while sales were down 11 per cent at US$30.0 billion. The company also announced a one per cent increase to its quarterly dividend and said it intends to repurchase up to five per cent of its issued and outstanding common shares over a 12-month period. Nutrien has been implementing automation in its potash mining operations, and in 2024 it mined 35 per cent of its potash ore tonnes using automation. The company is progressing toward its 2026 target of 40 to 50 per cent, said Seitz. This report by The Canadian Press was first published Feb. 20, 2025. Companies in this story: (TSX:NTR) Rosa Saba, The Canadian Press Sign in to access your portfolio
