ICL Group Ltd. Q4 2025 Financial Summary
Business Context and Reporting Period
This Form 6-K filing, dated February 18, 2026, reports the financial results for ICL Group Ltd. for the fourth quarter and full year ended December 31, 2025. The company operates in four primary segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions. The reporting period reflects a strategic focus on portfolio optimization, including the discontinuation of the LFP project and the initiation of the Boulby sale, alongside continued growth in specialty products.
Key Financial Metrics
| Metric | Q4 2025 | FY 2025 |
|---|---|---|
| Total Sales | $1.7 billion | $7.2 billion |
| Adjusted EBITDA | $380 million | $1.5 billion |
| Adjusted Diluted EPS | $0.09 | $0.36 |
| Operating Cash Flow | $314 million | $1.1 billion |
| Free Cash Flow | $62 million | $236 million |
| Net Debt | $1.935 billion (as of 12/31/25) | $1.935 billion (as of 12/31/25) |
| Net Debt to Adjusted EBITDA | 1.3x | 1.3x |
| Available Cash Resources | $1.6 billion | $1.6 billion |
Segment Performance (Q4 2025):
- Potash: Sales of $473M; EBITDA of $150M (32% margin). Average CIF price rose to $348/ton.
- Phosphate Solutions: Sales of $518M; EBITDA of $121M (23% margin). Impacted by higher sulfur costs.
- Industrial Products: Sales of $296M; EBITDA of $68M (23% margin). Bromine prices maintained upward trajectory.
- Growing Solutions: Sales of $467M; EBITDA of $60M (13% margin). North America and Europe drove profit growth.
Material Changes vs. Prior Period
Compared to Q4 2024, total sales increased by 6% and Adjusted EBITDA rose by 10%. For the full year 2025, sales grew 5% year-over-year, while Adjusted EBITDA increased 1%.
- Pricing: Prices increased year-over-year across bromine, potash, and phosphate fertilizers. Potash average CIF price improved from $285/ton in Q4 2024 to $348/ton in Q4 2025.
- Cost Pressures: Profitability in Phosphate Solutions and Growing Solutions was impacted by higher raw material costs, particularly sulfur, and energy costs.
- Volume: Potash production increased to 1.2 million metric tons in Q4 2025.
- GAAP vs. Non-GAAP: Reported operating income for Q4 2025 was a loss of $16 million, compared to Adjusted Operating Income of $223 million, due to significant one-time charges.
Guidance, Outlook, and Risks
2026 Guidance:
- Adjusted EBITDA: $1.4 billion to $1.6 billion.
- Potash Sales Volumes: 4.5 million to 4.7 million metric tons.
- Annual Adjusted Tax Rate: Approximately 30%.
Management Commentary: Management highlighted the signing of the Dead Sea Concession agreement as a key strategic milestone ensuring operational continuity. The company continues to prioritize best markets for potash sales and is executing a cost reduction program.
Risks and Contingencies:
- Security Situation: Ongoing security tensions in Israel pose risks to supply chains, production, and employee safety. Q4 2025 included $18 million in charges related to the security situation.
- Legal and Regulatory: A $80 million provision was recorded for prior years' water extraction fees in the Dead Sea Concession area following a Supreme Court ruling.
- Asset Impairments: $122 million in charges were recorded for the closure of the LFP project ($61M), impairment of UK assets ($50M), and closure of small R&D activities ($6M).
- Market Volatility: Risks include exchange rate fluctuations, raw material shortages, and cyclicality in agricultural and industrial markets.
Investor Verification Checklist
- Verify the sustainability of the $348/ton potash contract price and its impact on future margins.
- Review the reconciliation of the $239 million in Q4 2025 adjustments, specifically the $80 million legal provision and $122 million impairment charges.
- Assess the impact of the Dead Sea Concession agreement on long-term operational stability and future capital requirements.
- Monitor the execution of the Boulby sale and the integration of recent acquisitions (Lavie Bio, Bartek Ingredients).
- Confirm the company's ability to maintain the guided 2026 Adjusted EBITDA range amidst potential raw material cost inflation and regional security disruptions.