ICL Reports $1.8B Q2 Sales, Specialty Segments Driving Growth Despite Potash Dip

13 August 2025, Tel Aviv: ICL reported its financial results for the second quarter ended June 30, 2025. Consolidated sales were $1.8 billion, up ~$80 million versus the prior year. Operating income was $181 million versus $211 million of operating income in the second quarter of last year, with adjusted operating income of $201 million versus $225 million. For the second quarter, net income attributable to shareholders was $93 million versus $115 million in the prior year, with adjusted net income of $110 million compared to $126 million. Adjusted EBITDA was $351 million versus $377 million. Diluted earnings per share were $0.07 versus $0.09 in the second quarter of last year, with adjusted diluted EPS of $0.09 versus $0.10.

“For the second quarter, ICL delivered both a year-over-year and sequential increase in sales, against a backdrop of generally positive trends in most markets. Results were once again led by our specialties-driven businesses. Combined, our Industrial Products, Phosphate Solutions and Growing Solutions businesses reported year-over-year growth in sales for both the second quarter and first half of the year. For our Potash segment, second quarter sales were lower versus the prior year, due to lower quantities and as we continued to supply potash to India and China at 2024 contract prices. We expect sales for the Potash segment to improve in the third quarter, due to an increase in the prices for both the 2025 contracts with India and China and for spot transactions,” said Elad Aharonson, president and CEO of ICL. “For the most part, second quarter trends were a continuation of the first quarter and in-line with expectations. Looking toward the second half of the year, we expect to gradually benefit from price improvement and to continue to focus on our regional-specific specialties-driven businesses.”

The company reiterated its guidance for specialties-driven EBITDA of between $0.95 billion to $1.15 billion for full year 2025. For Potash, ongoing geopolitical unrest – and a brief period of regional conflict – impacted production in Israel. For 2025, the company now expects sales volumes of between 4.3 million and 4.5 million metric tons. 

Key Financials

Second Quarter 2025

US$MEx. per share data	2Q’25	2Q’24
Sales	$1,832	$1,752
Gross profit	$554	$568
Gross margin	30%	32%
Operating income	$181	$211
Adjusted operating income(1)	$201	$225
Operating margin	10%	12%
Adjusted operating margin(1)	11%	13%
Net income attributable to shareholders	$93	$115
Adjusted net income attributable to shareholders(1)	$110	$126
Adjusted EBITDA(1)	$351	$377
Adjusted EBITDA margin(1)	19%	22%
Diluted earnings per share	$0.07	$0.09
Diluted adjusted earnings per share(1)	$0.09	$0.10
Cash flows from operating activities(2)	$269	$31

Industrial Products

Second quarter 2025

• Sales of $319 million vs. $315 million.
• EBITDA of $69 million vs. $74 million.
• Stable performance was in-line with first quarter trends and market expectations.

Key developments versus prior year

• Flame retardants: Overall sales decreased slightly, as bromine-based product sales decreased, with higher prices unable to offset lower volumes and as the construction end-market remained soft. Sales of phosphorous-based solutions increased, as higher volumes and prices followed the implementation of duties on Chinese imports – especially in the United States.
• Elemental bromine: Sales decreased slightly year-over-year, as lower volumes were only partially offset by higher prices.
• Clear brine fluids: Sales increased, primarily due to higher volumes, mainly in the United States.
• Specialty minerals: Stable sales reflected steady end-market demand and were in-line with the prior year.

Potash

Second quarter 2025

• Sales of $383 million vs. $422 million.
• EBITDA of $115 million vs. $118 million.
• Grain Price Index decreased 17.2% year-over-year, with corn up 2.3%, while rice, soybeans and wheat were down 27.0%, 11.8% and 18.4%, respectively. On a sequential basis, the Index declined 3.3%, with corn, rice and wheat down 2.0%, 4.6% and 6.5%, respectively, while soybeans increased 3.3%.

Key developments versus prior year

• Potash price: $333 per ton (CIF).
  • Up 11% both sequentially and year-over-year.
• Potash agreements
  • ICL continued to fulfill its 2024 annual contracts with China and India, and the prices in these agreements were lower than market rates, which improved as the second quarter progressed.
  • In June, ICL reached an agreement with IPL in India, to supply an aggregate of 400,000 metric tons of potash at $349 per metric ton – in-line with current market prices in India.
  • Also in June, ICL signed contracts with its Chinese customers to supply 750,000 metric tons of potash at $346 per metric ton, which aligns with recent contract settlements in China.
• Potash sales volumes: 971 thousand metric tons.

• Completed annual maintenance shutdown in Israel.
• Decreased by 182 thousand metric tons, with lower volumes mainly to China but an increase in volumes to Europe.
• ICL Dead Sea
• Production decreased, due to operational challenges primarily related to ongoing war related issues, the annual maintenance shutdown, and a brief period of regional unrest in June.
• ICL Iberia
  • Production was in-line with the prior year but up sequentially, as efficiency efforts remain on track.

Phosphate Solutions

Second quarter 2025

• Sales of $637 million vs. $572 million.
• EBITDA of $134 million vs. $146 million.
• Year-over-year and sequential growth in sales driven by strength in commodities, while specialties results were lower but in-line with market dynamics.

Key developments versus prior year

• White phosphoric acid: Sales increased slightly, as volume growth in all major regions offset lower prices.
• Industrial phosphates: Sales increased, as higher volumes – particularly in North America and China – offset lower prices.
• Food phosphates: Despite higher volumes, sales were flat due to lower market prices, however, products for both dairy- and plant-protein markets continued to see good growth.
• Battery materials: Sales increased in China year-over-year, reflecting both higher volumes and prices, as the market continued to grow.
• Commodity phosphates: Overall phosphate prices strengthened significantly during the quarter, supported by favorable weather conditions across most key markets and as China continued to restrict exports.

Growing Solutions

Second quarter 2025

• Sales of $540 million vs. $494 million.
• EBITDA of $56 million vs. $45 million.
• Year-over-year growth driven by continued focus on innovative, regional solutions.

Key developments versus prior year

• Brazil: Sales increased, as higher prices offset lower volumes, while exchange rate fluctuations impacted gross profit.
• Europe: Sales increased, with higher prices offsetting lower volumes, while gross profit increased, due to improved mix, including higher sales of specialty agriculture products.
• North America: Sales increased, due to higher volumes, favorable pricing and the July 2024 acquisition of Custom Ag Formulators, with improved gross profit across the region, despite ongoing tariff-related issues and a challenging ag economy.
• Asia: Sales in-line with the prior year, with improved product mix – including an increase in sales of specialty ag products – contributing to higher gross profit.
• Product trends: Specialty agriculture sales increased, with higher volumes in most major regions and higher prices in Europe and for micronutrients in Brazil. Turf and ornamental sales increased, with turf and landscape experiencing higher volumes, while higher prices for ornamental horticulture offset lower volumes.

Financial Items

Financing Expenses

Net financing expenses for the second quarter of 2025 were $13 million, down versus $33 million in the corresponding quarter of last year, with the decrease primarily due to exchange rate differences net of hedging transactions.

Tax Expenses

Reported tax expenses in the second quarter of 2025 were $60 million, reflecting an effective tax rate of 36%, compared to $48 million in the corresponding quarter of last year, reflecting an effective tax rate of 27%. The relatively higher effective tax rate in the quarter was primarily due to the appreciation of the Israeli shekel versus the U.S. dollar. For the first half of the year, the reported effective tax rate was ~32%.

Available Liquidity

ICL’s available cash resources, which are comprised of cash and deposits, unutilized revolving credit facility, and unutilized securitization, totaled $1,466 million, as of June 30, 2025.

Outstanding Net Debt

As of June 30, 2025, ICL’s net financial liabilities amounted to $2,214 million, an increase of $363 million compared to December 31, 2024.

Dividend Distribution

In connection with ICL’s second quarter 2025 results, the Board of Directors declared a dividend of 4.26 cents per share, or approximately $55 million, versus 4.88 cents per share, or approximately $63 million, in the second quarter of last year. The dividend will be payable on September 17, 2025, to shareholders of record as of September 3, 2025.

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