Nufarm Shares Hit 52Wk High on H1 Update: What Was Reported?

Nufarm shares (ASX: NUF) jumped almost 14 percent today, making fresh 52-week highs at A$2.93, after releasing a stronger-than-expected first-half trading update and outlined an expanded cost-reduction programme aimed at restoring profitability and slashing debt.

The Nufarm share price rounded out the day at A$2.91, up 13.67%, marking one of the strongest single-day gains for the stock in recent years. The rally pushed Nufarm’s market cap back above A$1 billion and represented a decisive break from the multi-year downtrend that saw the shares languish near decade lows through much of FY25.

Volume was heavy on the day, with 5.48million shares changing hands, more than 4 times the ADV.

Driving The Rally

The move came after Nufarm reported first-half underlying EBITDA guidance of A$239 million to A$244 million for the six months ended 31 March 2026, representing approximately 17 percent growth year-on-year at the midpoint. Net debt at the end of March stood at around A$1.23 billion, down A$130 million from the prior corresponding period, with leverage measured at roughly 3.6 times last-twelve-months underlying EBITDA, a reduction of about 20 percent compared to the same point a year earlier.

At the heart of the rally was Nufarm’s pivot to what management termed a “margin-over-volume” strategy across its core Crop Protection business. The company is accelerating portfolio rationalisation, targeting a reduction of up to 20 percent of stock-keeping units in North America during FY26, with a global SKU trim of approximately 10 percent per year thereafter. The goal is to exit low-margin, high-complexity products and concentrate on formulations and geographies where Nufarm enjoys pricing power and operational efficiency.

Underpinning the strategy shift is a two-stage cost-reduction programme. The initial A$50 million in savings is on track for full delivery in FY26, with a further A$50 million run-rate targeted by the end of FY27 and the full benefit flowing through in FY28. Combined, the A$100 million of annualised savings represents a material proportion of the group’s FY25 underlying EBITDA base of approximately A$302 million, signalling management’s intent to structurally lift margins even if top-line growth remains muted.

Capital discipline is also front and centre. Nufarm guided capital expenditure below A$200 million for FY26, down from elevated levels during prior years of investment in Seed Technologies and omega-3 platforms. With depreciation and amortisation running at around A$218 million, net interest approximately A$100 million, and underlying tax in the A$20 million to A$30 million range, the company is positioned to generate positive free cash flow and drive net debt down to around two times underlying EBITDA by the end of the current fiscal year. That compares to leverage of 2.7 times at the close of FY25 and would mark a significant de-risking of the balance sheet for a business operating in cyclical agricultural end-markets.

Beyond Crop Protection, Nufarm’s Seed Technologies division is expected to deliver strong EBITDA growth in FY26, driven by continued momentum in hybrid seeds such as canola, sunflower and sorghum, as well as a material uplift from emerging platforms. Management indicated that the emerging platforms segment, which includes omega-3 canola and bioenergy initiatives, should contribute an incremental A$40 million of EBITDA in FY26, a notable turnaround from the impairments and strategic uncertainty that plagued the unit through FY24 and FY25

What Next For NUF

From a valuation perspective, the stock’s jump today suggests that markets had been pricing in significant downside risk around leverage and earnings sustainability. With that risk now perceived to be diminishing, Nufarm’s enterprise value relative to forward EBITDA is moving back toward the middle of the historical range.

Technical factors may also support near-term momentum with the break to 52-week highs on heavy volume typically attracting momentum and quantitative strategies, while the clearing of overhead resistance levels could prompt short covering and renewed accumulation.

Nufarm’s decisive pivot to margin expansion and balance sheet discipline has re-energised a stock that spent much of the past year in the doldrums, but the company remains a leveraged play on agricultural market stability and flawless execution of a complex restructuring agenda. If management delivers on its cost-out targets and hits the two-times leverage goal by year-end, the shares could have further room to run.