Fertilizer producer Itafos posts Q2 net loss on higher input costs
Fertilizer producer Itafos posts Q2 net loss on higher input costs
Overview
US phosphate fertilizer producer's Q2 revenue rose 14% yr/yr to $144 mln
Adjusted EBITDA for Q2 dropped sharply due to higher sulfur and sulfuric acid costs
Company posted a Q2 net loss of $5.6 mln versus net income a year ago
Outlook
Itafos now sees 2026 sales volumes at 340-355 thousand tonnes P(2)O(5)
Company lowers 2026 maintenance capex guidance to $23-28 mln
Itafos expects phosphate prices to remain elevated through 2026 due to supply disruptions
Result Drivers
HIGHER INPUT COSTS - Co said materially higher sulfur and sulfuric acid costs at Conda and Arraias reduced profitability
INCREASED SALES VOLUMES - Co said higher fertilizer and sulfuric acid sales volumes in Brazil drove revenue growth
SUPPLY CHAIN DISRUPTIONS - Co cited global supply chain disruptions from conflict in Iran and export restrictions from China as impacting input prices and supply
Company press release: ID:nGNX7W55Xr
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $144 mln |
|
Q2 Net Loss |
| $5.6 mln |
|
Q2 Adjusted EBITDA |
| $17.8 mln |
|
Q2 Capex |
| $30.6 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "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$4.50, about 100.9% above its August 4 closing price of C$2.24
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)