Earnings Report

Fertiglobe

9M 26

1. Company Overview & Earnings Context

is an Abu Dhabi-based, ADX-listed producer and exporter of nitrogen fertilizers, principally urea and ammonia. It operates production facilities in the UAE, Egypt and Algeria, with a combined production capacity of approximately 6.6 million tonnes. Its access to six major ports and distribution hubs supports exports across the Mediterranean, Red Sea and Arabian Gulf.

ADNOC held 87.4% of Fertiglobe’s share capital at 30 September 2026, with the remaining 12.6% held by public shareholders.

The first nine months of 2026 were strong overall, with higher fertilizer prices and improved ammonia pricing driving substantial revenue and adjusted-profit growth. However, Q3 was more challenging: the planned turnaround at EBIC in Egypt, higher logistics and operating costs, and lower urea prices weighed on profitability.

A key distinction is that 9M adjusted earnings improved much more strongly than reported attributable profit, while Q3 profitability declined sharply year-on-year. The analysis below separates reported and adjusted performance to show this difference clearly.

2. Financial Performance Snapshot

All financial figures are in USD million unless otherwise stated.

9M 2026 performance

Key metric	9M 2026	9M 2025	Change
Revenue	2,905.5	2,019.0	+44%
Cost of sales	(2,118.2)	(1,412.5)	+50%
Gross profit	787.3	606.5	+30%
Gross profit margin	27.1%	30.0%	-2.9 pp
SG&A expenses	(148.4)	(104.4)	+42%
Operating profit	638.9	502.1	+27%
Adjusted EBITDA	944.4	723.0	+31%
Reported EBITDA	866.8	727.8	+19%
Net finance costs	(53.2)	(87.5)	Improved
Profit before tax	585.7	414.6	+41%
Income tax expense	(38.0)	9.0	—
Consolidated net profit	547.7	423.6	+29%
Net profit attributable to shareholders	335.1	327.6	+2%
Adjusted attributable net profit	340.6	218.3	+56%
Basic EPS (USD)	0.041	0.040	+2%
Adjusted EPS (USD)	0.042	0.026	+62%

Underlying performance: Fertiglobe delivered strong revenue and adjusted EBITDA growth, mainly supported by higher fertilizer benchmark prices and increased third-party trading. However, gross margin declined from 30.0% to 27.1%, reflecting higher cost of sales and operating pressures. The relatively modest 2% growth in reported attributable profit, compared with 56% growth in adjusted attributable profit, is an important distinction for investors.

Q3 2026 performance

Key metric	Q3 2026	Q3 2025	Change
Revenue	904.5	758.3	+19%
Gross profit	162.4	243.7	-33%
Gross margin	18.0%	32.1%	-14.1 pp
Adjusted EBITDA	231.3	285.6	-19%
Adjusted EBITDA margin	25.6%	37.7%	-12.1 pp
Reported EBITDA	187.1	280.2	-33%
Operating profit	111.8	206.2	-46%
Profit before tax	85.4	181.2	-53%
Consolidated net profit	77.5	270.0	-71%
Reported attributable net profit	22.7	234.8	-90%
Adjusted attributable net profit	51.2	133.5	-62%
Basic EPS (USD)	0.003	0.029	-90%

Q3 interpretation: Revenue growth did not translate into stronger profitability. The planned EBIC turnaround, lower urea prices relative to the previous quarter, and significantly higher logistics and operating costs reduced margins. The sharp decline in reported attributable profit was also influenced by the prior-year comparison, which included a substantial uncertain-tax-position reversal at EFC.

Adjusted earnings and accounting adjustments

Fertiglobe uses adjusted EBITDA and adjusted attributable net profit as alternative performance measures intended to reflect underlying operating performance.

9M reported EBITDA was $866.8 million, compared with adjusted EBITDA of $944.4 million.
The $77.6 million adjustment included:

Conflict-related costs: $45.5 million.
Temporary fertilizer export duties: $19.3 million.
Movement in provisions: $7.9 million.
Cost optimization programme: $4.4 million.
Project pre-operating expenditure: $0.5 million.

Adjusted attributable net profit was $340.6 million, compared with reported attributable profit of $335.1 million.
The adjusted net profit reconciliation also reflects a $52.7 million deferred tax benefit arising from the reduction in Fertil's tax rate, together with foreign-exchange, non-controlling interest and other adjustments.

The adjusted figures provide a useful view of operating performance, but investors should also monitor the recurring nature of conflict-related costs and other excluded items.

3. Operating Performance & Major Programs

Production and sales performance

Fertiglobe's operating performance was resilient despite trade-route disruption and the EBIC turnaround.

Sales volumes ('000 tonnes)	9M 2026	9M 2025	Change
Own-produced urea	3,150	3,214	-2%
Own-produced ammonia	810	904	-10%
Total own-produced products	3,965	4,118	-4%
Third-party traded products	898	680	+32%
Total product volumes	4,863	4,798	+1%

Own-produced sales volumes declined 4%, partly because UAE trade-route disruptions affected exports and the prior-year period included 239,000 tonnes of deferred sales from late 2024.
Third-party traded volumes increased 32%, supporting total sales volumes.
In Q3, own-produced volumes increased 5% year-on-year to 1.394 million tonnes despite the EBIC turnaround.
Q3 ammonia own-produced sales volumes increased 27% to 287,000 tonnes, while urea volumes remained broadly unchanged at 1.106 million tonnes.

Production facilities and operational developments

Egyptian Fertilizer Company (EFC) and Sorfert – Algeria

Both facilities continued to deliver strong operational performance.
Urea utilization averaged 99% across the two companies during 9M 2026.
This performance reflects progress under the Manufacturing Improvement Plan (MIP).

Egypt Basic Industries Corporation (EBIC)

The planned turnaround was completed during Q3.
Management expects ammonia production to increase by approximately 20%.
The improvement is expected to contribute around $27 million in annual EBITDA compared with the 2024 baseline, at 2024 prices.
Improved plant reliability and energy efficiency are expected to support future profitability.

UAE operations

UAE export rates recovered to 95% of production in Q3, compared with 56% in Q2.
Inventory management, alternative logistics arrangements and commercial execution helped maintain customer supply.
Higher freight and logistics costs continued to weigh on netbacks.

Strategic programmes and growth initiatives

Manufacturing Improvement Plan (MIP)

The MIP was approximately 70% complete.
Management expects $81 million of EBITDA uplift by the end of 2026.
The target increases to $110–120 million by the end of 2027.
2026 represents the peak of MIP spending, with maintenance capital expenditure expected to normalize from 2027.

Grow 2030 strategy

Fertiglobe has implemented initiatives representing approximately 50% of its target to increase EBITDA by around 60% by 2030.
The strategy focuses on improving existing operations, expanding the ammonia platform and pursuing growth opportunities with attractive returns.

FIT3 cost optimization programme

The new programme targets an additional $30 million of annual non-gas cost savings by year-end 2028.
This follows the successful implementation of the earlier $55 million cost optimization target.

TA’ZIZ Ammonia project

The project secured a $462 million debt facility in November 2026.
This financing enables the repayment of $105 million of shareholder funding to Fertiglobe in Q4 2026.

Wengfu Australia acquisition

Fertiglobe finalized the purchase price allocation for Wengfu Australia Pty Limited.
The final purchase consideration remained $104.2 million.
Goodwill was finalized at $6.5 million.
A further $27.6 million cash payment was made during 9M 2026.

These initiatives support future production efficiency, market access and earnings diversification. However, the expected EBITDA benefits from MIP and EBIC should be assessed against actual delivery in subsequent reporting periods.

4. Key Performance Drivers

Positive drivers

1. Higher fertilizer prices

The 9M 2026 average ammonia benchmark price in Northwest Europe increased 44% to approximately $761 per tonne.
Egypt FOB granular urea prices increased 35% to approximately $589 per tonne.
Higher realized market prices were the main contributor to revenue growth.

2. Strong ammonia market

Q3 ammonia prices in Northwest Europe averaged $719 per tonne, up 29% year-on-year.
European natural gas costs remained elevated, increasing the production costs of European nitrogen fertilizer manufacturers.
Production curtailments and maintenance outages in Europe supported ammonia market pricing.

3. Improved operational efficiency

EFC and Sorfert maintained average urea utilization of 99%.
Completion of the EBIC turnaround is expected to improve production and reliability.
MIP initiatives are expected to generate additional EBITDA over the next two years.

4. Higher third-party trading

Third-party traded volumes increased 32% during 9M 2026.
This helped compensate for lower own-produced sales volumes and supported total sales volume growth.

Negative drivers and operating risks

1. Lower urea prices during Q3

Egypt FOB urea prices averaged $493 per tonne in Q3, up only 4% year-on-year.
The benchmark declined 32% compared with Q2 2026.
This contributed to weaker Q3 gross profit and EBITDA margins.

2. Higher logistics and freight costs

Regional shipping constraints increased transportation costs.
UAE export recovery helped restore volumes, but higher freight costs reduced netbacks.

3. Lower own-produced volumes

Own-produced volumes declined 4% during 9M 2026.
Ammonia volumes were particularly weak, declining 10% year-on-year.

4. Higher operating costs

Cost of sales increased 50%, faster than revenue growth of 44%.
SG&A expenses increased 42%, partly contributing to pressure on operating margins.

5. Geopolitical and trade-route uncertainty

Disruptions to shipping routes in the Middle East affected export logistics and working capital.
Management considers these effects temporary, but their duration remains uncertain.

6. Tax comparison effects

The prior-year period benefited from the resolution of the EFC goodwill tax deductibility matter.
In 2026, Fertiglobe also recognized a $52.7 million deferred tax benefit following the reduction in Fertil's tax rate.
These tax developments affect the comparability of reported earnings between periods.

Fertilizer market outlook

Management reported a stronger start to Q4 2026, with urea and ammonia prices rising approximately 30% and 7%, respectively, from their summer lows.

The company expects ammonia prices to receive support from elevated European gas costs and production curtailments. Urea demand is supported by agricultural purchasing, improved affordability and buying activity in Europe, the Americas and India.

However, fertilizer pricing remains cyclical and exposed to changes in crop prices, natural gas costs, global supply and geopolitical conditions.

5. Balance Sheet, Backlog & Cash Flow

Balance sheet position

USD million; 30 September 2026 compared with 31 December 2025.

Key metric	Sep 2026	Dec 2025
Total assets	5,681.7	4,949.5
Property, plant and equipment	2,415.0	2,499.0
Right-of-use assets	124.8	139.4
Goodwill and intangible assets	652.6	656.9
Inventories	346.4	335.5
Trade and other receivables	580.5	576.2
Cash and cash equivalents	1,553.4	735.1
Total equity	2,108.9	1,799.8
Total liabilities	3,572.8	3,149.7
Gross interest-bearing debt	1,859.2	1,740.6
Lease obligations	150.0	158.4
Net debt (management measure)	305.8	1,005.5

Balance-sheet observations

Total assets increased 15%, mainly supported by higher cash balances.
Total equity increased to $2.11 billion, with non-controlling interests rising to $715.3 million.
Gross interest-bearing debt increased 7% to $1.86 billion.
Cash increased to $1.55 billion, resulting in management-reported net debt declining to $305.8 million.
The company reported consolidated net debt of approximately 0.2x LTM adjusted EBITDA.

Important cash availability consideration: Approximately $1.0 billion of the reported cash balance was held by Sorfert in Algeria. These funds are subject to local exchange restrictions and cannot be freely transferred for general use by other Group entities, although Sorfert can use them for its own operations. Consequently, the headline cash balance should not be treated as fully unrestricted Group liquidity.

Debt and financing position

Gross interest-bearing debt stood at $1,859.2 million.
Current borrowings increased to $461.4 million from $342.0 million.
Non-current borrowings were $1,397.8 million.
In June 2026, Fertiglobe drew down a $200 million unsecured term loan from XRG at SOFR + 0.7%, repayable in December 2026, with a possible six-month extension by mutual agreement.
The company also has a $300 million unsecured ADNOC term loan at SOFR + 1.05%, repayable in March 2028.
All financial covenants were met at 30 September 2026.
Assets with a carrying value of $370.5 million were pledged as security for borrowings.

Management also provides a proportionate net debt measure of $1,167 million, equivalent to 1.2x LTM adjusted EBITDA. This adjusts for non-controlling interests, cash retained at Sorfert relating to undistributed FY2025 dividends and $518 million of accrued gas costs. This is a more conservative measure than the consolidated net debt figure and is useful when evaluating the Group's economic leverage.

Cash flow performance

Cash flow metric	9M 2026	9M 2025
Cash flow from operating activities	985.9	421.3
Cash used in investing activities	(142.9)	(111.3)
Cash used in financing activities	(11.2)	(307.0)
Net increase in cash	831.8	3.0
Capital expenditure	115.3	111.3
Free cash flow (management measure)	887.3	268.8

Cash flow observations

Operating cash flow improved significantly to $985.9 million from $421.3 million.
The improvement was supported by higher profit, lower receivables absorption and an increase in trade and other payables.
Investing cash outflow increased to $142.9 million, including $115.3 million of capital expenditure and $27.6 million related to the Wengfu acquisition.
Financing cash outflow reduced significantly to $11.2 million, compared with $307.0 million in the previous period.
Borrowing proceeds of $1,404.3 million were partly offset by repayments of $1,265.3 million.
Dividends paid to shareholders amounted to $135 million.

Free cash flow qualification: Management reported $887.3 million of consolidated free cash flow. However, its calculation excludes higher gas costs accrued at Sorfert but not yet paid. These unpaid costs increased payables by $132 million during 9M 2026. This means the reported free cash flow measure is not directly equivalent to cash generated after all accrued operating costs have been paid.

Dividends, buybacks and commitments

The company paid $135 million in dividends to shareholders during 9M 2026.
A further $150 million H1 2026 dividend was paid in October 2026.
Fertiglobe repurchased approximately 1.34% of outstanding shares for around $74 million under its share buyback programme.
Capital commitments at 30 September 2026 amounted to $112.6 million, compared with $145.8 million at December 2025.
Management reported no significant changes in contingencies compared with the previous annual financial statements.

Backlog and contracted visibility

The interim financial statements and management report do not disclose a single quantified Group order backlog. Therefore, a numerical backlog assessment cannot be made from the supplied documents.

Nevertheless, Fertiglobe's production facilities, established export relationships, distribution network and strategic ammonia projects provide operating and market visibility. The TA’ZIZ project and Grow 2030 strategy are important longer-term growth opportunities, but their future earnings contribution should be distinguished from existing reported revenue and cash flows.

6. Investor Takeaway

Fertiglobe delivered a strong nine-month performance in 2026, supported by higher fertilizer prices, increased third-party trading and improved operating efficiency. Revenue increased 44%, adjusted EBITDA grew 31%, and adjusted attributable net profit increased 56%.

However, the Q3 results show that the operating environment remains challenging. Gross margin declined sharply, adjusted EBITDA fell 19%, and adjusted attributable profit decreased 62% year-on-year. Higher freight costs, the EBIC turnaround and lower urea prices were key pressures.

The balance sheet appears stronger on the basis of consolidated net debt, which declined to $305.8 million. Nevertheless, investors should consider the $1 billion of cash held at Sorfert that is subject to transfer restrictions, alongside management's higher proportionate net debt measure of $1.17 billion. Cash flow generation improved substantially, although the reported free cash flow measure excludes certain accrued but unpaid gas costs.

Key points for investors to monitor

Profitability: Whether gross and adjusted EBITDA margins recover as urea prices improve and turnaround costs normalize.
Production: Whether EBIC delivers the expected 20% increase in ammonia production and $27 million annual EBITDA contribution.
Cost efficiency: Delivery of the MIP's $110–120 million EBITDA uplift target by the end of 2027 and FIT3's additional $30 million annual savings target by 2028.
Logistics: Whether UAE exports can remain close to normal levels without continued material freight-cost pressure.
Cash flow: Whether operating cash generation remains strong after accrued gas costs are settled.
Debt and liquidity: Monitoring proportionate net debt, the XRG loan repayment/extension and the availability of Sorfert's restricted cash.
Growth strategy: Execution of TA’ZIZ and Grow 2030 projects while maintaining disciplined capital allocation.

Overall assessment: Fertiglobe's 9M 2026 performance demonstrates strong revenue growth, operational resilience and improving adjusted earnings. Its medium-term prospects are supported by the MIP, the completed EBIC turnaround and a potentially supportive fertilizer market. However, the weaker Q3 margins and the difference between consolidated and proportionate net debt mean investors should focus on sustainable profitability and cash conversion rather than headline revenue and adjusted earnings growth alone.