Nutrien's Cash Flow Strength: Can Strategic Moves Fuel More Growth?

Nutrien Ltd. NTR generated solid cash flows in the second quarter, thanks to strong operational performance, strategic execution and supportive fertilizer market fundamentals. Its operating cash flow surged 40% year over year to $2,538 million for the quarter, driven by higher selling prices and sales volumes.

NTR generates substantial cash flows and has a strong balance sheet, enabling it to finance its strategic growth investment, pay down debt and drive shareholder value.  The company expects to maintain the momentum in the second half, backed by higher sales volumes and prices and strong retail earnings. It is taking strategic measures to drive cash flows, including working capital optimization and review of non-core assets.   

As part of this move, the company has agreed to sell its 50% equity interest in Argentina-based nitrogen producer, Profertil S.A. The sale of the Profertil stake, which will allow NTR to focus better on its core assets and geographies, will further enhance its quality of earnings and cash flow.

Among its peers, The Mosaic Company MOS generated an operating cash flow $610 million and a free cash flow of $305 million in the second quarter of 2025. Mosaic’s operating cash flow fell roughly 28% year over year, hurt by reduced customer prepayments and increased working capital. Mosaic expects to generate stronger cash flow in the second half of 2025, allowing debt reductions and shareholder returns through dividends and buybacks.   

CF Industries Holdings, Inc.’s CF operating cash flow increased roughly 18% year over year to $563 million in the second quarter. CF Industries’ cash flow for the first half also increased roughly 25% from the year-ago period to $1,149 million. CF Industries benefited from the Blue Point joint venture (JV) in the second quarter as capital contributions from its JV partners surpassed the project's capital expenditures.

NTR’s Price Performance, Valuation & Estimates

Nutrien has gained 26.2% year to date compared with the Zacks Fertilizers industry’s rise of 19%.

From a valuation standpoint, NTR is currently trading at a forward 12-month earnings multiple of 13.13, essentially in line with the industry average of 13.12X. It carries a Value Score of B.

The Zacks Consensus Estimate for NTR’s 2025 and 2026 earnings implies a year-over-year rise of 25.7% and 0.05%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

NTR stock currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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