Translation. Region: Russian Federation –
Source: Phosagro – Phosagro – An important disclaimer is at the bottom of this article.
Moscow. November 20, 2025. PhosAgro Group (hereinafter "PhosAgro" or the "Company"; ticker on the Moscow and London Stock Exchanges: PHOR), a Russian vertically integrated company that includes one of the world's largest producers of phosphate-based mineral fertilizers, today publishes its consolidated interim condensed financial statements for the nine months ended September 30, 2025.
Key performance indicators for the first 9 months of 2025
Agrochemical production increased by 4.3% year-on-year to 9.15 million tonnes. This increase was primarily driven by a 5.5% increase in phosphate fertilizer and feed phosphate production to 7.02 million tonnes. Total agrochemical sales increased by 2.9% year-on-year to 9.35 million tonnes. Revenue for the first nine months of 2025 amounted to RUB 441.7 billion, up 19.1% year-on-year. The company's EBITDA was RUB 145.7 billion, up 17.9% year-on-year. Adjusted EBITDA increased by 34.2% year-on-year to RUB 164.3 billion. Free cash flow increased more than 50% to RUB 59.0 billion. Net debt as of September 30, 2025, amounted to 254.5 billion rubles. The net debt to EBITDA ratio (for 12 months) at the end of the reporting period decreased to 1.28x.
Key financial and operational indicators:
Revenue 441,736 371,035 19.1% EBITDA * 145,663 123,523 17.9% EBITDA margin 33.0% 33.3% EBITDA adj.** 164,289 122,412 34.2% Net profit 95,692 64,817 47.6% Net profit, adj.*** 89,270 72,986 22.3% Free cash flow 59,018 35,991 64.0% 09/30/2025 12/31/2024 Net debt 254,522 325,356 Net debt/EBITDA for 12 months 1.28 1.84
* EBITDA is calculated as operating profit minus depreciation.
** Adjusted EBITDA is defined as EBITDA excluding exchange rate differences from operating activities.
*** Adjusted net profit is defined as net profit excluding gains or losses from exchange rate differences.
Comments on the financial indicators for the first 9 months of 2025
The company's revenue for the first nine months of 2025 increased by 19.1% year-on-year. This growth was primarily due to increased production and sales of phosphorus and nitrogen fertilizers in the Russian and international markets.
The company's EBITDA for the first nine months of 2020 amounted to 145.7 billion rubles, 17.9% higher than the same period in 2024. This year-over-year increase was positively impacted by growth in sales volumes and prices. However, the figure was under pressure from the non-cash effect of exchange rate differences arising from the strengthening of the ruble against the US dollar.
Adjusted for this effect, EBITDA for the first nine months of 2025 amounted to RUB 164.3 billion, 34.2% higher than the figure for the same period last year.
EBITDA yield for the first nine months of 2025 was 33.0%. This level of profitability was achieved by the high efficiency of the company's production assets, increased production of high-margin fertilizers, a flexible sales policy, and a high level of self-sufficiency in raw materials.
Free cash flow (FCF) for the first nine months of 2025 amounted to RUB 59.0 billion, an increase of more than 50% compared to the same period last year. This figure was driven by increased operating profit (due to increased sales volumes at higher prices on global markets), higher sales margins, and a cash inflow from working capital totaling over RUB 4 billion.
The company's working capital dynamics during the reporting period were impacted by an outflow of funds for accounts receivable and accounts payable in the third quarter. This outflow was due to changes in exchange rates, shipments of products to the domestic market based on previously received advances, and continued high sales volumes to Latin American markets.
The company's high profitability and prudent approach to investment (the internal capital expenditure target is no more than 50% of EBITDA) enable it to effectively manage its debt burden. As of the end of the first nine months of 2025, the company's net debt amounted to RUB 254.5 billion, and the net debt/EBITDA ratio at the end of the period was 1.28x.
This level of the indicator is comfortable for the company and allows it not only to service its current debt, but also to actively manage the structure of its borrowing portfolio in terms of currencies, terms, and interest rates.
Among the most recent transactions in the public debt market, one can note the issue of bonds in the amount of US$250 million with a 3-year term and a 7% coupon, the order book for which was successfully closed at the end of September, and the placement itself was completed in early October.
This transaction is consistent with the Group's debt policy of raising foreign currency financing and provides borrowings secured by the company's foreign currency revenues. The funds raised will be used to refinance existing debt, and the significantly lower coupon rate, compared to the cost of ruble borrowings, will reduce interest payments across the Group's entire debt portfolio.
The company's high credit quality is confirmed by credit ratings from leading Russian agencies at the country ceiling level of "AAA".
Phosphorus-containing fertilizers and feed phosphates 7,019.5 6,655.0 5.5% Nitrogen fertilizers 1,938.4 1,902.6 1.9% Other products 196.8 221.5 -11.2% TOTAL agrochemical products 9,154.7 8,779.1 4.3% Phosphorus-containing fertilizers and feed phosphates 7,166.8 6,985.7 2.6% Nitrogen fertilizers 1,986.1 1,878.1 5.8% Other products 198.1 220.5 -10.2% TOTAL agrochemical products 9,351.0 9,084.3 2.9%
Comments on operating indicators for the first 9 months of 2025
The production of agrochemical products for the first 9 months of 2025 increased by 4.3% and amounted to 9.15 million tons.
The main increase in production was in phosphate fertilizers (DAP, up 47.2%; NPK, up 11.9%; and MSR, up 24.7%). These growth figures are due to the completion of commissioning and the ramp-up of output in Balakovo. The production capacity of this production complex, after completing all three modernization phases and reaching full capacity, is expected to increase by almost 1 million tons of output per year (compared to 2024 levels).
The increase in production volumes of the main raw materials – phosphoric and sulfuric acids – provided the company’s production capacity with the necessary raw materials.
Nitrogen fertilizer production volumes increased by 1.9% due to the optimization of production processes at existing facilities.
The company's fertilizer sales for the first nine months of 2025 increased by 2.9%, driven by improved production performance, the Group's highly efficient distribution network in Russia, and the strong position of the company's products in global markets.
Phosphate fertilizers accounted for the bulk of sales growth. DAP sales for the first nine months of 2025 increased by 35.7% year-on-year. This fertilizer was in high demand in Southeast Asian markets, as export restrictions in China reduced supply in the region. The supply shortage and low carryover inventory levels led to higher prices in India and ensured higher sales margins compared to other markets.
Taking advantage of the favorable market conditions, the company was able to redirect additional volumes of fertilizers to the Indian market and increased sales in this area by almost 2.5 times over the first nine months compared to the previous year.
Moreover, sales volumes to India in the third quarter of 2025 increased more than 12-fold compared to the same period last year.
The 6.2% increase in NPK sales in the first 9 months of 2025 was due to both good demand in the Russian market and the growth of production capacity in Balakovo.
Among the export markets with the highest growth rates of shipments over the first 9 months of 2025, the African market stands out, with sales to it growing by 16.1%.
Fertilizer market in Q3 2025
During the third quarter of 2025, the upward price trend in nitrogen and phosphate fertilizer markets continued, driven by growing seasonal demand in key export destinations, particularly in South Asia (India) and Central and South America. The need to replenish low carryover stocks in the Indian market and the reduction of phosphate fertilizer export quotas from China (relative to 2024 quota levels) further supported prices in the phosphate and nitrogen fertilizer markets.
By the middle of the third quarter, global fertilizer prices reached peak levels and began to gradually adjust as the main phase of seasonal procurement ended and the affordability of fertilizers decreased relative to prices of key agricultural products.
The average price level for DAP/MAP in Q3 2025 was $736/t, FOB, Baltic, compared to the average price level of $662/t, FOB, Baltic in Q2 2025 and $570/t, FOB, Baltic in Q3 2024.
The average price level for urea in Q3 2025 was $426/t, FOB, Baltic, compared to the average price of $360/t, FOB, Baltic in Q2 2025 and $307/t, FOB, Baltic in Q3 2024.
Outlook for Q4 2025
The global fertilizer market in Q4 was characterized by stable demand from India, especially in the urea market, but a decrease in demand from Latin American markets due to the end of the fertilizer purchasing season.
The resumption of restrictions on fertilizer exports from China, combined with rising global prices for key raw materials (ammonia, sulfur), will curb the downward price trend in fertilizer markets.
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.