Itafos (IFOS) Q2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2024, with continued execution of strategic priorities and progress on the H1/NDR project, which remains on schedule and on budget for first ore in H2 2025.

• Announced the sale of the Araxá project for $21 million in cash and equity, unlocking value from the overseas asset portfolio.

Financial highlights

• Q2 2024 revenue was $105.1M, down from $116.1M in Q2 2023; Adjusted EBITDA was $32.8M, down from $39.7M; net income was $16.2M, down from $20.4M.

• H1 2024 revenue was $233.1M, slightly down from $235.7M in H1 2023; Adjusted EBITDA was $76.0M, down from $82.6M; net income was $39.9M, down from $48.6M.

• Free cash flow in Q2 2024 was $42.5M, up from $39.0M in Q2 2023; H1 2024 free cash flow was $60.2M, up from $57.9M in H1 2023.

• Total capex in Q2 2024 was $30.2M, up from $18.1M in Q2 2023; H1 2024 capex was $36.6M, up from $20.9M in H1 2023, mainly due to H1/NDR development and turnarounds.

Outlook and guidance

• Maintained FY 2024 guidance: sales volumes of 320–340k tonnes P2O5, corporate SG&A $17–20M, maintenance capex $25–35M, growth capex $35–46M.

• Expects minor increases in MAP pricing into fall 2024 due to low inventory and strong demand.

• Market supported by low North American inventory, ongoing Chinese export restrictions, and stable trade flows.