Itafos Q1 profit falls on higher input costs

Itafos

29/04/2026 22:20

Overview

US phosphate fertilizer producer's Q1 revenue rose 5% yr/yr on higher product prices

Adjusted EBITDA and net income fell due to higher sulfur and sulfuric acid costs

Company expects higher per-unit revenues in coming quarters as contract pricing adjusts

Outlook

Itafos expects phosphate prices to improve through H1 2026 due to supply constraints

Company forecasts 2026 sales volumes of 335-355 thousand tonnes P2O5

Itafos sees 2026 maintenance capex at $23-33 mln and growth capex at $63-83 mln

Result Drivers

HIGHER INPUT COSTS - Co said significantly higher sulfur and sulfuric acid costs led to lower adjusted EBITDA margins and adjusted EBITDA

HIGHER PRODUCT PRICES - Revenue growth was driven by higher product prices, though full benefit not reflected in Q1 due to contract pricing mechanism

RECORD MAP PRODUCTION - Conda achieved its highest quarterly MAP production volumes since acquisition in 2018

Company press release: ID:nGNXcbRWT5

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$142.20 mln
Q1 Net Income
$1.70 mln
Q1 Adjusted EBITDA
$18.40 mln
Q1 Capex
$12.60 mln


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$5.50, about 54.9% above its April 28 closing price of C$3.55

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)