ICL Pivots to Food & Ag, Ditches Battery Ambitions in Strategic Overhaul

TEL AVIV, Israel – February 18, 2026 – Global specialty minerals company ICL Group posted strong fourth-quarter sales growth today, but the headline numbers were overshadowed by a sweeping strategic overhaul that will see the company exit the burgeoning battery materials market and sharpen its focus on high-growth specialty food and agriculture sectors.

ICL reported a 6% increase in consolidated sales to $1.7 billion for the fourth quarter of 2025. However, the company also recorded a net loss of $73 million for the quarter, driven by nearly a quarter-billion dollars in one-time charges related to its strategic pivot and a recent court ruling. Despite the loss on paper, the company’s adjusted earnings painted a healthier picture, with adjusted EBITDA up 10% to $380 million, signaling operational strength in its core businesses.

In a clear signal of its new direction, ICL announced the discontinuation of its downstream expansion into cathode active materials for Lithium Iron Phosphate (LFP) batteries, scrapping previously announced projects in St. Louis, Missouri, and Spain. The move comes as the company re-evaluates its capital priorities to fund what it calls its “profitable growth engines.”

“This momentum is expected to carry us into 2026, and we are looking forward to executing against our new strategic principles in the coming years,” said Elad Aharonson, president and CEO of ICL, in a statement. “This focus has resulted in a review of our capital allocation priorities and an evaluation of non-synergistic and low-potential activities.”

From Industrial Ventures to Food Ingredients

The decision to halt its LFP battery projects marks a significant reversal. While the LFP market is experiencing rapid growth fueled by the electric vehicle boom, ICL cited “shifting market dynamics and recent changes in government policies” for its withdrawal. The company will continue to supply raw materials like purified phosphoric acid to battery customers but will no longer pursue the higher-value, but more competitive, cathode manufacturing space. This strategic retreat allows ICL to redirect significant capital investment toward its chosen growth areas.

Furthering this portfolio realignment, ICL is also exploring the sale of its Boulby operations in the United Kingdom. The Boulby site, the world's only mine dedicated to producing the multi-nutrient fertilizer Polysulphate, represents a unique asset. Its potential divestment underscores the company's commitment to shedding non-core or capital-intensive operations to streamline its business model.

ICL’s new strategy crystallizes around two key pillars: specialty crop nutrition and specialty food solutions. The first concrete step in this direction was the January 2026 acquisition of a 49.9% stake in Bartek Ingredients, a global leader in food-grade malic and fumaric acids. These ingredients are crucial additives in the food and beverage industry, used to enhance flavor, extend shelf life, and improve product quality. The functional food ingredients market is valued at approximately $35 billion and is growing at a steady 5-6% annually, fueled by consumer trends toward health and wellness.

Navigating Costly Headwinds

ICL's strategic transition is not without significant costs. The company’s fourth-quarter results were heavily impacted by $239 million in adjustments, which it deemed unusual. Approximately $122 million of these charges are directly related to the new strategy, including write-offs from the closure of the LFP battery projects and efficiency improvements at other facilities.

Beyond the self-inflicted restructuring costs, ICL was also hit with an $80 million provision following a December 2025 Israeli Supreme Court ruling. The court determined that ICL must pay fees for water extracted from wells in the Dead Sea concession area, retroactive to January 1, 2018. This decision overturns years of government guidance that had exempted the company from such fees. The ruling saddles ICL with a one-time payment estimated between $70-90 million and imposes an ongoing annual cost of approximately $10-12 million, permanently altering the economics of its Dead Sea operations.

These financial pressures are compounded by the complex geopolitical landscape. The company noted challenges related to the security situation in Israel, which, while not having a material impact to date, continues to pose risks of supply chain disruptions and increased operational costs. The company's diversified global footprint has so far helped mitigate these regional pressures.

A Focused Path Forward

Despite the significant charges and strategic shifts, ICL's leadership projects confidence. The company issued guidance for 2026, forecasting consolidated adjusted EBITDA to be between $1.4 billion and $1.6 billion. It also expects to sell between 4.5 million and 4.7 million metric tons of potash, a key commodity.

All four of the company's segments—Industrial Products, Phosphate Solutions, Growing Solutions, and Potash—delivered sales growth in the fourth quarter. The Potash segment saw its average price per tonne jump 22% year-over-year to $348, while the Growing Solutions segment saw operating income rise by over 30% to $41 million, highlighting the strength in the very areas ICL plans to emphasize.

“We will stay focused on our core mission of driving profitable growth in all of our specialty businesses, while strengthening our leadership across all business segments,” Aharonson stated. As part of its shareholder return policy, the company declared a dividend of 4.65 cents per share, reinforcing its commitment to investors even as it undergoes this profound transformation.