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1. Company Snapshot

1.a. Company Description

ICL Group Ltd, together with its subsidiaries, operates as a specialty minerals and chemicals company worldwide.It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Innovative Ag Solutions (IAS).The Industrial Products segment produces bromine out of a solution that is a by-product of the potash production process, as well as bromine-based compounds; produces various grades of potash, salt, magnesium chloride, and magnesia products; and produces and markets phosphorous-based flame retardants and other phosphorus-based products.


The Potash segment extracts potash from the Dead Sea; mines and produces potash and salt; produces Polysulphate; produces, markets, and sells magnesium and magnesium alloys, as well as related by-products, including chlorine and sylvinite; and sells salt.The Phosphate Solutions segment uses phosphate commodity products to produce specialty products; produces and markets phosphate-based fertilizers, as well as sulphuric acid, green phosphoric acid, and phosphate fertilizers; and manufactures thermal phosphoric acid for various industrial end markets, such as oral care, cleaning products, paints and coatings, water treatment, asphalt modification, construction, and metal treatment.It also develops and produces functional food ingredients and phosphate additives for use in the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry.


The IAS segment develops, manufactures, markets, and sells fertilizers based primarily on nitrogen, potash, and phosphate, including water soluble specialty, liquid, soluble, and controlled-release fertilizers.It sells its products through marketing companies, agents, and distributors.The company was formerly known as Israel Chemicals Ltd.


and changed its name to ICL Group Ltd in May 2020.The company was founded in 1968 and is headquartered in Tel Aviv, Israel.

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1.b. Last Insights on ICL

ICL Group's recent performance has been driven by several positive factors. The company's solid financial health, as evident from its Q4 2024 earnings report, has provided a strong foundation for its growth. Additionally, ICL's healthy dividend yield has made it an attractive investment opportunity for income-seeking investors. Furthermore, the company's rising earnings estimates, as reflected in its impressive earnings surprise history, suggest a strong potential for future growth.

1.c. Company Highlights

2. ICL's Q4 2025 Earnings: A Strong Finish to the Year

ICL Group's fourth-quarter 2025 earnings report demonstrated a robust finish to the year, with sales reaching $1.701 billion, a 6% year-over-year increase, driven by growth across all four segments. Consolidated adjusted EBITDA was $380 million, a 10% improvement year-over-year. For the full year 2025, consolidated sales were $7.153 billion, up 5% versus 2024, with EBITDA for Industrial Products, Phosphate Solutions, and Growing Solutions reaching $1.021 billion. Adjusted diluted EPS was $0.36 for 2025, and actual EPS came out at $0.09, in line with estimates. The company's financial performance was highlighted by the successful acquisition of Bartek Ingredients, which expanded its portfolio in specialty food solutions.

Publication Date: Feb -23

📋 Highlights
  • Annual EBITDA Target Achieved:: ICL met its $1B specialty-driven EBITDA goal, with Q4 EBITDA at $380M (+10% YoY) and full-year EBITDA at $1.021B.
  • Strategic Acquisitions Completed:: Acquired Bartek Ingredients for specialty food solutions and secured Dead Sea concession extension, ensuring bromine supply through 2035.
  • 2026 EBITDA Guidance:: $1.4–1.6B target, with potash sales volumes projected at 4.5–4.7M metric tons and a 30% adjusted tax rate expected.
  • Strong Dividend Payout:: Distributed $224M in dividends (50% of adjusted net income), yielding a 3.1% trailing 12-month dividend yield.
  • Segment Performance Highlights:: Potash EBITDA rose 12% to $552M; Growing Solutions sales up 6% to $2.063B, while Phosphates grew 5% to $2.333B.

Segment Performance

The Industrial Products business reported full-year sales of $1.254 billion, up slightly year-over-year, with EBITDA of $280 million. The Potash division reported full-year sales of $1.714 billion, up 4%, with EBITDA of $552 million, up 12%. Phosphate Solutions reported full-year sales of $2.333 billion, up 5%, while Growing Solutions reported full-year sales of $2.063 billion, up 6% year-over-year. The company's diversified sales and less dependence on shekel expenses are expected to support its Growing Solutions segment.

Outlook and Guidance

In 2026, ICL expects consolidated EBITDA to be between $1.4 billion to $1.6 billion, with potash sales volumes between 4.5 million and 4.7 million metric tons. The company anticipates an annual adjusted tax rate of approximately 30% in 2026. Analysts estimate next year's revenue growth at 3.1%. The company's guidance reflects a similar year to 2025, with potential upside risks in potash quantities and prices, as well as bromine prices, and downside risks from sulfur cost increases and shekel-dollar exchange rate fluctuations.

Valuation and Dividend Yield

ICL's current valuation metrics include a P/E Ratio of 30.81, P/B Ratio of 1.16, and EV/EBITDA of 7.15. The company's dividend yield stands at 8.11%, with a trailing 12-month dividend yield of 3.1% in 2025. The net debt to adjusted EBITDA ratio was 1.3x, indicating a manageable debt level. The company's sensitivity to the shekel is around $10 million per 1% change, with a significant amount of exposure hedged.

Strategic Decisions and Future Plans

The company has made strategic decisions, including acquiring Lavie Bio and Bartek, and securing a definitive agreement with the State of Israel. They've also improved production rates for potash and will continue to do so in 2026. ICL will discuss a cost transformation program next quarter, focusing on three pillars of their strategy: growing solutions, maximizing their core, and efficiency and optimization, expecting to see results soon. The industry for LFP cathode material remains mainly in China, and the company will focus on supplying raw materials rather than pursuing downstream LFP production.

3. NewsRoom

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ICL Strengthens Specialty Fertilizers With New India Facility

Mar -19

Source: zacks.com

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ICL Group Opens Specialty Fertilizer Manufacturing Facility in India, Strengthening Supply Security and Advancing Its Growth Strategy

Mar -18

Source: businesswire.com

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ICL Files 2025 Annual Report on Form 20-F

Mar -11

Source: businesswire.com

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ICL Announces Chief Financial Officer Transition

Mar -10

Source: businesswire.com

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ICL Group Ltd (ICL) Q4 2025 Earnings Call Transcript

Feb -18

Source: seekingalpha.com

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Caprock Group LLC Takes Position in ICL Group Ltd. $ICL

Feb -15

Source: defenseworld.net

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ICL Group Signs Binding Deal With Israel on $2.54B Concession Asset Transfer, 2030 Exit

Feb -02

Source: defenseworld.net

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ICL Announces Fourth Quarter 2025 Earnings Call

Jan -29

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.10%)

6. Segments

Phosphate Solutions

Expected Growth: 4.5%

Driven by the increasing demand for fertilizers and food production, phosphate solutions are likely to experience growth above the global average. The essential role of phosphorus in agriculture and the expanding industrial applications support this positive outlook.

Growing Solutions

Expected Growth: 5.0%

The growing global population and the need for sustainable agriculture drive the demand for crop nutrition and protection solutions. This segment is likely to benefit from the increasing adoption of advanced agricultural practices and technologies.

Potash

Expected Growth: 4.2%

The demand for potash is driven by the agriculture sector, and the global potash market is expected to grow in line with the global average. The segment's growth is supported by the increasing demand for fertilizers and the essential role of potash in crop nutrition.

Industrial Products

Expected Growth: 3.8%

The growth in this segment is driven by the increasing demand for flame retardants and phosphorus-based derivatives in various industrial applications. However, the segment's growth may be constrained by fluctuations in industrial production and regulatory changes.

Other Activities

Expected Growth: 4.1%

The growth in this segment is expected to be in line with the global average, driven by the company's ongoing investment in research and development and other non-core activities.

Reconciliation

Expected Growth: 4.1%

The growth in this segment is expected to be in line with the global average, as it represents a residual category that is not directly tied to specific business segments or revenue streams.

7. Detailed Products

Potash

ICL's potash products are used as fertilizers in agriculture, providing essential nutrients for plant growth and crop development.

Phosphates

ICL's phosphate products are used in a variety of applications, including fertilizers, animal feed, and industrial processes.

Fluorides

ICL's fluoride products are used in a range of applications, including toothpaste, water fluoridation, and industrial processes.

Bromine

ICL's bromine products are used in a variety of applications, including water treatment, oil and gas extraction, and pharmaceuticals.

Magnesium

ICL's magnesium products are used in a range of applications, including die-casting, desulfurization, and pharmaceuticals.

Specialty Phosphates

ICL's specialty phosphate products are used in a variety of applications, including food, pharmaceuticals, and industrial processes.

Performance Products

ICL's performance products are used in a range of applications, including lubricants, fuel additives, and industrial processes.

8. ICL Group Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

ICL Group Ltd has a moderate threat of substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

ICL Group Ltd has a high bargaining power of customers due to the concentration of buyers in the market.

Bargaining Power Of Suppliers

ICL Group Ltd has a low bargaining power of suppliers due to the availability of multiple suppliers in the market.

Threat Of New Entrants

ICL Group Ltd has a moderate threat of new entrants due to the moderate barriers to entry in the market.

Intensity Of Rivalry

ICL Group Ltd has a high intensity of rivalry due to the high competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.09%
Debt Cost 6.87%
Equity Weight 69.91%
Equity Cost 6.87%
WACC 6.87%
Leverage 43.05%

11. Quality Control: ICL Group Ltd passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 8.2

Quality: 6.2

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Momentum: 6.0

Volatility: 6.7

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Yara

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A-Score: 6.2/10

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Quality: 5.7

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SSAB

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ICL

A-Score: 5.7/10

Value: 6.5

Growth: 3.6

Quality: 4.5

Yield: 9.4

Momentum: 7.0

Volatility: 3.3

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K+S

A-Score: 4.9/10

Value: 9.6

Growth: 2.7

Quality: 2.5

Yield: 3.8

Momentum: 5.5

Volatility: 5.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.24$

Current Price

5.24$

Potential

-0.00%

Expected Cash-Flows