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Itafos Q3 revenue profit drops on higher sulfur, sulfuric acid costs

By Reuters News


Overview

  • Phosphate fertilizer producer's Q3 revenue rose 5% yr/yr, driven by higher realized prices

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

  • Company amended and extended credit facilities to enhance financial flexibility


Outlook

  • Itafos revised FY 2026 maintenance capex guidance to $25-28 mln, up from $23-28 mln

  • Company lowered FY 2026 growth capex guidance to $63-73 mln from $63-83 mln

  • Itafos expects phosphate prices to remain elevated through 2026 and 1H 2027 due to supply constraints


Result Drivers

  • HIGHER RAW MATERIAL COSTS - Co said elevated sulfur and sulfuric acid costs, driven by global supply chain disruptions from the war in Iran, weighed on margins and earnings

  • PRODUCTION OUTAGE - Temporary sulfuric acid plant outage at Conda reduced production volumes in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$161 mln

Q3 Net Income

$2.20 mln

Q3 Adjusted EBITDA

$14.40 mln

Q3 Capex

$27.90 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$3.75, about 75.2% above its November 4 closing price of C$2.14

  • The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Nov 4 - Nutrien misses Q3 profit estimates on high sulfur costs, to close Florida plant

  • Nov 4 - Canada's Nutrien Q3 profit misses estimates on higher costs, lower crop nutrient sales

  • Nov 3 - Mosaic Q3 adjusted loss misses estimates as lower volumes, raw material costs cut EBITDA


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.)

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