ICL (ICL, Financial) announced its first-quarter revenue increase to $1.77 billion, compared to $1.74 billion in the same period last year. The company's improved performance was attributed to higher sales, adjusted EBITDA, and EPS, primarily fueled by its specialties-driven sectors. Key business segments such as Industrial Products, Phosphate Solutions, and Growing Solutions showed noteworthy year-over-year growth in both sales and EBITDA, largely due to increased volumes. However, the Potash segment experienced a decline in prices, which was anticipated, as supply focused on long-term contracts with China and India at rates below current market prices.
ICL's President and CEO, Elad Aharonson, expressed optimism for future growth, emphasizing the company's strong global presence. Aharonson highlighted plans to leverage regional diversification and maintain a focus on specialty solutions to cater to local market needs. The company remains attentive to developments in global trade negotiations and is poised to capitalize on its broad operational footprint.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for ICL Group Ltd (ICL, Financial) is $6.08 with a high estimate of $7.00 and a low estimate of $5.00. The average target implies an downside of 9.87% from the current price of $6.74. More detailed estimate data can be found on the ICL Group Ltd (ICL) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, ICL Group Ltd's (ICL, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ICL Group Ltd (ICL, Financial) in one year is $4.99, suggesting a downside of 25.96% from the current price of $6.74. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ICL Group Ltd (ICL) Summary page.
ICL Key Business Developments
Release Date: February 26, 2025
- Sales: $6.841 billion for 2024.
- Adjusted EBITDA: $1.469 billion, with a margin of 21% for 2024.
- Adjusted Diluted Earnings Per Share: $0.38 for 2024.
- Free Cash Flow: $758 million for the full year 2024.
- Dividend Distribution: $242 million, with a dividend yield of 3.8% for 2024.
- Fourth Quarter Specialty Driven EBITDA: $253 million, up 20% year-over-year.
- Fourth Quarter Consolidated Adjusted EBITDA Margin: 22%.
- Industrial Products Sales: $1.239 billion for 2024.
- Industrial Products EBITDA: $281 million for 2024.
- Potash Division Sales: $1.656 billion for 2024.
- Potash Division EBITDA: $492 million for 2024.
- Phosphate Solutions Sales: $2.215 billion for 2024.
- Phosphate Solutions EBITDA: $559 million for 2024.
- Growing Solutions Sales: $1.950 billion for 2024.
- Growing Solutions EBITDA: $202 million for 2024.
- Net Debt to Adjusted EBITDA Ratio: 1.2 times at year-end 2024.
- Available Resources: Approximately $1.6 billion at year-end 2024.
- 2025 Guidance for Specialties Driven Business EBITDA: $0.95 billion to $1.15 billion.
- Expected Total Sales Volumes for 2025: 4.5 million to 4.7 million metric tons.
- Expected Effective Annual Tax Rate for 2025: Approximately 30%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ICL Group Ltd (ICL, Financial) achieved sales of $6.841 billion and an adjusted EBITDA of $1.469 billion, representing a margin of 21% for 2024.
- The company's specialties businesses accounted for 70% of 2024 EBITDA, demonstrating strong performance in Industrial Products, Phosphate Solutions, and Growing Solutions.
- ICL Group Ltd (ICL) delivered a total dividend distribution of $242 million, with an industry-leading dividend yield of 3.8%.
- The company successfully expanded strategic relationships and launched innovative new products across its specialties-driven business.
- ICL Group Ltd (ICL) maintained strong cash generation, resulting in free cash flow of $758 million for the full year.
Negative Points
- Potash prices decreased by 24% compared to the previous year, impacting overall sales and profitability.
- The company faced operational and logistical challenges at its Dead Sea operations due to war-related disruptions.
- Sales in the Growing Solutions division were down year-over-year, despite an increase in EBITDA.
- Fourth quarter sales in Brazil were lower than expected due to currency fluctuations and soft soybean crop economics.
- ICL Group Ltd (ICL) experienced a decrease in annual EBITDA for the Phosphate Solutions division, despite an expanded EBITDA margin.
