Zacks Equity Research Report on the Fertilizer Industry

May 14, 2025 – Key Players CF Industries, Mosaic, and Yara International Poised to Benefit

Industry Overview

U.S.-based investment research firm Zacks Equity Research released a report on May 14, 2025, forecasting that strong farm incomes and expanded planting acreage will drive short-term global demand for crop nutrients, benefiting the fertilizer industry. Key players including CF Industries Holdings, Inc. (CF), The Mosaic Co. (MOS), and Yara International ASA (YAR.OL) are positioned to capitalize on growth across major markets.

• Phosphate Market: Fueled by rising global demand and low inventories among producers and distributors.
• Potash Demand: Supported by improved grower affordability and robust agricultural economics.
• Nitrogen Imports: Brazil and India maintain strong import needs due to thriving agricultural and industrial demand.

The USDA projects U.S. net farm income to jump 29.5% year-over-year to 180.1billion in2025, driven by a 354.5180. 1billionin2025, driven by 354.542.4 billion. Global corn and soybean planting areas are expected to remain elevated, signaling a rebound in fertilizer consumption.

Company-Specific Insights

Yara International ASA (YAR.OL)

• Headquarters: Oslo, Norway
• Profile: Global leader in mineral fertilizers with expertise in ammonia production and distribution.
• 2025 Outlook: Benefits from favorable nitrogen demand and low energy costs; projected EPS growth of 93.1%.

CF Industries Holdings, Inc. (CF)

• Headquarters: Illinois, USA
• Profile: Top nitrogen/hydrogen producer for fertilizers, clean energy, and industrial applications.
• Performance: Exceeded Zacks EPS estimates for four consecutive quarters (avg. beat: 32%); long-term EPS growth forecast: 37%.
• Tailwinds: Strong North American industrial nitrogen demand and declining natural gas prices.

The Mosaic Co. (MOS)

• Headquarters: Florida, USA
• Profile: Leading phosphate/potash producer.
• Cost Initiatives: Plans to slash $150 million in operating costs by end-2025.
• Sentiment Shift: Zacks’ 2025 EPS estimates raised 4.3% over the past 60 days.

Market Positioning

• Zacks Industry Rank: Fertilizer sector ranks 33rd out of 250+ industries (top 13%), reflecting strong growth prospects.
• Commodity Prices: Corn, soybean, and wheat prices remain supportive despite retreating from 2022 peaks.

Risk-Reward Dynamics

• Opportunities: Rising crop yields in Brazil/India, U.S. farm policy support, and low global inventories.
• Challenges: Geopolitical trade disruptions and energy price volatility.

Zacks’ report underscores a bullish outlook for the fertilizer sector, with CF Industries, Mosaic, and Yara International strategically positioned to leverage growing nutrient demand. Current agricultural fundamentals and policy tailwinds validate the optimistic projections.

Data Sources: Zacks Equity Research, USDA, Company Filings.
Editors’ Note: Monitor natural gas price trends and planting acreage updates for near-term sector catalysts.