Q2 FY2026
Filed Aug 5, 2026ICL Reports Second Quarter 2026 Results
Sales, operating income, adjusted EBITDA, net income, EPS and operating cash flow all increased year-over-year, led by pricing and higher potash volumes. Industrial Products and Potash delivered substantial operating-income growth, while higher sulphur, commodity fertilizer, nitrogen, energy, transportation and foreign-exchange costs constrained Phosphate Solutions and Growing Solutions profitability.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Salesother | $2,135 million | – | 17% |
| Gross profitother | $664 million | – | – |
| Gross profit as a percentage of salesother | 31% | – | – |
| Operating incomeother | $266 million | – | – |
| Operating income as a percentage of salesother | 12% | – | – |
| Adjusted operating incomenon-GAAP | $281 million | – | up $80 million |
| Adjusted operating income as a percentage of salesnon-GAAP | 13% | – | – |
| Finance expenses, netother | $42 million | – | increase of $29 million |
| Income before taxes on incomeother | $224 million | – | – |
| Taxes on incomeother | $72 million | – | – |
| Effective tax rateother | 32% | – | – |
| Net incomeother | $152 million | – | – |
| Net income attributable to shareholders of the Companyother | $137 million | – | – |
| Net income attributable to shareholders of the Company as a percentage of salesother | 6% | – | – |
| Adjusted net income attributable to the Company’s shareholdersnon-GAAP | $149 million | – | 35% |
| Adjusted net income attributable to the Company’s shareholders as a percentage of salesnon-GAAP | 7% | – | – |
| Diluted earnings per shareother | $0.11 | – | – |
| Diluted adjusted earnings per sharenon-GAAP | $0.12 | – | 33% |
| Adjusted EBITDAnon-GAAP | $448 million | – | up nearly $100 million |
| Adjusted EBITDA as a percentage of salesnon-GAAP | 21% | – | – |
| Cash flows from operating activitiesother | $290 million | – | – |
| Purchases of property, plant and equipment and intangible assetsother | $197 million | – | – |
| Free cash flowother | $94 million | – | 34% |
| Industrial Products segment operating incomeother | $115 million | – | – |
| Industrial Products segment EBITDAother | $130 million | – | – |
| Industrial Products capital expendituresother | $17 million | – | – |
| Potash segment operating incomeother | $85 million | – | – |
| Potash segment EBITDAother | $154 million | – | – |
| Potash capital expendituresother | $92 million | – | – |
| Potash price - CIFother | $376 per tonne | 4% higher than the first quarter of 2026 | 13% increase year-over-year |
| Potash productionother | 1,058 thousand tonnes | – | increased by 101 thousand tonnes year-over-year |
| Potash total sales including internal salesother | 1,081 thousand tonnes | – | increased by 110 thousand tonnes year-over-year |
| Potash closing inventoryother | 250 thousand tonnes | – | – |
| Phosphate Solutions segment operating incomeother | $80 million | – | – |
| Phosphate Solutions segment EBITDAother | $136 million | – | – |
| Phosphate Solutions capital expendituresother | $93 million | – | – |
| Growing Solutions segment operating incomeother | $32 million | – | – |
| Growing Solutions segment EBITDAother | $50 million | – | – |
| Growing Solutions capital expendituresother | $14 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Industrial ProductsSales increased year-over-year, driven by higher elemental bromine prices; bromine-based flame retardants increased with higher volumes and pricing; specialty minerals sales increased, mainly in food and pharma applications and magnesium chloride for US deicing. | $414 million | – | – |
| PotashOperating income benefited from higher potash sales volumes mainly in China, India and Brazil and a $43 year-over-year increase in potash price (CIF) per tonne. Higher water fees, electricity prices, marine transportation costs and operating costs were offsets. | $468 million | – | – |
| Phosphate SolutionsHigher prices for phosphate fertilizers, WPA, MAP used as raw material for energy storage solutions, industrial salts and food specialties were offset by lower phosphate fertilizer volumes, unfavorable exchange rates and higher sulphur costs. | $722 million | – | – |
| Growing SolutionsHigher FertilizerpluS volumes, higher pricing and favorable exchange-rate effects supported sales, while lower specialty agriculture volumes and higher commodity fertilizer, nitrogen and sulphur costs pressured operating income. | $605 million | – | – |
full year 2026 outlook
- NoteConsolidated adjusted EBITDA of between $1.5 billion to $1.7 billion.
- NotePotash sales volumes of between 4.5 million and 4.7 million metric tons.
Capital returns
- Dividends paid to the Company's shareholders: $69 million in the second quarter of 2026.
- Dividend distribution approved on August 4, 2026: $75 million, or $0.06 per share, to be distributed on September 16, 2026.
- Dividend distribution on June 17, 2026: $69 million, or $0.05 per share.
What drove it
- Consolidated quantity contributed $50 million to sales and $18 million to operating income versus Q2 2025; price contributed $206 million to sales and $206 million to operating income.
- Higher sales volumes of potash, FertilizerpluS products, bromine-based flame retardants and MAP used as raw materials for energy storage solutions supported consolidated operating income.
- Consolidated exchange rates contributed $47 million to sales but reduced operating income by $42 million.
- Higher potash pricing contributed to performance, including a $43 year-over-year increase in potash price (CIF) per tonne.
- The Company formalized its Elevate cost-savings initiative and expects to deliver more than $350 million of annualized savings by the end of 2028, with significant savings expected to begin in early 2027.
- ICL will implement an organizational structure adjustment on January 1, 2027, comprising Growing Solutions, Nutrition Solutions, Industrial Products and Essential Minerals business divisions.
Concerns
- Higher sulphur, commodity fertilizer, nitrogen and potassium hydroxide costs reduced profitability across the consolidated business and particularly pressured Phosphate Solutions and Growing Solutions.
- Higher electricity prices, water fees and marine transportation costs were headwinds to operating income.
- Net financing expenses rose to $42 million from $13 million, primarily because the prior-year quarter benefited from exchange-rate gains and because net interest expenses were higher in Q2 2026.
- The ongoing security situation in Israel has created supply-chain and shipping-route disruptions, personnel shortages, site-protection costs, trade limitations and foreign-exchange volatility. The Company stated that it had not had a material impact on business results as of the reporting date, but future effects remain uncertain.
- Phosphate Solutions operating income declined to $80 million from $90 million despite higher prices, reflecting lower phosphate fertilizer volumes, higher sulphur costs and unfavorable exchange rates.
- Growing Solutions operating income declined to $32 million from $35 million as higher raw-material costs outweighed higher pricing, FertilizerpluS volumes and favorable exchange rates.
What to watch
- Execution of Elevate and the timing of significant savings expected in early 2027.
- Potash sales volumes relative to full-year guidance of between 4.5 million and 4.7 million metric tons.
- Potash pricing, following the reported $376 per tonne CIF price in Q2 2026.
- Sulphur costs and phosphate fertilizer affordability, including softer Brazilian phosphate demand and subdued US market conditions described by the Company.
- Margin recovery in Phosphate Solutions and Growing Solutions amid raw-material, transportation, energy and foreign-exchange headwinds.
- Implementation and future segment-reporting implications of the January 1, 2027 organizational structure adjustment.
Balance sheet and cash flow
- Cash, cash equivalents, short-term investments and deposits as of June 30, 2026: $662 million, compared to $496 million as of December 31, 2025.
- Cash and cash equivalents as of June 30, 2026: $496 million, compared to $582 million as of June 30, 2025 and $291 million as of December 31, 2025.
- Net financial liabilities as of June 30, 2026: $2,635 million, an increase of $375 million compared to December 31, 2025.
- Short-term debt as of June 30, 2026: $646 million; long-term debt and debentures: $2,651 million.
- Net cash used in investing activities: $183 million, compared to $212 million in the corresponding quarter last year.
- Net cash used in financing activities: $12 million, compared to net cash provided by $198 million in the corresponding quarter last year.
- The Company maintained about $1.6 billion of unused credit facilities as of June 30, 2026.
- Series H Debentures issued on June 16, 2026: $800 million aggregate principal amount, maturing on June 16, 2036, with an annual coupon of 6.036%.
- The fair value balance of currency and interest rate swap transactions economically reduces finance liabilities by approximately $97 million as of June 30, 2026.
Analysis
ICL reported a stronger Q2 2026 under IFRS, with sales of $2,135 million versus $1,832 million and operating income of $266 million versus $181 million. Adjusted operating income was $281 million versus $201 million, while adjusted EBITDA increased to $448 million from $351 million. Net income attributable to shareholders was $137 million versus $93 million, and diluted adjusted EPS was $0.12 versus $0.09. The release identifies price as the largest consolidated operating-income contributor, at $206 million, supplemented by an $18 million contribution from quantity.
Potash and Industrial Products were the principal earnings contributors. Potash segment operating income increased to $85 million from $52 million as potash sales volumes increased by 110 thousand tonnes year-over-year and potash price CIF reached $376 per tonne, up $43 year-over-year. Industrial Products operating income rose to $115 million from $54 million, supported by higher bromine-based flame-retardant volumes and pricing, higher elemental bromine prices, and specialty-minerals demand. These gains more than offset lower performance in Phosphate Solutions and Growing Solutions.
Phosphate Solutions sales increased to $722 million from $637 million, but segment operating income decreased to $80 million from $90 million. Higher prices across phosphate fertilizers, WPA, MAP, industrial salts and food specialties were offset by lower phosphate-fertilizer volumes, higher sulphur costs and unfavorable exchange rates. Growing Solutions sales increased to $605 million from $540 million, but operating income declined to $32 million from $35 million as higher commodity fertilizer, nitrogen and sulphur costs outweighed pricing, FertilizerpluS volume gains and favorable exchange-rate effects.
Cash flow from operating activities increased to $290 million from $269 million and free cash flow was $94 million, up 34%. The Company paid $69 million of dividends to shareholders in the quarter. Cash, cash equivalents, short-term investments and deposits totaled $662 million as of June 30, 2026, while net financial liabilities were $2,635 million. The Company also issued $800 million of Series H Debentures in June. It reiterated full-year 2026 adjusted EBITDA guidance of between $1.5 billion to $1.7 billion and potash sales-volume guidance of between 4.5 million and 4.7 million metric tons.
The next phase of execution centers on the Elevate cost program and the planned organizational restructuring. ICL expects more than $350 million of annualized Elevate savings by the end of 2028 and significant savings beginning in early 2027. The planned January 1, 2027 structure will create Nutrition Solutions, Industrial Products, Growing Solutions and Essential Minerals divisions. The filing also makes clear that security conditions, shipping costs, raw-material inflation, foreign-exchange effects and higher net interest expenses remain material variables for earnings and cash generation.
Management, verbatim
ICL exceeded expectations in the second quarter and reported solid growth across all key financial metrics, both on an annual and sequential basis, and each of our four businesses contributed to the strong sales performance.
Elad Aharonson, president and CEO of ICL
Implementation began in the third quarter, and we expect to deliver more than $350 million of annualized savings by the end of 2028 and to begin realizing significant savings in early 2027.
Elad Aharonson, president and CEO of ICL
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of reported results with prior guidance is available.
- Revenue guidance was not provided.
- Gross-margin guidance was not provided.
- Operating-expense guidance was not provided.
- Tax-rate guidance was not provided.
- GAAP reconciliation of forward-looking adjusted EBITDA guidance was not provided.
- Share repurchases were not reported.
- Prior-year free cash flow was not printed on the free-cash-flow line.
- Consolidated Q1 2026 sales, operating income, net income, EPS, adjusted EBITDA and cash-flow figures were not provided as prior-quarter comparisons for Q2 2026.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.