ICL Group Q2 Earnings Call Highlights

ICL Group NYSE: ICL reported higher second-quarter 2026 sales, earnings and cash flow, supported by stronger prices for potash, bromine and phosphate products. The company also outlined plans to reorganize its reporting structure in 2027 and introduced a cost-transformation program targeting more than $350 million in annual EBITDA improvements by the end of 2028.

Second-quarter sales rose 17% year over year to $2.1 billion, while adjusted EBITDA increased 28% to $448 million. Adjusted net income climbed 35% to $149 million, or $0.12 per share, up 33% from the prior-year period. Operating cash flow increased 8% to $290 million and free cash flow rose 34% to $94 million.

President and CEO Eyal Aharonson said the results reflected price improvements across fertilizer, food and industrial markets, as well as the company’s geographically diversified operations. The gains came despite approximately $100 million in higher raw-material costs and more than $40 million of foreign-exchange impact, he said.

Industrial Products posted sales of $440 million, up 30% from a year earlier, while EBITDA increased 88% to $130 million. Aharonson said it was the segment’s strongest quarterly performance since late 2022, driven primarily by higher bromine prices and increased volumes. Bromine-based flame retardants benefited from improved electronics demand, while phosphorus-based flame-retardant sales were stable amid muted construction-market demand.

Potash sales increased 22% to $468 million and EBITDA rose 34% to $154 million. ICL’s average potash price was $376 per ton on a CIF basis, up 13% year over year and 4% sequentially. Production volume rose 11% to 1.058 million metric tons, which management attributed to process optimization, cost reduction and resource-efficiency improvements.

Phosphate Solutions sales grew 13% to $722 million. EBITDA increased slightly to $136 million as higher phosphate prices only partially offset elevated raw-material costs. Specialty food phosphate sales rose on both pricing and volume gains from existing and new customers, including customers in China and India, according to the company.

Growing Solutions sales rose 12% to $605 million, although EBITDA declined from the prior-year period. The segment faced higher nitrogen and sulfur costs, geopolitical tensions and supply-chain volatility. Management said market conditions in Brazil remained soft, though performance improved in May and June after a challenging April. Europe recorded improved sales and profitability as the company emphasized product-mix optimization.

Sulfur costs and Brazil remain key second-half risks CFO Asaf Alperovitz said phosphate fertilizer benchmark prices increased by an average of 22% sequentially during the second quarter, but sulfur costs rose sharply. Sulfur spot prices increased 72% seq...