Yara has warned of a major impact on global fertiliser supplies and food security if the war in the Middle East drags on.

The military escalation in the region in February has led to shipping through the Strait of Hormuz, which is located between Iran and Oman, almost coming to a standstill.

Yara said this is impacting around one-third of global urea trade and one-fifth of global liquefied natural gas (LNG) volumes, increasing both energy and nitrogen (N) fertiliser prices.

The fertiliser company said a significant share of phosphate production is also being dependent on the region.

"A prolonged situation will significantly impact global fertiliser supply and consequently also food security," the Norwegian company said.

While Yara has limited direct exposure in the region, the company said the primary impact on its business will depend on global commodity markets for gas, nitrogen, urea, and phosphates.

Yara

Yara has reported that revenue and other income stood at $15.7 billion in 2025, up from $13.9 billion in the previous year.

In financial results published today (Friday, March 20), the company said that operating income stood at $1.57 billion last year, up from $686 million in 2024.

Yara’s 2025 net income was $1.37 billion, compared to $15 million a year earlier.

The company attributed the improvement to higher margins and volumes, reduced fixed costs, in addition to a foreign currency translation gain of $383 million, compared to a foreign currency translation loss of $321 million in 2024.

Last year, Yara's earnings before interest, tax, depreciation, amortisation (EBITDA), excluding special items, stood at $2.8 billion.

This represents a 37% increase on the previous year ($2.05 billion), which the company said mainly reflected higher margins and volumes, as well as reduced fixed costs.

The company's total deliveries were 3% higher compared to 2024, driven by Europe and Brazil.

Europe’s EBITDA, excluding special items, was $612 million, 121% higher than in 2024, mainly due to higher margins, higher volumes, and lower fixed costs.

Total deliveries in the region were 5% higher compared with 2024, driven by increased premium product deliveries.

In the Americas, EBITDA, excluding special items, was $839 million, a 28% increase on the previous year.

The company said this mainly reflected higher margins, higher volumes and lower fixed costs.

Total deliveries were 6% higher compared with 2024, driven by nitrogen (N), phosphorus (P), and potassium (K), and the recovery of lost sales in Brazil last year due to floods.

EBITDA, excluding special items, across Africa and Asia was recorded at $227 million, 2% higher than in 2024, supported by high commercial margins and lower fixed costs.

Total deliveries across these regions were stable compared with 2024.

Fertiliser

The report said that despite the strong underlying performance, Yara did not reach its original 2025 fertiliser production targets.

The company said this was due to "changed market conditions and a strategic shift toward value over volume since the targets wereestablished".

However, it noted that adjusted for portfolio changes, finished fertiliser production was very close to the original target.

Yara has committed to delivering an EBITDA uplift of $200 million by the end of 2027 and $350 million by 2030.

The company said this will be achieved through maximising the use of assets, optimising logistics, growing Yara's market share in Europe and prioritising investments in core assets.

By the end of 2025, Yara concluded its fixed cost and capex (capital expenditure) reduction programme ahead of plan and over target.

Fixed cost reductions amounted to approximately $230 million and capex was reduced by $400 million.

Svein Tore Holsether, Yara president and chief executive, said that "Yara is, by any measure, a "crises-tested" organisation".

He said the past year "once again underscored that stability cannot be taken for granted".

"Geopolitical tensions, volatile energy markets, and shifting trade dynamics continued to test global systems throughout 2025, with energy and agriculture among the sectors most exposed," he said.

"Once again, we demonstrated the strength and resilience of our integrated global business model and the exceptional dedication of our people," he added.