Itafos Q4 profit falls on higher costs of sulfur, sulfuric acid

Overview

• Phosphate fertilizer producer's Q4 revenue rose yr/yr

• Co's adjusted EBITDA and net income declined

• Company cites higher sulfur and sulfuric acid costs as main driver of profit decline

• Company set production records at Conda and Arraias during the year

Outlook

• Itafos projects FY 2026 sales volumes at 335-355 thousand tonnes P2O53

• Company expects phosphate prices to improve in H1 2026 due to supply chain disruptions

• Company sees maintenance capex of $23-33 mln and growth capex of $63-83 mln for 2026

Result Drivers

• HIGHER RAW MATERIAL COSTS - Co said increased sulfur and sulfuric acid costs at Conda were the main reason for lower adjusted EBITDA and net income in Q4

• HIGHER REALIZED PRICES - Co said revenue at Conda rose due to higher realized prices for MAP and SPA products, reflecting strong phosphate market dynamics

• LOWER SALES VOLUMES - Co said lower MAP, SPA and MAP+ sales volumes at Conda contributed to lower adjusted EBITDA

Company press release: ID:nGNX6sMnyb

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the agricultural chemicals peer group is "buy."

• Wall Street's median 12-month price target for Itafos Inc is C$5.00, about 13.6% above its March 18 closing price of C$4.40

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 8 three months ago

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