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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 Q3 2025 Earnings: A Strong Performance Driven by Specialty Businesses

ICL reported a robust third-quarter 2025 performance, with sales reaching $1.853 billion, up 6% year-over-year. The company's consolidated adjusted EBITDA was $398 million, a 4% annual increase and a 13% sequential improvement. Adjusted diluted earnings per share (EPS) came in at $0.10, beating analyst estimates of $0.09. The strong EPS performance was driven by the company's diverse portfolio, with Specialty Minerals showing significant strength due to demand from food end markets.

Publication Date: Nov -13

📋 Highlights
  • Q3 2025 Sales and EBITDA Growth:: ICL reported sales of $1.853 billion (+6% YoY) and adjusted EBITDA of $398 million (+4% YoY, +13% QoQ), with adjusted EPS of $0.10.
  • Potash Division Performance:: Achieved sales of $453 million with an average potash price of $353/ton (+20% YoY), generating EBITDA of $169 million.
  • Dead Sea Concession MOU:: Signed a $2.54 billion compensation agreement with Israel, ensuring long-term regulatory clarity if ICL does not secure the new concession.
  • Balance Sheet Strength:: Maintained $1.6 billion in available resources and a net debt/EBITDA ratio of 1.4x, supporting strategic investments and growth.
  • Specialty Market Expansion:: Targeting $45 billion specialty crop nutrition market (6% CAGR) and $35 billion food ingredients growth via acquisitions and R&D-driven innovations.

Segmental Performance

The Potash division reported sales of $453 million and EBITDA of $169 million, with an average potash price of $353 per ton, up 6% sequentially and 20% year-over-year. The Phosphate Solutions division had sales of $605 million, up 5% annually, driven by higher specialty volumes and commodity prices. The Growing Solutions business also reported a 4% year-over-year sales growth, driven by the company's strategic focus on global specialty solutions.

Strategic Developments

A significant development during the quarter was ICL's signing of a Memorandum of Understanding (MOU) with the state of Israel regarding the Dead Sea concession. This agreement provides long-term regulatory clarity and business certainty, with ICL set to receive approximately $2.54 billion if it does not win the new concession. The company's management believes this arrangement will provide more certainty and clarity, potentially enhancing the value of its assets.

Outlook and Valuation

For 2025, ICL maintains its guidance for specialties-driven businesses EBITDA to be between $0.95 billion to $1.15 billion and potash sales volumes between 4.3 million and 4.5 million metric tons. Analysts estimate next year's revenue growth at 4.8%. With a current P/E Ratio of 18.98 and an EV/EBITDA of 6.69, the market appears to be pricing in a moderate growth trajectory. The Dividend Yield stands at 8.1%, making ICL an attractive option for income investors.

Growth Strategy

ICL has outlined a clear strategy for profitable growth, focusing on Specialty Crop Nutrition and Specialty Food Solutions. The company aims to achieve an organic growth rate of more than 6% over the next 5 years, complemented by strategic acquisitions. With a strong R&D team and a broad portfolio of global specialty solutions, ICL is well-positioned to capture growth opportunities in the specialty fertilizers and food ingredients markets.

3. NewsRoom

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ICL Group Ltd (ICL) Q3 2025 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

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ICL Group (ICL) Beats Q3 Earnings Estimates

Nov -12

Source: zacks.com

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ICL Reports Third Quarter 2025 Results and Announces New Strategic Principles

Nov -12

Source: businesswire.com

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ICL Group: More Attractive, But Still A 'Hold' Before Q3

Nov -10

Source: seekingalpha.com

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ICL Announces Third Quarter 2025 Earnings Call

Oct -15

Source: businesswire.com

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ICL to Participate in Fireside Chat at Jefferies Industrials Conference 2025

Aug -25

Source: businesswire.com

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Israel Corp. Reports Results for Second Quarter of 2025

Aug -13

Source: prnewswire.com

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ICL Group Ltd (ICL) Q2 2025 Earnings Call Transcript

Aug -07

Source: seekingalpha.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: 6.3

Yield: 8.1

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Navigator

A-Score: 6.5/10

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ICL

A-Score: 5.8/10

Value: 5.2

Growth: 3.7

Quality: 4.2

Yield: 8.8

Momentum: 8.5

Volatility: 4.7

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Yield: 6.2

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K+S

A-Score: 4.7/10

Value: 7.6

Growth: 2.7

Quality: 2.5

Yield: 4.4

Momentum: 6.0

Volatility: 5.3

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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

5.18$

Current Price

5.18$

Potential

-0.00%

Expected Cash-Flows