The fertilizer industry faces near-term headwinds from elevated raw material costs due to geopolitical disruptions, which pressures margins and may reduce farmer demand due to affordability concerns. However, rising fertilizer prices in 2025-2026 are expected to drive top-line and margin expansion. Three stocks worth monitoring are ICL Group (Zacks Rank #2), Nutrien (Zacks Rank #3), and Intrepid Potash (Zacks Rank #3), all benefiting from higher prices and operational efficiency initiatives despite industry challenges.

The Zacks Fertilizers industry faces near-term headwinds from elevated raw material costs (sulfur, ammonia, natural gas) due to supply disruptions and geopolitical tensions, which pressure margins and may reduce farmer demand due to affordability concerns. However, rising fertilizer prices in 2025 present opportunities for margin expansion. The industry ranks #226 out of 250 Zacks industries and has underperformed the S&P 500 by 47.3% over the past year, though valuations appear attractive at 13.99X EV/EBITDA.

Ashland Inc. (ASH) shares have surged 30.2% over the past six months, significantly outperforming its industry. The rally is driven by improved margin resilience from cost reductions and portfolio optimization, strong free cash flow generation of $103 million, and a doubled $1 billion share buyback authorization. The company's shift to a business-unit-focused operating model supports profitable growth in specialty chemicals.

Element Solutions (ESI) shares have surged 40.8% year-to-date, outperforming its industry. The company raised 2026 adjusted EBITDA guidance to $690-$710 million and expects ~20% EPS growth, driven by strong AI-related electronics demand, operational efficiency improvements, and improved cash generation.

Air Products and Chemicals (APD) raised its fiscal 2026 adjusted earnings guidance to $13.39-$13.49 per share, driven by high-return industrial gas projects, strategic acquisitions, and productivity initiatives. The company benefits from a $3 billion project backlog, the NEOM green hydrogen project in Saudi Arabia, and $250 million in expected annual cost savings from headcount reductions. Analyst sentiment remains positive with earnings estimates revised upward over the past 60 days.

Kronos Worldwide (KRO) is experiencing strong recovery driven by 10% year-over-year TiO2 sales volume growth, market share gains across all major markets, and improved pricing. The company's gross margin expanded to 18% in Q2 2026 from 13% a year earlier, supported by restructuring savings and lower-cost inventory. EBITDA surged to $52.9 million while operating cash flow improved significantly, with the stock gaining 36.6% over the past year.

American Critical Minerals Corp. announced that its President and CEO Dean Pekeski will present at the Precious Metals & Critical Minerals Virtual Investor Conference on July 23rd, 2026. The company is advancing exploration of its Green River Project in Utah's Paradox Basin, with plans to commence drilling operations in August 2026 targeting potash, lithium, and bromine deposits.

Intrepid Potash reported strong Q4 2025 results with adjusted net income of $6.5 million and adjusted EBITDA of $63 million for the full year, up 80% year-over-year. The company achieved record Trio sales of 303,000 tons with a 20% price increase, while potash volumes grew 20% to 289,000 tons. Management deferred the Amex cavern mining decision to 2027, guided for modest 2026 production with 285,000-300,000 tons of Trio expected, and announced a lithium extraction project at Wendover with a 119,000-ton resource estimate supporting a 25-year project life.

The magnesium chloride market is projected to grow significantly by 2032, driven by advancements in extraction technologies and increasing demand for deicing agents, pharmaceuticals, and building materials.

The global potassium sulfate market is expected to grow from $4,720.10 million in 2023 to $7,760.10 million by 2033, driven by rising demand for high-quality fertilizers and expanded industrial applications. However, competition from alternative products and fluctuations in raw material prices pose challenges.

Nutrien, ICL and Intrepid Potash have been highlighted in this Industry Outlook article.

Favorable demand in major markets for crop nutrients, backed by the strength in global agriculture markets, should enable the Zacks Fertilizers industry to thrive. NTR, ICL and IPI should benefit from supportive industry fundamentals.