Nufarm Shares Nosedive Nearly 30% Following Earnings Downgrade

Highlights:

• Nufarm Limited (ASX: NUF) shares plunged 29.6% at the time of writing after the company downgraded its full-year earnings guidance.
• The earnings revision was driven by weaker fish oil prices and higher production costs, which impacted first-half profitability.
• Despite the downturn, Nufarm remains focused on long-term growth through innovation and sustainable agriculture solutions.

Earnings guidance revised amid weak demand and rising costs

Shares of agricultural chemical company Nufarm Limited (ASX: NUF) tumbled 29.6% at the time of writing after the company issued a significant earnings downgrade and reported a fall in first-half profits. The unexpected move rattled investors, making Nufarm one of the steepest decliners on the Australian Securities Exchange today.

Profit hit by weak fish oil pricing and elevated costs

Nufarm cited several key factors behind the downgrade, including softer-than-expected fish oil prices and escalating production costs. These challenges weighed heavily on its performance, with the company's first-half earnings taking a notable hit. While exact earnings figures were not disclosed in the initial update, Nufarm signalled that full-year earnings would fall short of previous guidance.

The company, which supplies crop protection and seed technologies globally, has faced demand pressures in key markets, alongside inflationary pressures affecting input costs. The downturn in fish oil pricing—used in its omega-3 segment—further eroded margins.

Investor sentiment dips sharply

The sharp decline in share price reflects broader investor concern about Nufarm’s near-term outlook. Analysts had anticipated a more stable result, given recent investments in product development and global expansion. However, the combination of soft commodity markets and rising operating expenses appears to have undermined those expectations.

Despite the setback, Nufarm reaffirmed its commitment to long-term growth, highlighting ongoing innovation in its crop protection portfolio and increased focus on sustainable farming solutions.

Still, today's steep decline underscores the sensitivity of the agricultural sector to global pricing pressures and cost volatility. Investors will be watching closely for Nufarm’s full-year results and any signs of recovery in its core markets.

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