Itafos Reports Outstanding Operational and Financial Q1 2025 Results

Core Viewpoint - Itafos Inc. reported strong operational performance in Q1 2025, with production volumes exceeding prior year levels and a revenue growth of 6% year-over-year despite higher input costs [2][5][6]. Financial Performance - Q1 2025 revenues reached $135.7 million, up from $128.0 million in Q1 2024, while adjusted EBITDA was $39.3 million compared to $43.2 million in the previous year [7]. - Net income for Q1 2025 was $35.9 million, an increase from $23.7 million in Q1 2024, primarily due to a gain on the sale of the Araxá project [6][7]. - Free cash flow improved to $31.3 million in Q1 2025 from $17.7 million in Q1 2024 [7]. Operational Highlights - The company achieved a significant milestone by reducing net debt to below $0, with net debt recorded at $(1.7) million as of March 31, 2025 [4][18]. - The company maintained a net leverage ratio of (0.0)x, indicating strong financial health [7][18]. - The successful closure of the Araxa project sale resulted in a gain of $27.9 million [10]. Market Outlook - Phosphate pricing experienced a slight decrease in Q1 2025 but is expected to remain strong through 2025 due to strong global demand and limited supply from evolving tariff policies [11][16]. - The company anticipates sales volumes of 340-360 thousand tonnes of P2O5 for FY 2025, with corporate selling, general and administrative expenses projected between $17-20 million [14][13]. Mine Development - Progress continues on the mine life extension program at Husky 1 / North Dry Ridge, with first ore shipments expected in the second half of 2025 [3][21]. - The company is focused on resource evaluation and permitting at Conda, with an expected annual cost of approximately $6-8 million for exploration activities [21][25]. Recent Developments - The company declared a special dividend of C$0.05 per share following the successful sale of the Araxá project [15]. - The company reported strong environmental, health, and safety performance, with no reportable incidents in Q1 2025 [20].