ICL Earnings Prediction
The chart below shows how ICL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ICL sees a +0.20% change in stock price 10 days leading up to the earnings, and a +0.88% change 10 days following the report. On the earnings day itself, the stock moves by +0.07%. This data can give you a slight idea of what to expect for the next quarter's release.
ICL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.60B
-5.27%
-8.67%
Gross Margin
33.42%
0.84%
-1.71%
Operating Margin
9.18%
4.08%
-24.82%
Net Margin
5.06%
1.81%
-30.11%
EPS
0.05
0.00%
-44.44%
No Data Available
ICL Earnings Analysis
ICL Group Ltd Corporation (ICL.N) Earnings Conference Call
Positive
Sales and EBITDA Performance: Sales for 2024 reached $6,841 million, with adjusted EBITDA of $1,469 million, representing a margin of 21%.
EBITDA Growth Amid Price Decline: Despite a 24% decrease in potash prices, the company achieved an 8% increase in EBITDA from specialty-driven businesses, which accounted for 70% of total EBITDA.
Strong Cash Generation: Free cash flow for the year was $758 million, demonstrating strong cash generation capabilities.
Dividend Distribution and Yield: The company distributed $242 million in dividends, yielding an industry-leading 3.8%.
Specialties-Driven EBITDA Growth: In Q4, specialties-driven EBITDA was $253 million, up 20% year-over-year, with an adjusted EBITDA margin of 22%.
Industrial Products Performance: The industrial products division saw sales of $1,239 million and EBITDA of $281 million, with a significant EBITDA margin increase from 19% to 25%.
Record Potash Production: Record potash production of over 800,000 metric tons was achieved at the Suria site in Spain, despite operational challenges.
Phosphate Solutions Performance: The phosphate solutions division generated $2,215 million in sales, with an EBITDA margin expansion to 25% due to cost savings and production efficiencies.
EBITDA Growth and Cost Efficiency: The Growing Solutions division's EBITDA increased by 70% year-over-year, with significant improvements in product mix and lower raw material costs.
Strategic Acquisitions and Innovation: The company made three complementary acquisitions and continued to innovate, enhancing its market position in specialty-driven businesses.
Negative
Potash Price Decline: Potash prices decreased by 24% compared to the previous year, significantly impacting overall sales and EBITDA.
EBITDA Decline Overview: Despite a slight increase in EBITDA for specialty-driven businesses, the overall EBITDA decreased by $10 million year-over-year in Q4.
Decline in Sales: Sales in the Growing Solutions division were down year-over-year, indicating potential challenges in that segment.
Potash Price Decline: The average potash price was down nearly $100 CIF per ton compared to 2023, reflecting a decline in market conditions.
Potash Sales Decline: Sales volume for potash decreased by approximately 127,000 metric tons compared to the previous year, indicating reduced demand.
Operational Challenges Ahead: The company faced operational and logistical challenges at its Dead Sea operations, which could affect future performance.
Phosphate Solutions Sales Decline: Despite some improvements, the overall sales for phosphate solutions saw a slight year-over-year decrease in Q4, indicating market pressures.
Brazil Sales Decline: The company noted that the fourth quarter sales in Brazil were lower than expected due to currency fluctuations and soft soybean crop economics.
Potash Sales Outlook: The company anticipates that potash sales in the first quarter will be more heavily weighted towards annual contracts at lower prices than current market rates, which could impact revenue.
ICL FAQs
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ICL Earning Call Sentiment
ICL Group Ltd (ICL) Q4 2024 Earnings Call Transcript
ICL.N
2.84%Positive
The earnings call presents mixed signals. While there are positive aspects such as dividend distributions, specialty-driven EBITDA growth, and optimistic guidance for potash prices, the geopolitical risks, operational challenges, and significant drop in potash prices negatively impact the sentiment. The Q&A section highlights uncertainty in geopolitical impacts and market dynamics, which tempers the positive outlook. Given these mixed factors, a neutral stock price movement is expected over the next two weeks.
