Moscow — PhosAgro Group (“PhosAgro” or “the Company”) (Moscow Exchange, LSE: PHOR), a vertically integrated Russian company and one of the world’s leading producers of phosphate-based fertilizers, today announces its consolidated interim condensed financial results for the nine months ended 30 September 2025.
9M 2025 highlights
* EBITDA is calculated as operating profit adjusted for depreciation and amortization.
** Adj. EBITDA is calculated as EBITDA adjusted for FX differences from operating activities.
*** Adj. net profit is net profit as reported minus FX gain or loss.
Comments on 9M 2025 financial performance
The Company’s revenue in 9M 2025 increased by 19.1% year-on-year, primarily as a result of an increase in production and sales volumes of phosphate- and nitrogen-based fertilizers in Russian and global markets.
The Company’s EBITDA for the first nine months of the year amounted to RUB 145.7 billion, a year-on-year increase of 17.9%, driven by increased sales volumes and higher prices. At the same time, EBITDA faced downward pressure from the non-monetary impact of exchange rate differences resulting from the appreciation of the rouble against the US dollar.
Adjusted for this impact, EBITDA for 9M 2025 amounted to RUB 164.3 billion, a 34.2% year-on-year increase.
EBITDA margin for 9M 2025 was 33.0%. This level of profitability was driven by the high level of efficiency of the Company’s production assets, increased production of high-margin fertilizers, the Company’s flexible sales policy and a high level of self-sufficiency in terms of feedstocks.
Free cash flow (FCF) for 9M 2025 amounted to RUB 59.0 billion, an increase of more than one-and-half-times year-on-year. FCF was supported by higher operating profit (driven by an increase in sales volumes at higher prices in global markets), improved sales margins and an inflow of more than RUB 4 billion from working capital.
During the reporting period, the changes in working capital were impacted by outflows related to the formation of accounts receivable and payable in 3Q 2025. This outflow was driven by exchange-rate fluctuations, shipments to the Russian market against previously received advances, and continuing high sales volumes in Latin American markets.
The high profit margin and balanced investment approach (with a target value of capital expenditures under 50% of EBITDA) help the Company manage its debt position efficiently. Net debt amounted to RUB 254.5 billion in 9M 2025, and the net debt / EBITDA ratio at the end of the period was 1.28x.
This comfortable debt position allows the Company not only to service all its debt obligations but also to manage the loan portfolio composition in terms of currencies, maturity periods, and interest rates.
A notable recent debt market transaction is the issue of USD 250 million in bonds with a fixed coupon rate of 7.00% per annum and a maturity period of 3 years. The book build was successfully completed at the end of September, and the bonds were placed in early October.
This placement is in line with the debt management policy of attracting foreign currency financing and helps the Company secure borrowings against foreign currency earnings. The attracted funds have been used to refinance current debt, while the significantly lower coupon rate compared to the rouble-denominated bonds helps the Company reduce the borrowing costs across the entire debt portfolio.
The quality of the Company’s creditworthiness is reflected in the high credit ratings it has received from leading Russian agencies (at the country ceiling level of AAA).
Comments on 9M 2025 operating performance
Agrochemical output in 9M 2025 grew by 4.3% year-on-year and amounted to 9.15 million tonnes.
The largest production increases were seen in phosphate-based fertilizers (DAP production rose 47.2%; NPK, 11.9%; and MCP, 24.7%), driven by the completion of commissioning at the Balakovo plant and an increase in its production output. After the third stage of development of the production complex is completed and target capacity is reached, the annual output at the Balakovo plant is expected to increase by almost 1 million tonnes compared to 2024.
Increased production volumes of key feedstocks, such as phosphoric acid and sulphuric acid, have helped to provide the Company’s production facilities with the required feedstocks.
The production of nitrogen-based fertilizers increased by 1.9% thanks to process optimization.
Fertilizer sales in 9M 2025 rose 2.9%, driven by increased production volumes, the strong performance of the Group’s sales network in the Russian market and the solid positions enjoyed by the Company’s products in global markets.
Phosphate-based fertilizers were the main sales driver. Sales of DAP grew by 35.7% year-on-year in 9M 2025. The demand for DAP was high in Southeast Asia as Chinese export restrictions resulted in supply shortages in the region. The short supply and low levels of carry-over stocks contributed to the increase in DAP prices in the Indian market and ensured improved sales margins compared to other markets.
Taking into account this favourable trade outlook, the Company diverted additional volumes of fertilizers to the Indian market. In 9M 2025, the sales volumes in this region increased by almost two and a half times year-on-year.
In 3Q 2025, the sales volumes in the Indian market rose by more than twelve times year-on-year.
NPK sales increased by 6.2% in 9M 2025 driven by both a high demand in the Russian market and increased production capacity in Balakovo.
Another fast-growing export market in 9M 2025 was Africa, with shipments increasing by 16.1%.
Fertilizer market in 3Q 2025
Throughout 3Q 2025, prices for phosphate- and nitrogen-based fertilizers kept rising on the back of seasonal demand in key export markets, particularly in Southeast Asia (India), Central and South America. Other factors supporting the increase of prices for phosphate- and nitrogen-based fertilizers included the low carry-over stocks in the Indian market and the tightened phosphate-based fertilizer export quotas in China (compared to 2024).
Fertilizer prices reached their peak values in global markets by
The average price for DAP/MAP in 3Q 2025 was $736 per tonne (FOB Baltic), versus an average price of $662 per tonne (FOB Baltic) in 2Q 2025 and $570 per tonne (FOB Baltic) in 3Q 2024.
The average price for urea in 3Q 2025 was $426 per tonne (FOB Baltic) compared with $360 per tonne (FOB Baltic) in 2Q 2025 and $307 per tonne (FOB Baltic) in 3Q 2024.
Outlook for 4Q 2025
In 4Q 2025, strong demand is expected to continue in India, especially in the urea market, while the sales volumes in Latin America are expected to decrease due to the end of seasonal demand.
However, the return of China’s fertilizer export restrictions together with the increase in global prices for key feedstocks (ammonia, sulphur) will restrain the downward price trend in the fertilizer markets.