Nutrien’s potash mines in Saskatchewan, Canada represent decades of proven reserves that cannot be easily replicated by competitors. That’s because new greenfield potash projects require multi-billion-dollar investments and 7-10 years to develop. This asset scarcity provides the firm with sustainable pricing power and positions the company as an essential supplier to global agriculture.
The company’s integrated retail network, which serves farmers directly with crop inputs, services, and digital solutions, creates customer stickiness and recurring revenue streams that provide earnings stability even during commodity price volatility. Over the long term, global population growth and rising protein consumption in emerging markets will drive sustained demand for fertilizers, and the company’s irreplaceable production assets ensure it will remain a primary beneficiary of these secular trends.
The stock trades at 13.3 times the company’s forward earnings forecast. That’s below long-term historical averages for the agricultural commodities sector and reflects an attractive valuation for a company delivering robust earnings growth and elevated capital returns.
NUTRIEN LTD. (Toronto symbol NTR; www.nutrien.com) 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 continues to reorganize and rationalize its operations.
The company now plans to build a new export terminal at the Port of Longview, Washington. That will let it ship more potash to international markets, particularly China and India. This new facility will cost roughly $1 billion U.S.
Nutrien expects to make a final decision on this project in 2027. It’s possible that the Canadian government will offer incentives to get the company to build the terminal in B.C.
The company is also closing its nitrogen facility in Trinidad and Tobago. That country recently restricted the company’s access to port facilities over claims that it owes several million dollars in fees. Those restrictions have hurt Nutrien’s supply of natural gas, which it needs to make nitrogen fertilizers.
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The Trinidad and Tobago facility produces about 840,000 tonnes per year. Despite the shutdown, Nutrien still expects its North American nitrogen operations will produce between 10.7 million to 11.2 million tonnes in 2025.
Nutrien has also agreed to sell its 50% stake in Profertil S.A. Based in Argentina, this firm supplies nitrogen fertilizers to South American farmers. The company will receive $600 million when it completes the transaction.
Nutrien’s higher selling prices drive exceptional earnings growth
Potash sales volumes in the second quarter of 2025 rose 12.0% to 3.99 million tonnes. That’s due to stronger demand in North America. Selling prices also improved 17.0%.
The higher demand helped lift Nutrien’s revenue in the quarter by 2.8%, to $10.44 billion from $10.16 billion a year earlier. (All amounts in U.S. dollars). Earnings before unusual items also rose 11.6%, to $1.29 billion from $1.16 billion. Nutrien spent $108 million on share buybacks, which is why earnings per share improved 13.2%, to $2.65 from $2.34.
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 3.6%.
Nutrien has raised its dividend by an average of 3.9% annually over the past five years. Its TSI Dividend Sustainability Rating is Above Average.
Nurtrien’s shares now trade at 13.3 times the forecast $4.66 U.S. a share it’s expected to make in 2026.
Recommendation in Dividend Advisor: Nutrien Ltd. is a buy.
