ICL Reports Second Quarter 2026 Results

ICL Reports Second Quarter 2026 Results TEL AVIV, Israel & ST. LOUIS--( BUSINESS WIRE)--ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today reported its financial results for the second quarter ended June 30, 2026. Consolidated sales of $2.1 billion were up 17% versus $1.8 billion in the prior year. Operating income was $266 million versus $181 million in the second quarter of last year, while adjusted operating income of $281 million was up $80 million versus $201 million. For the second quarter, net income attributable to shareholders was $137 million versus $93 million in the prior year, with adjusted net income of $149 million up 35% compared to $110 million.

Company delivers best quarterly operating income performance in three years. Advances strategic principles, with growth-focused new business segments and more than $350 million of targeted cost savings initiatives

Adjusted EBITDA of $448 million was up nearly $100 million versus $351 million. Diluted earnings per share were $0.11 versus $0.07 in the second quarter of last year, with adjusted diluted EPS of $0.12 up 33% versus $0.09. Operating cash flow of $290 million was up versus $269 million in the prior year, while free cash flow of $94 million was up 34%.

“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. Once again, we benefited from our distinctive global presence, as our regionally diversified sales and operations teams remained close to our customers and end markets. We successfully leveraged market dynamics where opportunities emerged, while continuing to diligently manage forces outside of our control and to swiftly respond to changes in market conditions,” said Elad Aharonson, president and CEO of ICL.

"As part of the execution of our strategy, we intend to realign our organizational structure at the beginning of 2027. This new structure is expected to strengthen management focus on our key growth engines and align the business with our strategic priorities. We expect this update to our structure will provide investors with enhanced visibility into the performance, growth drivers and value creation potential of our businesses.

“The new structure will be comprised of three end market-focused business divisions: the newly established Nutrition Solutions division will bring together all of our food and beverage, health, nutrition and wellness offerings in one place to address multiple end markets; Industrial Products will be focused on performance and safety solutions for all of our industrial end markets; and Growing Solutions will remain focused on specialty plant nutrition for agriculture, turf and ornamental end markets. Our fourth segment, Essential Minerals, will include potash and phosphate fertilizers from our upstream mineral production sites – including our potash resources in the Dead Sea and Spain and our phosphate resources in the Negev and China – and will continue to serve global agriculture end markets. Additional details are available in our financial schedules, and we will discuss further on our earnings call later today.

“During the second quarter, we also formalized our enterprise-wide cost savings initiative, known as Elevate. This program is designed to reduce our cost base, support margin expansion, improve cash generation and strengthen earnings power. 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,” concluded Aharonson.

The company is reiterating its guidance for full year 2026 consolidated adjusted EBITDA of between $1.5 billion to $1.7 billion. The company also continues to expect Potash sales volumes of between 4.5 million and 4.7 million metric tons. (1a)

The international earnings call will begin today at 8:30 a.m. New York time (1:30 p.m. London and 3:30 p.m. Tel Aviv). The dial-in number for financial analysts in North America is (833) 461-5787, or (585) 542-9983 for international analysts, and the conference ID is 895044656. Analysts can pre-register for the call by visiting https://events.q4inc.com/analyst/895044656?pwd=kzld21P6. Employees, the media and the public are invited to listen to the call using the webcast link found at ICL Group Investors Relations - Reports News & Events.

Key Financials

Second Quarter 2026

US$M

Ex. per share data

2Q'26

2Q'25

Sales

$2,135

$1,832

Gross profit

$664

$554

Gross margin

31%

30%

Operating income

$266

$181

Adjusted operating income (1)

$281

$201

Operating margin

12%

10%

Adjusted operating margin (1)

13%

11%

Net income attributable to shareholders

$137

$93

Adjusted net income attributable to shareholders (1)

$149

$110

Adjusted EBITDA (1)

$448

$351

Adjusted EBITDA margin (1)

21%

19%

Diluted earnings per share

$0.11

$0.07

Diluted adjusted earnings per share (1)

$0.12

$0.09

Cash flows from operating activities (2)

$290

$269

(1)

Adjusted operating income and margin, adjusted net income attributable to shareholders, adjusted EBITDA and margin, and diluted adjusted earnings per share are non-GAAP financial measures. Please refer to the adjustments table and disclaimer.

See "Condensed consolidated statements of cash flows (unaudited)" in the appendix below.

Industrial Products

Second quarter 2026

Key developments versus prior year

Potash

Second quarter 2026

Key developments versus prior year

Phosphate Solutions

Second quarter 2026

Key developments versus prior year

Growing Solutions

Second quarter 2026

Key developments versus prior year

Financial Items

Financing Expenses

Net financing expenses for the second quarter of 2026 were $42 million, up versus $13 million in the corresponding quarter of last year. This increase was primarily driven by lower financing expenses in the prior year, mainly due to exchange rate gains, as well as higher net interest expenses incurred in the second quarter this year.

Tax Expenses

Reported tax expenses in the second quarter of 2026 were $72 million, reflecting an effective tax rate of about 32%, compared to $60 million in the corresponding quarter of last year, reflecting an effective tax rate of 36%.

Available Liquidity

ICL’s available cash resources, which are comprised of cash and deposits, unutilized revolving credit facility, and unutilized securitization, totaled $2,217 million, as of June 30, 2026.

Outstanding Net Debt

As of June 30, 2026, ICL’s net financial liabilities amounted to $2,635 million, an increase of $375 million compared to December 31, 2025.

Dividend Distribution

In connection with ICL’s second quarter 2026 results, the Board of Directors declared a dividend of 5.81 cents per share, or approximately $75 million, versus 4.26 cents per share, or approximately $55 million, in the second quarter of last year. The dividend will be payable on September 16, 2026, to shareholders of record as of September 2, 2026.

About ICL

ICL Group Ltd. is a global leader in agriculture, food and industrial solutions, utilizing its unique mineral resources and extensive expertise to address key sustainability challenges related to food security and access to essential minerals. ICL is focused on driving long-term growth through its specialty agriculture and food businesses, while strategically managing its bromine, potash and phosphate mineral resources. ICL’s global professional workforce is dedicated to expanding its growth engines and efficiently operating – both structurally and economically – while maintaining and optimizing its core operations. The company’s operations are organized under four segments: Industrial Products, Potash, Phosphate Solutions and Growing Solutions. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2025 revenues totaled approximately $7 billion. For more information, visit the company's website at www.icl-group.com.

Details about ICL’s sustainability practices and performance can be found in the 2025 Corporate Responsibility ESG Report.

You can also learn more about ICL on Facebook, LinkedIn, YouTube, X and Instagram.

Guidance

(1a) The company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting, and quantifying certain amounts that are necessary for such reconciliation, in particular, because special items such as restructuring, litigation, and other matters, used to calculate projected net income (loss) vary dramatically based on actual events, the company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material and therefore could result in projected GAAP net income (loss) being materially less than projected adjusted EBITDA (non-GAAP). The guidance speaks only as of the date hereof. The company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. The company provides guidance for consolidated adjusted EBITDA and for its Potash business the company provides sales volumes guidance. The company believes this information provides greater transparency, as the price of potash has stabilized over the past few years and consolidated adjusted EBITDA is now a more relevant metric for investors to evaluate the company’s performance and compare its financial results between periods.

Non-GAAP Statement

The company discloses in this quarterly report non-IFRS financial measures titled adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA. Management uses adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA to facilitate operating performance comparisons from period to period. The company calculates adjusted operating income by adjusting our operating income to add certain items, as set forth in the reconciliation table under “Adjustments to reported operating, and net income (non-GAAP)” below. Some of these items may recur. Adjusted net income attributable to the company’s shareholders is calculated by adjusting net income attributable to the company’s shareholders to add certain items, as set forth in the reconciliation table under “Adjustments to reported operating, and net income (non-GAAP)” below, excluding the total tax impact of such adjustments. Diluted adjusted earnings per share is calculated by dividing adjusted net income by the weighted-average number of diluted ordinary shares outstanding. Adjusted EBITDA is calculated as net income before financing expenses, net, taxes on income, share in earnings of equity-accounted investees, depreciation and amortization, and certain adjustments presented in the reconciliation table under “Consolidated adjusted EBITDA, and diluted adjusted Earnings Per Share for the periods of activity” below, which were adjusted for in calculating the adjusted operating income. You should not view adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share or adjusted EBITDA as a substitute for operating income or net income attributable to the company’s shareholders determined in accordance with IFRS, and you should note that the definitions of adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA may differ from those used by other companies. Additionally, other companies may use other measures to evaluate their performance, which may reduce the usefulness of the company's non-IFRS financial measures as tools for comparison. However, the company believes adjusted operating income, adjusted net income attributable to the company’s shareholders, diluted adjusted earnings per share, and adjusted EBITDA provide useful information to both management and investors by excluding certain items that management believes are not indicative of our ongoing operations. Management uses these non-IFRS measures to evaluate the company's business strategies and management performance. The company believes these non-IFRS measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate performance.

Forward Looking Statements

This announcement contains statements that constitute “forward‑looking statements,” many of which can be identified by the use of forward‑looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “strive,” “forecast,” “targets” and “potential,” among others. The company is relying on the safe harbor provided in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in making such forward-looking statements.

Forward‑looking statements appear in a number of places in this announcement and include, but are not limited to, statements regarding the company's intent, belief or current expectations. Forward‑looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward‑looking statements due to various factors, including, but not limited to:

Loss or impairment of business licenses or mineral extractions permits or concessions, including our ability to win the new concession at the Dead Sea in 2030; the effects of the ongoing security situation in Israel, including the nature and duration of related conflicts; volatility of supply and demand and the impact of competition; the difference between actual reserves and the company reserve estimates; natural disasters and cost of compliance with environmental regulatory legislative and licensing restrictions including laws and regulation related to, and physical impacts of climate change and greenhouse gas emissions; failure to "harvest" salt which could lead to accumulation of salt at the bottom of the evaporation Pond 5 in the Dead Sea; litigation, arbitration and regulatory proceedings; disruptions at the company's seaport shipping facilities or regulatory restrictions affecting the company's ability to export products overseas; changes in exchange rates or prices compared to those we are currently experiencing; general market, political or economic conditions in the countries in which the company operates; price increases or shortages with respect to water, energy and the company's principal raw materials; pandemics may create disruptions, impacting our sales, operations, supply chain and customers; delays in the completion of major projects by third-party contractors and/or in termination of engagements with contractors and/or governmental obligations; the inflow of significant amounts of water into the Dead Sea which could adversely affect production at the company plants; labor disputes, slowdowns and strikes involving the company employees; pension and health insurance liabilities; changes to governmental incentive programs or tax benefits, creation of new fiscal or tax related legislation; and/or higher tax liabilities; changes in the company evaluations and estimates, which serve as a basis for the recognition and manner of measurement of assets and liabilities; failure to integrate or realize expected benefits from mergers and acquisitions, organizational restructuring and joint ventures; currency rate fluctuations; and restrictions, as well as credit risk rising interest rates; the outcome of government examinations or investigations; disruption of information technology systems or breaches of the company, or the company service providers, data security; failure to retain and/or recruit key personnel; inability to realize expected benefits from the company cost reduction program according to the expected timetable; inability to access capital markets on favorable terms; cyclicality of the company's businesses; our exposure to risks relating to its current and future activity in emerging markets; changes in demand for the company's fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond the company's control; disruption to sales of the company's industrial products and phosphate solutions segments' products, as well as magnesium products, due to factors beyond our control; the company including changes in global economic conditions and environmental regulations; our ability to secure additional resources to continue the company's phosphate mining operations at ICL Rotem; volatility or crises in the financial markets; hazards inherent to mining and chemical manufacturing; the failure to ensure the safety of the company's workers and processes; exposure to third party and product liability claims; product recalls or other liability claims as a result of food safety and food-borne illness concerns; insufficiency of insurance coverage; war or acts of terror and/or political, economic and military instability in Israel and its region; including the state of security tension in Israel and the resulting disruptions to the company supply and production chains; filing of class actions and derivative actions against the company, its executives and Board members; current closing of transactions, mergers and acquisitions; and other risk factors discussed under ”Item 3 - Key Information— D. Risk Factors" in the company's Annual Report on Form 20-F for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (SEC) on March 11, 2026 (the Annual Report).

Forward-looking statements speak only as of the date they are made, and except as otherwise required by law, we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements, targets or goals in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Investors are cautioned to consider these risks and uncertainties and to not place undue reliance on such information. Forward-looking statements should not be read as a guarantee of future performance or results and are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward-looking statements.

Appendix

Condensed Consolidated Statements of Income (Unaudited)

$ millions

Three-months ended

Six-months ended

Year ended

June 30,

2026

June 30,

2025

June 30,

2026

June 30,

2025

December 31,

2025

Sales

2,135

1,832

4,158

3,599

7,153

Cost of sales

1,471

1,278

2,868

2,485

4,967

Gross profit

664

554

1,290

1,114

2,186

Selling, transport and marketing expenses

305

274

605

542

1,114

General and administrative expenses

155

149

299

Research and development expenses

Other expenses

161

Other income

(4)

(3)

(11)

(7)

(38)

Operating income

266

181

501

366

580

Finance expenses

132

193

160

298

Finance income

(90)

(85)

(109)

(110)

(159)

Finance expenses, net

139

Income before taxes on income

224

168

417

316

441

Taxes on income

125

102

161

Net income

152

108

292

214

280

Net income attributable to non-controlling interests

Net income attributable to shareholders of the Company

137

263

184

226

Earnings per share attributable to shareholders of the Company:

Basic earnings per share (in dollars)

0.11

0.07

0.20

0.14

0.18

Diluted earnings per share (in dollars)

0.11

0.07

0.20

0.14

0.18

Weighted-average number of ordinary shares outstanding:

Basic (in thousands)

1,290,700

1,290,751

1,290,689

1,290,603

1,290,580

Diluted (in thousands)

1,290,700

1,292,096

1,290,689

1,291,450

1,291,395

Condensed Consolidated Statements of Financial Position as of (Unaudited)

$ millions

June 30,

2026

June 30,

2025

December 31,

2025

Current assets

Cash and cash equivalents

496

582

291

Short-term investments and deposits

166

119

205

Trade receivables

1,640

1,431

1,365

Inventories

1,833

1,690

1,934

Prepaid expenses and other receivables

363

413

369

Total current assets

4,498

4,235

4,164

Non-current assets

Deferred tax assets

204

172

180

Property, plant and equipment

7,128

6,701

6,785

Intangible assets

966

941

955

Other non-current assets

392

326

329

Total non-current assets

8,690

8,140

8,249

Total assets

13,188

12,375

12,413

Current liabilities

Short-term debt

646

365

876

Trade payables

1,092

1,082

1,157

Provisions

Other payables

1,033

920

1,040

Total current liabilities

2,838

2,426

3,131

Non-current liabilities

Long-term debt and debentures

2,651

2,550

1,880

Deferred tax liabilities

534

477

502

Long-term employee liabilities

412

365

390

Long-term provisions and accruals

227

244

231

Other

Total non-current liabilities

3,907

3,681

3,039

Total liabilities

6,745

6,107

6,170

Equity

Total shareholders’ equity

6,146

6,014

5,983

Non-controlling interests

297

254

260

Total equity

6,443

6,268

6,243

Total liabilities and equity

13,188

12,375

12,413

Condensed Consolidated Statements of Cash Flows (Unaudited)

$ millions

Three-months ended

Six-months ended

Year ended

June 30,

2026

June 30,

2025

June 30,

2026

June 30,

2025

December 31,

2025

Cash flows from operating activities

Net income

152

108

292

214

280

Adjustments for:

Depreciation and amortization

167

150

327

301

615

Fixed assets impairment

111

Exchange rate, interest and derivative, net

(84)

(40)

Tax expenses

125

102

161

Change in provisions

Other

297

141

542

376

990

Change in inventories

(6)

109

(210)

Change in trade receivables

119

(255)

(83)

(11)

Change in trade payables

(94)

(57)

100

Change in other receivables

(14)

(4)

(27)

(19)

(22)

Change in other payables

(64)

(80)

(53)

(62)

Net change in operating assets and liabilities

(122)

(283)

(83)

(63)

Income taxes paid, net of refund

(37)

(66)

(73)

(151)

Net cash provided by operating activities

290

269

485

434

1,056

Cash flows from investing activities

Proceeds (payments) from deposits, net

(3)

(86)

Purchases of property, plant and equipment and intangible assets

(197)

(202)

(332)

(392)

(824)

Proceeds from divestiture of assets and businesses, net of transaction expenses

Payments from settlement of derivatives, net

(16)

(1)

(16)

(9)

Interest received

Business combinations

(88)

(3)

(12)

Net cash used in investing activities

(183)

(212)

(369)

(404)

(915)

Cash flows from financing activities

Dividends paid to the Company's shareholders

(69)

(55)

(129)

(107)

(224)

Receipts of long-term debt

1,263

683

1,904

1,044

1,666

Repayments of long-term debt

(886)

(138)

(1,447)

(535)

(1,599)

Receipts (repayments) of short-term debt, net

(284)

(206)

(169)

(97)

146

Interest paid

(51)

(42)

(69)

(58)

(117)

Receipts (payments) from transactions in derivatives

(2)

(1)

(2)

(3)

Dividend paid to the non-controlling interests

(1)

(42)

(1)

(42)

(64)

Net cash provided by (used in) financing activities

(12)

198

203

(195)

Net change in cash and cash equivalents

255

204

233

(54)

Cash and cash equivalents as of the beginning of the period

407

312

291

327

Net effect of currency translation on cash and cash equivalents

(6)

Cash and cash equivalents as of the end of the period

496

582

496

582

291

Adjustments to Reported Operating and Net income (non-GAAP)

$ millions

Three-months ended

Six-months ended

June 30,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Operating income

266

181

501

366

Charges related to the security situation in Israel (1)

Impairment and write-off of assets and provision for site closure (2)

Provision for early retirement (3)

Total adjustments to operating income

Adjusted operating income

281

201

533

409

Net income attributable to the shareholders of the Company

137

263

184

Total adjustments to operating income

Total tax adjustments (4)

(3)

(7)

Total adjusted net income - shareholders of the Company

149

110

288

220

For 2026 and 2025, reflects charges relating to the ongoing security situation in Israel.

For 2025, reflects mainly the write-off of two portfolio companies due to their inability to continue operations and secure funding, as well as the write-off of an asset related to the fire at Ashdod Port.

For 2025, reflects provisions for early retirement due to restructuring at certain sites, as part of the Company’s global efficiency plan.

Consolidated EBITDA for the Periods of activity

$ millions

Three-months ended

Six-months ended

June 30,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Net income

152

108

292

214

Financing expenses, net

Taxes on income

125

102

Operating income

266

181

501

366

Depreciation and amortization

167

150

327

301

Adjustments (1)

Total adjusted EBITDA

448

351

860

710

(1)

See "Adjustments to Reported Operating and Net income (non-GAAP)" above.

Calculation of Segment EBITDA

$ millions

Industrial Products

Potash

Phosphate Solutions (1)

Growing Solutions

Three-months ended

June 30,

2026

June 30,

2025

June 30,

2026

June 30,

2025

June 30,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Segment operating income

115

Depreciation and amortization

Segment EBITDA

130

154

115

136

134

(1)

For the second quarter of 2026, Phosphate Specialties accounted for $399 million of segment sales, $40 million of operating income, $13 million of D&A and $53 million of EBITDA, while Phosphate Commodities accounted for $323 million of segment sales, $40 million of operating income, $43 million of D&A and represented $83 million of EBITDA.