K+S (SDF) Q2 2025 earnings summary

Executive summary

• Q2 2025 EBITDA was €110 million, down from €128 million in Q2 2024, mainly due to lower agriculture sales volumes, earlier maintenance at Bethune, and a €10 million mining provision adjustment.

• Revenues for Q2 2025 were €871 million, nearly flat year-over-year, with agriculture segment slightly up and industry segment slightly down.

• A non-cash impairment loss of €2,063 million was recognized in H1 2025, mainly due to revised long-term EUR/USD assumptions and potash price series, resulting in a net loss after tax of €-1,648.6 million.

• Adjusted free cash flow improved to €-8 million in Q2 2025 from €-24 million in Q2 2024, but for H1 2025 was €24.3 million, down from €86.8 million in H1 2024.

• Full-year 2025 EBITDA and free cash flow guidance remain confirmed despite less favorable USD/EUR exchange rates and the impairment.

Financial highlights

• Q2 2025 revenues: €871 million (Q2 2024: €874 million), a 0.3% decrease.

• Q2 2025 EBITDA: €110 million (Q2 2024: €128 million), a 15% decrease.

• Gross margin turned negative in Q2 2025 due to the impairment; gross profit was €-1,985.6 million.

• Adjusted group earnings after tax (excluding impairment) were €47.9 million for H1 2025, down from €58.1 million in H1 2024.

• Equity ratio decreased to 60.2% as of June 30, 2025, mainly due to the impairment.

Outlook and guidance

• Full-year 2025 EBITDA is expected between €560 million and €640 million, with slightly positive free cash flow.

• Agriculture segment sales volumes (excluding trade goods) are expected between 7.5 and 7.7 million tonnes for 2025.

• Average price in the Agriculture segment (excluding trade goods) is projected to match H1 2025 levels (~€330/t).

• Capex for 2025 projected at about €550 million.

• ROCE (excluding impairment) is expected in the single-digit percentage range for 2025.