ICL

ICL Group Ltd. Q3 2025 Financial Summary

Business Context and Reporting Period

This Form 6-K reports the unaudited financial results for ICL Group Ltd. for the third quarter and nine months ended September 30, 2025. ICL is a global specialty minerals company operating in agriculture, food, and industrial markets through four segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions. The reporting period coincides with ongoing security challenges in Israel, though a ceasefire agreement was signed on October 9, 2025.

Key Financial Metrics

Liquidity and Debt: As of September 30, 2025, cash and cash equivalents totaled $356 million, with short-term investments and deposits of $120 million. Net financial liabilities increased to $2,205 million. The company maintains approximately $1.1 billion in unutilized credit facilities.

Material Changes vs. Prior Period

• Sales Growth: Consolidated sales increased by $100 million (5.7%) year-over-year in Q3, driven by higher prices in Potash and Phosphate Solutions, partially offset by lower volumes in Industrial Products and Growing Solutions.
• Profitability: Operating income rose to $230 million in Q3 2025 from $214 million in Q3 2024. However, Adjusted Operating Income slightly declined to $241 million from $243 million due to higher raw material costs (sulphur, commodity fertilizers) and operating expenses.
• Segment Performance:
  • Potash: Sales increased significantly due to a $56/tonne year-over-year price increase (CIF), despite stable volumes.
  • Phosphate Solutions: Sales grew on higher fertilizer prices, though operating income declined due to higher sulphur costs.
  • Industrial Products: Sales declined due to weak demand for bromine-based flame retardants, though prices improved.
  • Growing Solutions: Sales increased modestly, but operating income dropped due to lower volumes and higher raw material costs.
• Non-GAAP Adjustments: Q3 2025 included $11 million in charges related to the security situation in Israel, compared to $29 million in Q3 2024.

Guidance, Outlook, and Strategic Updates

• Strategic Pivot: Management announced a renewed focus on two growth engines: specialty crop nutrition (Growing Solutions) and specialty food solutions (Phosphate Solutions). Resources will be reallocated to maximize core businesses (Potash, Industrial Products) and optimize the portfolio.
• LFP Battery Project Discontinuation: ICL decided to discontinue plans for Lithium Iron Phosphate (LFP) cathode active material facilities in St. Louis, USA, and Spain. This follows the termination of a U.S. Department of Energy grant and shifting market dynamics. The company expects to record an asset write-off of approximately $40 million (net of tax) in Q4 2025.
• Dead Sea Concession: ICL signed a Memorandum of Understanding (MOU) with the State of Israel regarding the Dead Sea Concession. The agreement outlines a consideration of $2.54 billion for concession assets upon expiration in 2030, providing regulatory and financial certainty.
• Guidance: The company reiterated its full-year 2025 guidance for specialties-driven EBITDA of $0.95 billion to $1.15 billion. Potash sales volume guidance remains at 4.3 to 4.5 million metric tons.
• Risks: Ongoing security tensions in Israel and the region continue to pose risks to supply chains and shipping costs. The company is also monitoring potential impacts of new U.S. tariffs.

Key Facts for Investor Verification

• Asset Write-off: Verify the timing and exact amount of the ~$40 million write-off related to the discontinued LFP projects in Q4 2025.
• Dead Sea MOU: Confirm the final legislative status of the Dead Sea Concession agreement and the certainty of the $2.54 billion asset consideration.
• Raw Material Costs: Monitor sulphur and commodity fertilizer prices, which significantly impacted Q3 margins in Phosphate and Growing Solutions segments.
• Security Impact: Assess the long-term operational impact of the Israel security situation on production and logistics, despite the recent ceasefire.
• Capital Allocation: Track the execution of the new strategy regarding resource reallocation and potential divestitures of non-synergistic activities.