K+S (SDF) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues rose to €978 million, up 12.3% year-over-year, driven by strong demand, higher sales volumes, and improved production output in both Agriculture and Industry+ segments.

• Q2 2026 EBITDA increased 60.3% year-over-year to €176 million, significantly above the prior year and market expectations, supported by higher ASP, volumes, and cost discipline.

• Adjusted free cash flow for H1 2026 improved to €101 million, well above the prior year but slightly below consensus estimates, mainly due to higher working capital tie-up.

• Positive impairment effects of €384 million in H1 2026 improved net income and equity, reversing prior negative impairments.

• Full-year 2026 guidance for EBITDA and free cash flow was raised, aligning with market expectations.

Financial highlights

• Q2 2026 operating EBITDA: €176 million (Q2 2025: €110 million; market expectation: €149 million).

• Q2 2026 revenues: €978 million (Q2 2025: €871 million).

• Adjusted net profit (excluding extraordinary impairment) reached €37 million, compared to a loss of €18 million in Q2 2025.

• Cash flow from operating activities increased 25.3% year-over-year to €331.3 million in H1 2026.

• Net financial liabilities improved to €73.5 million as of June 30, 2026, compared to €-7.1 million a year earlier.

Outlook and guidance

• 2026 EBITDA guidance raised to €680–760 million (previous: €630–730 million), with the midpoint aligning with consensus.

• Adjusted free cash flow for 2026 now expected to be a positive mid- to higher-double-digit million figure, with CapEx around €600 million.

• Agriculture sales volumes forecast at 7.4–7.6 million tonnes; de-icing salt volumes expected at least 2.6 million tonnes.

• Guidance assumes stable potash prices, current logistics costs, and a gas price of €45/MWh; 70% of gas exposure hedged for 2026.

• Lower end of guidance factors in potential adverse impacts from low water levels and normal maintenance at Werra.