ICL Group (ICL) investor relations material

Executive summary

• Q3 sales rose 3% YoY to $1.91B and adjusted EBITDA increased 1% to $402M; adjusted net income rose 2% to $126M, while adjusted diluted EPS held at $0.10.

• Pricing, favorable mix and cost management helped offset record raw-material prices, elevated freight and logistics costs, and currency fluctuations.

• Gross margin rose 30 bps YoY to 32.9%, its highest level since Q4 2024.

Financial highlights

• Sales were $1.91B versus $1.85B; higher prices and favorable mix contributed $171M, partly offset by $134M from lower quantities, while FX also benefited sales.

• IFRS net income was $129M in both periods; net income attributable to shareholders was $120M versus $115M, and adjusted net income was $126M versus $124M.

• Operating cash flow was $256M versus $308M; free cash flow was $66M versus $129M.

• 9M sales were $6.07B versus $5.45B; adjusted EBITDA was $1.26B versus $1.11B, and net income attributable to shareholders was $383M versus $299M.

Outlook and guidance

• FY2026 adjusted EBITDA guidance was reiterated at $1.5B–$1.7B, with a target to finish above midpoint; Potash sales volume guidance remains 4.5M–4.7M metric tons and the annual adjusted tax rate is ~30%.

• ELEVATE is expected to deliver more than $150M in annual EBITDA improvement by end-2027 and more than $350M by end-2028; savings are expected to begin in Q1 2027 and build gradually.

• Sulfur costs in the Q4 P&L are expected to exceed Q3 levels due to inventory timing; lower purchase prices are expected to benefit results in 2027.

• Management expects no dramatic Q4 change in Potash versus Q3, and sees strong demand in 2027; Brazil’s soft season may weigh on Q4, with a better 2027 outlook.