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

Itafos

18/03/2026 22:16

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
$142.60 mln
Q4 Net Income
$19.2 mln
Q4 Adjusted EBITDA
$38.7 mln
Q4 Capex
$19.60 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$5.00, 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

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.)