ICL's Strategic Overhaul: New Segments and Elevate Program Signal a Shift in Focus
ICL Group delivered a standout second quarter, with sales up 17% year-over-year to $2.1 billion and adjusted EBITDA up 28% to $448 million. But the most significant news from the call wasn't the numbers—it was the announcement of a new organizational structure and a sweeping cost transformation program called Elevate. CEO Elad Aharonson described the shift as a careful review that led to “we have decided to embrace a new organizational structure” — Elad Aharonson, CEO · 2026-08-05. The move aligns the company's reporting with its end markets, creating four segments: Nutrition Solutions, Industrial Products, Growing Solutions, and Essential Minerals. This is a strategic pivot from a commodity-centric model toward higher-growth specialty businesses.
The new structure consolidates all food and industrial activities into dedicated segments. The Specialty Food business, currently part of Phosphate Solutions, gets a standalone platform with the ambition to double sales to $1.5 billion by 2029. Industrial Products will focus on electronics, semiconductors, and AI infrastructure, tapping into what the company calls "some of the most dynamic industries worldwide." This is a clear attempt to reposition ICL beyond its legacy agricultural inputs. The Elevate program is equally ambitious, targeting $150 million in annual EBITDA improvement by 2027 and $350 million by 2028. As the CEO emphasized, “we are going to win this $350 million until the end of 2028” — Elad Aharonson, CEO · 2026-08-05. That confidence is backed by the fact that ICL has 40 production sites and a complex supply chain, offering ample room for efficiency gains.
These initiatives are expected to deliver more than $150 million in annual EBITDA improvement by the end of 2027, growing to more than $350 million annually by the end of 2028.
Yet the quarter also highlighted persistent challenges. CFO Asaf Alperovitz reiterated guidance for consolidated EBITDA of $1.5–1.7 billion, noting expectations of higher raw material costs and currency headwinds. The biggest near-term drag is sulfur, whose spot price surged 72% sequentially and over 210% year-over-year. As the CFO noted, “we continue to expect consolidated EBITDA to be between $1.5 billion and $1.7 billion” — Asaf Alperovitz, Executive · 2026-08-05. This is a familiar theme: on the prior call, the CEO had already flagged “we are suffering from the sulfur prices but less from the ammonia prices” — Elad Aharonson, President and CEO · 2026-05-13. Brazil remains another soft spot, with farmer affordability and high interest rates pressuring demand. On the positive side, potash volumes and prices are stable, and industrial products saw EBITDA nearly double thanks to strong bromine prices.
ICL is at an inflection point. The new structure and Elevate program are designed to improve margins and cash generation, but execution will be key. The company is betting on its growth engine specialty businesses while managing commodity headwinds. With a new CFO and a clear strategic roadmap, the market will be watching whether these ambitious targets translate into sustained shareholder value. As the CEO put it, the company is "very focused" on delivering these goals, and the new organizational structure is intended to provide investors with enhanced visibility into the value creation potential of each segment.