ICL Group stock edged up 1.6% to US$5.23 into the close, a calm reaction for a company that recently put a much stronger profit story back on the table. The key headline is profit quality. Adjusted earnings before interest, tax, depreciation and amortization rose to US$448m on US$2.1b of sales, while adjusted net income reached US$149m.

For a stock that has slipped about 13% over the last three months, this quarter looks less like a bounce and more like a test. The question now is whether this profit rebuild can continue in a business still exposed to volatile fertilizer and bromine markets.

Is ICL Group trading at a genuine discount, or does it only appear cheap because earnings have been affected by one-off items and weaker margins? See how the current P/E and cash flow estimates compare in the valuation analysis for ICL Group

Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs. Q2 2025): US$2,135m vs. US$1,832m (up 16.5%)
• Net Income, excluding extra items (Q2 2026 vs. Q2 2025): US$137m vs. US$93m (up 47.3%)
• Basic EPS (Q2 2026 vs. Q2 2025): US$0.106 vs. US$0.072 (up 47.3%)
• Trailing 12-month Net Income, excluding extra items (Q2 2026 vs. Q2 2025 TTM): US$305m vs. US$367m (down 16.9%)

Prefer clear visuals instead of scrolling through dense earnings tables and filings for ICL Group? See the full picture of the company with a visual breakdown of its recent earnings and broader financials in the company report for ICL Group.

ICL profit rebuild supports essential materials story

For investors leaning positive on ICL Group, the latest quarter gives some backing. Revenue of US$2,135m and adjusted EBITDA of US$448m moved up together, and adjusted net income of US$149m points to better earnings quality, not just cost cutting. Industrial Products and Potash both showed higher sales and EBITDA, which fits the view that essential materials with specialty exposure can support profit even when parts of the portfolio, such as Growing Solutions, come under pressure.

Cost inflation and Brazil keep cyclical risks alive

The cautious angle on ICL Group also has support. Trailing 12 month net income, excluding extra items, declined from US$367m to US$305m, which highlights that earnings recovery is not yet consistent. Growing Solutions EBITDA moved the wrong way despite sales growth, and management flagged sulfur, freight, currency and Brazil as meaningful headwinds. Sulfur costs and weaker Brazilian demand in particular underline how exposed parts of the business remain to input inflation and regional credit cycles.

After a quarter where ICL Group still faces lower margins, sizable debt and exposure to Brazil, review our full risk analysis for ICL Group which shows 5 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.