ICL Group (ICL) investor relations material

Executive summary

• Q2 2026 sales reached $2.1 billion, up 17% year-over-year, with all four business segments contributing to growth.

• Adjusted EBITDA rose 28% to $448 million, and adjusted net income increased 35% to $149 million.

• Launched the Elevate cost transformation program, targeting $150 million in annual EBITDA improvements by 2027 and over $350 million by 2028.

• Announced a new organizational structure to align with strategic growth engines, effective Q1 2027.

• Growth was driven by higher prices in fertilizer, food, and industrial markets, despite ongoing raw material cost pressures and FX headwinds.

Financial highlights

• Q2 adjusted EBITDA: $448 million, up 28% year-over-year; adjusted net income: $149 million, up 35%; adjusted EPS: $0.12, up 33%.

• Operating cash flow: $290 million, up 8%; free cash flow: $94 million, up 34%.

• Net debt to adjusted EBITDA stable at 1.5x; net debt as of June 30, 2026: $2.635 billion.

• $75 million dividend distributed in Q2, maintaining a 4.1% trailing 12-month yield.

• Completed $800 million senior notes offering.

Outlook and guidance

• Reiterated 2026 consolidated adjusted EBITDA guidance of $1.5–$1.7 billion.

• Potash sales volume expected between 4.5–4.7 million metric tons for 2026.

• Annual adjusted tax rate projected at approximately 30%.

• Significant cost savings from Elevate program expected to begin in early 2027.

• Closely monitoring USD/NIS exchange rates and raw material price volatility.