Nufarm Ltd (ASX: NUF) shares are pushing close to a 52-week high on Wednesday after the agriculture business released its FY 2026 half-year results.
At the time of writing, the Nufarm share price is up more than 11% to $2.85.
Today's gain adds to a stronger recent run for the ASX agriculture stock, with Nufarm shares up more than 20% over the past month.
The last time Nufarm shares traded above this level was in July 2025.
Let's take a closer look at the announcement.
Image source: Getty Images
Profit and cash flow improve
Nufarm reported statutory net profit after tax (NPAT) of $38 million for the half, up 28% on the prior corresponding period.
Underlying NPAT rose 35% to $52 million, while underlying EBITDA increased 18% to $243 million.
The company also reported a gross profit margin of 33%, up 3.7 percentage points.
Revenue was lower at $1.7 billion, down 5% year on year, but the market appears to be focusing more on margins, cash flow, and debt.
Free cash flow improved by $193 million compared with the prior corresponding period.
Net debt fell to $1.23 billion, down $135 million, while leverage improved to 3.6 times.
Nufarm said net debt to EBITDA reduced by 20% on the prior period.
Crop Protection leads the result
Crop Protection did most of the work in the first-half.
The division delivered underlying EBITDA of $223 million, up 18% on the prior corresponding period. On a constant currency basis, EBITDA rose 6%.
Nufarm attributed the improvement to a better product mix and tighter cost control.
Europe was the strongest region, with underlying EBITDA rising 19% to $113 million. The company said lower operating costs helped offset a softer revenue result.
North America also improved, with underlying EBITDA rising 11% in local currency. Nufarm pointed to strong volumes in the United States, a solid contribution from Crop Protection, and a strong result in Canada.
APAC was weaker, with underlying EBITDA down 15%. Dry conditions in Australia and currency impacts weighed on the region.
Seed Technologies has a better half
Seed Technologies also moved in the right direction.
The division delivered underlying EBITDA of $58 million, up from $27 million a year earlier.
Hybrid Seeds grew underlying EBITDA by 7%, with demand supported by edible oils and renewable fuels.
The bigger improvement came from Emerging Platforms, where the underlying EBITDA loss narrowed to $4 million. That compares with a $30 million loss in the prior corresponding period.
Omega-3 was the main driver of the improvement, with Nufarm also securing its first regulatory approval in Japan.
The company also reported progress across canola, carinata, and sorghum varieties, which remain part of its longer-term growth plans.
Why investors are picking up Nufarm shares
The stronger first half comes as Nufarm continues to tighten up the business.
Management said its strategy refresh is focused on capital allocation, cost discipline, earnings quality, and cash generation.
The company also reaffirmed its FY 2026 outlook for underlying EBITDA and leverage.
Nufarm expects positive free cash flow in FY 2026 and is targeting leverage of about 2 x net debt to underlying EBITDA by the end of FY 2026.
It is also targeting capital expenditure below $200 million.
