Nutrien remains a compelling buy as the global fertilizer market is showing clear signs of recovery. Potash and nitrogen prices are rebounding thanks to tightening supply and robust agricultural demand, while Nutrien’s world-class low-cost mines and integrated retail network position it to capitalize as conditions improve.
Management is proactively driving $200 million in annual cost savings ahead of schedule, and recent non-core asset sales and share buybacks have strengthened the company’s balance sheet and capital returns.
The stock is attractively valued with a solid dividend yield and ongoing share repurchases, so you benefit from both income and potential capital appreciation. As fertilizer pricing normalizes and efficiency gains flow through, the stock is poised for an earnings rebound in 2025 as it trades at a moderate 15.1 times the company’s forward earnings forecast.
NUTRIEN LTD. (Toronto symbol NTR; www.nutrien.com) is still a buy for the Resources portion of your portfolio.
The company is the world’s largest producer of agricultural fertilizers, including potash, nitrogen and phosphate. It also sells seeds, fertilizers and agricultural products to farmers through some 2,000 stores spread across the Western Hemisphere and Australia.
Nutrien is now considering building a new export terminal on Pacific Northwest coast of North America. That would let it ship more potash from its mines in Saskatchewan to markets in Asia, including including China, India and Japan.
Right now, the company ships most of its potash through Vancouver, with smaller facilities also at Saint John, New Brunswick, and Portland, Oregon.
Nutrien has not yet said how much this new terminal would cost, but it expects to select a site by the end of 2025. The facilities would also help it take advantage of rising potash demand—the company expects global potash use will rise from 71 million to 75 million tonnes in 2025 to between 80 million and 85 million tonnes by 2030.
Mining Stocks: Rising demand continues to fuel its gains
Starting with the April 2025 payment, Nutrien raised your quarterly dividend by 0.9%, to $0.545 U.S. a share from $0.54 U.S. The new annual rate of $2.18 U.S. yields a solid 3.7%. It also plans to buy back up to 5% of its outstanding shares over the next year.
The stock has jumped 27% since the start of 2025. That’s partly because Iran has shut down its ammonia and urea fertilizer production facilities due to the current conflict with Israel. Egypt has also paused fertilizer production after Israel stopped its exports of natural gas (a key ingredient).
Nutrien will also benefit from rising demand for potash. As a result, the company’s earnings will probably improve 14% in 2025 to $3.97 U.S. a share, and the stock trades at a reasonable 15.1 times that estimate.
Meantime, Nutrien continues to make progress with a plan to improve its efficiency. The company now expects annual savings will total $200 million U.S. by the end of 2025, which is one year ahead of its original target.
Recommendation in The Successful Investor: Nutrien Ltd. is a buy.
