ICL Group Ltd

ICL reported second-quarter sales of $2.1 billion, up 17% year over year, and adjusted EBITDA of $448 million, up 28%. Adjusted net income was $149 million, adjusted EPS was $0.12, operating cash flow was $290 million, and free cash flow was $94 million. Industrial Products sales were $414 million with EBITDA of $130 million; Potash sales were $468 million with EBITDA of $154 million; Phosphate Solutions sales were $722 million with EBITDA of $136 million; and Growing Solutions sales were $605 million with EBITDA of $50 million. Management said the quarter absorbed $100 million of higher raw material costs and more than $40 million of exchange rate impact. For 2026, ICL reiterated consolidated EBITDA guidance of $1.5 billion to $1.7 billion, potash sales volumes of 4.5 million to 4.7 million metric tons, and an annual adjusted tax rate of approximately 30%.

Elad Aharonson framed the quarter as evidence that ICL’s core businesses are performing well while the company reshapes its portfolio around growth markets. He highlighted the new organizational structure, with dedicated Nutrition Solutions and Industrial Products segments, as a way to better align reporting with end markets and improve visibility for investors. He also emphasized Elevate as a company-wide push to reduce cost, improve cash generation, and support margin expansion, saying the company is committed to reaching the $350 million annual EBITDA-improvement target by the end of 2028.

Asaf Alperovitz pointed to a strong balance sheet and cash profile, citing $2.2 billion of available cash resources, net debt to adjusted EBITDA of 1.5x, and the successful completion of an $800 million senior notes offering. He noted that ICL distributed 50% of adjusted net income to shareholders, equal to a $75 million dividend in the second quarter and a trailing 12-month dividend yield of 4.1%. On outlook, he reiterated 2026 consolidated EBITDA guidance of $1.5 billion to $1.7 billion, explained that higher sulfur costs and currency headwinds weigh on the range, and said potash volumes are still expected to be 4.5 million to 4.7 million metric tons.

Analysts focused on Industrial Products margin sustainability, the pace and confidence behind Elevate, sulfur supply and pricing, potash market stability, Brazil softness, and the potential impact of sodium-ion batteries on LFP demand. Management said Q2 Industrial Products benefited from high bromine prices, with bromine around $4,500 per ton currently after peaking above $6,000 in April, and said they can still lock in transactions. On sulfur, management said it is a major second-half challenge because of both availability and price, but that they have secured quantities for Q3 and early Q4 and do not plan to cut production. For Brazil, they said the market is weak and Growing Solutions should have a weaker Q3 than normal, while for LFP they said demand is still increasing and they do not see concern over the next 5 years.