ICL Group (ICL) Q3 2026 Earnings Call Transcript

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DATE

Wednesday, Nov. 11, 2026

CALL PARTICIPANTS

• Vice President of Global Investor Relations - Peggy Reilly Tharp
• Chief Executive Officer - Elad Aharonson
• Chief Financial Officer - Asaf Alperovitz

TAKEAWAYS

• Sales -- $1.9 billion, representing a 3% increase year over year driven by higher prices and a favorable product mix.
• Adjusted EBITDA -- $402 million, growing 1% year over year despite record high raw material prices and elevated logistics costs.
• Gross Margin -- 32.9%, improving 30 basis points year over year to the highest rate since the fourth quarter of 2024.
• Adjusted Net Income -- $126 million, a 2% improvement compared to the prior year.
• Adjusted EPS -- $0.10 per share.
• Operating Cash Flow -- $256 million for the third quarter.
• Free Cash Flow -- $66 million, reflecting increased inventory values and softer demand for commodity phosphates.
• Industrial Products Sales -- $347 million, up 18% year over year supported by higher bromine prices and electronics end-market demand.
• Industrial Products EBITDA -- $100 million, an increase of nearly 50% year over year.
• Potash Sales -- $469 million, rising 4% year over year on higher prices and volumes.
• Potash EBITDA -- $157 million, a 7% decline year over year as price gains were offset by energy, transportation, and currency headwinds.
• Average Potash Price -- $370 per metric ton CIF, increasing 5% year over year but declining 2% sequentially due to contractual volumes for India and China.
• Potash Production Volume -- 1,146,000 metric tons, remaining in line with the prior year.
• Phosphate Solutions Sales -- $589 million, supported by specialty offerings and firm battery demand for electric vehicles in China.
• Phosphate Solutions EBITDA -- $118 million, resulting in an EBITDA margin of 20% despite significantly higher raw material costs.
• Growing Solutions Sales -- $538 million, navigating soft market conditions and weak demand in Brazil.
• Growing Solutions EBITDA -- $44 million, reflecting effective management of controllable factors and pricing actions.
• Sulfur Prices -- increased more than 220% year over year in the third quarter, impacting margins in the Phosphate and Growing Solutions segments.
• Ocean Freight Rates -- rose 24% year over year and 9% sequentially for bulk carrier ship prices.
• 2026 EBITDA Guidance -- $1.5 billion to $1.7 billion, with management currently targeting to be ahead of the midpoint of this range.
• Potash Volume Guidance -- 4.5 million to 4.7 million metric tons for the full year.
• Dividends -- $63 million, representing 50% of adjusted net income with a trailing 12-month yield of 4.1%.
• Net Debt to Adjusted EBITDA -- 1.5, remaining at a stable level for the quarter.
• ELEVATE Program Savings -- $350 million in annual EBITDA improvement expected by the end of 2028.
• 2027 Cost Savings Target -- more than $150 million in annual EBITDA improvement by year-end 2027.

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RISKS

• Alperovitz noted that "EBITDA of $157 million declined approximately 7% on an annual basis as higher prices and volumes were unable to offset an increase in energy and transportation costs combined with exchange rate headwinds," particularly in the Potash segment.
• Alperovitz stated, "In Europe, despite improved product mix, weaker demand due to farmer affordability impacted sales," noting that farmers are buying just in time.
• CEO Aharonson warned that "Q4 will reflect higher cost of sulfur in the P&L versus Q3" due to the processing time required to consume higher-cost inventory purchased in Aug.

SUMMARY

ICL Group Ltd (NYSE:ICL) reported third quarter results that demonstrated price-driven growth across most segments, even as the company navigated significant raw material and logistics headwinds. Management reiterated its 2026 EBITDA guidance range of $1.5 billion to $1.7 billion, targeting the upper half of that range, while preparing for a major organizational restructuring in Jan. 2027. This new structure will consolidate operations into four business segments focusing on Nutrition Solutions, Industrial Solutions, Growing Solutions, and Essential Minerals. The company continues to implement its ELEVATE cost transformation program, aiming for substantial annual savings through productivity gains and operational efficiencies by 2028. While high sulfur costs and weak demand in Brazil impacted near-term margins, management expressed confidence in market stabilization and cost-saving realizations entering 2027.

• CEO Aharonson stated, "This growth was achieved despite record high raw material prices and elevated freight and logistics costs."
• Management noted that 50% to 60% of the projected EBITDA improvement from the ELEVATE program will be driven by productivity gains and operational efficiencies.
• CFO Alperovitz indicated that sulfur purchase prices declined approximately 12% in Oct. compared to the third quarter, which should benefit margins beginning in the first quarter of 2027.
• The company is integrating the Bartek acquisition to expand functional ingredients for the bakery and confectionery industries, including fortified gummies with calcium and magnesium.
• Industrial Solutions will target growth opportunities in AI infrastructure and robotics by leveraging expertise in chemical solutions for electronic materials and semiconductors.
• In Brazil, management observed that customers delayed purchasing decisions and shifted to less premium products, though the country remains a critical part of the long-term growth strategy.

INDUSTRY GLOSSARY

• Bromine: A chemical element used in flame retardants, electronics manufacturing, and oil and gas drilling fluids.
• Potash: A group of potassium-bearing minerals used primarily as an agricultural fertilizer to support crop yields.
• CIF (Cost, Insurance, and Freight): A shipping agreement where the seller pays the costs, insurance, and freight of an order while it is in transit.
• EBITDA: Earnings before interest, taxes, depreciation, and amortization, used as a measure of a company's overall financial performance.
• Clear Brine Fluids: High-density solutions used in the oil and gas industry during well completion and workover operations.
• Biostimulants: Substances or microorganisms that enhance plant growth, nutrient uptake, and stress tolerance.
• Bartek: A specialty chemical company acquired by ICL that produces malic and fumaric acid for the food and beverage industry.

Full Conference Call Transcript

Operator: Hello, everyone. Thank you for joining us, and welcome to the ICL Third Quarter 2026 Earnings Call International. [Operator Instructions] I will now hand the conference over to Peggy Reilly Tharp, Vice President of Global Investor Relations. Peggy, please go ahead.

Peggy Tharp: Hello, everyone. I'm Peggy Reilly Tharp, Vice President of Global Investor Relations for ICL Group. I'd like to welcome you, and thank you for joining us today for our earnings conference call. This event is being webcast live on our website at icl-group.com, and there will be a replay available a few hours after the live call and a transcript will be available shortly thereafter. Earlier today, we filed our reports and our presentations with the securities authorities and the stock exchanges in both Israel and the United States. Those reports as well as the press release and our presentation are available on our website. Please be sure to review the disclaimer on Slide 2 of the presentation.

Our comments today will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are not guarantees of future performance. The company undertakes no obligation to update any information discussed on this call at any time. With that, we will begin with the presentation by our CEO, Mr. Elad Aharonson, followed by Mr. Asaf Alperovitz, our CFO. After the presentation, we will open the line for the Q&A session. I would now like to turn the call over to Elad.

Elad Aharonson: Thank you, Peggy, and welcome, everyone, to review our third quarter 2026 earnings. On Slide 3, you can see some highlights. We delivered another quarter of growth in key results with sales of $1.9 billion, which were up 3% year-over-year. Adjusted EBITDA of $402 million increased 1% versus the prior year. This growth was achieved despite record high raw material prices and elevated freight and logistics costs. During the quarter, we successfully implemented price increases across key end markets and targeted high-margin product mix. On an annual basis, gross margin improved 30 basis points in the third quarter to 32.9%, our highest rate since the fourth quarter of 2024.

For the third quarter, we reported a 2% improvement in adjusted net income of $126 million, which translates to adjusted earnings per share of $0.10. Operating cash flow was $256 million in the third quarter, while free cash flow was $66 million as we delivered solid underlying cash generation. If you turn to Slide 4, I would like to share some business highlights for each of our current segments. For Industrial Products, a very strong quarter was driven by higher bromine prices and improving demand in key end markets. In Potash, higher prices partially offset the strong currency headwinds and higher energy and logistic costs we experienced in the third quarter.

Looking ahead, industry fundamentals remain constructive, supported by healthy global demand and continued supply and logistics constraints in key regions. For Phosphate Solutions, we outperformed the market as our diversified specialty offerings demonstrated resilience and helped partially offset higher sulfur prices and tight supply. We leveraged the flexibility of our production network to optimize capacity utilization and sales mix, prioritizing higher-value applications and driving profitability. And our Growing Solutions segment exercised discipline in terms of pricing, mix and costs, helping to navigate challenging global market conditions and soft demand in key markets. These actions helped mitigate some of the market pressures in the third quarter.

While I will return later in the call with strategic update, I would now like to turn things over to Asaf for a review of our financials, macro environment and outlook.

Asaf Alperovitz: Thank you, Elad. I would like to get started with a review of our business segments and beginning with Industrial Products. On Slide 6, you can see third quarter sales of $347 million were up 18% year-over-year, while EBITDA of $100 million was up nearly 50%. These strong results were driven by higher bromine prices and solid performance from key business lines. For flame retardants, sales increased from both our bromine and phosphorus-based solutions. Brominated products benefited from higher pricing and continued growth in demand from the electronics end markets, while phosphorus products benefited from an improvement in construction end market demand.

Sales increased for our clear brine fluids, which are used by the oil and gas industry during well completion. We saw stable demand for our specialty minerals products, which include magnesia, calcium carbonate and salt products with improvement in the food and pharma end markets. Turning to our Potash division on Slide 7. For the third quarter, sales of $469 million were up 4% year-over-year. EBITDA of $157 million declined approximately 7% on an annual basis as higher prices and volumes were unable to offset an increase in energy and transportation costs combined with exchange rate headwinds. Our average potash price for the third quarter was $370 CIF per ton.

This amount was up 5% year-over-year, but down 2% sequentially as we supplied a higher proportion of our volumes to India and China versus other markets as part of our annual contractual obligations. As you know, contract prices in these markets are generally below prevailing spot prices, resulting in a less favorable destination mix and some pressure on margins. Potash production volumes came in at 1,146,000 metric tons in the third quarter and were in line with the prior year. Despite recent price increases, potash remains relatively affordable compared to nitrogen and phosphate fertilizers, supporting continued good demand in key markets.

Now turning to a review of our Phosphate Solutions division on Slide 8, where third quarter sales were $589 million. EBITDA was $118 million as we delivered EBITDA margin of 20%. These solid results were achieved in spite of significantly higher raw material costs. As Elad discussed, the diversity of our Phosphate Solutions business, including both specialty and commodity phosphates, which serve a broad range of end markets and applications helped to drive these solid results. For our specialty food phosphates, sales increased in the third quarter. We saw continued growth in our new business pipeline and success in our regional expansions, which are focused on meeting the needs of local preferences.

We are also benefiting from the continued consumer shift to good-for-you products. Our specialty industrial phosphates also delivered higher sales and profit with firm battery demand for electric vehicles in China. For phosphate fertilizers, quantity and profitability declined on lower demand and higher sulfur prices. In order to help manage these record high sulfur prices, we proactively optimized phosphate production in China and in Israel in the third quarter. This included advancing maintenance activities, reducing overtime and extending our holiday break. We are already seeing improvement in purchase prices, which we expect to benefit from in 2027. This brings us to our Growing Solutions business division on Slide 9.

Sales for the third quarter were $538 million, while EBITDA was $44 million. While pressure from higher raw material costs and supply chain volatility continued in the third quarter, the team did an excellent job of proactively and effectively managing controllable factors. This included taking pricing actions where prudent, while focusing on favorable mix and managing working capital. On a regional basis, soft market conditions remained an issue in Brazil as overall demand was weak. Customers delayed purchasing decisions and shifted to less premium products when possible. While the mood remains uncertain in Brazil, I would remind everyone that agribusiness accounted for 25% of the country's GDP in 2025.

Brazil ranks among the largest producers of several key agriculture outputs and more than half of all soybeans traded internationally originate in Brazil. Over the coming years, global demand for food and agriculture products is expected to continue to grow, driven by population growth and rising income and Brazil is uniquely positioned to meet this incremental demand. So while the past few quarters have been challenging, our commitment to Brazil remains part of our long-term growth strategy. Turning briefly to a few other key regions. In North America, sales remained stable in the third quarter, while Asia delivered modest growth in both sales and profit.

In many global regions, farmers are buying just in time, and we are actively working to increase our market share in those locations. For Europe, despite improved product mix, weaker demand due to farmer affordability impacted sales. Our key specialty agriculture products have continued to perform well, and our sales teams are working with customers to support their dynamic needs. During the quarter, Growing Solutions did a remarkable job of concentrating efforts on the right countries, categories and products while maintaining a commitment to cost savings actions. We remain focused on navigating the current environment with discipline while ensuring we are well positioned to capture the upside when market conditions improve.

Let us now turn to Slide 10 with a quick look at quarterly changes in key market metrics. On the positive side, the grain price index in the U.S. improved on both a quarterly and annual basis with corn, rice, soybeans and wheat, all trending up. While the average grain price index increased again through October, this was solely due to a strength in rice as corn, soy and wheat all reversed course. Through October, farmer affordability improved with U.S. farmer sentiment increasing sequentially. While high input costs remain a concern, farmers were more optimistic about their financial prospects and the investment environment than in the prior quarter. Turning to commodity prices.

In the third quarter, spot potash prices in the U.S. increased approximately 3% on a sequential basis, which supported the growth in potash sales versus the prior year. For October, average prices ticked up another 2% versus the end of the third quarter. While phosphate fertilizer prices were up 15% on an annual basis, they declined approximately 4% in the third quarter as affordability continued to impact demand. In the third quarter, the average spot price of sulfur increased more than 220% on an annual basis. These increases impacted margin rates for our Phosphate Solutions and Growing Solutions segments in the third quarter.

However, for October, the average price of sulfur declined by approximately 12% versus the third quarter, and we're seeing signs that purchase price pressure is beginning to ease. Given the normal lag between purchasing sulfur and consuming it, lower purchase prices should begin to benefit our results in the first quarter of next year. Ocean freight rates also remained elevated. For the third quarter, average bulk carrier ship prices increased 24% on an annual basis and 9% on a sequential basis. While these rates will remain subject to geopolitical uncertainty, we will continue to effectively manage rates and routes to help offset the full impact. Turning to Slide 11 and a few other key indicators.

While spot bromine prices for the third quarter declined versus the second, they were up nearly 40% annually. This increase helped support the strong year-over-year financial performance of our Industrial Products segment in the third quarter. Bromine prices rebounded in October to first quarter levels, and we expect this increase to support strong fourth quarter performance in Industrial Products. For the food ingredients market, conditions remain constructive, supported by improving volumes, increased customer innovation and reformulation activity and continued demand for value-added specialty ingredients. Finally, let's take a look at exchange rates. As you know, ICL is a dollar-denominated company. So as the shekel strengthens versus the U.S. dollar, it makes it more costly for operations in Israel.

For the third quarter, the dollar strengthened versus the shekel by 3% on a sequential basis and another 2% in October. We will continue to use hedging strategies to help mitigate currency risk and to closely monitor changes in the dollar to shekel exchange rates, along with other significant currency fluctuations. Now if you turn to Slide 12 for a look at our third quarter sales bridges. On a year-over-year basis, sales were up nearly $60 million or approximately 3%, and our diversified business model supported this increase in sales.

While the trajectory of our 4 businesses will not always be ascending together, our diverse portfolio of food, industrial and agriculture solutions provides offsets during times of seasonality and end market inconsistency. Turning to the right side of the slide. You can see $171 million benefit from higher prices this quarter, including contribution from more favorable product mix, which was partly offset by $134 million of lower quantities. Exchange rate also had a positive impact on sales in the third quarter. On Slide 13, you can see our third quarter adjusted EBITDA, which improved slightly versus the prior year despite significant headwinds across several of our business segments.

Higher prices, together with the operational improvements more than offset the impact of exchange rate fluctuations, record high raw material costs and increases in energy and transportation expenses. Turning to Slide 14 and a few more third quarter financial highlights. Our balance sheet remains strong with available cash resource of $2.2 billion. In the quarter, we delivered operational cash flows of $256 million while free cash flow was $66 million. This was achieved despite an increase in inventory, primarily reflecting temporary softer demand for commodity phosphates and the impact of higher sulfur costs on inventory values. Our net debt to adjusted EBITDA rate remained at a stable 1.5x.

And once again, we are distributing 50% of adjusted net income to our shareholders. This translates to a total dividend of $63 million in the third quarter and results in a trailing 12-month dividend yield of 4.1%. Now turning to Slide 15 and review of our guidance for 2026. We are reiterating our guidance and continue to expect consolidated EBITDA to be between $1.5 billion to $1.7 billion and are currently targeting to be ahead of the midpoint of this range. This continues to reflect the expected impact of higher raw material costs and currency headwinds.

For potash sales volumes, we continue to expect this amount to be between 4.5 million and 4.7 million metric tons due to operational improvements made in 2025. We also continue to expect our annual adjusted tax rate to be approximately 30%. With that, I would like to turn the call back over to Elad for an update on our long-term strategy.

Elad Aharonson: Thank you, Asaf. On Slide 17, I would like to quickly review our new organizational structure, which will begin on January 1, 2027. As you can see, all of our Food and Beverage, Health, Nutrition and Wellness solutions will be housed under our new Nutrition Solutions segment. Our Industrial Phosphate products will join our existing Industrial Solutions segment. Growing Solutions will remain dedicated to specialty crop nutrition, while our Commodity Phosphates and our Potash operations will join together to become our Essential Minerals segment. We believe this dedicated focus on the food, industrial and agriculture end markets will drive long-term growth. On Slide 18, you can see some of the expansion opportunities we are pursuing both organically and via acquisitions.

For food, we are actively integrating our Bartek acquisition and are already cross-selling several innovative new products. These include functional ingredients for our bakery customers such as solutions that provide optimal leavening and flavor control or that aid in dough processing and preservation. In the confectionery space, we have developed fortified gummies with calcium and magnesium and are providing other cleaner label solutions for this segment. In our Industrial Products business, we plan to leverage our technological expertise in advanced chemical solutions for electronic materials and manufacturing processes, together with our global reach and deep supply chain knowledge. This will allow us to capture growth opportunities driven by AI infrastructure, robotics, cutting-edge semiconductors and related technologies.

For Growing Solutions, we are advancing our focus on developing biostimulants products to enrich fertilizer efficiency. Through the use of state-of-the-art technology and by maximizing our advanced knowledge of fertilizer use and farmer needs, we are facilitating the development of new and innovative products for the agriculture industry. If you turn to Slide 19, I would like to highlight our ELEVATE cost transformation program. We expect approximately 50% to 60% of the projected EBITDA improvement to be driven by productivity gains and operational efficiencies. A reduction in external spend is expected to deliver 30% to 40% of our goal, while SG&A optimization efforts are forecasted to contribute the remaining 10% to 20%.

In total, ELEVATE is expected to deliver more than $350 million on an annual basis by the end of 2028. For 2027, we expect to see more than $150 million in annual EBITDA improvement by year-end. Finally, please turn to Slide 20, where I'd like to review a few strategic takeaways. This quarter was all about leading with resilience. Across our 4 business segments, we took proactive actions to effectively manage controllable factors. As a result, we delivered growth in third quarter sales and EBITDA despite challenging global and industry conditions. We also reduced our operating costs while capitalizing on the dynamic market conditions. We remain committed to pursuing long-term profitable growth.

Our transition to a new organizational structure in 2027 will help in directing our efforts. This new framework will help us in focusing on our growth engines and aligning our business with our strategic priorities and our customers' needs. Going forward, we will continue to maximize our core across the global food, industrial and agriculture markets. As you saw this quarter, our diversified portfolio of product offerings provides us with the flexibility to optimize our production utilization. It also enables us to benefit from global reach with strong local presence. We also look forward to delivering on our optimization and efficiency goals.

As mentioned, our ELEVATE implementation is on track, and we expect to meet our 2027 savings target of more than $150 million. Looking ahead to 2027, we expect to enter this year from a position of strength. Industry fundamentals appear constructive, supported by healthy global demand and continued supply and logistic constraints in key regions. In 2027, we believe we can continue to benefit from our diverse portfolio, which covers a wide array of end markets. Our solid balance sheet will provide resilient foundation. Our new segment structure will sharpen our focus on our core businesses and growth engines and the customers we serve. And our ELEVATE program is expected to begin delivering meaningful cost savings.

When combined, this positions ICL for stronger performance and growth as conditions normalize. We look forward to successfully leveraging market and industry dynamics as opportunities emerge in 2027. And with that, I would like to turn the call over to the operator for the Q&A session.

Operator: [Operator Instructions] Your first question comes from the line of Ben Theurer with Barclays.

Benjamin Theurer: First of all, congrats on a good third quarter. A combined question for you, Elad, probably and Asaf, feel free to chime in here as well. So as you look into the cost savings opportunities into 2027, so first of all, how confident are you with that $150 million to be achieved? And should we think about this over the course of the year to be incremental to it? And then basically by year-end, it would be an annualized number like that? And then obviously, in light of that, the market backdrop and you pointed it out just at the very end with the position of strength you're going in, strong balance sheet and the tightness in the market.

So what would you think is a reasonable assumption for like market growth into 2027 versus '26? What are the puts, what are the takes that combination with ELEVATE, how should we think about your setup for '27? That would be my first question.

Elad Aharonson: Okay. So let's start with ELEVATE. We have a very specific plan for 2027 now. And I have a high level of confidence that we'll achieve the $150 million in ELEVATE. The spread between the different quarters, I don't have it right now, but I think there are high chances that we'll meet the overall $150 million for 2027. As for the market, it differs between the different segments. So Potash, we feel the market is stabilized. The demand is there. I don't see any drama towards 2027. Phosphate, I would say demand will go up.

I'm talking about phosphate fertilizers now, demand will go up most probably because farmers will not be able to skip another season and some of them did skip the 2026 season because of the affordability. So as we see sulfur prices going down, probably prices will go down a bit also and demand will go up. That's about phosphate fertilizers. As for the industrial sector, right now, I don't see a real drama. Bromine prices nowadays, Q4 are higher than Q3. I hope it will stay like that for 2027, but it's still too early to say.

Asaf Alperovitz: Maybe just to complement a little bit. So in terms of ELEVATE, just to remind us that we have 3 levers, the increased productivity that we discussed, the reduced external spend and the optimization of the SG&A, our OpEx. As it relates to our focus, we are very, very focused and engaged and confident in our ability to present these savings. We will start realizing the savings in Q4 -- in Q1, sorry, of next year, and we'll see a gradual increase naturally because that's the way things develop. And we are very confident in our ability to achieve this goal, both for next year and as we indicated, at least $350 million for 2028.

Benjamin Theurer: Okay. Perfect. And then my second question is more short term in nature. If you look at your LTM EBITDA, basically, I mean, you're sitting very strong on a year-to-date basis. And then obviously, the fourth quarter last year, you would be really almost at the high end of what is your guidance range of $1.5 billion to $1.7 billion. You said on the call, feel confident to be above $1.6 billion. But like let's just say within $1.6 billion and $1.7 billion, what could go right? What could go wrong? What are the shorter-term risks to be, let's say, at the lower end, $1.6 billion?

What would be the opportunities to be at the higher end, $1.7 billion for 2026?

Elad Aharonson: So the -- thank you for this question. It's very important for me to clarify one thing about sulfur, which is a major factor for this year. The peak of the sulfur purchase prices we saw back in August. Since August, the sulfur prices that we buy are getting lower and lower. However, it takes time to consume the sulfur from the inventory all the way to the finished goods and then out of the inventory. So in that respect, Q4 will reflect higher cost of sulfur in the P&L versus Q3. However, the good thing is that purchase prices are still going down, and that's why we think in that respect, 2027 will be much better.

That will be -- as for now, that's the main headwind for Q4. As for the rest, I already said, bromine prices are relatively good. Potash prices, I don't see any major changes. Still, we are suffering a bit from the weak agriculture season in Brazil. As you all know, the second semester, that's the high season for agriculture in Brazil. And honestly speaking, it wasn't -- it was a soft season for Brazil. So it can happen that Q4 will be a bit lower, for sure, lower from the first semester of this year. However, coming towards 2027, we'll see much better focus.

Operator: [Operator Instructions] Your next question comes from the line of Joel Jackson with BMO Capital Markets.

Evan McCaul: It's Evan on for Joel. Just a question on potash. I know you just talked about there. But on Q4 for potash, should we see margins lower considering the flat to down global pricing and higher logistics and energy costs? And could the Q4 volumes overcome this in -- from an EBITDA perspective?

Asaf Alperovitz: I don't expect much changes in Q4 as it relates to potash versus Q3. Overall, we can say that the fundamentals for potash are quite constructive and strong. We see pretty healthy demand. As you know, Joel, prices were not elevated to the level we've seen for phosphate and nitrogen. And I think that we do see some upside potentially on the demand. We know that China are replenishing inventory. As you know, contract negotiations, we still expect to see the resolution of that. And we do expect for 2027 to see a strong demand. But between Q3 and Q4, we don't expect any dramatic change.

Operator: This concludes the question-and-answer session. I will now turn the call back to Elad Aharonson for closing remarks.

Elad Aharonson: Okay. Thank you, everyone, for participating in this call. Again, Q3 was a resilient quarter for us, taking everything into account. I think we performed very well. And I believe 2027 could be even better. Thank you, and see you, hearing you next time. Thank you very much.

Asaf Alperovitz: Thank you very much.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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