2024 Fourth Quarter Financial Results Raviv Zoller | President and CEO February 26, 2025 Important legal notes This report for the fourth quarter of 2024 should be read in conjunction with the Annual Report of 2023 and our current reports on Form 6-K for the results for the quarters ended December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, filed on February 26, 2025, November 11, 2024, August 14, 2024, and May 9, 2024, respectively, including the description of events occurring subsequ ...

Core Viewpoint - ICL Group has shown strong stock performance, with a 10.6% increase over the past month and a 30.6% rise since the beginning of the year, outperforming both the Zacks Basic Materials sector and the Zacks Fertilizers industry [1][2]. Financial Performance - ICL Group has consistently exceeded earnings expectations, reporting an EPS of $0.08 against a consensus estimate of $0.06 in its last earnings report [2]. - For the current fiscal year, ICL Group is projected to achieve earnings of $0.42 per share on revenues of $6.94 billion, with a year-over-year earnings growth of 14.41% [3]. - The following fiscal year is expected to see earnings of $0.51 per share on revenues of $7.56 billion, reflecting an 8.86% year-over-year increase [3]. Valuation Metrics - The stock currently trades at a valuation of 15.4 times the current fiscal year EPS estimates, which is above the peer industry average of 12.9 times [7]. - On a trailing cash flow basis, ICL Group trades at 6.8 times, slightly above the peer group's average of 6.5 times [7]. - The stock has a PEG ratio of 7.35, indicating it is not among the top value stocks [7]. Zacks Rank and Style Scores - ICL Group holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [8]. - The company has a Value Score of A, a Growth Score of C, and a Momentum Score of D, resulting in a combined VGM Score of B [6][8].

Core Viewpoint - ICL Group Ltd's shares have increased by 31% over the past three months, significantly outperforming the Zacks Fertilizers industry, which rose by only 3%. This growth is attributed to strong third-quarter 2024 results and an upward revision of full-year guidance [1] Financial Performance - ICL's EBITDA for its specialties-driven businesses showed significant year-over-year improvement in Q3 2024, marking the fourth consecutive quarter of sequential EBITDA growth. The company raised its full-year 2024 EBITDA guidance to between $0.95 billion and $1.05 billion, up from the previous range of $0.8 billion to $1 billion [6] - The company ended Q3 2024 with cash and cash equivalents of $393 million, a 28% increase year-over-year, and available liquidity of $1,749 million. Operating cash flow for the quarter was $408 million [12] Strategic Initiatives - ICL is focused on expanding its specialties businesses through strategic acquisitions, cost-saving measures, and innovative solutions. Recent acquisitions include Nitro 1000 and Custom Ag Formulators, which enhance its market position in Brazil and globally [5][7] - A joint venture with Shenzhen Dynanonic Co., Ltd. aims to produce lithium iron phosphate (LFP) cathode active material in Europe, with an initial investment of approximately €285 million (around $297 million) [8] - The company is also expanding its battery materials business with a new plant in Sallent, Spain, to support sustainable supply chains [9] Product Development - ICL's investment in Plantible Foods during its Series B capital round reflects its commitment to sustainable food solutions. The development of innovative ingredients like Rovitaris Binding Solution aligns with industry trends [10] - The introduction of VeriQuel R100, a phosphorus-based product developed with over $2 million in R&D, offers a greener alternative to traditional flame retardants, catering to the growing demand for environmentally friendly building materials [11] Market Position and Valuation - ICL's shares have outperformed both the industry and the S&P 500, with a 38% increase over the past six months compared to the industry's 2.9% rise and the S&P 500's 7.6% increase [17] - The stock is currently trading at a forward P/E of 14.22X, which is a 1.6% premium over the industry average of 13.99X [15] Dividend and Earnings Outlook - ICL offers a dividend yield of 2.1%, above the S&P 500 average, with a payout ratio of 37%, indicating sustainability. The five-year annualized dividend growth rate is approximately 24.8% [13] - Analysts have revised earnings estimates for ICL upward over the past 60 days, reflecting positive sentiment [14]

Group 1 - ICL Group Ltd.'s unit, ICL Industrial Products, has partnered with NobleAI to develop innovative chemical compounds for flame retardants using AI solutions [1][2] - The collaboration aims to speed up the discovery of high-performance compounds, making the process more timely and cost-efficient [2][3] - ICL is also working with Microsoft Azure Quantum Elements to enhance the development of safer and more sustainable flame retardants, which will reduce resource wastage [3] Group 2 - ICL's stock has increased by 29% over the past year, outperforming the industry average rise of 5.1% [3] - ICL currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [4] - Other top-ranked stocks in the Basic Materials sector include Ingevity Corporation, Carpenter Technology Corporation, and Methanex Corp., with varying degrees of performance and earnings surprises [4][5][6][7]

Group 1 - ICL Group Ltd. has entered into a joint venture with Shenzhen Dynanonic Co., Ltd. to produce lithium iron phosphate (LFP) cathode active material in Europe, with an initial investment of approximately €285 million [1] - A new plant is planned at ICL's Sallent, Spain site, which will significantly expand the company's battery materials business and enhance its sustainable supply chain efforts [1][2] - This joint venture aims to leverage ICL's strong position in specialized phosphates and Dynanonic's expertise in battery materials, targeting growth in the European lithium-ion battery market [2][3] Group 2 - Establishing the project in Spain will strengthen the companies' presence in the European market, enhance competitiveness, and support their goal of becoming a leading global provider of energy material solutions [3] - ICL's stock has performed well, gaining 31% over the past year, significantly outperforming the Zacks Fertilizers industry's 2.4% increase [4] - ICL currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence in the company's future performance [6]

Core Viewpoint - ICL Group has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates can lead to significant price changes [4][6]. - For ICL Group, the recent increase in earnings estimates reflects an improvement in the company's underlying business, which is expected to positively influence its stock price [5][10]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for ICL Group - ICL Group is projected to earn $0.37 per share for the fiscal year ending December 2024, reflecting a year-over-year decline of -32.7% [8]. - Over the past three months, the Zacks Consensus Estimate for ICL Group has increased by 2.4%, indicating a positive trend in earnings estimates [8].

Company Overview - ICL Group currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Price Performance - ICL shares have increased by 2.77% over the past week, outperforming the Zacks Fertilizers industry, which rose by 0.62% [6] - Over the last month, ICL's stock price has changed by 14.09%, significantly higher than the industry's 6.68% [6] - In the last quarter, ICL shares rose by 37.96%, and over the past year, they increased by 29.45%, while the S&P 500 showed a 0% change and a 23.73% increase, respectively [7] Trading Volume - ICL's average 20-day trading volume is 617,787 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for ICL have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $0.34 to $0.37 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [10] Conclusion - Considering the positive price trends, trading volume, and earnings outlook, ICL Group is positioned as a promising investment opportunity with a Momentum Score of B [12]

Core Viewpoint - ICL Group has shown strong stock performance, with a 14.1% increase over the past month and a 14.8% gain since the start of the year, outperforming the Zacks Basic Materials sector and the Zacks Fertilizers industry [1][2]. Financial Performance - ICL Group has consistently exceeded earnings expectations, reporting an EPS of $0.11 against a consensus estimate of $0.08 in its latest earnings report [2]. - For the current fiscal year, ICL Group is projected to achieve earnings of $0.42 per share on revenues of $6.94 billion, with a year-over-year earnings growth of 14.41% [3]. - The next fiscal year forecasts earnings of $0.51 per share on revenues of $7.56 billion, reflecting an 8.86% year-over-year increase [3]. Valuation Metrics - The stock trades at 13.5X current fiscal year EPS estimates, aligning with the peer industry average [7]. - On a trailing cash flow basis, ICL Group trades at 6X compared to the peer group's average of 5.8X [7]. - The PEG ratio stands at 6.46, indicating that the company is not among the top value stocks [7]. Zacks Rank and Style Scores - ICL Group holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [8]. - The company has a Value Score of A, a Growth Score of C, and a Momentum Score of B, resulting in a combined VGM Score of A [6][8]. - The stock's favorable Zacks Rank and Style Scores suggest potential for further price appreciation in the near term [8].

Core Viewpoint - ICL Group Ltd has demonstrated strong performance in the stock market, significantly outperforming its industry and the S&P 500 over the past six months, driven by robust financial results and strategic initiatives [1][2]. Financial Performance - ICL reported adjusted earnings per share (EPS) of 11 cents for Q3, exceeding the Zacks Consensus Estimate of 8 cents [3]. - The company achieved quarterly revenues of $1,753 million, surpassing the Zacks Consensus Estimate of $1,732.7 million [3]. - ICL has consistently exceeded earnings estimates in the last four quarters, with an average surprise of 18.1% [5]. Guidance and Projections - ICL raised its full-year 2024 EBITDA guidance to between $0.95 billion and $1.05 billion, up from the previous estimate of $0.8–$1 billion [4]. - The company plans to maintain total annual potash sales volumes for 2024 at 4.6 million metric tons, consistent with 2023 sales volumes [4]. Product Innovation - ICL launched VeriQuel R100, a phosphorus-based flame retardant designed for rigid polyurethane insulation, with over $2 million invested in R&D [6]. - This product aims to meet the growing demand for environmentally friendly building materials while ensuring fire safety [6]. Strategic Investments - ICL announced a follow-on investment in Plantible Foods as part of its Series B round, enhancing collaboration and commitment to sustainable food-sector solutions [7]. - The investment aligns with ICL's strategy to develop innovative ingredients that meet evolving customer demands [7].

Group 1: Company Overview - ICL Group Ltd. is focused on expanding its innovative product range while implementing targeted cost and efficiency initiatives [1] - The company is currently rated as Zacks Rank 1 (Strong Buy), indicating positive prospects for investment [1] Group 2: Stock Performance - ICL has outperformed its industry over the past year, with shares rallying 8% compared to a 7.9% decline in the industry [2] - Earnings estimates for ICL for 2024 and 2025 have increased, with a rise of 8.8% for 2024 and 2.4% for 2025 over the past 60 days [3] Group 3: Earnings and Guidance - ICL has consistently outperformed the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 18.1% [4] - The company raised its full-year 2024 outlook, projecting specialties-driven EBITDA of $0.95-$1.05 billion, up from the previous estimate of $0.8-$1 billion [5] Group 4: Product Innovations - ICL recently launched VeriQuel R100, a phosphorus-based flame retardant for rigid polyurethane insulation products, enhancing fire safety without compromising performance [6] - The company is also investing in sustainable food-sector solutions, such as the Rovitaris Binding Solution, to meet evolving customer demands [8]