• 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%.

• Warning! GuruFocus has detected 2 Warning Sign with OPCH.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ICL Group Ltd (NYSE:ICL) 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 (NYSE: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 (NYSE: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 (NYSE:ICL) experienced a decrease in annual EBITDA for the Phosphate Solutions division, despite an expanded EBITDA margin.

Q & A Highlights

Q: Can you discuss the demand drivers for the Phosphate Solutions business in 2024 and expectations for 2025? A: Raviv Zoller, CEO, explained that despite headwinds from declining WPA prices, ICL increased volumes through innovation and expansion, particularly in food products in China, pharmaceuticals, and cement applications. The company expects continued volume growth in 2025, with the overall market growing by 2-3%.

Q: How are trade disputes, particularly duties on TCPP from China, affecting your Industrial Products division? A: Raviv Zoller, CEO, noted that local production facilities in Europe and the US were affected by dumping prices from China. Antidumping measures have allowed ICL to replace Chinese products with sustainable alternatives, creating long-term market opportunities, especially in construction applications.

Q: Have you seen any Chinese bromine capacity exiting the market? A: Raviv Zoller, CEO, stated that while there have been no significant bankruptcies recently, there have been reductions in capacity use in China and Djibouti. ICL has replaced some of this capacity, benefiting from the reduced competition.

Q: How do geopolitical changes in Eastern Europe affect your fertilizer business? A: Raviv Zoller, CEO, mentioned that demand for fertilizers remains solid, with expected potash shipments between 70-75 million tons. Changes in the war situation in Eastern Europe are not expected to significantly impact global supplies, as Belarus and Russia have made supply-side decisions to limit production.

Q: Can you provide insights into the outlook for potash prices and how it affects your guidance? A: Raviv Zoller, CEO, indicated that potash prices are trending up, with a 15% increase in the US recently. While existing contracts will affect Q1 pricing, there is potential for further price increases. Aviram Lahav, CFO, added that the average price in Q1 may not reflect future effective prices due to existing contracts.

Q: What is the current state of the battery market, particularly regarding LFP demand for EVs and ESS? A: Raviv Zoller, CEO, noted that while there is significant interest in ESS, the supply chain is still adjusting to western incentives and policies. The demand for LFP is growing, with a shift towards LFP technologies, but the timing of market readiness remains uncertain.

Q: How does ICL plan to manage investments in LFP capacity to meet market share goals? A: Raviv Zoller, CEO, explained that ICL is cautious with CapEx investments, aligning them with customer readiness and market demand. The company is partnering with Dynanonic in Europe, where market entry may occur faster than in the US due to different regulatory environments.

Q: What is the timeline for ICL's LFP capacity investments compared to customer readiness? A: Raviv Zoller, CEO, stated that the timeline varies depending on customer experience and technology. It can take 18-36 months to set up production after testing and ramp-up. Partnering with experienced companies like Dynanonic can shorten this timeline.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.