Key Takeaways
- Itafos Inc. (TSX-V: IFOS) reported Q1 2026 revenues of $142.2 million, a 5% increase from $135.7 million in Q1 2025, driven by higher MAP and SPA product prices; Conda achieved its highest quarterly MAP production volumes since the company’s acquisition of the facility in 2018.
- Adjusted EBITDA declined to $18.4 million from $39.3 million in Q1 2025, and net income fell to $1.7 million from $35.9 million, primarily due to significantly higher sulfur and sulfuric acid costs driven by the ongoing Middle East conflict and Strait of Hormuz closure.
- As of March 31, 2026, Itafos held trailing 12-month Adjusted EBITDA of $137.8 million, net debt of $39.0 million, a net leverage ratio of 0.3x, and total liquidity of $128.2 million comprising $48.2 million in cash and $80.0 million in undrawn ABL facility capacity.
- Global sulfur prices rose to near $1,000 per tonne in late April 2026, and China has restricted DAP and MAP exports through August 2026, with analyst estimates projecting as little as 1 million tonnes of Chinese DAP and MAP exports in 2026, down from 5.4 million tonnes in 2025.
- Itafos is advancing two key capital projects: the MgO Reduction Project at Conda to maintain P2O5 production capacity from the H1/NDR mines, and the Fertilizer Restart Program at Arraias targeting the resumption of Single Superphosphate (SSP) production in 2027.
Itafos Posts 5% Revenue Growth in Q1 2026 Despite Sulfur Cost Headwinds
Itafos Inc. (TSX-V: IFOS, OTCQX: ITFS) reported Q1 2026 revenues of $142.2 million, up 5% from $135.7 million in Q1 2025, driven by higher realized prices for MAP and superphosphoric acid (SPA) products. Adjusted EBITDA declined to $18.4 million from $39.3 million in the prior-year quarter, and net income fell to $1.7 million from $35.9 million. The primary driver of the decline was a significant increase in sulfur and sulfuric acid input costs, which stem from supply chain disruptions caused by the Middle East conflict and the closure of the Strait of Hormuz. Free cash flow came in at negative $16.7 million compared to positive $31.3 million in Q1 2025. MAP New Orleans (NOLA) benchmark prices averaged $664 per short ton in Q1 2026, up 11% year-over-year from $596/st in Q1 2025.
“We are pleased to report continued excellent operating results for the Company. Conda achieved its highest quarterly monoammonium phosphate (MAP) production volumes since the Company’s acquisition of the facility in 2018 and Arraias continues to execute on its operating plan,” said David Delaney, Chief Executive Officer of Itafos. “Despite the near-term market headwinds, we continue to believe the fundamental supply and demand fundamentals of the phosphate market are compelling and the Company is well positioned to create long-term value for its shareholders.”
Conda Achieves Record MAP Production Since 2018 Acquisition
Itafos’s Conda facility generated revenues of $130.4 million in Q1 2026, up from $128.3 million in Q1 2025, with growth driven by higher realized MAP and SPA prices. The facility produced 87,576 tonnes P2O5 in the quarter, compared to 91,200 tonnes P2O5 in Q1 2025, with the decrease in total P2O5 reflecting a planned shift in production mix toward MAP from SPA. Conda’s Adjusted EBITDA reached $22.1 million compared to $40.9 million in Q1 2025, with the decline attributable to lower cash margins per tonne P2O5 driven by higher sulfur and sulfuric acid input costs.
On the mine life extension front, Itafos successfully loaded initial trains at the H1/NDR tipple, ensuring ore continuity for the 2026 shipping season, and advanced construction and engineering on the MgO Reduction Project — a new processing facility designed to lower the magnesium content of ore from the H1/NDR mines to maintain P2O5 production capacity. The company has also commenced a multi-year exploration, resource evaluation, and permitting program at Conda at an expected annual cost of $6 million to $8 million, targeting mine life extension beyond the current technical report estimate of mid-2037.
Itafos Market Outlook: Iran Conflict Disrupts Global Phosphate Supply Chains
The conflict in Iran, which began in late February 2026, has materially altered global phosphate fertilizer and raw material markets. The Strait of Hormuz closure drove sulfur prices to near $1,000 per tonne in late April 2026 — a ratio of sulfur-to-phosphate price at all-time high levels — taking marginal phosphate production offline in China, Brazil, Jordan, South Africa, India, and Russia. OCP S.A. announced it will pull forward maintenance in Q2 2026, potentially cutting production by 30%. Saudi Arabian phosphate production rates have reportedly fallen to approximately 70% of capacity. China has restricted DAP and MAP exports through August 2026, with analyst projections of as little as 1 million tonnes of Chinese DAP and MAP exports in 2026, down from 5.4 million tonnes in 2025.
Itafos notes that while global raw material availability has tightened, domestic U.S. supply remains available, allowing the company to maintain its U.S. industry-leading operating rates at Conda. Due to the three-month historical average pricing mechanism in its long-term MAP offtake contract, the full benefit of higher Q1 prices was not captured in Q1 revenues. The company expects per-unit revenues to increase in Q2 2026.
Arraias Advances SSP Restart; Capital Projects on Track
Itafos’s Arraias facility in Brazil generated Adjusted EBITDA of $1.4 million in Q1 2026, compared to $2.0 million in Q1 2025, with the decline driven by lower sulfuric acid gross margins from higher sulfur costs, partially offset by increased sales prices. Arraias produced 35,669 tonnes of excess sulfuric acid in the quarter and 360 tonnes P2O5, with lower P2O5 reflecting a planned suspension of partially acidulated phosphate rock (PAPR) production. Pre-stripping activities at the Domingos pit advanced in Q1 2026 in preparation for the 2026 production season. On January 27, 2026, Itafos announced results of an updated preliminary economic assessment for Arraias, supporting the decision to proceed with a restart of Single Superphosphate (SSP) production targeted for 2027.
Itafos Q1 2026 Financial Summary
The following table summarizes Itafos’s key financial metrics for Q1 2026 compared to Q1 2025 and select balance sheet figures as of March 31, 2026.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenues | $142.2M | $135.7M | +5% |
| Adjusted EBITDA | $18.4M | $39.3M | -53% |
| Net Income | $1.7M | $35.9M | -95% |
| Basic Earnings (C$/share) | C$0.01 | C$0.27 | -96% |
| Free Cash Flow | $(16.7)M | $31.3M | N/A |
| Total Capex | $12.6M | $9.9M | +27% |
| MAP NOLA Price (avg) | $664/st | $596/st | +11% |
| As of March 31, 2026 | |||
| Trailing 12M Adjusted EBITDA | $137.8M | — | — |
| Net Debt | $39.0M | — | — |
| Net Leverage Ratio | 0.3x | — | — |
| Total Liquidity | $128.2M | — | — |
Read the full Q1 2026 financial statements and management’s discussion and analysis →
