K+S Corporation's Quarterly Earnings Report / Future Projections
In the second quarter of 2025, K+S Group's EBITDA came in lower than market expectations, primarily due to a one-off EUR 10 million charge related to the valuation of mining provisions and operational disruptions. These disruptions included a maintenance break at the Bethune site that started earlier than the previous year, a delayed departure of a bulk ship from port, and additional logistical challenges.
Despite these setbacks, the reported Q2 2025 EBITDA was EUR 110 million, compared to market expectations of EUR 139 million and last year's EUR 128 million. However, adjusted free cash flow for the quarter was in line with expectations.
Sales volumes in the Agriculture customer segment (excluding trade goods) were 1.74 million tonnes, lower than the market expectation of 1.84 million tonnes and last year's figure. Additionally, a less favourable USD/EUR exchange rate also negatively affected EBITDA.
The average price (excluding trading goods) in the Agriculture customer segment for Q2 2025 was 336 EUR/t. However, the preliminary results published by K+S Group do not include data for the average price for H1/2025 or the sales volume for H1/2025.
Despite the Q2 setback, K+S Group has confirmed its full-year 2025 guidance for EBITDA between EUR 560 million and 640 million and slightly positive free cash flow, supported by modest potash price gains. The full-year EBITDA forecast for 2025, including data for H2/2025, has not been updated based on the preliminary results published by K+S Group.
The market expectation for EBITDA in the full year 2025 is EUR 632 million, with a USD/EUR exchange rate of 1.12 USD/EUR assumed for the second half of the year. The finalization of K+S Group's accounts for H1/2025 is still ongoing, and the USD/EUR spot exchange rate for H1/2025 is not disclosed in the preliminary results published by K+S Group.
The H1/2025 half-year financial report of K+S Aktiengesellschaft will be published on August 12, 2025, where more details are expected to be revealed. Potash prices for H1/2025 are not mentioned in the preliminary results published by K+S Group.
[1] Source: K+S Group's Q2 2025 earnings release [3] Source: Reuters article, "K+S confirms 2025 guidance despite Q2 EBITDA miss"
Although K+S Group's Q2 2025 EBITDA did not meet market expectations, the company is still optimistic about its full-year 2025 finance goals, with a projected EBITDA ranging from EUR 560 million to 640 million, indicating a continued focus on business and investing in the future.
