ICL Reports Third Quarter 2024 Results

Rhea-AI Summary

ICL reported Q3 2024 financial results with consolidated sales of $1.75 billion, down from $1.86 billion year-over-year. The company achieved adjusted EBITDA of $383 million, up from $346 million, marking four consecutive quarters of improvement. Adjusted diluted EPS was $0.11, unchanged from the previous year. The company raised its full-year 2024 guidance for specialties-driven EBITDA to $0.95-1.05 billion, up from previous guidance of $0.8-1.0 billion. ICL plans to limit annual potash sales volumes to 4.6 million metric tons, maintaining levels consistent with 2023.

Positive

• Adjusted EBITDA increased to $383M from $346M YoY
• Raised full-year specialties-driven EBITDA guidance to $0.95-1.05B
• Gross margin improved to 34% from 31% YoY
• Industrial Products sales grew to $309M from $267M YoY
• Growing Solutions EBITDA increased by 70% YoY to $64M

Negative

• Sales declined to $1.75B from $1.86B YoY
• Operating income decreased to $214M from $227M YoY
• Potash sales dropped to $389M from $526M YoY
• Potash sales volume decreased by 220,000 metric tons YoY
• Net income declined to $113M from $137M YoY

Insights

Financial Analyst

ICL's Q3 2024 results show mixed performance with some notable strengths. Sales declined -5.9% year-over-year to $1.75 billion, while adjusted EBITDA improved by 10.7% to $383 million. The company's specialties-driven businesses demonstrated resilience, leading to raised full-year EBITDA guidance of $0.95-1.05 billion.

Key positives include sequential EBITDA growth for four consecutive quarters and strong performance in specialty segments. However, challenges persist in the potash segment, where sales dropped significantly from $526 million to $389 million. The company's strategic decision to limit potash sales to 4.6 million metric tons suggests a disciplined approach to market conditions.

The balance sheet remains solid with $1.75 billion in available liquidity and reduced net debt of $1.95 billion. The maintained dividend of approximately $68 million indicates financial stability despite market headwinds.

Market Research Analyst

The commodities market context significantly impacts ICL's performance. The Grain Price Index's -19.6% decline year-over-year, with substantial drops in corn (-27.2%), soybeans (-26.4%) and wheat (-29.0%), explains the pressure on the potash segment. However, the company's diversification strategy is proving effective, with specialty segments offsetting commodity weaknesses.

The strategic focus on battery materials, particularly expansion in China and South America, positions ICL well in growing markets. The upcoming U.S. customer innovation center completion could strengthen market position in North America. The company's ability to maintain margins through cost management and efficiency improvements, despite lower prices, demonstrates operational resilience.

Continued to deliver sequential growth, with sales of $1.8 billion and adjusted EBITDA of $383 million

Raising guidance for specialties-driven businesses

TEL AVIV, Israel--(BUSINESS WIRE)-- ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today reported its financial results for the third quarter ended September 30, 2024. Consolidated sales were $1.75 billion versus $1.86 billion in the prior year. Operating income was $214 million, with adjusted operating income of $243 million, versus $227 million of operating income in the third quarter of last year. Adjusted EBITDA was $383 million versus $346 million. Diluted earnings per share were $0.09, with adjusted diluted EPS of $0.11, versus $0.11 in the third quarter of last year.

“ICL delivered another sequential increase in EBITDA, as well as versus the prior year, marking four consecutive quarters of improvement, despite lower potash prices. All three of our specialties-driven businesses showed significant year-over-year improvement in EBITDA, demonstrating the strength of our strategy and our ability to consistently deliver strong cash generation,” said Raviv Zoller, president and CEO of ICL. “While we are still facing some challenges related to geopolitical uncertainties, we remain focused on developing our innovative product portfolio pipeline and executing targeted cost and efficiency efforts.”

The company raised its guidance for full year 2024 and now expects specialties-driven EBITDA of between $0.95 billion to $1.05 billion, an increase from previous guidance of $0.8 billion to $1.0 billion. The company intends to limit its total 2024 annual potash sales volumes to 4.6 million metric tons, already committed, which is in-line with 2023 sales volumes and in expectation of improved conditions in 2025. (1a)

Key Financials

Third Quarter 2024

US$M Ex. per share data	3Q'24	3Q'23
Sales	$1,753	$1,862
Gross profit	$596	$586
Gross margin	34%	31%
Operating income	$214	$227
Adjusted operating income (1)	$243	$227
Operating margin	12%	12%
Adjusted operating margin (1)	14%	12%
Net income attributable to shareholders	$113	$137
Adjusted net income attributable to shareholders (1)	$136	$137
Adjusted EBITDA (1)(2)	$383	$346
Adjusted EBITDA margin (1)(2)	22%	19%
Diluted earnings per share	$0.09	$0.11
Diluted adjusted earnings per share (1)	$0.11	$0.11
Cash flows from operating activities (3)	$408	$426

(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.
(2)	In the nine months of 2024, the company’s adjusted EBITDA was positively impacted by an immaterial accounting reclassification. Please refer to the 6-K filing for additional details.
(3)	Reclassified - see Note 2 to the company's interim financial statements.

Industrial Products

Third quarter 2024

• Sales of $309 million vs. $267 million.
• EBITDA of $65 million vs. $42 million.
• Year-over-year growth driven by market share gains in flame retardants.

Key developments versus prior year

• Flame retardants: Sales increased, as higher volumes for both brominated- and phosphorous-based solutions offset lower prices overall, while demand from both the electronics and construction end-markets remained soft.
• Elemental bromine: Higher volumes drove an increase in sales, offsetting lower prices.
• Clear brine fluids: Sales declined, despite strength in the Gulf of Mexico, as oil and gas demand in the Eastern Hemisphere was lower, due to the normal pattern of the drilling operations cycle.
• Specialty minerals: Increased sales were driven by higher volumes for industrial applications, while prices were lower.

Potash

Third quarter 2024

• Sales of $389 million vs. $526 million.
• EBITDA of $120 million vs. $164 million.
• Grain Price Index decreased 19.6% year-over-year, with corn, rice, soybeans and wheat down 27.2%, 4.3%, 26.4% and 29.0%, respectively. On a sequential basis, the Grain Price Index decreased 14.3%, with corn, rice, soybeans and wheat down 11.5%, 16.4%, 11.9% and 14.1%, respectively.

Key developments versus prior year

• Potash price: $297 per ton (CIF).
  • Down 1% sequentially and 13% year-over-year.
• Potash sales volumes: 1,060 thousand metric tons.
  • Decreased by 220 thousand metric tons year-over-year.
• ICL Dead Sea
  • Production decreased, primarily due to external forces.
• ICL Iberia
  • Record third quarter production, with continued operational and efficiency improvements.
• Metal Magnesium
  • Both volumes and prices declined, as market prices continued to trend lower.

Phosphate Solutions

Third quarter 2024

• Sales of $577 million vs. $595 million.
• EBITDA of $140 million vs. $118 million.
• Third sequential quarter of sales growth, with EBITDA up nearly 20% year-over-year.

Key developments versus prior year

• White phosphoric acid: Sales decreased, as higher volumes in most regions were unable to offset lower prices in Europe, as well as in North and South America.
• Industrial phosphates: Sales increased, as higher volumes in all major regions offset lower prices related to decreasing cost inputs.
• Food phosphates: Despite higher volumes, sales decreased due to lower market prices, which reflected reduced raw material costs.
• Battery materials: China sales increased, as market demand expanded there. Elsewhere, the company continued to execute on its long-term battery materials strategy, with the U.S. customer innovation and qualification center (CIQC) on-track for completion by year-end. The business also expanded into South America, with the addition of a new customer.
• Commodity phosphates: Overall phosphate prices firmed in the third quarter, with tight stock positions in key markets, strategic allocation decisions and prevailing policies.

Growing Solutions

Third quarter 2024

• Sales of $538 million vs. $550 million.
• EBITDA of $64 million vs. $37 million.
• Third sequential quarter of sales and EBITDA growth, with EBITDA up more than 70% year-over-year.

Key developments versus prior year

• Brazil: Sales declined, due to exchange rate fluctuations, but higher prices and lower raw material costs drove an increase in gross profit.
• Europe: Sales decreased, but gross profit increased on higher volumes and lower raw material costs.
• North America: Sales increased, with higher volumes and slightly higher prices contributing to increased gross profit.
• Asia: Sales increased, and higher volumes, prices and product mix drove higher gross profit.
• Product trends: Specialty agriculture sales decreased, as exchange rate fluctuations, mainly in Brazil, and lower sales volumes in China offset higher prices. Turf and ornamental sales increased, with both turf and landscape and ornamental horticulture contributing.

Financial Items

Financing Expenses

Net financing expenses for the third quarter of 2024 were $39 million, down versus $42 million in the corresponding quarter of last year.

Tax Expenses

Reported tax expenses in the third quarter of 2024 were $49 million, reflecting an effective tax rate of 28%, compared to $43 million in the corresponding quarter of last year, reflecting an effective tax rate of 23%. The lower tax rate in the third quarter of last year was mainly due to the devaluation of the shekel versus the U.S. dollar.

Available Liquidity

ICL’s available cash resources, which are comprised of cash and deposits, unutilized revolving credit facility, and unutilized securitization, totaled $1,749 million, as of September 30, 2024.

Outstanding Net Debt

As of September 30, 2024, ICL’s net financial liabilities amounted to $1,948 million, a decrease of $147 million compared to December 31, 2023.

Dividend Distribution

In connection with ICL’s third quarter 2024 results, the Board of Directors declared a dividend of 5.27 cents per share, or approximately $68 million, versus 5.31 cents per share, or approximately $68 million, in the third quarter of last year. The dividend will be payable on December 18, 2024, to shareholders of record as of December 4, 2024.

About ICL

ICL Group Ltd. is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company's growth across its end markets. 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 2023 revenue totaled approximately $7.5 billion.

For more information, including ICL’s full third quarter financial statements and report, visit ICL’s website at icl-group.com, and also the SEC’s EDGAR website, once it reopens on November 12, 2024.

To access ICL's interactive CSR report, visit icl-group-sustainability.com.

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 specialties-driven EBITDA, which includes Industrial Products, Growing Solutions and Phosphate Solutions, as the Phosphate Solutions business is now predominantly specialties focused. For the Potash business, the company is providing sales volume guidance. The company believes this information provides greater transparency, as these new metrics are less impacted by fertilizer commodity prices, given the extreme volatility in recent years.

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 operating income to add certain items, as set forth in the reconciliation table under “Adjustments to reported operating, and net income (non-GAAP)” below. Certain of these items may recur. The company calculates adjusted net income attributable to the company’s shareholders 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. The company calculates diluted adjusted earnings per share 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 company’s 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 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 financial results between periods and provide for greater transparency of key measures used to evaluate performance.

The company presents a discussion in the period-to-period comparisons of the primary drivers of change in the company’s results of operations. This discussion is based in part on management’s best estimates of the impact of the main trends on the company’s businesses. The company has based the following discussion on its financial statements. You should read such discussion together with the company’s financial statements.

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 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 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; volatility of supply and demand and the impact of competition; the difference between actual reserves and 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 seaport shipping facilities or regulatory restrictions affecting the ability to export products overseas; changes in exchange rates or prices compared to those the company is currently experiencing; general market, political or economic conditions in the countries in which the company operates; price increases or shortages with respect to principal raw materials; pandemics may create disruptions, impacting sales, operations, supply chain and customers; delays 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 plants; labor disputes, slowdowns and strikes involving 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 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; rising interest rates; government examinations or investigations; information technology systems or breaches of the company, or its service providers', data security; failure to retain and/or recruit key personnel; inability to realize expected benefits from the company’s cost reduction program according to the expected timetable; inability to access capital markets on favorable terms; cyclicality of the businesses; the company is exposed to risks relating to its current and future activity in emerging markets; changes in demand for its 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 of the company, or its service providers', sales of magnesium products being affected by various factors that are not within the company’s control; 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 current state of war declared in Israel and any resulting disruptions to supply and production chains; filing of class actions and derivative actions against the company, its executives and Board members; 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, 2023, filed with the U.S. Securities and Exchange Commission (SEC) on March 14, 2024 (the Annual Report).

Forward‑looking statements speak only as of the date they are made, and, except as otherwise required by law, the company does 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 risk 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.

This report for the third quarter of 2024 should be read in conjunction with the Annual Report of 2023 published by the company on Form 20-F and the report for the first and second quarters of 2024 published by the company, including the description of events occurring subsequent to the date of the statement of financial position, as filed with the US SEC.

Appendix

Condensed Consolidated Statements of Income (Unaudited)

$ millions		Three-months ended				Nine-months ended				Year ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023		December 31, 2023
Sales		1,753		1,862		5,240		5,846		7,536
Cost of sales		1,157		1,276		3,519		3,735		4,865
Gross profit		596		586		1,721		2,111		2,671
Selling, transport and marketing expenses		280		264		833		807		1,093
General and administrative expenses		63		66		191		189		260
Research and development expenses		19		17		50		54		71
Other expenses		22		14		27		84		128
Other income		(2)		(2)		(8)		(15)		(22)
Operating income		214		227		628		992		1,141
Finance expenses		46		79		166		255		259
Finance income		(7)		(37)		(59)		(120)		(91)
Finance expenses, net		39		42		107		135		168
Share in earnings of equity-accounted investees		1		-		1		-		1
Income before taxes on income		176		185		522		857		974
Taxes on income		49		43		139		254		287
Net income		127		142		383		603		687
Net income attributable to the non-controlling interests		14		5		46		23		40
Net income attributable to the shareholders of the Company		113		137		337		580		647
Earnings per share attributable to the shareholders of the Company:
Basic earnings per share (in dollars)		0.09		0.11		0.26		0.45		0.50
Diluted earnings per share (in dollars)		0.09		0.11		0.26		0.45		0.50
Weighted-average number of ordinary shares outstanding:
Basic (in thousands)		1,290,171		1,289,318		1,289,869		1,289,332		1,289,361
Diluted (in thousands)		1,290,371		1,290,813		1,290,094		1,290,926		1,290,668

Condensed Consolidated Statements of Financial Position as of (Unaudited)

$ millions		September 30, 2024		September 30, 2023		December 31, 2023
Current assets
Cash and cash equivalents		393		307		420
Short-term investments and deposits		110		162		172
Trade receivables		1,393		1,387		1,376
Inventories		1,591		1,722		1,703
Prepaid expenses and other receivables		337		362		363
Total current assets		3,824		3,940		4,034
Non-current assets
Deferred tax assets		149		141		152
Property, plant and equipment		6,414		6,125		6,329
Intangible assets		916		851		873
Other non-current assets		255		217		239
Total non-current assets		7,734		7,334		7,593
Total assets		11,558		11,274		11,627
Current liabilities
Short-term debt		606		592		858
Trade payables		921		814		912
Provisions		49		71		85
Other payables		874		809		783
Total current liabilities		2,450		2,286		2,638
Non-current liabilities
Long-term debt and debentures		1,845		1,984		1,829
Deferred tax liabilities		495		464		489
Long-term employee liabilities		339		334		354
Long-term provisions and accruals		223		234		224
Other		71		64		56
Total non-current liabilities		2,973		3,080		2,952
Total liabilities		5,423		5,366		5,590
Equity
Total shareholders’ equity		5,873		5,664		5,768
Non-controlling interests		262		244		269
Total equity		6,135		5,908		6,037
Total liabilities and equity		11,558		11,274		11,627

Condensed Consolidated Statements of Cash Flows (Unaudited)

$ millions		Three-months ended				Nine-months ended				Year ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023		December 31, 2023
Cash flows from operating activities
Net income		127		142		383		603		687
Adjustments for:
Depreciation and amortization		140		119		439		390		536
Fixed assets impairment		7		-		7		-		-
Exchange rate, interest and derivative, net		9		27		105		75		24
Tax expenses		49		43		139		254		287
Change in provisions		-		(13)		(53)		(41)		(32)
Other		2		1		6		7		29
		207		177		643		685		844
Change in inventories		(14)		251		95		415		465
Change in trade receivables		73		(28)		(42)		205		252
Change in trade payables		46		(59)		17		(167)		(101)
Change in other receivables		(31)		(6)		(27)		(11)		26
Change in other payables		22		(19)		4		(226)		(210)
Net change in operating assets and liabilities		96		139		47		216		432
Income taxes paid, net of refund		(22)		(32)		(57)		(246)		(253)
Net cash provided by operating activities (*)		408		426		1,016		1,258		1,710
Cash flows from investing activities
Proceeds (payments) from deposits, net		-		1		61		(78)		(88)
Purchases of property, plant and equipment and intangible assets		(159)		(191)		(446)		(525)		(780)
Interest received (*)		4		2		14		7		10
Proceeds from divestiture of assets and businesses, net of transaction expenses		1		1		19		4		4
Business combinations		(50)		-		(72)		-		-
Other		-		-		-		1		1
Net cash used in investing activities		(204)		(187)		(424)		(591)		(853)
Cash flows from financing activities
Dividends paid to the Company's shareholders		(63)		(82)		(183)		(406)		(474)
Receipts of long-term debt		273		131		611		484		633
Repayments of long-term debt		(307)		(255)		(919)		(653)		(836)
Receipts (Repayments) of short-term debt		8		(72)		7		(89)		(25)
Interest paid (*)		(16)		(21)		(79)		(85)		(125)
Receipts (payments) from transactions in derivatives		(2)		-		1		6		5
Dividend paid to the non-controlling interests		-		-		(57)		(15)		(15)
Net cash used in financing activities		(107)		(299)		(619)		(758)		(837)
Net change in cash and cash equivalents		97		(60)		(27)		(91)		20
Cash and cash equivalents as of the beginning of the period		287		372		420		417		417
Net effect of currency translation on cash and cash equivalents		9		(5)		-		(19)		(17)
Cash and cash equivalents as of the end of the period		393		307		393		307		420
(*) Reclassified - see Note 2 to the Company's Interim Financial Statements.

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

$ millions		Three-months ended				Nine-months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Operating income		214		227		628		992
Charges related to the security situation in Israel (1)		14		-		40		-
Write-off of assets and provision for site closure (2)		15		-		15		15
Total adjustments to operating income		29		-		55		15
Adjusted operating income		243		227		683		1,007
Net income attributable to the shareholders of the Company		113		137		337		580
Total adjustments to operating income		29		-		55		15
Total tax adjustments (3)		(6)		-		(12)		(3)
Total adjusted net income - shareholders of the Company		136		137		380		592

(1)	For 2024, reflects charges relating to the security situation in Israel.
(2)	For 2024, reflects mainly a write-off of assets resulting from the closure of two small sites. For 2023, reflects mainly a write-off of assets related to restructuring at certain sites, including site closures and facility modifications, as part of the Company’s global efficiency plan.
(3)	For 2024 and 2023, reflects the tax impact of adjustments made to operating income.

Consolidated EBITDA for the Periods of Activity

$ millions		Three-months ended				Nine-months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net income		127		142		383		603
Financing expenses, net		39		42		107		135
Taxes on income		49		43		139		254
Less: Share in earnings of equity-accounted investees		(1)		-		(1)		-
Operating income		214		227		628		992
Depreciation and amortization		140		119		439		390
Adjustments (1)		29		-		55		15
Total adjusted EBITDA (2)		383		346		1,122		1,397

(1)	See "Adjustments to Reported Operating and Net income (non-GAAP)" above.
(2)	In the first nine months of 2024, the Company’s adjusted EBITDA was positively impacted by an immaterial accounting reclassification. Please refer to the 6-K filing for additional details.

Calculation of Segment EBITDA

$ millions		Industrial Products				Potash				Phosphate Solutions (1)				Growing Solutions
		Three-months ended
		September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023		September 30, 2024 (2)		September 30, 2023		September 30, 2024		September 30, 2023
Segment operating income		50		31		59		125		100		73		49		20
Depreciation and amortization		15		11		61		39		40		45		15		17
Segment EBITDA		65		42		120		164		140		118		64		37

(1)	In alignment with the Company’s efficiency plan, which includes 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 Q3 2024, Phosphate Specialties comprised $331 million of segment sales, $49 million of operating income, $12 million of D&A and represented $61 million of EBITDA, while Phosphate Commodities comprised $246 million of segment sales, $51 million of operating income, $28 million of D&A and represented $79 million of EBITDA.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241110145727/en/

Investor and Press Contact – Global

Peggy Reilly Tharp

VP, Global Investor Relations

+1-314-983-7665

Peggy.ReillyTharp@icl-group.com

Investor and Press Contact - Israel

Adi Bajayo

ICL Spokesperson

+972-3-6844459

Adi.Bajayo@icl-group.com

Source: ICL Group LTD

FAQ

What was ICL's Q3 2024 revenue and how did it compare to last year?

ICL's Q3 2024 revenue was $1.75 billion, down from $1.86 billion in Q3 2023.

How much did ICL raise its 2024 specialties-driven EBITDA guidance?

ICL raised its 2024 specialties-driven EBITDA guidance to $0.95-1.05 billion from previous guidance of $0.8-1.0 billion.

What was ICL's adjusted EBITDA in Q3 2024?

ICL's adjusted EBITDA in Q3 2024 was $383 million, up from $346 million in Q3 2023.

What was ICL's potash price per ton in Q3 2024?

ICL's potash price was $297 per ton (CIF), down 1% sequentially and 13% year-over-year.