Nutrien downgraded to Hold after mixed Q2 with sales up but profits down amid cost pressures.

Nutrien's Q2 results showed higher sales but weaker profitability due to lower fertilizer volumes and increased sulfur costs. While long-term fertilizer demand is linked to crop production, the company's earnings remain cyclical with near-term uncertainty in nitrogen, phosphate, and retail segments. Potash performed better, leading to an upward revision of the lower end of 2026 potash volume guidance. Despite trading below sector valuations, Nutrien's current price is above its five-year average, limiting investment safety.