Latest news with #operatingincome
Yahoo
11 hours ago
- Business
- Yahoo
Darden Restaurants operating income slips in fourth quarter despite sales jump
- Darden Restaurants has reported a slide in fourth-quarter operating income and provided a weaker-than-anticipated outlook for its current fiscal year despite a surge in sales. The group, whose portfolio includes popular eatery chains like LongHorn Steakhouse and Chuy's, reported quarterly operating profit of $382.8 million, a slide of 3.2% versus a year earlier. Analysts had anticipated $444.1 million, according to Bloomberg consensus estimates. But sales during the period jumped by 11% to $3.27 billion, compared with estimates of $3.26 billion, bolstered in part by stronger-than-anticipated performance at Olive Garden and LongHorn. Darden (NYSE:DRI) also noted a boost from the acquisition of 103 Chuy's restaurants and 25 net new locations. "Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value," said CEO Rick Cardenas in a statement. For its 2026 fiscal year, Darden said it projects total sales growth of 7-8% and diluted net earnings per share from continuing operations of $10.50 to $10.70. Analysts had anticipated per-share income of $10.75. Mirroring peers like Domino's Pizza (NYSE:DPZ) and McDonald's (NYSE:MCD), Darden has recently been rolling out promotional drives aimed at attracting price-conscious customers wary of spending heavily during a time of broad economic uncertainty. Earlier this year, Cardenas told analysts that he expected consumers to continue to spend as long as incomes rise and outpace inflation. Recent data points have suggested that price pressures in the U.S. have been mostly benign, although economists have flagged that the impact of sweeping U.S. tariffs on inflation may still be coming. CFO Raj Vennam has also said in March that, because Darden sources most of its products domestically, it is more likely to avoid President Donald Trump's punishing import tariffs. The rest of its materials could easily be found in the U.S., he added. Shares in Darden were higher in premarket trade on Friday, erasing some earlier losses. The stock has risen by over 19% so far this year. Related articles Darden Restaurants operating income slips in fourth quarter despite sales jump Accenture shares slide despite raised full-year outlook, third quarter beat Jabil stock rises as Q3 earnings top estimates, guidance raised
Associated Press
12-06-2025
- Business
- Associated Press
Cemtrex Accelerates Growth Strategy After Strong First Half with Targeted Acquisitions
Hauppauge, NY, June 12, 2025 (GLOBE NEWSWIRE) -- Cemtrex Inc. (Nasdaq: CETX), a diversified industrial and technology company, today announced a renewed focus on accelerating operating income growth through targeted acquisitions, following a breakout first half of fiscal 2025. Cemtrex reported over $2.3 million in operating income for the first six months of the year, a major shift from the prior year and a clear signal that the Company's core businesses, particularly Vicon Security, are now generating sustainable profitability. First-half revenue grew to $41 million, up more than 20% year-over-year, driven by strong execution and continued demand across its industrial and security platforms. 'We've crossed the profitability threshold, and now we're going on offense,' said Saagar Govil, Chairman and CEO of Cemtrex. 'We've spent the last few years rebuilding from the ground up. Today, we're in a position of strength and focused on acquiring businesses that drive immediate earnings and expand our long-term value.' The Company is currently conducting in-depth evaluations on two potential acquisition targets and actively evaluating several others. If completed, these transactions are expected to contribute an additional $3 to $4 million in annual operating income, further accelerating Cemtrex's earnings trajectory. 'Our strategy is simple: buy strong, cash-generating businesses at sensible multiples, integrate quickly, and compound value,' Govil added. 'We're already seeing continued momentum in our core businesses, particularly through new products and customer wins. Acquisitions are an accelerant, not a substitute, for the organic growth we're already delivering. Since 2021, we've nearly doubled revenue and significantly improved margins. The next phase is about scaling what we've built, through focused execution and disciplined expansion.' Cemtrex plans to fund future acquisitions through a mix of internal capital, seller financing, and non-toxic equity raises. Each opportunity will be evaluated for its return on capital, margin impact, and contribution to earnings per share. There is no assurance any specific transaction will be completed. The Company will provide updates as material developments occur. About Cemtrex Cemtrex, Inc. (Nasdaq: CETX) is a diversified technology company operating in the Security and Industrial sectors. Its Security segment, led by Vicon Industries, provides advanced video management software, high-performance security cameras, and integrated surveillance solutions for enterprise, government, and critical infrastructure. The Industrial segment, through Advanced Industrial Services (AIS), delivers expert rigging, millwrighting, process piping, and equipment installation services to manufacturers nationwide. With a focus on innovation, execution, and strategic growth, Cemtrex is committed to enhancing safety, efficiency, and value for its customers and shareholders. For more information, visit Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading 'Risk Factors' contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law. Investor Relations: [email protected]
Yahoo
11-06-2025
- Business
- Yahoo
Designer Brands Inc (DBI) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Net Sales: $687 million, down 8% year-over-year. Comparable Sales: Declined 7.8% overall; US Retail comps down 7.3%, Canada Retail comps down 9.2%. Operating Expenses: Reduced by 6% for the quarter, with expected annual savings of $20 million to $30 million. Gross Margin: 43%, decreased by 120 basis points from the previous year. Adjusted Operating Income: Essentially breakeven compared to $14.7 million last year. Adjusted Net Loss: $12.5 million, or a loss of $0.26 per diluted share, compared to a gain of $4.8 million last year. Inventory: Up 0.5% year-over-year. Total Debt: $522.9 million at the end of the quarter. Cash and Liquidity: $46 million in cash, with total liquidity of $171.5 million. Topo Brand Sales: Increased by 84% year-over-year. Operating Expense Reduction: Brand Portfolio segment saw a 23% reduction in operating expenses. Warning! GuruFocus has detected 8 Warning Signs with DBI. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Designer Brands Inc (NYSE:DBI) achieved two consecutive quarters of year-over-year adjusted operating income growth. The company implemented expense cuts resulting in a 6% reduction in operating expenses for the quarter. Topo brand showed impressive growth, with sales increasing by 84% year-over-year. The company is focusing on strategic partnerships and data-driven insights to optimize its product assortment. DBI is actively diversifying its sourcing to mitigate tariff impacts, expecting less than half of its sourcing to come from China by the end of the year. First quarter comparable sales declined by 8%, reflecting weakening consumer sentiment. US retail reported a 7.3% decline in comps and a 7.7% decline in total sales. Canadian sales declined by 2.9% with comps down 9.2%, affected by similar consumer sentiment issues as in the US. Consolidated gross margin decreased by nearly 120 basis points due to increased markdowns. The company withdrew its forward-looking guidance due to the highly volatile macro-environment. Q: Can you explain the relationship between the $20 million to $30 million in savings and the anticipated increase in SG&A expenses this year? A: Initially, we anticipated a $30 million headwind due to no bonus accrual for FY24. We started this year without a bonus accrual, providing about $10 million in favorability for Q1. However, we will face a headwind in Q3 due to last year's bonus reversal. Despite not providing guidance, we expect $20 million to $30 million in cuts below last year's SG&A for 2025. Q: Could you elaborate on the performance of the Canadian and brand portfolio segments, particularly regarding comps? A: In Canada, consumer sentiment mirrors the US, with volatility affecting comps. Rubino's addition caused some noise, but the sentiment remains similar. The brand portfolio saw mixed results; Topo grew 84%, while Keds faced top-line headwinds due to last year's liquidation but improved gross margins. Q: What trends are you seeing in Q2, and how are tariffs impacting your business? A: Q2 trends are similar to Q1's exit. Tariffs mainly affect consumer sentiment and volatility. Our brand portfolio team mitigated a potential $100 million gross profit pressure through negotiations and selective pricing. We're working with national brand partners to manage price increases while maintaining our IMU. Q: Can you provide insights into Topo's growth and expectations for 2025? A: Topo grew 84% in the quarter, driven by door expansion and new product launches. It's in 1,200 distribution points, and we expect this trend to continue. We're optimistic about its growth potential as we're just getting started with the brand. Q: How did the athletic wear segment perform in the US, and what are your expectations? A: Athletic and athleisure outperformed other categories, with DSW gaining market share in Q1. The top eight brands, mostly athletic, were flat in Q1, indicating strong relative performance. This aligns with our strategy over the past 18 months. Q: How are you planning for back-to-school and holiday seasons, and how are you navigating tariff mitigation? A: We're cautiously optimistic about back-to-school, with strong performance last year and buoyant kids' business. Inventory is well-managed, and the category is less affected by tariffs. For the holiday season, we're prepared to execute our playbook, focusing on gifting and marketing. Tariff mitigation involves diversifying sourcing and maintaining flexibility. Q: What are your strategies for mitigating tariff impacts, and how does it affect your sourcing? A: We accelerated diversification outside China, with options to reduce sourcing from China to 5%. However, China remains a stable and cost-effective supply chain for non-athletic footwear. Less than 20% of our products are directly controlled, so we work closely with partners on sourcing decisions. Q: How are you managing inventory and pricing in response to the current environment? A: We're closely monitoring inventory investments to align with demand and maintain flexibility. Pricing strategies involve maintaining IMU while working with brand partners to manage price increases. Our focus is on delivering value through inventory, pricing, and messaging. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
02-06-2025
- Business
- Yahoo
Ion Exchange (India) Ltd (BOM:500214) Q4 2025 Earnings Call Highlights: Navigating Growth ...
Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ion Exchange (India) Ltd (BOM:500214) reported a 17% year-on-year increase in operating income for the financial year ending 2025. The chemical division saw a revenue increase of 15.5% year-on-year, with a 17% growth in profit. The company is expecting a new greenfield manufacturing facility at Roha to go on stream in the second quarter of the financial year 2026, which is expected to boost production capacity. The consumer product division recorded a 14% year-on-year revenue increase for the financial year ending 2025. The company is actively pursuing export opportunities in North America and Europe, which could enhance its international market presence. Net profit for the fourth quarter declined by 13% year-on-year, with a corresponding decline in profit margins. The engineering division experienced a 23% year-on-year decline in profit for the quarter, despite a 5% increase in revenue. Order inflow was muted for the quarter, with delays in finalizing large value opportunities. The company is facing challenges with the execution of the UP project, leading to slower-than-expected progress and impacting overall performance. Chemical margins were lower in the fourth quarter due to seasonality and increased input costs, which the company is working to pass on to customers. Warning! GuruFocus has detected 3 Warning Sign with BOM:500214. Q: The order inflow seemed muted for the quarter. How do you see growth shaping up ahead? A: We have been slow on order intake due to aggressive market pricing and some key jobs spilling over to the next financial year. We remain selective in picking orders that enhance our engineering business margins. Unidentified_4 Q: Chemical margins were low for the quarter. Can you explain the reasons? A: The lower margins were due to seasonality and increased input costs. We have taken action to pass on these cost increases to customers. Unidentified_3 Q: What is the revenue and margin outlook for FY26? A: We expect a similar trend going forward and will provide a better outlook in the second quarter. The SAP implementation is ongoing, which may cause some initial disruptions. Unidentified_4 Q: Can you provide an update on the ongoing court case? A: We hope for a resolution soon, but given the complexities of the Indian judiciary, it may continue for some time. Unidentified_6 Q: What is the demand outlook for the engineering segment, and how are the UP and legacy projects progressing? A: We are selective with orders to maintain profitability. The UP and other legacy projects are ongoing, with some delays due to funding issues. We expect these projects to continue into the next financial year. Unidentified_4 Q: How is the consumer products division performing, and when do you expect it to be profitable? A: We have invested in infrastructure and distribution, and while payback was slower than expected, we anticipate better margins from the third quarter onwards. Unidentified_3 Q: Are you receiving inquiries from booming industries like semiconductors and data centers? A: Yes, we are actively pursuing opportunities in these segments, although competition is aggressive. We are well-positioned to win in these areas. Unidentified_4 Q: What is the status of the Roha plant, and how will it impact chemical segment profitability? A: The Roha plant is close to commissioning, which will enhance our capacity and support export growth. We expect to see revenue traction from the second and third quarters. Unidentified_4 For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
19-05-2025
- Business
- Yahoo
ICL Reports First Quarter 2025 Results
Sales of $1.8 billion increased year-over-year, with operating income of $185 million, adjusted EBITDA of $359 million and adjusted diluted EPS of $0.09 TEL AVIV, Israel & ST. LOUIS, May 19, 2025--(BUSINESS WIRE)--ICL (NYSE: ICL) (TASE: ICL), a leading global specialty minerals company, today reported its financial results for the first quarter ended March 31, 2025. Consolidated sales were $1.8 billion versus $1.7 billion in the prior year. Operating income was $185 million versus $203 million of operating income in the first quarter of last year, with adjusted operating income of $208 million versus $215 million. For the first quarter, net income attributable to shareholders was $91 million versus $109 million in the prior year, with adjusted net income of $110 million compared to $118 million. Adjusted EBITDA was $359 million versus $362 million. Diluted earnings per share were $0.07 versus $0.08 in the first quarter of last year, with adjusted diluted EPS of $0.09 – the same as in the first quarter of last year. "ICL delivered sequential increases in first quarter sales, adjusted EBITDA and EPS, with results led by our specialties-driven businesses. Our Industrial Products, Phosphate Solutions and Growing Solutions businesses also reported year-over-year growth in sales and EBITDA, generally driven by higher volumes with limited price improvement. For our Potash segment, prices were lower year-over-year, as expected, with supply more heavily weighted toward our annual 2024 contracts with China and India, which are at lower prices than current market rates," said Elad Aharonson, president and CEO of ICL. "Looking forward, we expect to benefit from our existing distinctive global presence, as the industry awaits additional clarity regarding global tariff and trade negotiations. We plan to rely on our regionally diversified operations and will also continue to focus on specialties solutions for our global customers on a local basis using local production." The company reiterates its guidance for full year 2025, with specialties-driven EBITDA of between $0.95 billion to $1.15 billion and Potash sales volumes of between 4.5 million and 4.7 million metric tons. (1a) Key Financials First Quarter 2025 US$M Ex. per share data 1Q'25 1Q'24 Sales $1,767 $1,735 Gross profit $560 $557 Gross margin 32% 32% Operating income $185 $203 Adjusted operating income (1) $208 $215 Operating margin 10% 12% Adjusted operating margin (1) 12% 12% Net income attributable to shareholders $91 $109 Adjusted net income attributable to shareholders (1) $110 $118 Adjusted EBITDA (1) $359 $362 Adjusted EBITDA margin (1) 20% 21% Diluted earnings per share $0.07 $0.08 Diluted adjusted earnings per share (1) $0.09 $0.09 Cash flows from operating activities (2) $165 $292 (1) Adjusted operating income and margin, adjusted net income attributable to shareholders, adjusted EBITDA and margin, and diluted adjusted earnings per share are non-GAAP financial measures. Please refer to the adjustments table and disclaimer. (2) See "Condensed consolidated statements of cash flows (unaudited)" in the appendix below. Industrial Products First quarter 2025 Sales of $344 million vs. $335 million. EBITDA of $76 million vs. $72 million. Year-over-year growth driven by better volumes in flame retardants. Key developments versus prior year Flame retardants: Overall sales increased, with bromine-based product sales up slightly, as higher volumes offset lower prices. Sales of phosphorous-based solutions increased, with higher volumes mainly in Europe and the U.S., and overall higher prices. Both the electronics and construction end-markets remained somewhat soft, in the first quarter. Elemental bromine: Higher volumes drove an increase in sales, offsetting lower market prices. Clear brine fluids: Sales lower, despite solid trends and continued strength in oil and gas demand in the Gulf of America, while competition increased in the Eastern Hemisphere. Specialty minerals: A slight increase in sales was driven by higher volumes and prices for magnesium chloride used in deicing, while there was a decrease in specialty magnesia demand for pharma and food applications. Potash First quarter 2025 Sales of $405 million vs. $423 million. EBITDA of $118 million vs. $124 million. Grain Price Index decreased 12.1% year-over-year, with corn up 9.1%, while rice, soybeans and wheat were down 22.2%, 15.1% and 8.1%, respectively. On a sequential basis, the Grain Price Index increased 1.0%, with corn, soybeans and wheat up 10.5%, 3.3%, 4.5%, respectively, while rice declined 6.8%. Key developments versus prior year Potash price: $300 per ton (CIF). Up 5% sequentially but down 7% year-over-year. ICL continued to fulfill its 2024 annual contracts with China and India, and the prices in these agreements were lower than market rates, which improved as the first quarter progressed. Potash sales volumes: 1,103 thousand metric tons. Increased by 19 thousand metric tons year-over-year, with higher volumes mainly to Brazil and China. ICL Dead Sea Production decreased, with continued operational challenges primarily related to external forces. ICL Iberia Production lower, while efficiency efforts remain on-track. Phosphate Solutions First quarter 2025 Sales of $573 million vs. $559 million. EBITDA of $139 million vs. $131 million. Year-over-year growth driven by strength in commodities, while specialties results were lower but in-line with market dynamics. Key developments versus prior year White phosphoric acid: Sales increased, as strong volume growth in all regions offset lower prices. Industrial phosphates: Sales increased, as higher volumes in all major regions offset lower prices related to decreasing cost inputs. Food phosphates: Despite higher volumes, sales decreased due to lower market prices, which reflected reduced raw material costs. Battery materials: Sales decreased, as higher prices in China were unable to offset lower volumes. In January, ICL signed a strategic agreement with Shenzhen Dynanonic to establish battery materials production in Europe, and in early April, the company formally commissioned its Battery Materials Innovation and Qualification (BMIQ) Center in St. Louis. Commodity phosphates: Overall phosphate prices were stable to higher, as global demand remained firm and as China continued to restrict exports. Growing Solutions First quarter 2025 Sales of $495 million vs. $479 million. EBITDA of $47 million vs. $42 million. Continued focus on innovative, regional solutions helped drive year-over-year growth. Key developments versus prior year Brazil: Sales increased on both higher volumes and prices, however, product mix and exchange rate fluctuations caused a decrease in gross profit. Europe: Sales decreased on lower volumes, but gross profit increased, due to higher prices and improved product mix. North America: Sales increased, with higher volumes – in part due to the 2024 acquisition of Custom Ag Formulators – and slightly higher prices contributing to increased gross profit. Asia: Sales increased, as higher volumes drove higher gross profit. Product trends: Specialty agriculture sales increased on both higher volumes, in Europe, the U.S., China and Brazil, and higher prices – mainly in Brazil. Turf and ornamental sales increased, with turf and landscape experiencing both higher volumes and prices, while ornamental horticulture volumes declined in the U.S. and China. In early April, ICL acquired a leading ag-biologicals company, and this acquisition further advanced the company's stated goal of expanding its Growing Solutions product offerings and to position the business for further growth in new and adjacent end-markets. Financial Items Financing Expenses Net financing expenses for the first quarter of 2025 were $37 million, up versus $35 million in the corresponding quarter of last year. Tax Expenses Reported tax expenses in the first quarter of 2025 were $42 million, reflecting an effective tax rate of 28%, compared to $42 million in the corresponding quarter of last year, reflecting an effective tax rate of 25%. Available Liquidity ICL's available cash resources, which are comprised of cash and deposits, unutilized revolving credit facility, and unutilized securitization, totaled $1,491 million, as of March 31, 2025. Outstanding Net Debt As of March 31, 2025, ICL's net financial liabilities amounted to $1,993 million, an increase of $142 million compared to December 31, 2024. Dividend Distribution In connection with ICL's first quarter 2025 results, the Board of Directors declared a dividend of 4.26 cents per share, or approximately $55 million, versus 4.57 cents per share, or approximately $59 million, in the first quarter of last year. The dividend will be payable on June 18, 2025, to shareholders of record as of June 4, 2025. About ICL ICL Group Ltd. is a leading global specialty minerals company, which creates impactful solutions for humanity's sustainability challenges in the food, agriculture and industrial markets. ICL leverages its unique bromine, potash and phosphate resources, its global professional workforce, and its sustainability focused R&D and technological innovation capabilities, to drive the company's growth across its end markets. ICL shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs more than 12,000 people worldwide, and its 2024 revenue totaled approximately $7 billion. For more information, visit ICL's website at access ICL's interactive CSR report, visit can also learn more about ICL on Facebook, LinkedIn, YouTube, X and Instagram. Guidance (1a) The company only provides guidance on a non-GAAP basis. The company does not provide a reconciliation of forward-looking adjusted EBITDA (non-GAAP) to GAAP net income (loss), due to the inherent difficulty in forecasting, and quantifying certain amounts that are necessary for such reconciliation, in particular, because special items such as restructuring, litigation, and other matters, used to calculate projected net income (loss) vary dramatically based on actual events, the company is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income (loss) at this time. The amount of these deductions may be material, and therefore could result in projected GAAP net income (loss) being materially less than projected adjusted EBITDA (non-GAAP). The guidance speaks only as of the date hereof. The company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. The company provides guidance for specialties-driven EBITDA, which includes Industrial Products, Growing Solutions and Phosphate Solutions, as the Phosphate Solutions business is now predominantly specialties focused. For the Potash business, the company is providing sales volume guidance. The company believes this information provides greater transparency, as these new metrics are less impacted by fertilizer commodity prices, given the extreme volatility in recent years. Non-GAAP Statement The company discloses in this quarterly report non-IFRS financial measures titled adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share, and adjusted EBITDA. Management uses adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share, and adjusted EBITDA to facilitate operating performance comparisons from period to period. The company calculates adjusted operating income by adjusting operating income to add certain items, as set forth in the reconciliation table under "Adjustments to reported operating, and net income (non-GAAP)" below. Certain of these items may recur. The company calculates adjusted net income attributable to the company's shareholders by adjusting net income attributable to the company's shareholders to add certain items, as set forth in the reconciliation table under "Adjustments to reported operating, and net income (non-GAAP)" below, excluding the total tax impact of such adjustments. The company calculates diluted adjusted earnings per share by dividing adjusted net income by the weighted-average number of diluted ordinary shares outstanding. Adjusted EBITDA is calculated as net income before financing expenses, net, taxes on income, share in earnings of equity-accounted investees, depreciation and amortization, and certain adjustments presented in the reconciliation table under "Consolidated adjusted EBITDA, and diluted adjusted earnings per share for the periods of activity" below, which were adjusted for in calculating the adjusted operating income. You should not view adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share or adjusted EBITDA as a substitute for operating income or net income attributable to the company's shareholders determined in accordance with IFRS, and you should note that the company's definitions of adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share, and adjusted EBITDA may differ from those used by other companies. Additionally, other companies may use other measures to evaluate their performance, which may reduce the usefulness of the company's non-IFRS financial measures as tools for comparison. However, the company believes adjusted operating income, adjusted net income attributable to the company's shareholders, diluted adjusted earnings per share, and adjusted EBITDA provide useful information to both management, and investors by excluding certain items that management believes are not indicative of ongoing operations. Management uses these non-IFRS measures to evaluate the company's business strategies and management performance. The company believes these non‑IFRS measures provide useful information to investors because they improve the comparability of financial results between periods and provide for greater transparency of key measures used to evaluate performance. The company presents a discussion in the period-to-period comparisons of the primary drivers of change in the company's results of operations. This discussion is based in part on management's best estimates of the impact of the main trends on the company's businesses. The company has based the following discussion on its financial statements. You should read such discussion together with the company's financial statements. Forward Looking Statements This announcement contains statements that constitute "forward‑looking statements", many of which can be identified by the use of forward‑looking words such as "anticipate", "believe", "could", "expect", "should", "plan", "intend", "estimate", "strive", "forecast", "targets" and "potential", among others. The company is relying on the safe harbor provided in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in making such forward-looking statements. Forward‑looking statements appear in a number of places in this announcement and include, but are not limited to, statements regarding the company intent, belief or current expectations. Forward‑looking statements are based on the company management's beliefs and assumptions and on information currently available to the company management. Such statements are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward‑looking statements due to various factors, including, but not limited to: Changes in exchange rates or prices compared to those the company is currently experiencing; loss or impairment of business licenses or mineral extractions permits or concessions; volatility of supply and demand and the impact of competition; the difference between actual reserves and the company reserve estimates; natural disasters and cost of compliance with environmental regulatory legislative and licensing restrictions including laws and regulation related to, and physical impacts of climate change and greenhouse gas emissions; failure to "harvest" salt which could lead to accumulation of salt at the bottom of the evaporation Pond 5 in the Dead Sea; disruptions at the company seaport shipping facilities or regulatory restrictions affecting the company ability to export the company products overseas; general market, political or economic conditions in the countries in which the company operates, including tariffs and trade policies; price increases or shortages with respect to the company principal raw materials; delays in termination of engagements with contractors and/or governmental obligations; the inflow of significant amounts of water into the Dead Sea which could adversely affect production at the company plants; labor disputes, slowdowns and strikes involving the company employees; pension and health insurance liabilities; pandemics may create disruptions, impacting the company sales, operations, supply chain and customers; changes to governmental incentive programs or tax benefits, creation of new fiscal or tax related legislation; and/or higher tax liabilities; changes in the company evaluations and estimates, which serve as a basis for the recognition and manner of measurement of assets and liabilities; failure to integrate or realize expected benefits from mergers and acquisitions, organizational restructuring and joint ventures; currency rate fluctuations; rising interest rates; government examinations or investigations; disruption of the company, or the company service providers', information technology systems or breaches of the company, or the company service providers', data security; failure to retain and/or recruit key personnel; inability to realize expected benefits from the company cost reduction program according to the expected timetable; inability to access capital markets on favorable terms; cyclicality of the company businesses; changes in demand for the company fertilizer products due to a decline in agricultural product prices, lack of available credit, weather conditions, government policies or other factors beyond the company control; sales of the company magnesium products being affected by various factors that are not within the company control; the company ability to secure approvals and permits from the authorities in Israel to continue the company phosphate mining operations in Rotem Amfert Israel; volatility or crises in the financial markets; hazards inherent to mining and chemical manufacturing; the failure to ensure the safety of the company workers and processes; litigation, arbitration and regulatory proceedings; exposure to third party and product liability claims; product recalls or other liability claims as a result of food safety and food-borne illness concerns; insufficiency of insurance coverage; closing of transactions, mergers and acquisitions; war or acts of terror and/or political, economic and military instability in Israel and its region; including the current state of war declared in Israel and any resulting disruptions to the company supply and production chains; filing of class actions and derivative actions against the company, its executives and Board members; The company is exposed to risks relating to its current and future activity in emerging markets; and other risk factors discussed under "Item 3 - Key Information— D. Risk Factors" in the company's Annual Report on Form 20-F for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 13, 2025 (the "Annual Report"). Forward-looking statements speak only as of the date they are made, and the company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Investors are cautioned to consider these risks and uncertainties and to not place undue reliance on such information. Forward-looking statements should not be read as a guarantee of future performance or results and are subject to risks and uncertainties, and the actual results may differ materially from those expressed or implied in the forward-looking statements. This announcement for the first quarter of 2025 should be read in conjunction with the Annual Report of 2024 published by the company on Form 20-F, as of and for the year ended December 31, 2024, including the description of the events occurring subsequent to the date of the statement of financial position, as filed with the US SEC. Appendix Condensed Consolidated Statements of Income (Unaudited) $ millions Three-months ended Year ended March 31,2025 March 31,2024 December 31,2024 Sales 1,767 1,735 6,841 Cost of sales 1,207 1,178 4,585 Gross profit 560 557 2,256 Selling, transport and marketing expenses 268 273 1,114 General and administrative expenses 77 64 259 Research and development expenses 18 17 69 Other expenses 16 3 60 Other income (4) (3) (21) Operating income 185 203 775 Finance expenses 62 60 181 Finance income (25) (25) (41) Finance expenses, net 37 35 140 Share in earnings of equity-accounted investees - - 1 Income before taxes on income 148 168 636 Taxes on income 42 42 172 Net income 106 126 464 Net income attributable to the non-controlling interests 15 17 57 Net income attributable to the shareholders of the Company 91 109 407 Earnings per share attributable to the shareholders of the Company: Basic earnings per share (in dollars) 0.07 0.08 0.32 Diluted earnings per share (in dollars) 0.07 0.08 0.32 Weighted-average number of ordinary shares outstanding: Basic (in thousands) 1,290,452 1,289,530 1,289,968 Diluted (in thousands) 1,290,944 1,290,362 1,290,039 Condensed Consolidated Statements of Financial Position as of (Unaudited) $ millions March 31,2025 March 31,2024 December 31,2024 Current assets Cash and cash equivalents 312 363 327 Short-term investments and deposits 121 121 115 Trade receivables 1,497 1,492 1,260 Inventories 1,629 1,630 1,626 Prepaid expenses and other receivables 277 301 258 Total current assets 3,836 3,907 3,586 Non-current assets Deferred tax assets 151 155 143 Property, plant and equipment 6,526 6,285 6,462 Intangible assets 918 897 869 Other non-current assets 260 242 261 Total non-current assets 7,855 7,579 7,735 Total assets 11,691 11,486 11,321 Current liabilities Short-term debt 570 623 384 Trade payables 1,031 914 1,002 Provisions 62 54 63 Other payables 940 849 879 Total current liabilities 2,603 2,440 2,328 Non-current liabilities Long-term debt and debentures 1,856 1,883 1,909 Deferred tax liabilities 486 492 481 Long-term employee liabilities 333 352 331 Long-term provisions and accruals 229 218 230 Other 61 57 55 Total non-current liabilities 2,965 3,002 3,006 Total liabilities 5,568 5,442 5,334 Equity Total shareholders' equity 5,844 5,762 5,724 Non-controlling interests 279 282 263 Total equity 6,123 6,044 5,987 Total liabilities and equity 11,691 11,486 11,321 Condensed Consolidated Statements of Cash Flows (Unaudited) $ millions Three-months ended Year ended March 31,2025 March 31,2024 December 31,2024 Cash flows from operating activities Net income 106 126 464 Adjustments for: Depreciation and amortization 151 147 596 Fixed assets impairment - - 14 Exchange rate, interest and derivative, net 44 59 152 Tax expenses 42 42 172 Change in provisions (5) (42) (50) Other 3 2 13 235 208 897 Change in inventories 28 51 (7) Change in trade receivables (202) (141) 26 Change in trade payables 31 26 104 Change in other receivables (15) 18 39 Change in other payables 18 10 43 Net change in operating assets and liabilities (140) (36) 205 Income taxes paid, net of refund (36) (6) (98) Net cash provided by operating activities (*) 165 292 1,468 Cash flows from investing activities Proceeds (payments) from deposits, net (4) 50 56 Purchases of property, plant and equipment and intangible assets (190) (145) (713) Proceeds from divestiture of assets and businesses, net of transaction expenses 2 15 19 Interest received (*) 3 7 17 Business combinations (3) (22) (74) Other - - 1 Net cash used in investing activities (192) (95) (694) Cash flows from financing activities Dividends paid to the Company's shareholders (52) (61) (251) Receipts of long-term debt 361 198 889 Repayments of long-term debt (397) (386) (1,302) Receipts (repayments) of short-term debt 109 17 (1) Interest paid (*) (16) (20) (122) Receipts (payments) from transactions in derivatives - 3 (2) Dividend paid to the non-controlling interests - - (57) Net cash provided by (used in) financing activities 5 (249) (846) Net change in cash and cash equivalents (22) (52) (72) Cash and cash equivalents as of the beginning of the period 327 420 420 Net effect of currency translation on cash and cash equivalents 7 (5) (21) Cash and cash equivalents as of the end of the period 312 363 327 (*) Reclassified - see Note 2(b) to the Company's Interim Financial Statements. Adjustments to Reported Operating and Net Income (non-GAAP) $ millions Three-months ended March 31,2025 March 31,2024 Operating income 185 203 Charges related to the security situation in Israel (1) 10 12 Fire incident at Ashdod Port (2) 4 - Provision for early retirement (3) 9 - Total adjustments to operating income 23 12 Adjusted operating income 208 215 Net income attributable to the shareholders of the Company 91 109 Total adjustments to operating income 23 12 Total tax adjustments (4) (4) (3) Total adjusted net income - shareholders of the Company 110 118 (1) For 2025 and 2024, reflects charges relating to the security situation in Israel. (2) For 2025, reflects expenses related to the fire incident at Ashdod Port. (3) For 2025, reflects provisions for early retirement, due to restructuring at certain sites, as part of the Company's global efficiency plan. (4) For 2025 and 2024, reflects the tax impact of adjustments made to operating income. Consolidated EBITDA for the Periods of Activity $ millions Three-months ended March 31,2025 March 31,2024 Net income 106 126 Financing expenses, net 37 35 Taxes on income 42 42 Less: Share in earnings of equity-accounted investees - - Operating income 185 203 Depreciation and amortization 151 147 Adjustments (1) 23 12 Total adjusted EBITDA 359 362 (1) See "Adjustments to Reported Operating and Net income (non-GAAP)" above. Calculation of Segment EBITDA $ millions IndustrialProducts Potash PhosphateSolutions (1) Growing Solutions Three-months ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Segment operating income 62 59 56 62 91 84 28 23 Depreciation and amortization 14 13 62 62 48 47 19 19 Segment EBITDA 76 72 118 124 139 131 47 42 (1) For the first quarter of 2025, Phosphate Specialties accounted for $324 million of segment sales, $39 million of operating income, $12 million of D&A and $51 million of EBITDA, while Phosphate Commodities accounted for $249 million of segment sales, $52 million of operating income, $36 million of D&A and represented $88 million of EBITDA. View source version on Contacts Investor and Press Contact – Global Peggy Reilly TharpVP, Global Investor Relations+ Investor and Press Contact - Israel Adi BajayoICL Spokesperson+ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
