ICL Group (NYSE:ICL) reported a stronger first quarter for 2026, with management citing higher bromine and potash prices, broad segment sales growth and operational improvements, while also warning that elevated raw material costs and foreign exchange headwinds remain key risks for the rest of the year.
President and CEO Elad Aharonson said the company delivered sales of $2 billion in the quarter, up 14% from a year earlier. Adjusted net income rose 26% to $139 million, or $0.11 per share, while adjusted EBITDA increased 15% to $412 million. Operating cash flow rose 18% year over year to $195 million, and free cash flow was $61 million.
“We delivered a strong start to the year with good growth across all key financial metrics,” Aharonson said. He said the results came despite higher raw material costs and more than $20 million of impact from currency exchange fluctuations. The company noted that a stronger Israeli shekel increases costs for its operations in Israel because ICL is dollar-denominated.
Guidance Raised on Potash and Bromine Strength
ICL raised its 2026 consolidated EBITDA guidance by $100 million, now expecting a range of $1.5 billion to $1.7 billion. Aharonson said the increase follows a strong first quarter that benefited from higher bromine and potash prices, which the company expects to remain elevated.
The company maintained its outlook for potash sales volumes of 4.5 million to 4.7 million metric tons for the year, citing operational improvements made at the Dead Sea and in Spain during 2025. ICL also said it expects its annual adjusted tax rate to be approximately 30%.
In response to a question from Barclays analyst Benjamin Theurer about the guidance increase, Aharonson said the uplift was tied to strength in potash and bromine. “Also I think bromine prices will be higher than expected,” he said, adding that prices had eased after a spike at the beginning of the war but remained above expectations.
Potash Delivers Sharp EBITDA Growth
ICL’s Potash division reported first-quarter sales of $503 million, up nearly 25% year over year, while EBITDA rose more than 45% to $172 million. The company’s average potash price was $362 per ton on a CIF basis, up more than 20% from a year earlier and 4% sequentially.
Potash production volumes were 1.177 million metric tons, up 11% year over year. Aharonson said the gains came from both the Dead Sea and Spain, where the company improved equipment availability and shortened downtime.
Management said ICL continued to prioritize potash sales into the most attractive global markets. Aharonson also noted that while potash remains more affordable than nitrogen and phosphate, farmers require all three nutrients.
Industrial Products Benefit From Bromine Pricing
Industrial Products sales were $349 million, up slightly from the prior year, while EBITDA increased 13% to $86 million. Aharonson said bromine prices had their best quarter since the end of 2022, even as some end markets, including building and construction, remained soft.
Flame retardants posted higher overall sales, with bromine-based products benefiting from higher prices and improved demand from electronics end markets. However, phosphorus-based flame retardants were pressured by continued weakness in construction. Clear brine fluids sales decreased as some oil and gas activity in the Gulf of Mexico shifted from the first quarter to the second.
Specialty minerals, including magnesia, calcium carbonate and salt products, generated higher sales year over year on increased demand from food and pharmaceutical end markets. The company also cited strong de-icing sales for the season following significant winter weather in North America.
Phosphate Faces Sulfur Cost Pressure
Phosphate Solutions sales increased 18% to $679 million, supported by higher commodity phosphate prices. EBITDA was $131 million, with results pressured by higher raw material prices, particularly sulfur, which Aharonson said was up more than 100% in the quarter.
Management said commodity phosphate demand varied by region and that prices were volatile as the escalation of the Middle East conflict accelerated price momentum. In specialty phosphates, Aharonson said customers across regions continued to focus on secure and reliable supply chains, an area where he said ICL benefits from production in six key regions.
During the Q&A, Aharonson said sulfur prices were “skyrocketing” and that availability was also an issue. He said ICL was seeing solid demand but could not guarantee that would continue as the company raises prices to offset sulfur costs. He added that ICL is less exposed to ammonia costs than producers more focused on DAP and MAP, but said he would expect demand for phosphate fertilizers to be “lower than usual” for the rest of the year.
Executives also pointed to China’s restrictions on phosphate exports as a factor keeping supply tight and supporting prices. In a later exchange with Jefferies analyst Laurence Alexander, management said higher phosphate prices may only partially compensate for rising sulfur costs.
Growth Initiatives and Balance Sheet
ICL said it continued executing its strategy to expand in Specialty Crop Nutrition and Specialty Food Solutions. During the quarter, the company completed the acquisition of approximately 50% of Bartek Ingredients and established its first specialty fertilizer production facility in India. The India facility has 30,000 metric tons of annual capacity and is intended to expand local manufacturing capabilities and strengthen the supply chain.
In Specialty Food Solutions, sales increased, reflecting new customers, continued growth in China and the Bartek acquisition. Aharonson said North American sales were strong, led by DairyPlus products and double-digit growth in new business conversions. In China, the company saw improvement in processed meat and higher sales for Specialty Food Solutions.
Growing Solutions sales rose 11% to $551 million, while EBITDA increased 4% to $49 million. Specialty fertilizer sales increased on higher volumes, mainly in China and India, and higher prices. Europe saw higher sales and profitability, Asia posted robust growth across major products, North America profitability was stable, and Brazil results declined due to lower volumes, market competition and a less profitable product mix.
CFO Aviram Lahav said ICL ended the quarter with available resources of $1.5 billion and a stable net debt-to-adjusted EBITDA ratio of 1.5 times. Fitch and S&P reaffirmed ICL’s bond rating at BBB-minus with a stable outlook. The company is distributing 50% of adjusted net income to shareholders, equal to a $69 million dividend for the quarter and a trailing 12-month dividend yield of 3.7%.
Lahav also noted that the call was his final earnings call with ICL. He said he would assist in the transition to incoming CFO Asaf Alperovitz over the next few weeks before retiring.
Aharonson closed the call by saying ICL expects the rest of the year to be positive, while continuing to monitor raw material costs and the shekel-dollar exchange rate.
About ICL Group (NYSE:ICL)
ICL Group is a global specialty minerals and chemicals company headquartered in Tel Aviv, Israel. Established in its current form through the consolidation of Israeli government–owned chemical operations, ICL has evolved into a publicly traded entity on the New York Stock Exchange (NYSE: ICL). The company's origins date back to state-driven mineral extraction in the Negev and the Dead Sea region, and over the decades it has grown through strategic acquisitions, technological innovation and a gradual privatization process completed in the early 2010s.
ICL's core operations are organized into three principal business areas.
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