Key Takeaways
- Itafos’ Revenues reached $126.8M in Q2 2025, up 21% YoY; net income rose to $24.8M
- Adjusted EBITDA slightly declined due to higher input costs despite improved sales
- Higher phosphate prices expected to benefit H2 performance under MAP offtake terms
- Conda and Arraias production volumes increased; capital project approved for magnesium reduction
- Full-year sales and capex guidance maintained; liquidity position strengthened
Itafos Q2 2025 Financial Results
Revenue growth supported by production, while costs weigh on margins
Itafos Inc. (TSX-V: IFOS) reported its financial and operational results for the second quarter of 2025, posting revenues of $126.8 million, up from $105.1 million in Q2 2024. Net income rose to $24.8 million versus $16.2 million in the same period last year, primarily driven by investment gains, lower finance costs, and reduced tax expenses.
Adjusted EBITDA came in at $31.8 million, slightly lower than the $32.8 million reported in Q2 2024. This was attributed to higher sulfur and sulfuric acid costs at the Conda facility. Basic earnings were C$0.18/share, up from C$0.12/share year-over-year.
Free cash flow declined to $10.8 million compared to $42.5 million in Q2 2024. Total capital expenditures were $28.8 million, largely in line with expectations given the shorter turnaround time at Conda compared to last year.
Chief Executive Officer David Delaney noted: “We are pleased to report another highly successful quarter in which the Company maintained its exceptional safety performance and posted higher production volumes at both Conda and Arraias compared to the same period last year. The granulation circuit restart at Arraias and launch of our new granulated fertilizer product, SuperForte Gran, are notable milestones.”
Itafos H1 2025 Performance
Improved profitability despite soft margins
For the first half of 2025, Itafos reported:
- Revenue of $262.5 million (H1 2024: $233.1 million)
- Net income of $60.7 million (H1 2024: $39.9 million)
- Adjusted EBITDA of $71.1 million (H1 2024: $76.0 million)
- Free cash flow of $42.1 million (H1 2024: $60.2 million)
- Basic earnings of C$0.44/share (H1 2024: C$0.28/share)
The decline in adjusted EBITDA was due to increased input costs at Conda. However, net income was supported by the sale of the Araxá project, fair value gains, and lower financing costs.
Operational Highlights
Facilities show higher output and renewed investments
Conda
- Produced 79,606 tonnes P2O5 in Q2 (Q2 2024: 69,532 tonnes)
- Generated $116.6 million in revenue, up from $101.8 million
- Adjusted EBITDA decreased to $32.9 million (Q2 2024: $37.2 million)
A capital project to reduce magnesium content in ore from the Husky 1/North Dry Ridge (H1/NDR) mines was approved, aimed at preserving P2O5 production capacity. Additionally, exploration drilling and permitting efforts are underway to potentially extend the mine life beyond 2037.
Arraias
- Produced 36,349 tonnes of sulfuric acid in Q2 (Q2 2024: 16,652 tonnes)
- Delivered 10,194 tonnes P2O5 versus 3,794 tonnes a year ago
- Adjusted EBITDA reached $3.4 million, reversing a loss of $(0.5) million
Higher production was driven by the Fertilizer Restart Program and strong sulfuric acid demand. A granulated fertilizer product, SuperForte Gran, was successfully launched during the quarter.
Market Environment
Phosphate pricing improves amid global supply constraints
Phosphate prices increased in Q2 2025, with MAP New Orleans (NOLA) prices averaging $690/st, up 24% year-over-year. Limited Chinese exports and strong demand from India, Brazil, and Ethiopia supported global price increases.
However, affordability remains a concern as grain and oilseed prices stay low. Despite this, Itafos expects phosphate pricing to remain firm through the remainder of the year due to:
- Low global fertilizer inventories
- Chinese export restrictions
- Limited U.S. imports from tariff measures
Guidance and Itafos Outlook
Full-year targets reaffirmed amid constructive fundamentals
Itafos reaffirmed its 2025 guidance, including:
- Sales volumes of 340–360 thousand tonnes P2O5
- Maintenance capex of $13–23 million
- Growth capex of $63–83 million
- SG&A expenses of $17–20 million
As of June 30, 2025, Itafos reported:
- Trailing 12-month adjusted EBITDA: $154.6 million
- Net debt: $(2.5) million, indicating a positive cash balance
- Liquidity: $178.1 million
Read the complete financials from Itafos.
