ICL Group (ICL) investor relations material

Executive summary

• Q2 2026 sales reached $2.1 billion, up 17% year-over-year, with adjusted EBITDA of $448 million, up 28% year-over-year, and all four business segments contributing to growth.

• Adjusted net income rose 35% to $149 million; adjusted diluted EPS increased 33% to $0.12.

• Growth was driven by higher prices in potash, bromine, phosphate, and industrial markets, despite raw material cost pressures and FX headwinds.

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

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

Financial highlights

• Operating cash flow was $290 million, up 8% year-over-year; free cash flow rose 34% to $94 million.

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

• Completed $800 million senior notes offering; cash resources totaled $2.2 billion as of June 30, 2026.

• Dividend payout of $75 million in Q2, maintaining a 4.1% trailing 12-month yield.

• Net financing expenses increased to $42 million, mainly due to higher interest and lower FX gains.

Outlook and guidance

• Reiterated 2026 consolidated adjusted EBITDA guidance of $1.5–$1.7 billion, reflecting higher raw material costs and currency headwinds.

• 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.