Itafos (IFOS) Q2 2026 earnings summary

Executive summary

• Q2 2026 consolidated revenues reached $144 million, up 14% year-over-year, driven by higher product prices and increased fertilizer and sulfuric acid sales in Brazil.

• Adjusted EBITDA for Q2 2026 was $17.8 million, with a margin of 12.4%, down from $31.8 million in Q2 2025 due to higher sulfur and sulfuric acid costs.

• Net loss for Q2 2026 was $5.6 million, compared to net income of $24.8 million in Q2 2025, reflecting lower gross margin and higher finance expenses.

• Operations at Conda remained at peak utilization, and Arraias increased fertilizer production by 62% year-over-year.

• The company maintained high safety standards, with TFIFR decreasing to 0.53 as of June 30.

Financial highlights

• Revenue increased 14% compared to Q2 2025, primarily from higher fertilizer and sulfuric acid prices and volumes.

• Trailing 12 months Adjusted EBITDA as of June 30, 2026 was $123.8 million, down from $158.7 million at year-end 2025.

• Net debt increased to $31.2 million from $19.5 million at December 31, 2025, with a net leverage ratio of 0.3x.

• Liquidity stood at $133.3 million, including $53.3 million in cash and $80 million in undrawn credit.

• Total capex for Q2 2026 was $30.6 million, up from $28.8 million in Q2 2025, mainly due to planned maintenance and development activities.

Outlook and guidance

• FY 2026 sales volume guidance raised to 340–355 thousand tonnes P2O5; maintenance capex guidance lowered to $23–28 million.

• Fertilizer and sulfur prices are forecast to remain high, with little relief expected before 2027 due to ongoing Middle East conflict and global supply curtailments.

• The company expects to continue operating at or near nameplate capacity due to favorable supply contracts.