K+S returns to profit as EBITDA beats estimates, 2026 guidance raised

K+S AG, a European potash company, turned a profit in the second quarter thanks to robust demand for its key product and higher prices, while its operating EBITDA exceeded expectations, prompting the company to raise its 2026 earnings and cash-flow forecasts. For the quarter, the company reported a net income of approximately €21 million, compared to a €1.73 billion loss a year earlier, although the figure fell short of the €32.4 million consensus among analysts.

Revenue increased by 12.3% year-over-year to €978 million, outpacing the €920.5 million consensus, while operating EBITDA rose to €176 million from €110 million, surpassing the €150.7 million consensus by around 17%. The Agriculture segment, driven by higher sales volumes and prices, played a significant role in the improvement, with revenue reaching €700 million from €618 million.

Sales volumes in this segment excluding trade goods rose to 1.90 million tonnes from 1.74 million tonnes a year earlier. Additionally, industry revenue increased to €278 million from €254 million, supported by strong demand for de-icing salt and price increases. K+S has also raised its 2026 operating EBITDA forecast to €680 million to €760 million, which aligns with full-year market expectations.

The company also projected its adjusted free cash flow to be positive in the mid- to higher-double-digit million-euro range, a change from previously being at least break-even. CEO Christian H. Meyer credited strong potash demand, positive pricing, improved production, and a thriving salt business for the earnings and cash flow results, while acknowledging that uncertainty surrounding the Middle East conflict remains a risk to the outlook.