Nufarm (ASX:NUF) has told investors it is on track for a notable lift in earnings, even as it shrinks its Manufacturing footprint. In an ASX trading update on Wednesday, 23 September 2026, the crop protection and seeds company said it expects underlying EBITDA of between $370 million and $380 million for the year ending 30 September 2026, an increase of about 25 per cent on the prior year.

The same update confirmed a decision to close the Alsip manufacturing Facility in the United States, alongside the previously announced closure of its Kwinana site in Western Australia. The reason is cost. Both closures sit within a program targeting $50 million of run-rate savings by the end of FY27, which the company says it is on track to deliver.

What Nufarm announced

Nufarm expects material items of between $90 million and $110 million after tax, primarily non-cash charges tied to its strategy, the site closures and program costs. These items sit outside underlying earnings, so statutory profit will be lower than the underlying measures suggest.

Where the Earnings growth is coming from

The larger Crop Protection Business is expected to deliver underlying EBITDA broadly in line with the prior year. Nufarm pointed to foreign exchange headwinds, manufacturing disruptions and softer conditions in North America as constraints.

Some simple arithmetic puts the guidance in context. A midpoint of $375 million and growth of about 25 per cent implies prior-year underlying EBITDA of roughly $300 million. Set against first-half underlying EBITDA of $243 million, the full-year range implies second-half underlying EBITDA of about $127 million to $137 million, meaning earnings remain weighted towards the first half.

That split explains the headline. Group earnings are rising strongly, but the traditional crop chemicals business is not growing, which is why management is focused on its cost base and plant network.

Why two sites are closing

The Kwinana decision was first made public in August. on 7 August 2026 that the herbicide plant would cease operations by May 2027, with about 20 million litres of annual production moving to Nufarm's Laverton facility in Victoria. The site will then be decommissioned and sold.

The Alsip facility is new to the closure list. Nufarm has not detailed the timetable in the update, but the plant forms part of its North American manufacturing footprint, where conditions have been softer.

Closing plants typically reduces fixed overheads, consolidates production into fewer sites and simplifies the product range. The update links the savings program to SKU rationalisation, meaning a reduction in the number of individual products, as well as site restructuring.

The half-year context

The update builds on first-half results released on 27 May 2026. Nufarm first-half underlying EBITDA of $243 million, up 18 per cent, and underlying net profit after tax of $52 million, up 35 per cent. Seed Technologies EBITDA more than doubled to $58 million, while Crop Protection rose 3 per cent to $223 million. Net Debt was $1.23 billion. The half-year release also noted a regulatory milestone for Omega-3 in Japan and an extension of its carinata Partnership with bp through to 2050.

The $50 million cost program was first announced in April 2026, half-year release.

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