Verde AgriTech (NPK) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue declined to $3.4 million from $4.8 million in Q2 2025, with sales volume dropping 41% year-over-year to 46,709 tons due to reduced fertilizer demand in Brazil amid tighter credit and high financing costs.

• Despite lower volumes, average revenue per ton (excluding freight) rose to $40 from $38, and gross profit per ton increased to $23 from $22.

• Net loss widened to $3.6 million from $2.4 million year-over-year, and EBITDA before non-cash events was $(1.2) million versus $(0.2) million.

• Management focused on closer customer engagement, disciplined credit and pricing strategies, and continued sustainability initiatives, including significant CO2 capture and chloride avoidance.

Financial highlights

• Gross margin improved to 77% in Q2 2026 from 73% in Q2 2025.

• Average revenue per ton sold increased 22% year-over-year to $73, while average production cost per ton rose 6% to $17.

• Gross profit was $2.6 million, compared to $3.5 million in Q2 2025.

• Sales and marketing, and general and administrative expenses decreased by 10% year-over-year.

• Allowance for expected credit losses increased significantly to $(518)k from $6k.

Outlook and guidance

• Fully installed production capacity stands at 3.0 Mtpa, with no additional capex required and potential to generate C$70.1 million of EBITDA at full utilization.

• Management expects potential improvement in fertilizer demand in H1 2027 if global grain prices strengthen and grower economics recover.

• The company is positioned for long-term scalability with a 5.9 billion tonne resource base and 70+ years of estimated coverage at current demand.

• Uncertainty remains due to ongoing credit constraints, political and climate risks, and the timing of any market recovery.