ICL Reports Fourth Quarter and Full Year 2025 Results
ICL (NYSE: ICL; TASE: ICL), a global leader in specialty minerals and specialty solutions, announced its financial results for the fourth quarter and full year ended December 31, 2025, highlighting solid sales growth, improved adjusted profitability, and continued strategic repositioning to support long-term growth.
The company reported stronger revenue performance in both the quarter and full year, supported by balanced global operations and growth across all four of its business segments. However, operating income was impacted by significant non-recurring charges related to strategic initiatives and regulatory matters.
Fourth Quarter 2025 Financial Performance
Revenue Growth Across All Segments
In the fourth quarter of 2025, consolidated sales reached $1.701 billion, representing a 6% increase compared with $1.601 billion in the fourth quarter of 2024. The company attributed this growth to improved performance across its Industrial Products, Phosphate Solutions, Growing Solutions, and Potash segments, reflecting steady demand and its ability to leverage global production capabilities.
Sales in the Industrial Products, Phosphate Solutions, and Growing Solutions segments each increased by 4% year-over-year during the quarter, demonstrating balanced momentum across the portfolio.
Operating Income Impacted by Strategic Adjustments
Operating income for the fourth quarter was negative $16 million, compared with positive operating income of $147 million in the prior-year quarter. The decline was primarily driven by adjustments totaling $239 million, which the company considers unusual and non-recurring.
Adjusted operating income, which excludes these one-time items, rose to $223 million, marking a 17% increase compared with $190 million in the fourth quarter of 2024.
Adjusted EBITDA and Earnings
Adjusted EBITDA for the quarter improved 10% to $380 million, compared with $347 million in the prior-year period. This increase reflects improved operational efficiency and stronger performance in key specialty businesses.
On a per-share basis, diluted earnings per share (EPS) were negative $0.06, compared with positive $0.06 in the fourth quarter of 2024. Adjusted diluted EPS rose 13% to $0.09, compared with $0.08 in the prior year, demonstrating underlying profitability growth when excluding unusual items.
Breakdown of Fourth Quarter Adjustments
ICL recorded total adjustments of $239 million during the fourth quarter. Approximately $122 million of these charges were related to the execution of the company’s new strategic plan.
These strategic actions are designed to sharpen ICL’s focus on its two primary growth engines:
- Specialty Crop Nutrition (within Growing Solutions)
- Specialty Food Solutions (within Phosphate Solutions)
Key actions included:
- Discontinuation of LFP battery materials projects in St. Louis and Spain
- Efficiency improvements at certain R&D facilities in Israel
- Impairment of selected assets in the United Kingdom
In addition, the adjustments included an $80 million provision related to prior years following a ruling by Israel’s Supreme Court concerning water extraction fees in the Dead Sea concession area.
Management emphasized that these steps are intended to reallocate capital and resources toward higher-growth, higher-return specialty businesses aligned with long-term strategy.
Full Year 2025 Financial Results
Annual Revenue Growth
For the full year 2025, consolidated sales totaled $7.153 billion, representing a 5% increase compared with $6.841 billion in 2024. The company credited its globally diversified manufacturing footprint and localized production model for helping drive consistent specialty solutions growth.
Profitability Overview
Operating income for the year was $580 million, compared with $775 million in 2024. The decline reflects the impact of the fourth-quarter adjustments.
However, adjusted operating income remained steady at $873 million in both 2025 and 2024, indicating stability in the company’s core operations.
Adjusted EBITDA for the full year reached $1.488 billion, slightly higher than $1.469 billion in 2024. This modest increase reflects resilient specialty demand and disciplined cost management.
Earnings and Cash Flow
Diluted EPS for 2025 was $0.18, compared with $0.32 in 2024. Adjusted diluted EPS declined slightly to $0.36 from $0.38 in the prior year.
Operating cash flow was strong at $1.056 billion in 2025, underscoring the company’s solid cash generation capabilities.
During 2025, ICL distributed approximately $224 million in dividends to shareholders, reinforcing its commitment to returning value to investors while maintaining investment flexibility.
CEO Commentary and Strategic Direction
Elad Aharonson, President and CEO of ICL, described 2025 as a year of steady progress and strategic repositioning.
He highlighted that fourth-quarter sales rose 6% to $1.7 billion and adjusted EBITDA improved 10% to $380 million, with all four segments contributing to revenue growth.
According to management, ICL’s globally diversified production model enabled the company to deliver specialty solutions using local manufacturing capabilities, strengthening its competitive position and reducing exposure to regional volatility.
Looking ahead, the company expects continued momentum into 2026, supported by its two primary growth engines:
- Specialty Crop Nutrition (part of Growing Solutions)
- Specialty Food Solutions (part of Phosphate Solutions)
The company plans to accelerate growth through both organic expansion and strategic acquisitions, such as its recent acquisition of Bartek Ingredients, which enhances its food ingredient portfolio.
Capital Allocation and Portfolio Optimization
As part of its new strategic framework, ICL has reviewed its capital allocation priorities and evaluated non-synergistic or lower-potential activities.
This review led to several decisions, including:
- Discontinuation of downstream expansion into cathode active materials for LFP batteries
- Initiation of a sales review of its Boulby operations in the United Kingdom, where the company is exploring potential divestment opportunities
These actions reflect a disciplined approach to focusing resources on specialty businesses with stronger long-term profitability potential.
Management indicated that updates on strategic initiatives will be provided throughout 2026 as the company continues refining its portfolio and strengthening its competitive position.
2026 Outlook and Guidance
For 2026, ICL expects consolidated adjusted EBITDA to range between $1.4 billion and $1.6 billion, reflecting confidence in its specialty growth engines and operational efficiencies.
In the Potash segment, the company anticipates sales volumes between 4.5 million and 4.7 million metric tons in 2026, positioning it to capitalize on global agricultural demand trends.
Strategic Focus on Long-Term Growth
ICL’s 2025 results reflect a company actively reshaping its portfolio while maintaining stable underlying performance. Although operating income was affected by significant one-time adjustments, adjusted profitability improved both in the quarter and for the full year.
By narrowing its focus to specialty crop nutrition and specialty food solutions, optimizing capital allocation, and pursuing selective M&A opportunities, ICL aims to strengthen its leadership position across specialty mineral markets and drive sustainable long-term value creation.
The company enters 2026 with a clearer strategic roadmap, solid cash generation, and balanced global operations designed to support continued profitable growth.
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