ICL Reports Fourth Quarter and Full Year 2024 Results
Delivers annual sales of $6,841 million, adjusted EBITDA of $1,469 million and earnings per share of $0.38
Specialties-driven EBITDA reaches 70% of total adjusted EBITDA for the year and 73% in the fourth quarter
TEL AVIV, Israel & ST. LOUIS--(BUSINESS WIRE)--February 26, 2025--
ICL , a leading global specialty minerals company, today reported its financial results for the fourth quarter and full year ended December 31, 2024. Consolidated annual sales were $6,841 million versus $7,536 million in 2023. Net income was $407 million versus $647 million, while adjusted net income was $484 million versus $715 million in 2023. Annual adjusted EBITDA was $1,469 million versus $1,754 million in 2023. Diluted earnings per share for 2024 were $0.32, while adjusted diluted EPS was $0.38. Operating cash flow was $1,468 million in 2024, similar to adjusted EBITDA, while free cash flow was $758 million. For 2024, the Company distributed $242 million in dividends to its shareholders.
For the fourth quarter of 2024, consolidated sales were $1,601 million versus $1,690 million in the fourth quarter of 2023. Net income and adjusted net income for the fourth quarter of 2024 were $70 million and $104 million, respectively, versus $67 million and $123 million, respectively, for the fourth quarter of 2023. Adjusted EBITDA in the fourth quarter was $347 million versus $357 million in the fourth quarter of 2023. Fourth quarter diluted earnings per share were $0.06, with adjusted diluted EPS of $0.08, versus $0.05 and $0.10, respectively in the fourth quarter of 2023. Operating cash flow was $452 million in the fourth quarter of 2024, similar to the fourth quarter of 2023.
"ICL delivered 2024 adjusted EBITDA of $1,469 million, with our specialties-driven businesses contributing 70% of that amount, as we continued to focus on cash generation while increasing market share across Industrial Products, Phosphate Solutions and Growing Solutions. We remain committed to growing our leadership position for these three businesses," said Raviv Zoller, president and CEO of ICL. "During 2024, amidst persistent potash price declines and geopolitical challenges, we achieved strong profitability and cashflow, introduced dozens of innovative specialties products, developed new global partnerships, set production records at multiple sites, completed complementary bolt-on acquisitions, and continued to be vigilant in the execution of cost savings and efficiency efforts, all while continuing to drive significant value to our shareholders through dividends. As a result of these items, as well as prudent timing of potash deliveries, we are entering 2025 in a solid position and looking forward to improving market conditions in key end-markets."
For 2025, the Company expects the specialties-driven segments' EBITDA to be between $0.95 billion to $1.15 billion. For Potash, the Company expects 2025 sales volumes to be between 4.5 million metric tons and 4.7 million metric tons. (1a).
Financial Figures and non-GAAP Financial Measures
10-12/2024 10-12/2023 1-12/2024 1-12/2023
---------------- ---------------- ---------------- ----------------
$ % of $ % of $ % of $ % of
millions Sales millions Sales millions Sales millions Sales
------------- -------- ------ -------- ------ -------- ------ -------- ------
Sales 1,601 - 1,690 - 6,841 - 7,536 -
Gross profit 535 33 560 33 2,256 33 2,671 35
Operating
income 147 9 149 9 775 11 1,141 15
Adjusted
operating
income (1) 190 12 211 12 873 13 1,218 16
Net income
attributable
to the
Company's
shareholders 70 4 67 4 407 6 647 9
Adjusted net
income
attributable
to the
Company's
shareholders
(1) 104 6 123 7 484 7 715 9
Diluted
earnings per
share (in
dollars) 0.06 - 0.05 - 0.32 - 0.50 -
Diluted
adjusted
earnings per
share (in
dollars) (2) 0.08 - 0.10 - 0.38 - 0.55 -
Adjusted
EBITDA
(2)(3) 347 22 357 21 1,469 21 1,754 23
Cash flows
from
operating
activities
(4) 452 - 452 - 1,468 - 1,710 -
Purchases of
property,
plant and
equipment and
intangible
assets (5) 267 - 255 - 713 - 780 -
(1) See "Adjustments to Reported Operating and Net income (non-GAAP)"
below.
(2) See "Adjusted EBITDA and Diluted Adjusted Earnings Per Share for the
periods of activity" below.
(3) In 2024, the Company's adjusted EBITDA was positively impacted by an
immaterial accounting reclassification. For further information, see
below in our Potash segment results.
(4) Commencing Q2 2024, management reclassified interest received as cash
flows from investing activities and interest paid as cash flows from
financing activities, instead of under cash provided by operating
activities.
(5) See "Condensed consolidated statements of cash flows (unaudited)" in
the appendix below.
Segment Information
Industrial Products
The Industrial Products segment produces bromine from a highly concentrated solution in the Dead Sea and bromine--based compounds at its facilities in Israel, the Netherlands and China. In addition, the segment produces several grades of salts, magnesium chloride, magnesia-based products, phosphorus-based products and functional fluids.
Results of operations and key indicators
10-12/2024 10-12/2023 1-12/2024 1-12/2023
$ millions $ millions $ millions $ millions
---------- ---------- ---------- ----------
Segment Sales 280 299 1,239 1,227
Sales to external
customers 275 294 1,220 1,206
Sales to internal
customers 5 5 19 21
---------------------- ---------- ---------- ---------- ----------
Segment Operating
Income 55 39 224 220
Depreciation and
amortization 15 17 57 57
Segment EBITDA 70 56 281 277
---------------------- ---------- ---------- ---------- ----------
Capital expenditures 38 29 94 91
Significant highlights for the fourth quarter
- Flame retardants: Bromine-based sales decreased year-over-year while phosphorus-based sales increased year-over-year, with higher volumes, mainly in Europe, due to the implementation of duties on imports of tris (2-chloro-1-methylethyl) phosphate (TCPP) from China.
- Elemental bromine: Sales were nearly flat year-over-year, as operational efficiencies allowed higher gross margins.
- Clear brine fluids: Sales decreased year-over-year, as oil and gas demand in the Eastern Hemisphere remained softer, due to the drilling cycle operations, resulting in lower volumes sold.
- Specialty minerals: Sales increased slightly year-over-year, due to growth in demand from the pharma and food end-markets, which was partially offset by lower demand for certain industrial applications.
Results analysis for the period October — December 2024
Operating
Sales Expenses income
----- -------- -----------
$ millions
----------------------------- ----------------------------
Q4 2023 figures 299 (260) 39
Quantity (13) 10 (3)
Price (6) - (6)
Exchange rates - - -
Raw materials - 6 6
Energy - 2 2
Transportation - (4) (4)
Operating and other expenses - 21 21
---- ------- ------ ---
Q4 2024 figures 280 (225) 55
==== ======= ====== ===
- Quantity -- The negative impact on operating income was primarily related to a decrease in sales volumes of bromine-based flame retardants and clear brine fluids. This was partially offset by higher sales volumes of phosphorus-based flame retardants.
- Price -- The negative impact on operating income was primarily due to lower selling prices of bromine-based industrial solutions and bromine-based flame retardants.
- Raw materials -- The positive impact on operating income was mainly due to decreased costs of Bisphenol A (BPA).
- Operating and other expenses -- The positive impact on operating income was primarily related to operational efficiencies due to higher production.
Potash The Potash segment produces and sells mainly potash, salts, magnesium and electricity. Potash is produced in Israel using an evaporation process to extract potash from the Dead Sea at Sodom and in Spain using conventional mining from an underground mine. The segment also produces and sells pure magnesium, magnesium alloys and chlorine. In addition, the segment sells salt products produced at its potash site in Spain. The segment operates a power plant in Sodom, which supplies electricity and steam to ICL facilities in Israel with any surplus electricity sold to external customers.
Results of operations and key indicators
10-12/2024 10-12/2023 1-12/2024 1-12/2023
---------- ---------- ---------- ----------
$ millions $ millions $ millions $ millions
---------- ---------- ---------- ----------
Segment Sales 422 474 1,656 2,182
Potash sales to
external
customers 315 336 1,237 1,693
Potash sales to
internal
customers 30 49 95 129
Other and
eliminations (1) 77 89 324 360
---------------------- ---------- ---------- ---------- ----------
Gross Profit 162 231 650 1,171
---------------------- ---------- ---------- ---------- ----------
Segment Operating
Income 69 122 250 668
Depreciation and
amortization 61 46 242 175
Segment EBITDA (2) 130 168 492 843
---------------------- ---------- ---------- ---------- ----------
Capital expenditures 116 132 332 384
Potash price - CIF ($
per tonne) 285 345 299 393
(1) Primarily includes salt produced in Spain, metal magnesium-based
products, chlorine and sales of surplus electricity produced by ICL's
power plant at the Dead Sea in Israel.
(2) Following a nonmaterial accounting reclassification of certain assets,
the Potash segment's EBITDA for Q4 2024 increased by $16 million and
for the full year of 2024 by $65 million.
Significant highlights for the fourth quarter
- ICL's potash price (CIF) per tonne of $285 in the fourth quarter was 4% lower than the third quarter and 17% lower year-over-year.
- The Grain Price Index fell by 1.1% during the fourth quarter of 2024, with soybeans, wheat and rice 6.1%, 2.7% and 1.8% lower, respectively, while corn prices increased by 6.8%.
- The WASDE (World Agricultural Supply and Demand Estimates) report, published by the USDA in February 2025, showed a continued decrease in the expected ratio of global inventories of grains to consumption to 26.5% for the 2024/25 agriculture year, compared to 28.2% for the 2023/24 agriculture year and 28.6% for the 2022/23 agriculture year.
- In December 2024, as part of ICL's 2025-2027 Chinese framework agreements, ICL signed contracts with its Chinese customers to supply 2,500,000 metric tonnes of potash with mutual options for an additional 960,000 metric tonnes in aggregate, over the course of the three-year term. Prices for the quantities to be supplied according to the framework agreements will be established in line with prevailing market prices in China as of the relevant date of supply.
- Metal Magnesium: Sales decreased year-over-year, as lower prices offset higher volumes.
Additional segment information
Global potash market - average prices and imports:
VS Q4 VS Q3
Average prices 10-12/2024 10-12/2023 2023 7-9/2024 2024
------------------------------ ---------- ---------- --------- -------- ---------
Granular
potash -- CFR spot
Brazil ($ per tonne) 288 336 (14.3)% 300 (4.0)%
Granular
potash --
Northwest CIF spot/contract
Europe (EUR per tonne) 338 388 (12.9)% 340 (0.6)%
Standard
potash --
Southeast CFR spot
Asia ($ per tonne) 292 318 (8.2)% 283 3.2%
Potash imports
To Brazil million tonnes 2.9 3.4 (14.7)% 3.9 (25.6)%
To China million tonnes 3.4 3.6 (5.6)% 2.8 21.4%
To India million tonnes 1.2 0.8 50.0% 0.6 100.0%
Sources: CRU (Fertilizer Week Historical Price: December 2024), SIACESP (Brazil),
United Port Services (Brazil), FAI (India), Chinese customs data, Global Trade Tracker
(GTT).
Potash — Production and Sales
Thousands of tonnes 10-12/2024 10-12/2023 1-12/2024 1-12/2023
------------------------ ---------- ---------- --------- ---------
Production 1,178 1,139 4,502 4,420
Total sales (including
internal sales) 1,259 1,179 4,556 4,683
Closing inventory 229 284 229 284
Fourth quarter 2024
- Production -- Production was 39 thousand tonnes higher year-over-year, mainly due to higher production in Spain.
- Sales -- The quantity of potash sold was 80 thousand tonnes higher year-over-year, mainly due to higher sales volumes in India and Europe, partially offset by lower sales volumes in Brazil, the US and China.
Full year 2024
- Production -- Production was 82 thousand tonnes higher year-over-year, mainly due to operational improvements in Spain, which outweighed operational challenges and war-related issues at the Dead Sea.
- Sales -- The quantity of potash sold was 127 thousand tonnes lower year-over-year, mainly due to decreased sales volumes in China and Brazil, partially offset by higher sales volumes in Europe, India and the US.
Results analysis for the period October — December 2024
Operating
Sales Expenses income
----- -------- -----------
$ millions
----------------------------- ----------------------------
Q4 2023 figures 474 (352) 122
Quantity 38 (19) 19
Price (90) - (90)
Exchange rates - 1 1
Raw materials - (1) (1)
Energy - (3) (3)
Transportation - 10 10
Operating and other expenses - 11 11
---- ------- -------
Q4 2024 figures 422 (353) 69
==== ======= =======
- Quantity -- The positive impact on operating income was primarily related to an increase in sales volumes of magnesium, as well as an increase in potash sales volumes in India and Europe, partially offset by lower potash sales volumes in Brazil, the US and China.
- Price -- The negative impact on operating income resulted primarily from a decrease of $60 in the potash price (CIF) per tonne, year-over-year.
- Transportation -- The positive impact on operating income was due to a decrease in inland costs and marine costs, primarily to Brazil and the US.
- Operating and other expenses -- The positive impact on operating income was primarily related to lower operational and maintenance costs.
Phosphate Solutions
The Phosphate Solutions segment operates ICL's phosphate value chain and uses phosphate rock and fertilizer-grade phosphoric acid to produce phosphate-based specialty products with higher added value, as well as to produce and sell phosphate-based fertilizers.
Results of operations and key indicators (1)
10-12/2024 (2) 10-12/2023 1-12/2024 1-12/2023
-------------- ---------- ---------- ----------
$ millions $ millions $ millions $ millions
-------------- ---------- ---------- ----------
Segment Sales 507 515 2,215 2,350
Sales to
external
customers 475 474 2,049 2,141
Sales to
internal
customers 32 41 166 209
------------------ -------------- ---------- ---------- ----------
Segment Operating
Income 81 85 358 350
Depreciation
and
amortization 51 54 191 207
------------------ -------------- ---------- ---------- ----------
Segment EBITDA 132 139 549 557
------------------ -------------- ---------- ---------- ----------
Capital
expenditures 147 89 340 270
(1) In alignment with the Company's efficiency plan, which included a
change of reporting responsibilities, as of January 2024, the results
of a non-phosphate related business were allocated from the Phosphate
Solutions segment to Other Activities. Comparative figures have been
restated to reflect the organizational change in the reportable
segments.
(2) For Q4 2024, Phosphate Specialties accounted for $309 million of
segment sales, $44 million of operating income, $13 million of D&A and
$57 million of EBITDA, while Phosphate Commodities accounted for $198
million of segment sales, $37 million of operating income, $38 million
of D&A and represented $75 million of EBITDA.
Significant highlights for the fourth quarter
- White phosphoric acid: Sales decreased year-over-year, as higher volumes mainly in South America were unable to offset lower prices in all regions.
- Industrial phosphates: Sales decreased year-over-year, as higher volumes in all major regions did not offset lower prices related to decreasing cost input prices.
- Food phosphates: Sales were nearly flat year-over-year, as higher volumes were offset by lower market prices, mainly in North America, due to reduced raw material costs.
- Battery materials: Sales in Asia increased year-over-year, as market demand expanded. Elsewhere, the Battery Materials Innovation and Qualification Center (BM-IQ) in St. Louis is nearing completion, which will allow ICL to begin qualifying battery material products for customers. In January 2025, the Company signed a strategic agreement with Shenzhen Dynanonic Co., Ltd. to establish LFP production in Europe. The new facility is planned to be located at ICL's Sallent site in Spain and could substantially expand the Company's battery materials business.
- Commodity phosphates: Overall phosphate prices remained stable in the fourth quarter of 2024, as key markets -- including India -- continued to experience a shortage of DAP and export availability from China remained limited. Key benchmarks were on average 3% higher quarter-over-quarter.
- Developments in key markets are described below:
--
Chinese DAP export prices ended 2024 at $615/mt, $30 above 2023 prices, as the country's trade policy continued to be a key determinant of global pricing levels. Offshore shipments were paused late in the fourth quarter and, at the time of writing, Chinese DAP/MAP exports for 2024 were estimated at 6 to 7 million mt -- the second lowest amount over the past five years.
--
India's DAP price was estimated at $634/mt CFR at the end of 2024 -- only $6 lower than at the beginning of the fourth quarter, defying traditionally lower demand in the Northern Hemisphere. India imported fewer than 5 million mt of DAP and ended the year with fewer than 1 million mt of stock versus average annual imports of 6 million mt and an average end-of-year stock above 2 million mt between 2019 and 2023.
--
Phosphate demand in the US was firm throughout 2024. Provisional data places fourth quarter arrivals at around 500 thousand mt, consistent with the five-year average. Imports have been supported by attractive farmer margins during recent years and the subsequent maximization of planted acreage. Additionally, local phosphate production has faced various operational challenges. Recent hurricanes not only interrupted production but also resulted in stock loss. DAP FOB NOLA ended the fourth quarter at $637/mt, $25/mt higher than the beginning of the quarter.
--
Brazilian MAP/NPS imports accelerated in the third quarter of 2024 and remained firm through the fourth quarter, due to the planting of the Safra soy crop. Weather conditions improved consistently through October and November, enabling planting to progress rapidly and supporting last minute fertilizer demand. The Brazilian MAP price ended the fourth quarter at $635/mt CFR, flat compared to the previous quarter. - Indian phosphoric acid prices are negotiated on a quarterly basis. The fourth quarter price was settled at $1,060/mt P2O5, $110 higher than the third quarter. For the first quarter of 2025, the price was settled at $1,055/mt, reflecting a slight decrease in DAP prices.
- Sulphur FOB Middle East ended the fourth quarter at $165/mt, $38 higher than prevailing levels at the end of the third quarter. The increase was driven by strong demand from key end-users, including Morocco, where a new sulphur burner was ramping up, and, to a lesser extent, continued tightening of supply.
Additional segment information
Global phosphate commodities market - average prices:
Average VS Q4 VS Q3
prices $ per tonne 10-12/2024 10-12/2023 2023 7-9/2024 2024
--------- ------------- ---------- ---------- -------- -------- ---------
CFR India
DAP Bulk Spot 637 594 7% 598 7%
CFR Brazil
TSP Bulk Spot 500 422 18% 513 (3)%
CPT Brazil
inland
18-20% P(2)
O(5) Bulk
SSP Spot 270 278 (3)% 305 (11)%
Bulk FOB
Adnoc
monthly Bulk
Sulphur contract 139 102 36% 106 31%
Source: CRU (Fertilizer Week Historical Prices, December 2024).
Results analysis for the period October — December 2024
Operating
Sales Expenses income
----- -------- -----------
$ millions
----------------------------- ----------------------------
Q4 2023 figures 515 (430) 85
Quantity 15 (5) 10
Price (24) - (24)
Exchange rates 1 3 4
Raw materials - 17 17
Energy - 1 1
Transportation - 6 6
Operating and other expenses - (18) (18)
---- ------- -------
Q4 2024 figures 507 (426) 81
==== ======= =======
- Quantity -- The positive impact on operating income was due to higher sales volumes of phosphate-based food additives and MAP used as raw materials for energy storage solutions, partially offset by lower sales volumes of phosphate fertilizers and white phosphoric acid (WPA).
- Price -- The negative impact on operating income was primarily due to lower selling prices of WPA, as well as phosphate-based food additives and salts, partially offset by higher phosphate fertilizer selling prices.
- Raw materials --The positive impact on operating income was due to the lower costs of ammonia and potassium hydroxide (KOH), partially offset by the higher cost of sulphur.
- Transportation -- The positive impact on operating income was due to a decrease in marine and inland transportation costs.
- Operating and other expenses -- The negative impact on operating income was primarily related to higher maintenance and operational expenses.
Growing Solutions
The Growing Solutions segment aims to achieve global leadership in plant nutrition by enhancing its position in its core markets of specialty agriculture, ornamental horticulture, turf and landscaping, fertilizers and FertilizerpluS, and by targeting high-growth markets such as Brazil, India, and China. The segment leverages its unique R&D capabilities, substantial agronomic experience, global footprint, backward integration to potash, phosphate and polysulphate and its chemistry know-how, as well as its ability to integrate and generate synergies from acquired businesses. The segment continuously works to expand its broad portfolio of specialty plant nutrition, plant stimulation and plant health solutions, which consists of enhanced efficiency and controlled release fertilizers (CRF), water-soluble fertilizers (WSF), liquid fertilizers and straights (MKP/MAP/PeKacid), FertilizerpluS, soil and foliar micronutrients, biostimulants, soil conditioners, seed treatment products and adjuvants.
Results of operations and key indicators
10-12/2024 10-12/2023 1-12/2024 1-12/2023
---------- ---------- ---------- ---------
$ millions $ millions $ millions millions
---------- ---------- ---------- ---------
Segment Sales 439 478 1,950 2,073
Sales to external
customers 435 475 1,932 2,047
Sales to internal
customers 4 3 18 26
----------------------- ---------- ---------- ---------- ---------
Segment Operating
Income 31 (5) 128 51
Depreciation and
amortization 20 20 74 68
Segment EBITDA 51 15 202 119
----------------------- ---------- ---------- ---------- ---------
Capital expenditures 44 36 98 92
Significant highlights for the fourth quarter Regional highlights:
- Brazil: Sales decreased year-over-year, mainly due to exchange rate fluctuations, as lower raw material costs drove higher gross profit.
- Europe: Sales decreased year-over-year as higher selling prices were unable to offset lower sales volumes. However, lower raw material costs drove higher gross profit.
- North America: Sales increased year-over-year due to higher volumes and higher prices, which contributed to an increase in gross profit.
- Asia: Sales decreased year-over-year, as higher prices were unable to offset lower volumes. However, improved product mix drove higher gross profit.
Product highlights:
- Specialty agriculture (SA): Sales decreased year-over-year, due to exchange rate fluctuations and lower sales volumes, mainly in Brazil, which were partially offset by higher sales volumes and selling prices in the US and India.
- Turf and ornamental (T&O): Sales increased year-over-year, primarily due to higher sales of ornamental horticulture, driven by increased demand for CRFs in Europe. In December 2024, the segment completed its acquisition of GreenBest, a UK-based manufacturer of specialty fertilizers and tailored solutions. The acquisition strengthens the Company's position in the turf and landscape sector and enhances its presence in the UK market, where GreenBest's expertise in custom manufacturing capabilities complements the Company's existing portfolio.
- FertilizerpluS: Sales decreased year-over-year, driven primarily by lower sales volumes, mainly in Europe and China, which were partially offset by higher sales volumes in the US.
Results analysis for the period October — December 2024
Operating
Sales Expenses income
----- -------- -----------
$ millions
----------------------------- ----------------------------
Q4 2023 figures 478 (483) (5)
Quantity (27) 20 (7)
Price 10 - 10
Exchange rates (22) 18 (4)
Raw materials - 32 32
Operating and other expenses - 5 5
---- ------- ------ ---
Q4 2024 figures 439 (408) 31
==== ======= ====== ===
- Quantity -- The negative impact on operating income was primarily related to lower sales volumes of specialty agriculture and FertilizerpluS products. This impact was partially offset by higher sales volumes of turf and ornamental products.
- Price -- The positive impact on operating income was due to higher selling prices of specialty agriculture products, mainly in the US and India.
- Exchange rates -- The unfavorable impact on operating income was due to the negative impact on sales resulting from the depreciation of the average exchange rate of the Brazilian real against the US dollar, which exceeded the positive impact from lower operational costs.
- Raw materials -- The positive impact on operating income was primarily related to lower costs for commodity fertilizers and nitrogen.
- Operating and other expenses -- The positive impact on operating income was primarily related to lower maintenance and operational costs.
Financing expenses, net
Net financing expenses in the fourth quarter of 2024 amounted to $33 million, the same as the corresponding quarter of last year.
Tax expenses
In the fourth quarter of 2024, the Company's reported tax expenses amounted to $33 million, compared to $33 million in the corresponding quarter of last year, reflecting an effective tax rate of 29% and 28%, respectively.
Liquidity and Capital Resources
As of December 31, 2024, the Company's cash, cash equivalents, short-term investments and deposits amounted to $442 million compared to $592 million as of December 31, 2023. In addition, the Company maintained about $1.2 billion of unused credit facilities, as of December 31, 2024.
Outstanding net debt
As of December 31, 2024, ICL's net financial liabilities amounted to $1,851 million, a decrease of $244 million compared to December 31, 2023.
Credit facilities
Sustainability-linked Revolving Credit Facility (RCF)
In April 2023, the Company entered into a Sustainability-Linked Revolving Credit Facility Agreement between its subsidiary ICL Finance B.V., as borrower, and a consortium of 12 international banks for $1,550 million.
In April 2024, all the banks agreed to extend the RCF agreement for an additional year which is now due to expire in April 2029. As of December 31, 2024, the Company had utilized about $520 million of its $1,550 million credit facility framework.
Securitization
The total amount of the Company's committed securitization facility framework is $300 million, with an additional $100 million uncommitted. As of December 31, 2024, ICL had utilized approximately $176 million of the facility's framework.
US
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