ICL Group's Q2 2025 Earnings Call: Unpacking Contradictions in Potash Pricing, Sales Challenges, and Demand Dynamics

Potash pricing expectations and market conditions, demand destruction in the agricultural market, explanations for potash sales decrease, and differing views on the impact of geopolitical factors on fertilizer demand are the key contradictions discussed in ICL Group Ltd.'s latest 2025Q2 earnings call.



Sales and Revenue Trends:
- ICL Group Ltd reported sales of $1.832 billion for Q2 2025, up approximately 5% year-over-year and 4% on a quarterly basis.
- The increase in sales was driven by higher pricing trends and consistent end market performance, particularly in agriculture and Specialty minerals.

Potash Division Performance:
- In the Potash division, average potash price for Q2 was $333 CIF per ton, up 11% compared to the previous year and quarter.
- This increase in price was attributed to reduced supply due to planned maintenance and operational disruptions caused by external factors, including the war with Iran.

Growing Solutions Division Growth:
- Sales in the Growing Solutions division were $540 million for Q2, up 9% year-over-year, with an improvement in EBITDA of 24%.
- Growth was supported by a change in product mix towards more specialty fertilizers, higher prices, and improved profitability in key regions.

Industrial Products Segment Trends:
- Industrial Products sales were $319 million for Q2, with EBITDA at $69 million. While prices for most products rose, lower volumes and a shift in product mix hindered overall performance.
- The segment faced challenges due to a soft construction market, though clear brine fluid sales in the oil and gas industry improved.