ICL(US:ICL)2025-11-12 11:01Financial Performance - Total sales for Q3 2025 reached $1,853 million, a 5.7% increase from $1,753 million in Q3 2024[126] - Gross profit for Q3 2025 was $604 million, slightly up from $596 million in Q3 2024, indicating a stable gross margin[126] - Net income attributable to shareholders for Q3 2025 was $115 million, compared to $113 million in Q3 2024, reflecting a 1.8% increase[126] - Total sales for the three-month period ended September 30, 2025, reached $1,853 million, with external sales contributing $1,853 million[165] - Total sales for the year ended December 31, 2024, reached $6,841 million, with external sales contributing $6,841 million and inter-segment sales totaling $400 million[169] - For the nine-month period ended September 30, 2025, total sales reached $5,452 million, with Europe contributing $1,737 million and Asia $1,266 million[172] Assets and Liabilities - Total current assets as of September 30, 2025, amounted to $4,047 million, up from $3,824 million a year earlier, showing a 5.8% growth[124] - Total assets increased to $12,262 million as of September 30, 2025, compared to $11,558 million at the same time last year, representing a 6.1% rise[124] - Total liabilities stood at $5,881 million as of September 30, 2025, an increase from $5,423 million in 2024, marking an 8.4% rise[124] - The company’s total shareholders' equity increased to $6,134 million as of September 30, 2025, from $5,873 million a year earlier, showing a 4.5% growth[124] Income and Expenses - Total comprehensive income for Q3 2025 was $187 million, compared to $212 million in Q3 2024, reflecting a decrease of 11.8%[127] - For the three-month period ended September 30, 2025, net income was $129 million, a slight increase from $127 million in the same period of 2024[129] - Research and development expenses for Q3 2025 were $16 million, down from $19 million in Q3 2024, indicating a focus on cost management[126] - The Company reported an operating income of $596 million for the nine-month period ended September 30, 2025[168] - The total cost of sales for the nine-month period ended September 30, 2025, was $3,734 million[167] Cash Flow and Investments - Cash flows from operating activities for the nine-month period ended September 30, 2025, totaled $742 million, down from $1,016 million in 2024, reflecting a decrease of approximately 27%[129] - The company reported a net cash used in investing activities of $582 million for the nine-month period ended September 30, 2025, compared to $424 million in 2024, indicating an increase of about 37%[129] - Long-term debt receipts for the nine-month period ended September 30, 2025, amounted to $1,514 million, significantly higher than $611 million in 2024, representing a growth of approximately 147%[129] - Capital expenditures for the nine-month period ended September 30, 2025, totaled $624 million, with $243 million allocated to the Potash segment[168] - Capital expenditures for the year amounted to $902 million, with significant investments in Potash ($332 million) and Phosphate Solutions ($340 million)[169] Shareholder Returns - The company paid dividends of $162 million to shareholders in the nine-month period ended September 30, 2025, down from $183 million in 2024, a decrease of approximately 11%[134] - The Company has approved dividend distributions totaling $62 million with a dividend per share of $0.05, scheduled for December 17, 2025[193] Market and Segment Performance - Segment operating income for the Potash segment was $104 million, while the Phosphate Solutions segment reported $85 million[165] - Sales to external parties for the Phosphate Solutions segment amounted to $1,685 million for the nine-month period ended September 30, 2025[167] - The Growing Solutions segment aims to enhance its position in high-growth markets such as Brazil, India, and China[157] - The Company is continuously expanding its portfolio of specialty plant nutrition and health solutions, including controlled release fertilizers and biostimulants[158] Regulatory and Compliance - The amendments to IFRS 9 and IFRS 7 will be effective for annual reporting periods beginning on or after January 1, 2026[149] - The company reported a nominal after-tax discount rate of 9.6% for calculating the recoverable amounts of operating segments, with a long-term growth rate of 2.5%[180] - The annual impairment test conducted did not identify any impairment for goodwill, with the total carrying amount of intangible assets with indefinite useful life at $591 million as of September 30, 2025[176][177] Strategic Decisions - The Company decided to discontinue operations related to the establishment of a lithium iron phosphate (LFP) cathode active material production facility in the US and terminate a joint venture agreement for a similar facility in Spain[209] - The Company expects to record a write-off of assets totaling approximately $40 million (net of tax) in the fourth quarter of 2025 due to the discontinuation of funding for a facility in St. Louis, US[208] - The Company anticipates that it is more likely than not to continue operating the Concession Assets beyond the current concession period under a new concession[204] - The Company will participate in the tender process for the future concession, as outlined in the MOU with the Government[201] Government Relations - The Government of Israel will pay the Company a total amount of $2,540 million for the Concession Assets upon expiration of the current concession period in 2030[199] - The Company has signed a Memorandum of Understanding with the Government regarding the value of assets required for the operation of the Dead Sea Concession, which is expected to provide certainty around the value and timing of payment for these assets[197] - The Company plans to maintain investment levels in the Concession Assets at amounts similar to the past decade, with adjustments to the Total Consideration based on actual investment levels[200] Cash and Financial Instruments - As of September 30, 2025, cash and cash equivalents were $356 million, a decrease from $393 million at the end of the same period in 2024[129] - The company’s marketable financial instruments had a carrying amount of $1,159 million and a fair value of $1,135 million as of September 30, 2025[183] - The company’s loans bearing fixed interest had a carrying amount of $383 million and a fair value of $370 million as of September 30, 2025[183] Other Financial Metrics - The balance of retained earnings as of September 30, 2025, was $5,909 million, an increase from $5,748 million in 2024, reflecting a growth of approximately 3%[134] - The Company completed an expansion of its Series G debentures in May 2025, amounting to NIS 850 million (approximately $236 million), bringing the total outstanding principal to NIS 1,570 million (approximately $436 million) with a nominal annual interest rate of 2.4%[189] - The Company reported a net change in cash and cash equivalents of $10 million for the nine-month period ended September 30, 2025, compared to a decrease of $27 million in 2024[129]