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Investing.com -- K+S AG on Tuesday reported second-quarter adjusted EBITDA of €110 million, matching its July pre-release, and reaffirmed full-year guidance for EBITDA between €560 million and €640 million.
The midpoint of the range assumes an average selling price of €330 per tonne in the Agriculture segment excluding trade goods, with the upper end reflecting potential price increases and the lower end based on first-quarter levels of €325 per tonne.
The German chemical company also maintained its volume outlook for Agriculture at 7.5 million to 7.7 million tonnes and for de-icing salt at nearly 2 million tonnes.
Capital expenditure guidance remained at about €550 million, and adjusted free cash flow is still expected to be slightly positive.
Group sales in the quarter were €871 million, compared with €873.8 million a year earlier.
The figure exceeded Jefferies’ estimate of €840 million but fell short of the consensus forecast of €926 million.
Adjusted EBITDA margins declined 210 basis points year over year. Reported EBITDA reflected the impact of a previously disclosed non-cash impairment of about €2 billion in the Potash and Magnesium business, resulting from changes in foreign exchange assumptions, potash price outlook, and discount rates.
In the Agriculture segment, second-quarter sales totaled €618 million, up 5% from Jefferies’ estimate of €589 million and below the consensus of €658 million.
Volumes excluding trade goods were 1.74 million tonnes, consistent with the pre-release, reflecting a maintenance break at the Bethune site. Potassium chloride sales volumes were 1.06 million tonnes and specialty fertilizers were 0.76 million tonnes. The average selling price adjusted for trade goods was €336 per tonne.
Industry+ sales in the quarter were €254 million, slightly above Jefferies’ estimate of €251 million but below the consensus of €263 million.
Volumes were 1.31 million tonnes, including 0.19 million tonnes of de-icing salt, compared with Jefferies’ expectation of 1.51 million tonnes and consensus of 1.50 million tonnes.
Operating cash flow in the quarter was €103 million, compared with €94 million in the prior-year period.
Free cash flow was negative €7.5 million, an improvement from negative €24 million a year earlier. Net financial liabilities stood at €7.1 million, excluding leases and provisions.
For the first half of 2025, group sales were €1.84 billion, down 1.4% from €1.86 billion in the prior year. Adjusted EBITDA fell 5.5% to €310.3 million.
Adjusted free cash flow was €24.3 million, compared with €86.8 million in the same period of 2024.
The company confirmed its full-year assumptions for foreign exchange at EUR/USD 1.18, offset by a higher average selling price assumption.